Canadian Legislation Bans Foreigners From Buying Homes

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

On June 23rd, 2022, the Parliament of Canada passed legislation called “The Prohibition on the Purchase of Residential Property by Non-Canadians Act”, which will come into force on January 1st, 2023. 

The Government is now working to finalize certain details in regulations under the Act. These details include selected definitions, exceptions and enforcement elements. Additional revisions may still affect this new actm but stakeholders are advised to check early if the Act could apply to them and the implications. 

The Act prohibits non-Canadians from purchasing, directly or indirectly, residential property in Canada for a period of two years. Canadian Citizens and Permanent Residents are not subject to the prohibition. 

The act defines residential property to include any real property or immovable property of not more than...


Underused Housing Tax (UHT)

What you need to know if you own real estate in Canada

On June 9, 2022, Canada’s Bill C-8 was enacted. The bill implements certain measures including Canada’s new 1% “Underused Housing Tax”. This new law is retroactively effective January 1, 2022. The stated purpose for introducing this national tax was to ensure that non-resident owners who were using Canada as a place to passively store their wealth in housing pay their fair share.

Some details have not been confirmed yet thus regulation and additional revisions may still affect this new tax regime. Real Estate owners are advised to check if this new Act applies to them and / or if they have a tax filing requirement.

The Underused Housing Tax which applies on a calendar year basis is an annual 1% tax on the value of vacant or underused residential property directly or indirectly owned by non-Canadians and non- Residents on December 31 st of the particular calendar year.



Interest Rates in Canada have been going up

Find out how this is influencing the real estate market in Canmore!

On September 7th, 2022, the Bank of Canada raised interest rates by 75-basis points. The benchmark rate increased from 2.5% to 3.25%, a 14-year high. This was the fourth consecutive outsize rate increase and hit a level not seen since April 2008.

Given the outlook for inflation, the Central Bank is anticipating that the policy rate will still need to increase further.

The Bank’s next rate announcement is on Oct. 26th, 2022. It will also publish its quarterly monetary policy report, which lays out the central bank’s latest inflation and economic growth forecasts.

Raging inflation, Covid still around the corner, a War in Europe …. in a globalized world, these international crises influence real estate even in such small and remote places like Canmore. Predictions on future market developments are dependent on multiple factors and become more and more challenging....