Canada Bans Foreign Buyers

Canada’s Prohibition on the Purchase of Residential Property by Non-Canadians Act went into effect for two years beginning on New Year’s Day 2023. The passage of the bill by the Canadian Parliament in 2022 led to a buying spree by non-Canadians intent on acquiring residential real estate in Canada before the moratorium began. Recreational properties were especially popular because of their exemption from Canada’s foreign homebuyer tax. According to a Royal LePage survey, approximately 75 percent of US citizens who currently own Canadian recreational property bought after the ban was announced in April 2022. Seventy percent of those surveyed had a Canadian spouse or enjoyed dual citizenship. The most popular reasons cited for purchasing Canadian properties were retirement, investment, and the exchange rate of the Canadian dollar, which currently trades at 74 cents to the US dollar. Read more HERE.