Canada Extends Foreign Home Buyer Ban Until 2027

Thursday Feb 22nd, 2024


In a continued effort to keep Canadian homes in the hands of Canadians and our families, the government has extended the Prohibition on the Purchase of Residential Property by Non-Canadians Act until January 1st, 2027.

The policy, which was initially instituted to increase the number of housing units available to Canadians for purchase, will now be in place for an additional two years.  Initially, the home buyer ban was set to expire at the start of 2025.

Under this extended policy, non-Canadians (those who are not Canadian citizens or permanent residents) are prohibited from buying residential property, which is defined as buildings with 3 dwelling units or less, and includes detached, semi-detached houses, townhouses and condominium units.


Are there any situations where non-Canadians can buy or receive residential property?

Yes, there are some instances where non-Canadians would be allowed to purchase residential property:

  • When a non-Canadian acquires an interest in a residential property because of a divorce, separation, gift, or death;
  • When a creditor exercises a security interest or secured right, such as the seizure and foreclosure of a residential property; or
  • When a non-Canadian purchases residential property for development.

In April, 2023, the government amended the initial rules, allowing non-Canadians ,with a valid work permit , to purchase mixed-use and commercial land, if they meet the following requirements:

  • They have at least 183 days left on their work permit or have work authorization at the time of purchase; and
  • They have not purchased more than one residential property in Canada.

The Amendment also repealed other conditions for non-Canadians (including previous work experience and tax requirements) and now allows non-Canadians to buy vacant land zoned for residential and mixed-use purposes, that can be used for any purposes by the purchaser, including residential development.


What happens if non-Canadians are found improperly buying Canadian residential property?

Should non-Canadians be found in violation of this act, it will be treated as a criminal offense, and penalties may be imposed. Non-Canadians found in violation of the Act (and any parties that have assisted them) may be fined up to $10,000.  As well, a court can order the immediate sale of the property with the non-Canadian  only the original price paid to purchase it and nothing more.

Even a corporation or entity , its officers, directors, senior officials, and other representatives can be found liable for this offense.



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