Every year, more families look to relocate to Canada. Its friendly culture and gorgeous national parks are enough to draw even the most snow-averse people North. If you’re thinking about buying a home here but you’re not a Canadian citizen or a permanent resident, there are a few regulations to be aware of before putting your current home on the market. In 2022 the Canadian government introduced a law called the Prohibition on the Purchase of Residential Property by Non-Canadians Act. This act places some limits on who can buy certain types of homes in specific parts of the country.
That said, the restriction isn’t universal and there are exceptions depending on the type of property, its location, and your personal circumstances as a buyer such as your income, residency status, and whether you’re planning to live on the property. If you’re looking to purchase a home in the prairie region of Manitoba for example, the rules might be more flexible than urban areas.
What Is Actually Off-Limits?
The law focuses on homes in cities and nearby communities that are grouped together based on their population count. These areas are known as Census Metropolitan Areas (CMAs) and Census Agglomerations (CAs).
Non-Canadians are not allowed to buy residential properties with three units or fewer within these zones. This includes most single-family homes, condos, and duplexes. If you are hoping to buy a home in a major city or its surrounding areas then these rules may affect you.
What You May Still Be Able to Buy
You have an advantage if you’re planning to live on the property. Non-Canadian citizens may be eligible to purchase:
- Property outside CMA or CA zones, often in smaller towns or rural areas
- Larger residential buildings with four or more units(in specific situations outlined below)
- Vacant land within a CMA or CA, as long as it’s zoned for residential or mixed use
The bottom line? If you intend to buy a home for personal use, particularly outside major city zones, you may not be affected by this law.
Who Qualifies for an Exception?
Some non-Canadians are exempt from these restrictions. You may still be eligible to buy a home if:
- You are an international student who has been in Canada for at least five years (and meet other specific conditions)
- You are a refugee claimant
- You hold a valid work permit with at least 183 days remaining
If any of these situations apply to you, you may still be able to purchase a home in restricted areas.
What Does This Mean for Manitoba?
In Manitoba, the following areas are considered CMAs or CAs:
- Winnipeg
- Brandon
- Steinbach
- Portage la Prairie
- Winkler
- Thompson
If you’re looking to buy a home outside CMA or CA zones, the restrictions likely won’t apply to you. This opens up a multitude of new possibilities for non-Canadians who want to purchase a primary residence.
The Canada Mortgage and Housing Corporation has an online tool called the Property Location Checker where you can check whether a specific property is located in a restricted zone.
Speak to a Real Estate Lawyer Before You Buy
Buying a home is a huge life decision so it makes sense to anticipate and avoid complications before they arise. The Non-Canadian Property Purchase Ban has already been amended once, and additional changes are still possible. Before you begin the complex home-buying process, it’s important to confirm your eligibility under the current rules.
At Lange Law, we help clients understand which regulations apply to their unique situations and guide them through the legal process of purchasing a home in Canada. If you’re looking to buy a home and want legal clarity before you move forward, we are here to help.
Call us at 204-272-0266 or reach out through our contact form.
