Homeownership is a dream shared by many Canadians, and it is an important part of Canadian culture. But what about non-Canadians who wish to purchase a residential property in Canada? Are there laws that limit or prohibit foreign buyers from buying property in Canada? The answer is yes — there are some laws and restrictions in place for non-Canadians purchasing residential property in Canada. Let’s take a closer look at these laws and why they exist.
What are the Restrictions on Non-Canadians Purchasing Property in Canada?
The Residential Tenancy Act (RTA) restricts non-Canadians from purchasing residential properties in certain provinces. In British Columbia, Saskatchewan, Manitoba, Ontario, Prince Edward Island, Nova Scotia, and Newfoundland & Labrador, non-Canadians may not purchase residential property unless they are residents of Canada. So while non-residents may be able to own commercial properties or vacation homes in those provinces, they cannot purchase any type of residential property.
In Quebec and Alberta, the situation is slightly different. Non-residents may purchase single detached homes but not condominiums or other types of multi-family dwellings. They are also subject to more stringent financial requirements before being approved for a mortgage. This includes having a minimum down payment of 25% for their first home purchase and 35% for subsequent purchases.
Why Do These Restrictions Exist?
The restrictions on non-Canadians purchasing residential properties in certain provinces exist primarily to protect the housing market from being driven up by foreign buyers looking to invest their money without actually living there themselves. Without these restrictions, it could lead to an increase in real estate prices that would make it harder for Canadians to afford homes within their own country — something that could have a significant impact on Canadian culture as homeownership has long been seen as an important milestone within Canadian society. It could also lead to speculation on the housing market which could cause instability and further price increases over time.
Non-Canadians wishing to purchase residential properties within certain provinces should be aware of the restrictions placed on them by the RTA before making any decisions about investments or purchases within Canada’s housing market. While these restrictions exist mainly to protect Canadian homeownership rights and prevent speculation on the housing market, they can still be beneficial for foreign buyers who are willing to explore their options carefully before making any major investments into real estate within our country. As always, consulting with legal professionals prior to making any final decisions can help ensure you understand all applicable laws surrounding your potential real estate purchases as a non-Canadian buyer!
