The Government of Canada is taking steps to make it easier for newcomers and businesses to add to the country's housing supply. Amendments to the Regulations are being made so that Non-Canadians can now purchase residential properties in certain circumstances.
These changes will allow those with a work permit or authorization under the Immigration and Refugee Protection Regulations to buy homes while they're living and working in Canada. Eligible work permit holders must have 183 days or more remaining on their permit at time of purchase, and are only allowed to buy one property. The existing tax filing requirements and previous work experience in Canada provisions have been removed from these new amendments, which come into effect on March 27, 2023.
These changes are expected to broaden the pool of potential buyers and help to add more supply to Canada's housing market. It will also give foreign workers an opportunity to invest in Canadian real estate, providing them with more stability during their time in the country.
Overall, this amendment is viewed as beneficial for both Canadian citizens and non-Canadians alike, as it makes real estate ownership more accessible and encourages foreign investment. This could help to create jobs, stimulate economic activity, and drive up property values in some areas of the country.
It is important to note that certain restrictions will still be in place for foreign buyers. For instance, they must have valid work permits, sufficient funds to purchase a home, and be legally eligible to do so.
These amendments are intended to make Canada's housing market more accessible and attractive for foreign buyers, while also protecting the interests of Canadian citizens. It remains to be seen if they will have their desired effect or not.
Amendments available to download at the CHMC website below.
https://www.cmhc-schl.gc.ca/en/professionals/housing-markets-data-and-research/housing-research/consultations/prohibition-purchase-residential-property-non-canadians-act
Jacob Bodzek
Real Estate Broker
Jacob@westwood.team