Skip to content

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

This Thought Leadership article is a follow-up to our January 2023 article on the introduction of the Prohibition on the Purchase of Residential Property by Non-Canadians Act.


By Brendan Sheridan

On January 1, 2023, the Prohibition on the Purchase of Residential Property by Non-Canadians Act came into effect (“the Act”). The Act was implemented, in part, to ensure that residential homes in Canada were sold to Canadian buyers. It has the effect of limiting non-Canadians from purchasing residential property in Canada for a period of two years.

Amendments to the Act and Regulations were recently released and implemented on March 27, 2023. These amendments expand the eligibility of some foreign nationals to purchase residential property in Canada.

As noted in our previous article, foreign workers were among those generally restricted from purchasing residential property in Canada. While there was a limited exemption carved out for certain foreign workers, it was necessary to have worked in Canada on a full-time basis for at least three years within the last four years to be eligible to purchase residential property in Canada.

The March 27th amendments have loosened these restrictions. Foreign workers in Canada can now purchase homes if they meet the following requirements:

  • they have a valid work permit or are authorized to work in Canada under the Immigration, Refugee Protection Regulations;
  • their work permits or work authorization are valid for at least 183 days (6 months) or more at the time of purchase; and
  • they have not purchased more than one residential property.

In addition to addressing the limiting work experience requirements, the amended Regulations also repeal the previously imposed tax filing requirements for foreign worker buyers.

Allowing more foreign workers to purchase residential properties is a significant amendment to the Act. As noted in our January 2023 article, the previous eligibility requirements could make Canada a less desirable location for international talent and would potentially pose a chilling effect on recruitment efforts at a time when our government is working diligently to address our nation-wide labour shortages.

The new amendments alleviate concerns for many prospective foreign workers who will now be eligible to purchase property soon after their arrival to Canada, allowing them to settle more quickly, which supports retention efforts.

Additional amendments that came into effect on March 27th include:

  • Vacant land that is zoned for residential or mixed use can now be purchased by non-Canadians and used for any purpose including residential development.
  • An exception was introduced to allow residential property to be purchased by non-Canadians for development purposes. This exception also extends to publicly traded entities formed under the laws of Canada or a province and controlled by a non-Canadian.
  • For prohibition purposes, the control threshold was changed from 3% to 10% for privately held corporations or privately held entities formed under the laws of Canada or a province and controlled by a non-Canadian.

This update is intended for general information only. If you have further questions about these programs or are an employer seeking to support your workers, please contact a member of our Immigration Group.

Click here to subscribe to Stewart McKelvey Thought Leadership.

SHARE

Archive

Search Archive


 
 

Zoning changes and constructive taking: Newfoundland and Labrador Court of Appeal affirms the finding in Index v Paradise

August 28, 2024

Stephen Penney and Megan Kieley1 The Newfoundland and Labrador Court of Appeal’s recent decision in Index Investments Inc v Paradise (Town)2 is a significant decision for municipalities. The Court of Appeal endorsed the Newfoundland and…

Read More

Immigration red flags: five organizational issues that open employers to risk

August 15, 2024

By Kathleen Leighton & Brittany Trafford The Temporary Foreign Worker Program (“TFWP”) and International Mobility Program (“IMP”) provide Canadian employers the opportunity to hire foreign workers to address their labour needs, particularly when qualified Canadians…

Read More

Supreme Court of Canada denies leave to appeal of Alberta ruling on post-death life insurance conversion (Part II)

August 15, 2024

This is the second in a two-part Thought Leadership series on a recent life insurance case out of Alberta, and the implications for life insurers. Michelle Chai and Liz Campbell1 Part I of this two-part series…

Read More

Changing the rules again: Another round of changes impacting Canada’s Competition Act

August 14, 2024

By Deanne MacLeod, K.C., Burtley G. Francis, K.C., and David F. Slipp On June 20, 2024 the Fall Economic Statement Implementation Act, 2023 (the “Economic Statement”) received Royal Assent and became law. The Economic Statement…

Read More

Supreme Court of Canada denies leave to appeal of Alberta ruling on post-death life insurance conversion

August 13, 2024

This is the first in a two-part Thought Leadership series on a recent life insurance case out of Alberta, and the implications for life insurers. By Michelle Chai and Liz Campbell1 The Supreme Court of…

Read More

Canada’s investment in hydrogen has substantial implications for the Atlantic Canadian wind power sector

August 6, 2024

This articles follows our recent Thought Leadership piece on the Federal Government’s announcement of significant investment through the Smart Renewables and Electrification Pathways Program in Nova Scotia clean energy projects. By Dave Randell, Sadira Jan,…

Read More

New announcements in the Canada-Nova Scotia partnership for the clean energy future

August 1, 2024

By David Randell, Sadira E. Jan, Daniel Mowat-Rose, and Marina Luro1 Natural Resources Canada has released two important announcements relating to Nova Scotia’s transition to a green economy: Collaboration framework for a sustainable future Canada’s…

Read More

Workplace investigation helps avoid costly litigation

July 29, 2024

By Sheila Mecking and Lauren Sorel The British Columbia Human Rights Tribunal (“BCHRT”) recently dismissed a complaint of discrimination in the workplace, stating that the employer’s investigation, and settlement offer, adequately resolved the complaint.1 The …

Read More

Cybersecurity class actions against database defendants persist, but hurdles for plaintiffs remain

July 25, 2024

By Sarah Dever Letson, CIPP/C, Meaghan McCaw and Bertina Lou[1] Two decisions earlier this month from the Court of Appeal for British Columbia left open the question as to whether so-called “database defendants” can be held…

Read More

Let’s talk about batteries: Nova Scotia Power’s latest development in renewable energy

July 18, 2024

In conjunction with our upcoming sponsorship of the Halifax Chamber of Commerce luncheon, featuring the Minister of Energy and Natural Resources the Hon. Jonathan Wilkinson, we are pleased to present a Thought Leadership article highlighting…

Read More

Search Archive


Scroll To Top