Foreign Buyer Update
There have been exciting changes to the Prohibition on the Purchase of Residential Property by Non-Canadians act!
Work permit holders are now allowed to purchase residential property as long as they have 183 days or more of validity remaining on their work permit and have not purchased more than one residential property.
Previously, vacant land that was zoned for residential or mixed-use could not be purchased by non-Canadians. This restriction has now been lifted.
Non-Canadians will now be able to purchase residential property for the purpose of development. According to the CMHC, “development” encompasses expansions or remodels that are “tantamount to the construction of a new building or a change of use”, or essentially creating a new residential property. Unfortunately, repairs, renovations, or remodeling the property will not count as “development”.
The maximum threshold for purchasing residential property by a privately held corporation or entity controlled by a non-Canadian has increased from 3% to 10%.