CMHC introduces new measures aimed at foreign home buyers

Canada Mortgage Housing Corporation (CMHC) implements new rules that will be used for the introduction of the “Prohibition on the Purchase of Residential Property by Non-Canadians Act,” which starts on January 1 and will last for two years.

Under this Act, non-Canadian citizens, non-permanent residents, and foreign commercial enterprises will not be allowed to purchase non-recreational residential property in Canada.

“As part of its policies for improving housing affordability, the government of Canada introduced these measures in Budget 2022 in order to make sure that real estate is owned by Canadians, and not by foreign investors,” – CMHC explained.

Violators will have to pay a $10,000 fine and could be forced to sell the purchased property. However, CMHC says there will be certain exceptions for those who have temporary work permits, international students, and those who have applied for refugee status if they meet the necessary requirements.

“Homes should not be commodities,” – said Ahmed Hussen, Minister of Housing and Diversity and Inclusion. “People should live in homes, families should lay down roots there, create memories and build a life together. With the help of this Act, we’re taking action to make sure that housing is owned by Canadians.”