Canada has announced amendments to the regulations that accompany the Prohibition on the Purchase of Residential Property by Non-Canadians Act.
These changes are aimed at providing more flexibility for newcomers and businesses looking to add to Canada’s housing supply, while addressing the issue of housing supply in the country.
Effective March 27, 2023, these amendments will expand exceptions to the prohibition, allowing non-Canadians to purchase residential property in certain circumstances.
The changes announced by the Minister of Housing and Diversity and Inclusion are as follows:
- Work Permit Holders: Non-Canadians who have a work permit or are authorized to work in Canada under the Immigration and Refugee Protection Regulations will be able to purchase residential property. They will be eligible to buy a house if they have 183 days or more remaining on their work permit or work authorization at the time of purchase and have not purchased more than one residential property. The existing provisions on tax filings and previous work experience in Canada will be repealed.
- Control Threshold: The control threshold will change from 3% to 10% for privately held businesses or entities created under the laws of Canada or a province and controlled by a non-Canadian.
- Vacant Land: The clause that currently prohibits non-Canadians from purchasing vacant land will be lifted. Non-Canadians will now be permitted to purchase and use all lands zoned for residential and mixed use, including vacant land, for any purpose.
- Exception for Development Purposes: A new exception will be made to allow non-Canadians to purchase residential property for development.
These amendments are aimed at providing more opportunities for individuals and families seeking to build a life in Canada by pursuing home ownership in their communities sooner. They will also assist the government in addressing issues with housing supply in the country. Overall, these changes to the regulations that accompany the Prohibition on the Purchase of Residential Property by Non-Canadians Act are intended to give non-Canadians looking to buy residential property in Canada more flexibility while also addressing the issue of housing supply.
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