Foreign home buyers officially banned from purchasing real estate in Canada

Starting today, foreign commercial enterprises and people will be banned from purchasing residential properties in Canada for two years.

The Canadian Mortgage and Housing Corporation previously announced the regulations for the ban, which come into effect on Jan. 1.

The ban passed in Parliament on June 23, with the hopes of addressing housing affordability challenges in the country.

Non-residents found violating the ban, and anyone who knowingly helps them, can be fined up to $10,000 and may ordered to sell the property.

There are several exemptions from the ban, including:

• Canadian citizens and permanent residents
• International students who meet certain criteria, including having spent the majority of the previous five years in Canada. These students would be able to purchase property for no more than $500,000
• Workers who worked and filed tax returns in Canada for at least three out of the four years prior to purchasing property
• Diplomats, consular staff, members of international organizations working in Canada
• Foreign nationals with temporary resident status, including those fleeing conflict and refugees
• Buildings containing more than three dwelling units and recreational property (cottages, cabins, vacation homes)

Housing Minister Ahmed Hussen said in a news release that housing should not be a "commodity" and that the ban will make sure homes are owned by Canadians.