Amendments to Canada's housing act mean some non-Canadians can buy homes

We have had a few posts on the topic of "The Purchase of Residential Property by Non-Canadians Act" - one back in November 2022 and one more recently in February 2023 to clarify some of the details that came along based on the accompanying Regulations. With some new amendments now on the way, the saga continues and we want to make sure everyone knows how their relocating employees might be affected. 

On March 27, Canada announced amendments to the Prohibition on the Purchase of Residential Property by Non-Canadians Act’s accompanying Regulations. Originally, non-Canadians were banned from purchasing properties in populated locations, but changes have now been made to better address people that are relocating to Canada. 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, allowing non-Canadians to purchase a residential property in certain circumstances.

Ahmed Hussen, the minister of housing and diversity and inclusion, explained that:

"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."

Here are the four big changes included with the amendment (from the Canadian Employee Relocation Council):

1. Vacant land: The vacant land provision is being repealed from the definition of residential property. Prohibition of purchase now does not apply to the purchase of vacant land zoned for residential and mixed use.
2. Further housing development: There is now an an exception for non-Canadians purchasing residential property for the purposes 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.
3. Corporate ownership threshold: The control threshold has been raised from 3% to 10% so that any corporation or entity with 10% or more direct or indirect ownership of shares or ownership interests by a non-Canadian is subject to the prohibition.
4. Work permit holders: 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.

So per number 4 above, non-Canadians who are relocating to Canada temporarily or permanently to work or study, can now purchase residential property in Canada. The amendment also states that non-Canadians must reside in the property for at least a year before they are allowed to sell it. The amendment also requires non-Canadians to provide personal information, such as a valid work or study permit and proof of residency, in order to purchase residential property. Therefore, people who are relocating to Canada can buy a house, as long as they have a valid work or study permit and meet other requirements set out in the amendment. 

While this amendment doesn't lift the restrictions on BVO and AVO home sale programs, (see here for reference to how this ban can impact some home sale programs within corporate mobility programs) the changes are a big swing of going from 5 years of residency to being able to buy a home on your first day, as long as your work visa is valid for 183 days.