Amendments to Non-Canadian Property Purchase Regulations – The Door to Canadian Homeownership

The Canadian government has recently unveiled a set of new amendments to the Prohibition on the Purchase of Residential Property by Non-Canadians Act’s accompanying Regulations. The amendments are signaling a significant shift in the landscape of Canada’s housing market. The amendments were made as part of the government’s strategy to make housing more affordable for Canadians. These changes will enhance the flexibility of newcomers and businesses looking to contribute to Canada’s housing supply considering the 2023-2025 Immigration Levels Plan which aims to fill labour market shortages and grow Canada’s economy.

Own a Home While Working in Canada

The amendments have changed the game. Work permit holders and everyone else authorized to work in Canada can now buy a new home to live in. The ban, which was not in effect for an extended period, restricted the ability of non-Canadians working in Canada on a work permit or authorized to work under the Immigration and Refugee Protection Regulations to purchase a residential property. But now, the new amendment enables non-Canadians to purchase a residential property if they have 183 days (around 6 months) of validity on their work permit at the time of purchase. They must not have already bought another residential property. The amendments also repeal the previous provisions on tax filings and previous work experience in Canada. This means that non-Canadians-work-permit-holders can purchase a home to live in while working in Canada without having to file taxes or have previous work experience in Canada!

Vacant Land is Now Up for Grabs with Repeal of Prohibitory Regulations

One of the most significant changes in the amendments is the repeal of section 3(2) of the regulations, which previously prohibited the purchase of vacant land zoned for residential and mixed-use by non-Canadians.

This means that non-Canadians can now purchase such land and utilize it for any purpose they see fit. including residential development. The recent amendments have broadened the horizons for non-Canadians looking to invest. These changes have ushered in a new era of investment opportunities, enabling newcomers to bolster Canada’s housing supply and diversify their investment portfolios beyond the conventional asset classes. It’s a move that will set the stage for an unprecedented growth spurt in the years to come.

Invest in Canada’s Housing Development as a Non-Canadian

The amendments to the Prohibition on the Purchase of Residential Property by Non-Canadians Act have not only granted work permit holders the ability to purchase a home while working in Canada, but they have also provided a new exception for non-Canadians to purchase residential property for the purpose of development. The amendment has expanded the previous exception, only applicable to publicly traded corporations under the Act, to now include publicly traded entities formed under the laws of Canada or a province and controlled by a non-Canadian. The introduction of this exception is a significant step forward as it allows non-Canadians to contribute to the development of Canada’s housing supply. This move will benefit not only the economy but society as well. Non-Canadians with a vision for housing development will now have the opportunity to invest in Canada’s real estate market and contribute to the country’s housing supply. This amendment will create job opportunities, boost the economy, and increase the availability of housing for Canadians. It is a win-win situation for everyone involved.

Corporation Foreign Control Threshold Raised from 3% to 10%

Non-Canadians will be able to play a more significant role in the housing market not only on an individual level. The amendments to the Act have brought about a significant change that allows privately held corporations or entities formed under the laws of Canada or a province to be controlled by a non-Canadian with a foreign control threshold of 10%. Which constitutes an increase from the previous threshold of 3%. As a result, non-Canadians will now be able to have greater control over these entities and potentially invest more in the Canadian housing market. This change is in line with the definition of ‘specified Canadian Corporation’ in the Underused Housing Tax Act, which has helped to provide clarity and consistency in the application of the new regulations.

These amendments are striking a balance between investment and utility, They ensure that the housing market is used to accommodate those living in Canada, rather than being a speculative investment by foreign investors. The accompanying Regulations are a step toward a more inclusive and dynamic housing market in Canada.

With Sparta Grounds, you will be able to secure your residential vacant land so easily. Check out our flagship and unique 0% Financing Program. Saint Patrick’s Day special is still on you can even save 50% on the closing costs. Contact our team to learn how you can benefit from this one-of-a-kind opportunity!