The stated intention of the Act is to make residential homes more affordable for Canadians. To that end, Section 4 of the Act provides that “it is prohibited for a Non-Canadian to purchase, directly, or indirectly, any residential property.”

The Act defines Non-Canadian as:

1. an individual who is neither a Canadian citizen nor a person registered as an Indian under the Indian Act nor a permanent resident;
2. a corporation that is incorporated otherwise than under the laws of Canada or a province;
3. a corporation incorporated under the laws of Canada or a province whose shares are not listed on a stock exchange in Canada and that is controlled by a person referred to in paragraph (1) or (2); and
4. a prescribed person or entity,

The Act defines “residential property” as:

1. a detached house or similar building, containing not more than three dwelling units;
2. a part of a building that is a semi-detached house, rowhouse unit, residential condominium unit or other similar premises;
3. prescribed real property or immovable,

Section 6 of the Act makes it an offence for a Non-Canadian to purchase residential property covered by the Act. It also creates an offence for every individual that counsels, induces, aids or abets a non-Canadian to purchase any residential property covered by the Act knowing that the non-Canadian is prohibited. All such persons are liable on summary conviction to a fine of not more that $10,000.

Updated March 2023:

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

➡️Work permit holders can buy homes.

➡️Non-Canadians can buy land for residential/mixed-use.

➡️Non-Canadians can buy residential property for development.

➡️Corporation foreign control threshold to 10% from 3%.