Moving to a new country can be exciting even if it feels overwhelming. From navigating immigration paperwork to moving your household across borders, there’s a lot to do and plenty of complexities to navigate. And if you’re purchasing a home, that comes with its own set of challenges.
Since the beginning of 2023, a law has been in place preventing non-Canadians from purchasing certain residential property in Canada. Officially called the Prohibition on the Purchase of Residential Property by Non-Canadians Act, the ban has been extended to January 1, 2027. It applies to residential properties (dwellings with three units or less) located in a Census Metropolitan Area (CMA) or Census Agglomeration (CA).
“As a result, many international buyers are in a holding pattern,” says Julian Kashani, a REALTOR® and broker at Property.ca Inc. Brokerage in Toronto. “Students are particularly affected. They come here wanting to buy a place, but end up having to rent, adding more demand to an already overheated rental market.”
Exceptions to the ban
The foreign buyers ban doesn’t apply to everyone. Here are some of the exceptions:
• Students who meet certain criteria can buy a property for $500,000 or less.
• Temporary residents who have work permits with 183 days or more left.
• People fleeing an international crisis, if certain conditions are met.
• Non-Canadian spouses or common-law partners, provided they purchase the property with their Canadian spouse or common law partner.
• Those purchasing a property located outside of a CMA or CA.
• People buying a residential property with four or more units.
• Those purchasing vacant land.
Learn more by reviewing CMHC’s guidance on the foreign buyer ban at cmhc-schl.gc.ca
Start with some research
Whatever your situation, it’s smart to do your research early, looking at specific areas, property types and prices, educating yourself on the local market, and finding a REALTOR® in Canada to help you navigate the process.
“I suggest looking four to six months before you intend to purchase,” says Tiffany Khuu, a REALTOR® and broker of record at Rimrock Residential Sales and Leasing Ltd. in Calgary. “Given the lack of supply in the market right now, it can be hard to find properties that meet your specs and price point. Plus, it’s good to start scoping out neighbourhoods early and getting a realistic idea of what you can buy that’s within your budget.”
Find the right REALTOR®
REALTOR.ca lists every REALTOR® in Canada: you can search by location, specialty, designation, and languages spoken. Here in Manitoba, you can start your search at www.winnipegregionalrealestatenews.com or scan the QR code below.
“Talk to two or three agents,” says Kashani. “See who you’re comfortable with, make sure they’re very familiar with the area you’re interested in, know the schools, and can answer your questions, determine your ideal property, and guide you through the process.”
Find a neighbourhood you like
REALTORS® are local real estate market experts who can help you find a place where you feel at home, even if you’re buying in a city you aren’t familiar with. They can also assess trends in a certain area to give you a more fulsome picture of what it might look like in a month’s or year’s time.
“I start off by asking clients what kind of environment they prefer,” says Kashani. “Do they want to be right in the action or live somewhere more quiet? Where do they work? How do they like to spend their weekends? What kind of schools are they looking for? From there, I introduce them to a few neighbourhoods, and then we start looking at properties.”
If you’re eligible to buy before 2027
If you’re exempt from the ban and already living in Canada, the buying process is fairly standard. Your REALTOR® can connect you with a mortgage broker or agent so you discover how much you’re pre-approved for and start your search knowing what you’ll be able to afford. Search listings online and ask your REALTOR® to book showings for the ones you like. If you aren’t living in Canada yet, they can set up virtual walkthroughs for you. Your REALTOR® can guide you through the entire buying process, and be there to answer any and all questions you might have.
If you’re not eligible, but want to move to a CMA or CA before 2027
You’ll probably want to find a rental property. Keep in mind the rental market is competitive right now, and finding a place can be challenging. To get a sense of prices across Canada, you can search online and sort properties by rentals, or again, get in touch with local REALTORS® to see what’s happening in their areas.
Not having a Canadian credit history can also present challenges to finding a rental unit. Khuu says it helps if you have all your paperwork ready to go, including letters of employment, pay stubs, character references, and references from previous landlords.
If you’re moving to Canada in 2027 or later
International buyers will have a lot more options once the ban is over. For now, do your research and connect with a local REALTOR® who can answer questions, take you on virtual tours, and ensure you’re set up for success when the time comes to buy.
Three things you should keep in mind as a post-ban foreign buyer:
• Owning property in Canada doesn’t have any impact on your immigration or citizenship status.
• While you can get a mortgage in Canada, your down payment will need to be between 35 and 50%.
• Any rental income is subject to income tax.
Canada is a great place to live — we hope your move here goes smoothly, and when you’re ready to buy, an expert local REALTOR® will be happy to help you find a home you’ll love!
The information contained within this article is current as of the date of its publication. The information about the foreign buyer ban is based on guidance from CMHC. It is not legal advice or a substitute for legal counsel.
— Realtor.ca