Government Amends The Foreign Buyer Ban

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

As a result of the advocacy from the real estate boards and the real estate sector as a whole, the federal government has announced changes to the regulations that guide the foreign homebuyers ban to expand exceptions to allow Non-Canadians to purchase a residential property in certain circumstances. The government has stated that "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." 

1. Non-Canadians with work permits will be eligible to buy a residential property if they have 183 days or more of validity left on their work permit. The criteria of tax filings and years lived in Canada requirements are repealed
2. Individuals or corporations purchasing residential property for the purpose of development are now also exempt from the ban.
3. Vacant land (regardless of zoning as residential, mixed or commercial) is no longer under the ban.
4. The percentage of a company that is owned by non-Canadians that can purchase residential property has moved from 3% to 10%. This threshold aligns with what is used in the Underused Housing Tax Act.