Federal government eases some restrictions on non-Canadians purchasing property
Changes intended to boost housing supply, minister says
Non-Canadians in the country on a work permit or who are authorized to work in Canada can now purchase residential property. They must have at least 183 days or more remaining on their work permit or work authorization and must purchase only one property to be eligible.
Non-Canadians and foreign businesses can now also purchase residential property if they intend to develop it, and can purchase vacant land zoned for residential or mixed use for any purpose.
Parliament passed the law restricting non-Canadians from purchasing property, the Prohibition on the Purchase of Residential Property by Non-Canadians Act, in June 2022. The law went into force at the start of this year, and prevents non-Canadians from buying residential property in Canada for two years. The restrictions were part of a Liberal promise made during the 2021 federal election campaign amid rising home prices.
Ahmed Hussen, the minister of housing and diversity and inclusion, announced the changes Monday. A news release from the Canada Mortgage and Housing Corporation (CMHC) said the changes went into effect immediately.
"These amendments will allow newcomers to put down roots in Canada through home ownership and businesses to create jobs and build homes by adding to the housing supply in Canadian cities," Hussen said in the news release.
"These amendments strike the right balance in ensuring that housing is used to house those living in Canada, rather than a speculative investment by foreign investors."
CRA waives late penalty on new housing tax
The changes came on the same day the Canada Revenue Agency (CRA) waived late fees and interest on the Underused Housing Tax (UHT), which also came into effect on Jan. 1. The tax requires non-resident, non-Canadians to pay one per cent of the value of any vacant or underused property in Canada yearly. There are several exemptions to the UHT, including an exception for seasonal properties.
The CRA said in a news release it was waiving the penalties because it "understands that there are unique challenges for affected owners in the first year" of the tax.
Those affected by the tax will now have until Oct. 31 to file UHT returns and payments without penalty.
Typical Canadian law. Loopholes for those with money to afford a lawyer to “fit’ the into the criteria.
Always wise to read the article before spouting nonsense.
Sometimes there is another reason
Hilarious. Didn't know we had solved the housing crisis.
Methinks the housing crisis just got a lot worse on PEI Perhaps its because of the email I sent to all four of the MPs on the Island yesterday N'esy Pas?
I love getting form letters too.
You have it backwards
Too letters form getting love I?
Methinks you must be related to the NDP political lawyer N'esy Pas?
The Liberals help everyone but Canadians
Sad but True
Yes, because adding more demand with no additional supply totally "boost supply".
Things will balance themselves
WOW. Must be a pre/post election shell game. Gentlemen start your engines. Housing market (trough) is back open for business again. *eye roll*
Bye bye greenbelt supply Doug is shoveling tax dollars into.
Bye Bye Sunny Ways
More word salad ... so foreigners can buy homes and entire developments ...
Read the article and skip over the big words if necessary.
Particularly Buddhists on PEI
Perhaps you should read my blog
As with everything this government does all show and zero substance.
Amen
Wow like that is NOT going to help the house market inflation in Canada...
Cry me a river
Foreign business ownership of residential housing and property will send housing even higher.because its all about profit. Non-Canadian purchases will have the same effect. What the heck is the matter with these LPC members? Its like they are TRYING to break this country!!
Read the article.
Bingo
Non residents willing to pay outrageous prices that drive our values higher for property taxes - gotta love this government.
Check out PEI