Tuesday 28 March 2023

Federal government eases some restrictions on non-Canadians purchasing property

 
 

Federal government eases some restrictions on non-Canadians purchasing property

Changes intended to boost housing supply, minister says

Non-Canadians in the country on a work permit or who are authorized to work in Canada can now purchase residential property. They must have at least 183 days or more remaining on their work permit or work authorization and must purchase only one property to be eligible.

Non-Canadians and foreign businesses can now also purchase residential property if they intend to develop it, and can purchase vacant land zoned for residential or mixed use for any purpose.

Parliament passed the law restricting non-Canadians from purchasing property, the Prohibition on the Purchase of Residential Property by Non-Canadians Act, in June 2022. The law went into force at the start of this year, and prevents non-Canadians from buying residential property in Canada for two years. The restrictions were part of a Liberal promise made during the 2021 federal election campaign amid rising home prices.

Ahmed Hussen, the minister of housing and diversity and inclusion, announced the changes Monday. A news release from the Canada Mortgage and Housing Corporation (CMHC) said the changes went into effect immediately.

"These amendments will allow newcomers to put down roots in Canada through home ownership and businesses to create jobs and build homes by adding to the housing supply in Canadian cities," Hussen said in the news release.

"These amendments strike the right balance in ensuring that housing is used to house those living in Canada, rather than a speculative investment by foreign investors."

CRA waives late penalty on new housing tax

The changes came on the same day the Canada Revenue Agency (CRA) waived late fees and interest on the Underused Housing Tax (UHT), which also came into effect on Jan. 1. The tax requires non-resident, non-Canadians to pay one per cent of the value of any vacant or underused property in Canada yearly. There are several exemptions to the UHT, including an exception for seasonal properties.

The CRA said in a news release it was waiving the penalties because it "understands that there are unique challenges for affected owners in the first year" of the tax.

Those affected by the tax will now have until Oct. 31 to file UHT returns and payments without penalty.

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760 Comments

 
Robert Tyre 
Typical Canadian law. Loopholes for those with money to afford a lawyer to “fit’ the into the criteria.
 
 
David Sampson 
Reply to Robert Tyre 
Always wise to read the article before spouting nonsense. 
 
 
David Amos
Reply to Robert Tyre 
Sometimes there is another reason  
 
 
 
 
 
 
Bob Notley 
Hilarious. Didn't know we had solved the housing crisis.  
 
 
David Amos
Reply to Bob Notley
Methinks the housing crisis just got a lot worse on PEI Perhaps its because of the email I sent to all four of the MPs on the Island yesterday N'esy Pas? 
 
 
Bob Notley 
Reply to David Amos
I love getting form letters too. 
 
 
David Amos
Reply to Bob Notley
You have it backwards
 
 
Bob Notley 
Reply to David Amos
Too letters form getting love I? 
 
 
David Amos

Reply to Bob Notley
Methinks you must be related to the NDP political lawyer N'esy Pas?
 
 
 
 
 
 
Ross Gravelle 
The Liberals help everyone but Canadians
 
 
David Amos
Reply to Ross Gravelle
Sad but True
 
 
 
 
 
Jeff Laidlaw 
Yes, because adding more demand with no additional supply totally "boost supply". 
 
 
David Amos
Reply to Jeff Laidlaw 
Things will balance themselves  
 
 
 
 
 
Greg Anderson 
WOW. Must be a pre/post election shell game. Gentlemen start your engines. Housing market (trough) is back open for business again. *eye roll*
Bye bye greenbelt supply Doug is shoveling tax dollars into.  
 
 
David Amos
Reply to Greg Anderson 
Bye Bye Sunny Ways
 
 
 
 
 
Kelly Kovach 
More word salad ... so foreigners can buy homes and entire developments ... 
 
 
David Sampson 

Reply to Kelly Kovach 
Read the article and skip over the big words if necessary.   
 
 
David Amos
Reply to Kelly Kovach
Particularly Buddhists on PEI 
 
 
David Amos
Reply to David Sampson  
Perhaps you should read my blog
 
 
 
 
 
Matthew Odette   
As with everything this government does all show and zero substance. 
 
 
David Amos
Reply to Matthew Odette 
Amen  
 
 
 
 
 
Marc Martin
Wow like that is NOT going to help the house market inflation in Canada...  
 
 
David Amos
Reply to Marc Martin
Cry me a river  
 
 
 
 
 
Don Cruickshank 
Foreign business ownership of residential housing and property will send housing even higher.because its all about profit. Non-Canadian purchases will have the same effect. What the heck is the matter with these LPC members? Its like they are TRYING to break this country!! 


David Sampson 
Reply to Don Cruickshank 
Read the article.


David Amos
Reply to Don Cruickshank 
Bingo 
 
 
 
 
 
 
Hugh MacIsaac 
Non residents willing to pay outrageous prices that drive our values higher for property taxes - gotta love this government. 
 
 
David Amos
Reply to Hugh MacIsaac 
Check out PEI  
 
 
 
 

Office of the Minister of Housing and Diversity and Inclusion

People24

 
 

Amendments to the Prohibition on the Purchase of Residential Property by Non-Canadians Act’s accompanying Regulations

Ottawa, Ontario, March 27, 2023

Today, the Honourable Ahmed Hussen, Minister of Housing and Diversity and Inclusion, announced amendments to the Prohibition on the Purchase of Residential Property by Non-Canadians Act’s accompanying Regulations.

The Act was passed by Parliament on June 23, 2022, and the Act and Regulations came into force on January 1, 2023, as part of the Government of Canada’s strategy to make housing more affordable for Canadians. The accompanying regulations were developed for the Act to set out specific exceptions, definitions, and clarifications necessary to implement the prohibition.

To enhance the flexibility of newcomers and businesses looking to add to Canada's housing supply, the Government of Canada is making amendments to the Regulations, to expand exceptions to allow Non-Canadians to purchase a residential property in certain circumstances. These amendments will further support individuals and families seeking to build a life in Canada by pursuing home ownership in their communities sooner and address housing supply issues. These amendments come into force on March 27, 2023.

The following amendments are being announced by the Minister of Housing and Diversity and Inclusion:

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 time of purchase, and they have not purchased more than one residential property. The current provisions on tax filings and previous work experience in Canada are being repealed.

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

We are 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.

Quote:

“To provide greater flexibility to newcomers and businesses seeking to contribute to Canada, the Government of Canada is making important amendments to the Act’s Regulations. These amendments will allow newcomers to put down roots in Canada through home ownership and businesses to create jobs and build homes by adding to the housing supply in Canadian cities. These amendments strike the right balance in ensuring that housing is used to house those living in Canada, rather than a speculative investment by foreign investors.”
— The Hon. Ahmed Hussen, Minister of Housing and Diversity and Inclusion

Additional information:

Access more information on the Prohibition on the Purchase of Residential Property by Non-Canadians Act.

Access more information on the Amendments to the Act’s Regulations on the Frequently Asked Questions page of the CMHC website.

For information on this news release:

Brittany Hendrych
Office of the Minister of Housing and Diversity and Inclusion
Brittany-Anne.Hendrych@infc.gc.ca

Media Relations
Canada Mortgage and Housing Corporation
media@cmhc-schl.gc.ca

 

Romy Bowers

President and CEO

Romy Bowers was appointed President and Chief Executive Officer of CMHC in April 2021. She leads a team of housing experts who share a single goal: that “By 2030, everyone in Canada will have a home that they can afford and that meets their needs.” Romy believes CMHC can be a catalyst for solving housing affordability challenges and a leader in building a housing system that is equitable and free of systemic racism.

Romy joined CMHC in 2015 as the company’s Chief Risk Officer. She has also served as CMHC’s Chief Commercial Officer and most recently was Senior Vice-President of Client Solutions, where she led a team that brings together the expertise of CMHC’s commercial and assisted housing businesses to better understand the housing needs of Canadians and develop new client-focused products and services to meet those needs.

Prior to joining CMHC, Romy had a diverse career in the Canadian banking industry, including 12 years with the Bank of Montreal, where she gained extensive experience in treasury operations and risk management.

Romy holds an M.A. in Business Administration (Finance) from the University of Toronto and an M.A. in Arts from McGill University.

Expertise
National Housing Strategy, Housing Affordability, Housing Finance, Housing Markets and Indicators, Client-Focused Solutions

National Office

Canada Mortgage and Housing Corporation
700 Montreal Road
Ottawa, Ontario
K1A 0P7

Reception/Main number: 613-748-2000
 

Halifax

Atlantic Business Centre
Barrington Tower
1894 Barrington Street
9th Floor
Halifax, Nova Scotia
B3J 2A8

Toll free: 1-800-668-2642
 
Richard.Bragdon@parl.gc.ca. 

 HDI.Minister-Ministre.LDI@infc.gc.ca, hursh.jaswal@infc.gc.ca, Mario.salazar@infc.gc.ca, jordan.wilson@infc.gc.ca, rbowers@cmhc-schl.gc.ca,

 

 

 

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