The Prohibition on the Purchase of Residential Property by Non-Canadians Act that was passed in June 2022 has become applicable from the start of 2023. In that case, any foreigner who is not a Canadian citizen or a permanent resident is prohibited from purchasing non-recreational residential property in Canada. Here, residential property refers to any building or house that can be used for residential purposes.
This initiative came into effect as a way to reduce the housing cost in Canada which has witnessed a considerable hike in recent times. According to the Canadian Real Estate Association (CREA), with the average price of a home standing at $632,802 as of November 2022, many Canadians will not have the opportunity to buy a house of their own. It is more so since the average income of Canadians is $58,800, according to the 2021 data. Foreign investors buying residential property in Canada have been marked as the sole reason for the hike in housing costs.
However, temporary residents can still buy homes in Canada outside the metropolitan areas. At the same time, there is no prohibition on buying recreational properties like cottages or vacation homes. As a temporary resident, one can also buy property if they can prove their intention of becoming a permanent resident in Canada. For this, various work permits have different eligibility requirements that one needs to fulfill such as filling out tax returns properly.