Canada is making it as easy as possible for newcomers and Canadian citizens to purchase a home. Last week, the Canadian government said it was removing certain restrictions of a particular Act that made it incredibly challenging for non-Canadians to buy residential real estate.
Moreover, from the 1st of April 2023, Canadian financial institutions will be able to offer tax-free savings accounts to first-home buyers in the country. The repealing of the restrictions on the law is fulfilling a proposal made in the Canadian budget in 2022.
Restrictions Reduced For Non-Canadian Homebuyers
The Canadian government has amended the law and removed restrictions for non-Canadian home buyers who have a work permit. Just months prior, they had introduced a law that prevented non-Canadians from buying residential real estate.
On March 27, the Canada Mortgage and Housing Corporation (CMCH) declared that they had amended the Prohibition on the Purchase of Residential Property by Non-Canadians Act.
According to the amendment, non-Canaidans on a work permit can now buy mixed-use residential and commercial land if they meet particular criteria.
The amendments went into effect on the day the CMCH made the announcement. The CMCH also announced that work permit holders will be eligible to purchase a property if they have 183 days or more of validity remaining on their work permit or authorization at the time they buy the property.
To be eligible, they should also not have purchased more than a single property in the country.
According to the amended Act, the residential property could be detached buildings or similar properties. Therefore, they could be semi-detached properties, rowhouse units, residential condominium units, and akin real estate.
Moreover, there were provisions to the amendment relating to vacant land. They state that unused land that has been allocated for residential and mixed-use can now be bought by non-Canadians and used for any purpose the buyer wants, including residential development.
Proof Of Tax Filings Is Now Unnecessary
The announcement also stated the government will be reeling the current arrangements on tax filings and prior work experience in Canada.
It was still possible for temporary Canadian citizens to buy residential property under the initial Act. However, work and study permit holders both had to meet several conditions to be eligible.
Temporary residents with a work permit could buy a home in Canada if :
- They had worked in Canada for at least three of the past four years before making the purchase.
- They filed tax returns for at least three of the past four years before the purchase date.
- They had only one residential property.