On January 1, 2023, the federal Prohibition on the Purchase of Residential Property by Non-Canadians Act came into force. Parliament passed the Act on June 23, 2022, and the ban is set to last two years.
What the ban covers
- Foreign commercial enterprises and people who are not Canadian citizens or permanent residents cannot buy non-recreational residential property in Canada.
- A non-Canadian who buys in breach of the ban faces a fine of $10,000.
- The regulations, published in the Canada Gazette on December 21, 2022, set out exceptions. Temporary work permit holders, refugee claimants and international students may be exempt if they meet certain criteria.
What it means in Calgary
The federal government presented the ban as one of several measures to keep homes for people who live in them. In Calgary, most buyers are local or are moving here from other provinces, so the direct effect on day-to-day sales is likely to be small. It matters most for newcomers who do not yet have permanent residence.
Our advice: if you are new to Canada, check whether an exception applies to you before you make an offer, and ask a real estate lawyer to confirm it. We are happy to connect you with one.
Why Ottawa introduced the ban
The government announced the measure in Budget 2022 as part of its plan to tackle housing affordability, saying it wants homes to be owned by Canadians and not by foreign investors. The Act passed on June 23, 2022. The regulations published on December 21, 2022 set out the definitions, exceptions and clarifications needed to apply it, and they are written to be repealed automatically after two years.
The ban applies to non-recreational residential property. In practice, that means the houses, townhouses and condominium apartments most Calgarians buy and sell every day. Recreational property, such as a cabin, is not the target of the law.
Calgary benchmark prices by type, November 2022
Who is affected, and who may be exempt
The law covers two groups: people who are neither Canadian citizens nor permanent residents, and foreign commercial enterprises. Citizens and permanent residents are not affected, wherever they live today. The government says some people may be exempt if they meet certain criteria, including temporary work permit holders, refugee claimants and international students. The criteria are specific, so the exception is not automatic.
A buyer who breaks the rule faces a $10,000 fine. Anyone who is unsure about their status should get advice before signing a purchase contract, not after.
What it means for Calgary buyers and sellers
Calgary enters 2023 with very little supply. In its latest monthly release, on December 1, 2022, CREB reported that November inventory fell to the lowest level for the month since 2005, while year-to-date sales were nearly 10% above the previous record set in 2021. Detached prices had eased from their May peak of $648,500 to $619,700. In a market like this, demand comes mostly from people who already live here or are moving from other provinces, so the ban should not change prices much. The groups to watch are newcomers who arrive on work permits and have not yet received permanent residence, and buyers working through a company based outside Canada.
- Newcomers: keep copies of your permit and the documents that show how long you have lived in Canada; your lawyer may need them.
- Sellers: if a buyer is not a citizen or permanent resident, give your lawyer time to review the offer before conditions are removed.
- Investors: buying through a corporation now needs a careful review of who controls it.
The ban is temporary by design, so we will report on any change to its length or exceptions.
The law limits new purchases; it does not require anyone to sell a home they already own. For a non-resident planning a move to Calgary, renting first and buying once your status allows it is often the simplest path.
