Amendments to Foreign Buyer Ban Now in Effect
1.5 min read.
In line with the implementation of the Prohibition on the Purchase of Residential Property by Non-Canadians Act, commonly referred to as the Ban on Foreign Homebuyers in Canada, the Government of Canada has announced a series of amendments to the legislation governing residential property purchases by non-Canadians, which are now in effect.
Under the new rules of the foreign buyer ban, first-time homebuyers who possess a work permit with a remaining validity of 183 days or more at the time of purchasing a residential property are now eligible to make such purchases.
A notable exception has been introduced to accommodate non-Canadians who intend to buy residential properties for development purposes. The Canada Mortgage and Housing Corporation (CMHC) defines "development" as activities encompassing a residential property's planning, expansion, and alteration without changing its primary use. It is important to note that the redevelopment of existing buildings, equivalent to construction, also falls under this definition, while activities such as repairs, renovations, and remodelling do not qualify as "development."
The Minister of Housing and Diversity and Inclusion Ahmed Hussen says, “These amendments will allow newcomers to put down roots in Canada through homeownership and businesses to create jobs and build a home by adding to the housing supply in Canadian cities.” Industry experts anticipate the new rules will present fresh buying opportunities for Canadian residents.
With the amendments imposed by the Government of Canada, these changes aim to facilitate home ownership for first-time buyers and promote development activities while stimulating the housing market and generating economic benefits for Canadian cities.
Reference
Amendments to the prohibition on the purchase of residential property by Non-Canadians Act’s accompanying regulations. CMHC. (n.d.). https://www.cmhc-schl.gc.ca/en/media-newsroom/news-releases/2023/amendments-prohibition-purchase-residential-property-non-canadians-regulations
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