If you have just arrived in Canada and you are well off, you may want to invest in a home. But do you know if the government allows you to do so? Foreigners who want to buy a home in Canada must not only have money, they also require legal status and, of course, knowledge of the laws and government updates.

Since 2023, there has been a prohibition for non-resident aliens to purchase property, which was extended until 2027. However, there are exceptions for certain immigrants. Read with me to the end and learn who is exempt from this ban and what to avoid to avoid breaking the law. Let's get started.

‍

‍

Buying a home based on your immigration status

‍

The first thing is to know your possibilities according to your status (and not your money). While there is a prohibition for non-resident aliens, this law has important exceptions for immigrants who are already in the country, these are:

• Permanent residents and refugees. They have the same right as Canadian citizens to purchase any type of property.
• Workers and students with a valid work permit or an eligible international student under certain conditions. 
• Diplomats and members of international organizations.

‍

‍

Regulations and considerations for the purchase of real estate in Canada by foreigners

‍

In 2024, then Prime Minister Justin Trudeau stated, "Homes are for people, not investors." This statement emphasizes Canada's policy of preventing residential real estate from being treated as a commodity, rather than a place to live.

As a result of this position, a number of restrictions have been implemented that affect foreign buyers. 

‍

Restrictions and their alternatives

The limitations apply primarily to residential properties. For foreign buyers who wish to reside in Canada for an extended period of time, an appropriate visa or permit, such as a temporary resident visa, work permit or study permit, is required. However, there are some exemptions and their alternatives:

• Commercial real estate: restrictions do not apply to commercial properties, allowing foreigners to invest in multi-unit or business properties.
• Vacation homes: in some recreational areas, non-residents may purchase properties, provided they comply with specific local regulations.

‍

Fiscal commitments

Foreign buyers are subject to additional taxes intended to discourage speculation. These include:

• Non-Resident Speculation Tax (NRST): applies in provinces such as Ontario and British Columbia, and represents a 15% to 20% surcharge on the purchase price.
• Vacancy tax: has been implemented in cities such as Vancouver and Toronto to discourage properties from being left unoccupied.

‍

‍

Consequences of the illegal purchase of a property in Canada

‍

The Canadian government takes the prohibition of property purchases by non-resident aliens very seriously. If you, through ignorance of the law or professional malpractice , violate the government's rules, you will face serious and costly consequences.

A home purchase channeled by an unregulated professional, for example, an agent or manager, can lead you to commit a criminal offense, and be fined up to 10,000 Canadian dollars. But the most severe sanction is that a court can order the compulsory sale of the property, without overlooking the consequences on your own immigration status.

For corporations or entities that violate the law, officers and representatives may also be held liable for this offense.

‍

‍

How to find the right professional team to buy a house in Canada?

‍

This process should be carried out by experts in real estate law. The professionals who can assist your purchase are from start to finish:

• The mortgage broker, who will find the best loan for your profile. He or she should have experience working with immigrants and know the banking options available to you.
• The real estate agent, who will help you find the ideal property, negotiate the price and present your offer.
• The Canadian-credentialed real estate lawyer, who will handle the entire legal process, from reviewing the contract and conducting the title search to ensuring that the closing of the transaction is correct and you comply with the immigration laws and requirements for this purpose. 

Every step is important, but know that the protection of your investment and your immigration status is in the hands of your attorney. 

‍

‍

Immiland Law Professional Corporation: Real Estate Law Services

‍

In Canada, immigrants are not alone. There are supportive resources such as our legal representation firm, Immiland Law. 

Here, we offer complete management of the purchase and sale of properties, both residential and commercial. This includes the preparation of all necessary documentation , the registration of the title deed and the transfer of funds in a safe and efficient manner. 

In addition, we can provide expert advice on your immigration status to ensure that your status is in line with the current laws of the country. 

Our team is made up of CICC regulated consultants and Canadian lawyers. Meet our team of experts here.

Buying a home in Canada is one of the biggest decisions you will make in your new life. It is an important step that must have proper preparation and expert guidance. Ensure the well-being of you and your family with good legal representation.

If you would like an Immiland Law expert to review your purchase process, contact us and we will be happy to assist you.

Thank you very much for reading us, success in your transactions and see you soon!

‍

With love, 

‍

Immiland Law Professional Corporation