Canada recently made some changes to the rules around the foreign home buyer ban .

Canada recently made some changes to the rules around the foreign home buyer ban .

According to the Canadian Mortgage and Housing Corporation (CMHC), the amendments will "enhance the flexibility of newcomers and businesses looking to add to Canada’s housing supply."

Enable more work permit holders to purchase a home to live in while working in Canada.

The amendments will allow those who hold a work permit or are authorized to work in Canada under the Immigration and Refugee Protection Regulations to purchase residential property. Work permit holders are eligible if they have 183 days or more of validity remaining on their work permit or work authorization at the time of purchase, and have not purchased more than one residential property.

Repealing existing provisions so the prohibition doesn’t apply to vacant land.

repealing section 3(2) of the regulations, so the prohibition does not apply to all lands zoned for residential and mixed-use. Vacant land zoned for residential and mixed-use can now be purchased by non-Canadians and used for any purpose by the purchaser, including residential development.

Exception for development purposes.

This exception allows non-Canadians to purchase residential property for the purpose of development. The amendments also extend the exception currently applicable to publicly traded corporations under the Act, to publicly traded entities formed under the laws of Canada or a province and controlled by a non-Canadian.

Increasing the corporation foreign control threshold from 3% to 10%.

For the purposes of the prohibition, with regards to privately held corporations or privately held entities formed under the laws of Canada or a province and controlled by a non-Canadian, the control threshold has increased from 3% to 10%. This aligns with the definition of ‘specified Canadian Corporation’ in the Underused Housing Tax Act.

Click Here for more information on the Prohibition on the Purchase of Residential Property by Non-Canadians Act

Click Here for more information on the Amendments to the Act’s Regulations on the Frequently Asked Questions 

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