Prohibition on the Purchase of Residential Property by Non-Canadians Act

On June 23, 2022, the federal government passed legislation that will prohibit non-Canadians from acquiring residential real estate in Canada for a two-year period. The legislation to implement the prohibition, the Prohibition on the Purchase of Residential Property by Non-Canadians Act (the ”Act”) will come into force on January 1, 2023.

The Canada Mortgage and Housing Corporation (“CMHC”) has initiated a consultation seeking feedback on policy elements to include in regulations under the Act, such as potential exceptions to the prohibition and enforcement. Mortgage brokers and those who work with foreign buyers may wish to provide feedback and comment on the policy proposal via the CMHC website. The consultation closes on September 16, 2022. For mortgage brokers, it is important to remember that they are are expected to adhere to this new legislation as part of your duties and obligation to clients, as with any other federal, provincial, or municipal laws. Any person or entity that knowingly assists a non-Canadian in contravening the prohibition is guilty of an offence and can be liable for a fine of up to $10,000. BCFSA is monitoring this legislation and will provide further information once CMHC has concluded its consultation and the Regulations are finalized.

More information will come by MortgagePRO Ltd. please ask by phone 403-253-2022 or email to [email protected]