Starting today, commercial companies and foreign individuals will not be able to buy residential property in Canada for two years.
The Canadian Mortgage and Housing Corporation previously announced the regulations for the ban, which will come into effect on January 1.
The ban was passed in Parliament on June 23, hoping to address housing affordability challenges in the country.
Nonresidents who violate the ban, and anyone who knowingly assists them, can be fined up to $10,000 and ordered to sell the property.
There are several exemptions to the ban, including:
- Canadian citizens and permanent residents
- International students who meet certain criteria, such as having spent most of the previous five years in Canada. These students could purchase a property for no more than $500,000
- Workers who worked and filed tax returns in Canada for at least three of the four years prior to purchasing a property
- Diplomats, consular staff, members of international organizations working in Canada
- Foreign nationals with temporary resident status, including those fleeing conflict and refugees
- Buildings containing more than three dwellings and recreational properties (cottages, cabins, vacation homes)
Housing Minister Ahmed Hussen said in a press release that housing should not be a “commodity” and that the ban will ensure that homes are owned by Canadians.