Life in Canada
Canada Bans Foreign Home Buyers Until 2027, Alters Housing Market and Prices
The Canadian government, in a bid to address housing concerns, has extended the Prohibition on the Purchase of Residential Property by Non-Canadians Act until January 1st, 2027. Originally designed to boost housing availability for Canadians, this policy will now persist for an additional two years, shaping the Canadian housing market.
The extended policy maintains the ban on non-Canadians (excluding citizens or permanent residents) from purchasing residential properties with three dwelling units or fewer. Exceptions allow non-Canadians to buy outside Census Metropolitan Areas and Census Agglomerations. We delve into the nuances of this policy and its impact on the Canadian housing market.
While the ban holds firm, certain scenarios permit non-Canadians to acquire residential property, such as cases involving divorce, separation, gifts, or deaths. Recent amendments also enable non-Canadians with valid work permits to purchase mixed-use and commercial land, provided they meet specific criteria.
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Documentation and Compliance
To adhere to the act, non-Canadians must furnish documentation like work or study permits issued by Immigration, Refugees and Citizenship Canada (IRCC), emphasizing transparency in property transactions.
The legal repercussions for non-Canadians found violating the act emphasize the criminal nature of such offenses. Penalties, including fines up to $10,000 and potential property sale orders, underscore the severity of non-compliance.
Affordable Canada Housing Initiatives across Provinces
The extension aligns with the Canadian government’s broader strategy to enhance affordable housing. Initiatives like the Apartment Construction Loan Program and the Housing Accelerator Fund contribute to the comprehensive approach.
Analyzing data from the Canadian Real Estate Agency (CREA), the blog navigates through the current housing landscape. Average home prices, witnessing a 5.1% increase in December 2023 compared to the previous year, shed light on the evolving market dynamics.
Visualizing housing prices across provinces and territories, the blog encapsulates the unique scenarios in each region. It touches on the standout case of the Northwest Territories in Canada, which experienced a 40% surge in house prices due to factors like supply shortages and increased wildfire risks.
The table below summarises the average house prices for each province and territory in Canada as of September 2023.
| Rank | Province / Territory | Average House Price (Sept 2023, CAD) |
| 1 | Northwest Territories | $561,080 |
| 2 | Novia Scotia* | $398,000 |
| 3 | Quebec | $499,911 |
| 4 | Alberta | $450,105 |
| 5 | British Columbia | $969,306 |
| 6 | Manitoba | $351,445 |
| 7 | Newfoundland & Labrador | $295,400 |
| 8 | New Brunswick* | $292,600 |
| 9 | Ontario | $851,756 |
| 10 | Prince Edward Island* | $365,200 |
| 11 | Saskatchewan* | $328,000 |
| 12 | Yukon | $531,609 |
Please note that asterisks (*) indicate data obtained using the MLS® HPI tool from the Canada Real Estate Association.
Market Trends and Predictions in 2024
The blog concludes by exploring the broader trends in Canada’s housing market, projecting a potential shift in 2024. While regions like British Columbia and Ontario may witness a slight drop in prices, they are expected to remain significantly higher than pre-pandemic levels.
