Consultations on Foreign Buyer Ban Regulations

Summary#

The federal government launched consultations on policy proposals for regulations under the Prohibition on the Purchase of Residential Property by Non-Canadians Act. The consultations, run by Canada Mortgage and Housing Corporation (CMHC), ask for written feedback by September 16, 2022 ahead of the Act coming into force on January 1, 2023.

What it does#

• Explains the government wants input on details to put into regulations that go with the Act.
• The Act, passed on June 23, 2022, would stop non-Canadians and foreign commercial enterprises from buying non-recreational residential property in Canada for two years.
• The consultation focuses on definitions, clarifications, and exceptions that were mentioned in Budget 2022.
• Interested people and groups are asked to read CMHC’s consultation document (on the CMHC website) and send written comments to cmhcfeedback@cmhc.ca by September 16, 2022.

Who's affected#

• Non-Canadians and foreign companies who might buy Canadian residential property.
• People working in real estate: brokers, developers, landlords, and property managers.
• Housing advocates, municipal governments, and others interested in housing supply and prices.
• The consultation is open to any Canadians or stakeholders who want to comment.

Why it matters#

• The regulations will decide important details about who can and cannot buy residential property and what exceptions apply.
• If implemented as described, the rule would temporarily limit overseas buyers for two years, which could affect housing demand, sales, and investment decisions.
• People planning to buy property or working in housing should watch the rule-making and consider sending feedback before September 16, 2022.