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Weekly roundup of properties that recently sold in Metro Vancouver.

1103 — 1790 Bayshore Dr., Vancouver

Type: Two-bedroom, two-bathroom apartment

Size: 1,553 square feet

B.C. Assessment: $1,930,000

Listed for: $2,188,000

Sold for: $2,150,000

Sold on: Jan. 20

Days on market in this listing: Two

Listing agent: Holly Calderwood PREC at Royal LePage Sussex

CLICK HERE TO READ MORE 

Dining out in Vancouver

The Michelin Guide has finally come to Canada’s third largest city. Not only did Michelin award eight Vancouver restaurants with coveted stars, a dozen other restaurants received Michelin’s Bib Gourmand designation, which recognizes value and quality. Michelin also added another 40 Vancouver restaurants to their recommended list. Click here to learn more

Did you know that the sale of commercial real property is treated as a taxable supply, for which the Goods and Services Tax (“GST”) applies? A common pitfall for investors and advisors in real property transactions is determining whether GST will apply to a transaction, and which party is responsible for paying it. The application of GST in residential and commercial real property sales is set out in Canada’s Excise Tax Act, R.S.C., 1985, c. E-15 (the “ETA”). Generally, GST applies to all transfers of real property, unless explicitly exempted.

Under the ETA, an owner or vendor of a property is obligated to collect and remit GST. However, excluding certain circumstances involving residential complexes and special types of properties, if the purchaser is registered for GST purposes, then the purchaser will be obligated to account for GST instead. In this situation, the vendor should obtain and validate the purchaser’s GST registration number and the purchaser may claim an input tax credit on its GST remittance form, if eligible.

Commercial transfers of real property will be subject to GST. Moreover, purchasers of new residential property, including pre-sales, will be required to pay GST. Broadly, there are several exemptions under the ETA for real property transactions:

1. Property that has been previously occupied and used for residential purposes will be exempt from GST. However, if the property was substantially renovated prior to being sold, then GST may apply to the sale of that property.
2. Residential lands, such as a residential land leases or trailer parks.
3. Land or residences acquired for personal use, unless the land is subdivided into more than two parcels.
4. Bare land sold by non-profit organizations or an individual or trust will usually be GST-exempt. However, land sold by a corporation or partnership will be subject to GST.

Note that GST is also payable on rental payments for commercial properties, unless specifically exempted, such as a lease made by a public service body. Businesses paying a commercial lease will usually be entitled to claim an input tax credit on that GST, but landlords of residential leases will not be able to claim input tax credits on their businesses.

All stakeholders in commercial real estate should be well advised as to their obligations, liabilities and exemptions. They should make clear in their contracts whose responsibilities it is to pay, collect and remit such taxes.

Sources: Commercial Real Property – Sales and Rentals, Canada Revenue Agency GST/HST memorandum 19.4.1.; Real Property and the GST/HST, Canada Revenue Agency GST/HST memorandum 19.1; Sales of Vacant Land by Individuals, Canada Revenue Agency GST/HST Info Sheet GI-003.

Can I Own my Waterfront Shoreline? 

The area between the bank and the water's edge (often called the beach or foreshore) belongs to the Crown, not to landowners. Even if dedicated lands don't separate your lot from the lake, the land closest to the lake or river is usually the bank of the water body. In British Columbia, the foreshore is publicly owned. The foreshore of the Burrard Inlet where ones's property is located is managed by the District of West Vancouver, which leases it from the province. The pool and seawall are considered "encroachments" on the foreshore. Click here to read more

You have a new client with a rental property they are looking to sell. What do you do at this stage?

In our previous article “BC Tenancy Act: What Landlords Should Know Before Selling The House” we looked at the Do’s and Don’ts of maintaining a good relationship with the tenant during this process. 

Let’s look at maintaining a good relationship with the owner as well!

HERE ARE THE BASICS:

1. You can’t evict a tenant to sell a property
2. tenancy laws overrule the real estate contract (when it comes to vacant possession)
3. follow proper protocols for providing notice for showings
4. be aware of the proper notice required for eviction (and notice required by buyer, notice to evict tenant form)

START OFF ON THE RIGHT FOOT WITH THE TENANT

When is the best time to tell the tenant the home is being sold?

• Best practice is to tell them up front so there are no surprises – like a for sale sign suddenly goes up or strangers start wandering the property
• Have clear communication on what each party will do to respect everyone’s privacy, access and showings
• Ask the tenants: is there anything that needs to be fixed up? This is a good time to see if landscaping, painting or any repairs could be done are addressed
• Remember: this is going to be stressful on the tenant too but you can minimize it!

TYPES OF TENANCY AGREEMENTS

When it comes to a BC tenancy agreement, here are the two most common types:

Month to Month Tenancy:

• The buyer and seller are required to give two months notice to end tenancy if it’s a month to month tenancy and the buyer plans to live in the property.
• A written notice is required.
• The landlord must serve the Two Month Notice to End Tenancy so that it’s received:
• At least two months before the effective date of the notice, and
• Before the day that rent is due

Fixed Tenancy Agreements:

• This type of tenancy is in the form of a lease
• the new buyers of the property cannot move in until the lease expires, unless otherwise mutually agreed to by both parties.
• The new buyer will have no power over to whether or not the tenancy will end early

SHOWING A PROPERTY

The tenant has a legal right to peace and quiet while the tenancy continues. The landlord or their agent must provide written notice to the tenant or have their permission to enter and show the unit to prospective buyers or to conduct an open house.

The notice must provide the:

• Reason for entering the rental unit
• Date and time of entry – which must be between 8 a.m. and 9 p.m., unless the tenant agrees to another time
• Ideally, a tenant and landlord can agree in writing on a schedule for viewing times. If not, the landlord must give the tenant 24 hours written notice of each showing of the unit (these showings may be on the same day or on a reasonable number of other days).

When the landlord has given proper notice, they can show the rental unit even if the tenant isn’t home.

During showings of the rental unit, the landlord or the landlord’s agent is required to ensure the safety of the tenant’s possessions.

OPEN HOUSES

A standard showing of a rental unit requires the landlord or the landlord’s agent (Ex. a Realtor) to accompany any prospective purchaser. With open houses, multiple prospective purchasers or agents may attend the property at the same time with varying levels of direct supervision by the landlord’s agent. Landlords should be aware of the tenants’ right to quiet enjoyment and avoid holding multiple open houses in a short period of time as these have the potential to be disruptive.

TENANT RIGHTS AND RESPONSIBILITIES

When the landlord has given proper notice to enter the rental unit, the tenant must not prevent the landlord’s access (or access by the landlord’s agent).

The tenant, or a representative of the tenant, may be present at the time the rental unit is entered. The landlord cannot require that a tenant leave when the rental unit is shown. Tenants who are concerned about their possessions may be present.

When a rental unit is being shown to prospective buyers or prospective tenants, the landlord or the landlord’s agent must be present.

CAN A TENANT REFUSE ENTRY THAT’S UNREASONABLE OR UNLAWFUL?

Unreasonable entry could be all-day showings every Saturday for several weeks. Unlawful entry could be where the landlord or the landlord’s agent has not provided proper notice of entry.

UNCOOPERATIVE TENANTS

If a tenant unreasonably refuses access to show the unit or provides misleading or inaccurate information to prospective buyers, the landlord could:

• Discuss the situation with the tenant
• Invite them to contact the Residential Tenancy Branch
• Serve a One Month Notice to End Tenancy for Cause

IT’S SOLD! NOW WHAT?

Once a property is sold, the buyer becomes the new landlord and the tenancy continues under the same terms. The buyer and the tenants don’t need to sign a new tenancy agreement, but may do so if they both agree.

The buyer must serve notice to end the tenancy in good faith if they plan to occupy the unit or use it for other purposes – the tenant has 15 days to dispute that notice

HOW TO GIVE LEGAL NOTICE

Sudden tenancy eviction notices can happen but in BC you can not just randomly evict a tenant, you have to serve proper legal notice.

EXAMPLE: if rent is due on the 1st of every month and you receive a firm deal on March 15:

• You would give notice prior to September 1st.
• If the tenant as acknowledges it received by August 31st then the two months notice is now effective September 1st.
• The entirety of September & October would constitute as two months notice.
• The buyer could move in as of November 1st.

**Keep in mind any holidays when serving notice**

WHAT IF THE BUYER IS DOING DEMOLITION, RENOVATION, REPAIRS OR A CONVERSION?

“Renoviction” is a term used in British Columbia to describe an eviction that is carried out to renovate or repair a rental unit.

Effective July 1, 2021, under new legislation, if a landlord wants to end a tenancy for extensive renovations or repairs, they need to apply for an Order of Possession from the Residential Tenancy Branch.

• Four months notice is required
• Learn more about the new legislation

COMPENSATION

When serving a Two Month Notice to End Tenancy or a Four Month Notice to End Tenancy, the landlord must compensate the tenant with an amount equal to one month’s rent – paid on or before the effective date of the notice period. Compensation is owed even if the tenant gives notice to leave earlier. The tenant may choose to not pay rent in the last month of the tenancy instead of taking a payment from the landlord.

• Learn about rights and responsibilities in this situation
• Find out about additional compensation

SECURITY AND PET DAMAGE DEPOSITS

When a tenant moves out, the person who owns the property at the time is responsible for the tenant’s security deposit or pet deposit. This may make the buyer responsible for a tenant’s security deposit or pet damage deposit, even though the deposits were held in trust by the seller. The buyer and seller may wish to address the transfer of deposits in trust in their contract of sale or the closing settlement.

If the tenant owes money to the seller, it’s important that the parties to the sale – the buyer and seller – address these debts clearly in the contract of sale and purchase. Landlords should seek independent legal advice if they’re unsure how to do this.

WHAT IF…?

What if the buyer wants to move in? What kind of paperwork is required?

• Does the Buyer want the home to be vacant at the time of possession?
• on the contract of purchase and sale in the “possession” section of the contract they would add ‘vacant’ in addition to their move in date and time.
• the buyer must serve written notice to the tenants that they are moving in, which would be provided by the buyer’s agent to the buyer to sign off on and then deliver to the seller’s agent.

What if the Buyer wants to take over the tenancy instead?

• Yes, absolutely the buyer can take over the tenancy!
• the new buyer can arrange a new agreement to be drafted with or without amendments to the terms and conditions already stipulated.
• if the buyer takes title of the property later than the 1st of the month, the rent for that month is typically adjusted and split between the buyer and the seller.
• the security deposit originally collected is typically credited to the buyer upon completion.

FINAL TIPS & SUGGESTIONS

• Do not break any tenancy laws
• give tenants lots of advanced notice on your plans with selling
• if looking for vacant property incentivise the tenant to sign a mutual agreement to end tenancy by offering free rent or financial compensation
• work around the tenants schedule for showings – not the other way around, you need cooperation!

LINKS:
BC RTO – Selling a Tenanted Property
BC Tenancy Forms – All tenancy forms

More priority communities selected to deliver more homes

As part of the Province’s commitment to build more homes for people, the next set of priority communities has been identified to receive housing targets for the next five years.

These communities are in high-growth, high-need regions of B.C., where many communities are taking action to deliver more homes quicker.

“We are addressing the housing crisis with our municipal partners so thousands more affordable homes can be built for people who need them,” said Ravi Kahlon, Minister of Housing. “Our goal for the next 20 communities is to build on the work they are already doing, while they continue to implement the recent provincial legislative changes. This group includes communities that are doing well on housing and some that need to do more.”

The Province introduced the Housing Supply Act in 2023 and established housing targets for the first 10 priority municipalities, based on areas of greatest need and highest projected growth. Twenty additional priority municipalities have been identified. The Province will work with these communities to ensure they meet their housing targets, laying the foundation for tens of thousands more homes to be built quicker.

The next 20 priority municipalities identified to receive housing targets are:

• Central Saanich; 
• Chilliwack; 
• Colwood;
• Esquimalt;
• Kelowna;
• City of Langley;
• Maple Ridge;
• Mission;
• Nanaimo;
• New Westminster;
• North Cowichan;
• North Saanich;
• City of North Vancouver;
• Port Coquitlam;
• Prince George;
• Sidney;
• Surrey;
• View Royal; 
• West Kelowna; and
• White Rock.

Federal budget 2024: Canada’s recently unveiled 2024 budget proposes to adjust the capital gains inclusion rate. What does this mean for investors and taxpayers? 

The federal government's proposed change to capital gains taxation is expected to increase taxes on investments.

After unveiling plans to spend billions of dollars to boost Canada's housing supply and social programs, the federal government is framing its plan as a fair way to offset those investments and prevent younger generations from inheriting a bigger deficit.

"I understand for some people this may cost more if they sell a cottage or a secondary residence. But young people can't buy their primary residences yet," Prime Minister Justin Trudeau told reporters Tuesday in Saskatchewan.

Here's what you need to know about the change to capital gains taxation. Click here to find out more.

In a freehold agreement, you fully own the property and land. It is the most common form of ownership in Canada. In a leasehold agreement, you own the property on top of the land but not the land. As a result, you must pay ground rent and condo fees.

Leasehold vs Freehold properties

This blog goes through the definitions of leasehold and freehold ownership in BC, the risks of buying a leasehold property, and the pros and cons of leasehold vs freehold properties.

In this blog you will also learn about various other tips to consider when making the decision to purchase a leasehold vs freehold real estate property.

What is a Freehold property?

With a freehold, you basically own the property and the right to remain in the property in perpetuity, provided you make timely payments to your lender. In the land title office, where your name becomes registered as an owner, you are mentioned as a “freeholder,” thus owning the “title absolute.”

If you have the money to obtain a freehold property, in almost all cases it will be the preferred and best option. In this case, you won’t have to pay annual ground rent, you don’t have to worry about a freeholder (aka landlord) not living up to their duties of maintaining the building, or charging you large sums of money to fix it.

An almost sure example of a freehold property is a detached home. You own the property and the land it sits on, you don’t pay an annual rent to a landlord (although you do pay property taxes like every one else), and you and you alone are responsible for maintaining your house. (like the roof, exterior, windows, etc.)

What is a Leasehold property?

In a leasehold situation, you’re buying the structure and building(s), while leasing the land from the owner. This lease land is often city-owned, but the federal government, First Nations lands, Universities and even private individuals also own and rent out land. The freeholder in this case can also be referred to as a landlord, and a leaseholder essentially has a contract with the freeholder of the land, which outlines important terms such as the length of the lease, and the legal rights and responsibilities of either party.

There are many examples of leasehold properties in the False Creek area of Vancouver, the University of British Columbia, and Simon Fraser University in Burnaby. The leases often expire, for example in 2091, and are then rented out to developers for a set amount of time, usually between 50 and 99 years. The developers or “leasehold landlords” build on and make improvements to the land, then sell or rent out portions of the buildings.

Basically you are buying a “right of exclusive possession” until the end of the lease period, or until you sell that right to another person. You can own the property, but not the land it is on.

What are the risks of a Leasehold property?

• You’re often buying a better lifestyle, but since you don’t technically own the land you often won’t see the benefits of that appreciation. Leaseholds are typically less expensive for that reason – so, if you’re looking for a property that’s fully renovated, big interior size, etc. at a hundred thousand dollars below all the others comparables then this may be an option. Leasehold properties are typically less likely to appreciate in value due to the lack of owning the land.
• Some lease payments may not be prepaid. In the case that they aren’t, the agreement with the freeholder will usually allow for annual lease payments (similar to rent) to be increase periodically, sometimes dramatically, in addition to your strata fees, taxes, and mortgage payments, so that the land is up to date with current market value. If the lease has been prepaid already, this will alternatively be incorporated in to the selling/purchase price.
• If the lease on your unit is soon coming to an end, you won’t be able to say with any certainty whether it will be renewed, and if so, at what cost once rising land values have been factored in. Once the lease runs out, the owner may choose not to renew it or may renew it at a much higher market value. Opting for a property with a longer lease will be beneficial if you are going this route.
• Lenders use the expiry date of the lease as a guideline for loan amortization periods, lending only for five years fewer than the remaining lease. So if a lease expires in 20 years, for example, you would only be able to get a 15-year amortization period for that loan.
• There may be some requests or difficulties from the bank, depending on what type of leasehold it is. They may request more down, and more complicated mortgages (such as reverse mortgages) may not qualify for leasehold properties. Because this lowers the pool of buyers that can purchase, this is a large part of the reason why leasehold properties typically stay on the market for longer, are harder to sell, and do not appreciate as much as freehold’s.

Tips if you’re thinking of purchasing a Leasehold property

• Find a realtor that is familiar with leasehold properties and can advise you accordingly.
• Consider how many years are left on the lease and how it might affect your budget and the value of your property. 99 year leases are the safest bet. You’re not going to be living in your property for 99 years, and even if you sell it in 30 years you’ll still have 69 years left on the lease for the next person.
• Look for long leases – 25 years or longer – and preferably for a length of time that far exceeds the time you plan to live there.
• Factor in service charges and related costs in to your budget (if any)
• Separate your needs and wants and really break down if you need to be in the heart of downtown or if you can take 20 minute bus, live a little bit further out of town, and purchase a freehold.
• Talk to your bank or mortgage broker prior to putting an offer in to see if you qualify based on the leasehold property you are thinking of purchasing. The length of the lease may also affect whether or not you are able to qualify.
• Check and make sure the lease is prepaid. If it was not prepaid, then make sure that you are able to handle the annual payments that go along with this.

If you’re thinking of purchasing a leasehold property call now and whatever you end up choosing, I am here to help.

Tax rate will be 20% for properties sold within a year of purchase, sliding to zero over following year

The B.C. government has announced plans to introduce a tax of up to 20 per cent on profits made when properties are sold within two years of their purchase.

The 20 per cent rate will be in place for a year after purchase and will slide to zero between 366 and 730 days after the acquisition.

B.C. Finance Minister Katrine Conroy announced the tax as one of the province's latest tools to try to curb speculation over housing in a province where many struggle to afford appropriate shelter.

"Prices went up as governments stepped back and speculators moved in," said Conroy during her speech presenting her latest budget in the legislature.

"That's why we're bringing in a home-flipping tax as our latest measure to crack down on bad actors."  CLICK HERE TO FIND OUT MORE

New Property Transfer Tax exemptions for first-time buyers and new homes in BC

More specifically, as part of the 2024 provincial budget, three exemption changes are being introduced to the PTT.

Firstly, the threshold to be eligible for the first-time homebuyers’ exemption will be increased from a fair market value of $500,000 to $835,000, with the first $500,000 exempt from the tax. The phase-out range for the complete elimination of the exemption will be $860,000, while properties with a fair market value under $500,000 will be completely exempt. These changes will start on April 1, 2024.

Secondly, the newly built home exemption for purchasers who buy a new home for their principal residence will grow from $750,000 to $1.1 million on the fair market value. Homes with a fair market value between $1.1 million and $1.15 million will see a phase-out range of the exemption. This exemption change will also start on April 1, 2024.

Thirdly, a brand-new PTT exemption will be created for purchases of new qualifying secured purpose-built rental housing buildings, with such buildings required to contain at least four apartment units, be non-stratified, and be used as rentals for at least 10 years, and the residential uses of the building must be entirely used for rental purposes. This specific PTT exemption will apply to transactions for such buildings between January 1, 2025, and December 30, 2030. With home ownership out of reach for many given the elevated home prices, such a policy will help catalyze more “missing middle” rental housing.  Click here to read more

COURT ORDERED SALES

This introduction on foreclosure properties in BC will give you some insight into the process of buying a property by way of a Court Ordered Sale, including some of the risks involved. We realize that this is not a “how to” for Court ordered sales; rather, it is an overview of the various components of the process.

WHAT IS A FORECLOSURE PROPERTY?

When a property owner is unable (or unwilling) to repay a mortgage on a property, a lender can apply to the BC Supreme Court for the right to sell that property and recover its investment. Through the foreclosure process the lender can apply for and receive “Conduct of Sale” that will give it control of the sale process and allow it to list the property for sale with a Realtor, market the property and solicit offers. The process is very specifically regulated by the Court, and any ultimate agreement to sell the property must be approved by the Court. These sales are referred to as foreclosures, or Court Ordered Sales.

THE SALE PRICE

As with most other property offerings the terms and conditions of a Contract of Purchase and Sale, including the ultimate sale price, is usually negotiated between the Vendor (lender) and a Purchaser. Having said this, the Lender still has an obligation to be able to show the Court that any sale is based on fair market value and that the property has been adequately and broadly marketed.

Once the Vendor and Purchaser agree to the terms and conditions of a purchaser agreement on a foreclosed property, the sale process is far from being done.

SUBJECT CONDITIONS

An accepted offer on a property, subject to a Court Ordered sale process, can include purchaser’s subject conditions such as due diligence, appraisal, inspection, financing, etc. These sorts of conditions are typical in most real estate transactions and are always recommended so that a purchaser can make an informed decision. A deal, though, also needs to be subject to approval by the Court. The Court approval condition is a third party condition that can only be set in motion once the purchaser’s conditions have been fully satisfied and waived.

Once the contract is non-conditional on the Purchaser’s part, an application can be made for Court approval. A hearing date is set and the parties prepare for approval.

"AS IS WHERE IS"

It is important to note that properties subject to foreclosure and the Court ordered sale process are sold “as is, where is”. Since the vendor is the lender of the property (and not, in fact, the property owner), it cannot be expected to be knowledgeable about the property to the extent that it can make various disclosures, representations or warranties as to the state and condition of that property. In other words, as a prospective purchaser, it’s a very good idea to retain the appropriate experts to undertake due diligence for things such as zoning and development potential, building condition, financing, environmental condition and other relevant inspections. Once the sale is non-conditional (and assuming it is approved by the Court), there is no turning back.

APPLICATION

Once there is a non-conditional agreement between the lender and the purchaser (subject only to Court approval), the solicitor for the lender will schedule a hearing date for the application to be heard by the Court. Applications are typically accompanied by affidavits or reports from the lender, Receiver (where applicable), the Realtor and other parties familiar with the file, that would outline the history of the file, the outstanding balance of the loan, any efforts to collect outstanding balances and marketing efforts that will have been undertaken in order to sell the property for the highest possible price. Depending on the nature of the asset these reports can also include an appraisal and other supporting documentation. The objective of this information is to ensure that the Court is supplied with sufficient background so as to satisfy itself that the proposed sale is, indeed, indicative of fair market value; having been marketed in a comprehensive and generally acceptable fashion. A hearing is typically within 14 days of the application being made to the Court.

PUBLIC DISCLOSURE

An interesting (and sometimes exciting) aspect of the Court approval process in British Columbia is that all of that information supplied to the Court as part of the application process to the Court is available for public scrutiny. The agreed upon sale price will be made public in order to ensure a fair and transparent approval process. Others who have expressed interest in the property will typically have the ability to attend the hearing and observe the proceedings, and even submit competing offers. This means that, unlike the conventional property purchase process, the prospective purchaser with the accepted offer on the property is not necessarily the party who will walk away as the new owner. The hook is though, that any new offers being presented to the Court at the hearing must also be non-conditional and be accompanied by a non-refundable (pending Court approval) bank draft or certified cheque.

THE COURT PROCESS

On the determined Court date, representatives for the vendor and the purchaser (with the now subject-free contract) will attend court, along with any other interested parties or prospective buyers who wish to submit an offer on the property to the Court. In some cases, no new buyers will present themselves in court. In other cases, we have seen multiple offer scenarios develop before our eyes.

If other parties do show up, they will typically be required to submit an offer in a sealed envelope for consideration by the Court. The new offer will obviously need to be higher than the agreed upon sale price between the seller and the original buyer. While this scenario might appear to provide an unfair advantage to the newcomer, it is worth noting that the Court will always allow the original purchaser to revise its offer, if desired.

REVIEWING ALL OFFERS

The Court will consider all of the information before it in making a decision on the approval of an offer. If there are multiple offers the Master (Judge), will then open the offers and will review them… and typically, choose the highest bid. It is important to note that the highest offer on paper might not always be the best offer as the Court will also often take into consideration the amount and status of the deposit, the proposed completion date and other factors that might impact the transaction.

Occasionally, the judge might decide that none of the offers are worthy of approval. This might be the case if, for example, the underlying owner is able to convince the Court that the offer(s) is in fact, below market value or if the Court determines that the property has not been sufficiently exposed to the market.

APPROVAL PROCESS

When the deal is approved, the Court will issue what is known as a “Vesting Order”. The order is the approval by the Court and it provided instruction to the Registrar to effect the transfer of the title of the property to the successful bidder. The Vesting Order also serves to extinguish any and all financial encumbrances that could limit the new owner’s rights under the title. The Vesting Order will not extinguish encumbrances such as access easements, reservations of the Crown, restrictive covenants or other non-financial registrations on the title.

Federal government extends foreign buyer ban on Canadian homes to 2027

Foreign nationals and companies will be banned from buying residential properties in Canada for an additional two years, the federal finance minister said Sunday, the latest in a raft of measures aimed at addressing housing affordability concerns that have dogged the governing Liberals for months.

Chrystia Freeland announced the extension in a statement, saying Canada is extending its foreign homebuyer ban up until 2027.

Under the ban, which came into effect last year and was set to expire at the beginning of 2025, foreign commercial enterprises and people who are not Canadian citizens or permanent residents are prohibited from purchasing residential property in Canada.

There are some exceptions, including for those with temporary work permits, refugee claimants and international students who meet certain criteria.

Non-Canadians found in contravention of the ban would be fined up to $10,000 and ordered to sell the property.

“By extending the foreign buyer ban, we will ensure houses are used as homes for Canadian families to live in and do not become a speculative financial asset class,” Freeland said in the statement.

“The government is intent on using all possible tools to make housing more affordable for Canadians across the country.”

The federal government said it wanted to extend the program by two more years because it knows Canada’s housing challenge will not be solved by the end of 2024, and they want to see how the market changes. A lot of the data linked to this ban remains preliminary, even from the private sector, because it has only been in place for a year, Freeland’s office said. click here to read more