January 1, 2023 the Canadian Government implemented a ban on purchases of property by Foreign Buyers. At first glance many Canadians wondered if this would cause their property values to plummet but that is not going to happen. The overall foreign ownership in Canada is less than 6% and this is mainly in larger cities such as Toronto and Vancouver. Foreign property purchases in Vancouver in 2022 were less than .5%.
According to CMHC, the Canadian Mortgage and Housing Corporation the ban “only applies to properties defined metropolitan, a place with a population of at least 100,000 people with a minimum of 50,000 people living at its core and agglomeration, a place with a core population of at least 10,000. There are also many exemptions to the ban, including non residents married to a Canadian, Diplomats, Refugees or those with temporary tax status, and students from abroad studying here (although the purchase price for this category is a maximum of $500,000).Most experts do not feel that this ban will have any affect on the Real Estate Market in Canada. When you take into account the very low numbers of foreign ownership overall and the purchase history over the last few years it is negligible. However, on the other hand, in 2022 Canada welcomed 431,645 new residents in 2022. A record number and the Government states they expect to continue surpassing this record. (https://www.canada.ca/en/immigration-refugees-citizenship/news/2022/12/canada-welcomes-historic-number-of-newcomers-in-2022.html)If you have questions or concerns regarding this ban, don’t hesitate to reach out!
According to CMHC, the Canadian Mortgage and Housing Corporation the ban “only applies to properties defined metropolitan, a place with a population of at least 100,000 people with a minimum of 50,000 people living at its core and agglomeration, a place with a core population of at least 10,000. There are also many exemptions to the ban, including non residents married to a Canadian, Diplomats, Refugees or those with temporary tax status, and students from abroad studying here (although the purchase price for this category is a maximum of $500,000).Most experts do not feel that this ban will have any affect on the Real Estate Market in Canada. When you take into account the very low numbers of foreign ownership overall and the purchase history over the last few years it is negligible. However, on the other hand, in 2022 Canada welcomed 431,645 new residents in 2022. A record number and the Government states they expect to continue surpassing this record. (https://www.canada.ca/en/immigration-refugees-citizenship/news/2022/12/canada-welcomes-historic-number-of-newcomers-in-2022.html)If you have questions or concerns regarding this ban, don’t hesitate to reach out!