Effective January 1, 2023, non-residents have been banned from directly or indirectly purchasing residential properties in Canada for two years under the Prohibition on the Purchase of Residential Property by Non-Canadians Act and Regulations. However, this Act raised ambiguity, and there were concerns about its unintended consequences on people who are new to Canada on a work Visa restricting them from becoming homeowners.
To address these concerns and provide flexibility to newcomers to add to Canada’s housing supply, the Minister of Housing and Diversity and Inclusion announced amendments to the Regulations that became effective on March 27, 2023. The Amendments created an exemption for work permit holders.
The regulations are now replaced by the following:
- Non-Canadians need to have 183 days or more of validity remaining on their work permit or work authorization on the date of purchase.
- Non-Canadians can not purchase more than one residential property.
- Non-Canadians can purchase residential property located outside of a Census Metropolitan Area (CMA) or a Census Agglomeration (CA). Check out this Interactive Mapping Tool to identify if a property location is exempt from the Act.
These revisions provide further clarity and address concerns regarding the Act. Non-Canadian purchasers, investors, and entities should remain careful when conducting Canadian residential property transactions and seek legal advice if necessary.