Almost like clockwork I could have predicted the country would do some sort of about-face on the Jan 1. “Ban” for foreign investment and purchasing in Canada (which you can read about here). While the adjustments are not an outright change, it’s reached a point that the entire policy may as well be rolled back, in my opinion.
According to a recent Real Estate Magazine article – quite a bit of the larger pieces of the policy.
Exception for development purposes
There is now an exception for development purposes. This exception allows non-Canadians to purchase residential property for the purpose of development.
The amendments also extend the exception currently applicable to publicly traded corporations under the act to publicly traded entities formed under the laws of Canada or a province and controlled by a non-Canadian.
The prohibition no longer applies to vacant land
The prohibition previously applied to all lands zoned for residential and mixed-use, but it now only applies to developed residential properties.
Vacant land zoned for residential and mixed-use can now be purchased by non-Canadians and used for any purpose by the purchaser, including residential development.
More work permit holders eligible to purchase a home
Another amendment will enable more work permit holders to purchase a home to live in while working in Canada.
Work permit holders are eligible if they have 183 days or more of validity remaining on their work permit or work authorization at the time of purchase and they have not purchased more than one residential property.
Increase in the corporation foreign control threshold
Lastly, the control threshold has increased from three per cent to 10 per cent for privately held corporations or privately held entities formed under the laws of Canada or a province and controlled by a non-Canadian.
Let’s be honest, I could have re-written that in some sort of Chat GTP or AI, or even personally, but what’s the point? The info is accurate and its quoted from source. Let’s move on.
The reality is, the bigger pieces which the “Ban” was opposing – mostly large non-Canadian corporations buying swaths of land for development making it even more expensive for Canadians – have been removed. The remaining protection is basically for non-Canadian purchasing of re-sale properties, as long as it’s not for development purposes. So check one box for the protection from some attempts of laundering.
Who knows – maybe there was some provocation to our PM from another country? Not like it hasn’t happened recently, allegedly. With the number or new Canadians entering the country there would have needed to be change anyway, likely. Either way, an embarrassing about-face.