Canada is simplifying the process for immigrants and Canadian citizens to buy a house. Recently, the Canadian government announced that it would eliminate specific limitations from a specific law that previously made it extremely difficult for individuals who are not Canadian citizens to purchase residential properties.
In addition, starting April 1, 2023, Canadian banks will have the ability to provide tax-free savings accounts to individuals purchasing their first homes in the country. This change in legislation aligns with a suggestion put forth in the Canadian budget for the year 2022.
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New Rules Make it Easier for Non-Canadians to Buy Homes in Canada
The law in Canada has been changed by the government, eliminating the limitations on purchasing residential real estate for non-Canadian individuals with a work permit. Only a few months ago, they had implemented a law that prohibited non-Canadians from buying homes.
The Canada Mortgage and Housing Corporation (CMHC) announced on March 27th that they made changes to the legislation called the Prohibition on the Purchase of Residential Property by Non-Canadians Act.
As per the amendment, individuals who are not Canadian citizens but have a work permit can now purchase land that serves a dual purpose of residential and commercial use, provided they satisfy specific requirements.
The changes became active on the same day the CMCH made their declaration. Additionally, the CMCH revealed that individuals with work permits can buy a property if their permits or authorizations have at least 183 days left when they make the purchase.
In order to qualify, they must also not have bought more than one property in the country.
Based on the revised legislation, residential properties can include detached buildings or other similar properties. This means they can also be semi-detached properties, rowhouse units, residential condominium units, and other similar types of real estate.
Furthermore, the amendment included regulations concerning vacant land. These regulations specify that previously unutilized land, designated for residential or mixed-use purposes, can now be purchased by individuals who are not citizens of Canada. These individuals are then granted the freedom to utilize the land as they see fit, which may encompass residential development or any other suitable purpose desired by the buyer.
Proof Of Tax Filings Is Now Unnecessary
The government’s announcement included plans to review the current system for filing taxes and previous work experience in Canada.
Under the initial Act, temporary citizens of Canada still had the opportunity to purchase residential property. However, individuals possessing work or study permits had to fulfill a set of requirements in order to qualify for this opportunity.
Individuals who are temporarily residing in Canada and hold a valid work permit have the option to purchase a residential property.
- Before buying it, they had been employed in Canada for a minimum of three years out of the previous four.
- They have submitted tax forms for a minimum of three out of the past four years prior to the date of purchase.
- They owned just one residential property.