The Canadian government recently announced significant changes to the Prohibition on the Purchase of Residential Property by Non-Canadians Act and its accompanying regulations. The amendments aim to provide greater flexibility for newcomers and businesses looking to contribute to the housing supply in Montreal and other Canadian cities. Let’s take a closer look at the implications of these amendments for the Montreal real estate market.
A Warm Welcome for Work Permit Holders
One of the most notable changes in the regulations is that work permit holders are now allowed to purchase residential property in Montreal and other Canadian cities. Previously, this group faced a number of restrictions when trying to buy a home in Canada. With the new amendments, individuals with work permits or work authorization under the Immigration and Refugee Protection Regulations can buy a residential property if they have at least 183 days of validity remaining on their permit at the time of purchase. This change will enable more work permit holders to settle down in Montreal and pursue homeownership sooner, boosting the local real estate market.
Vacant Land No Longer Off-Limits
Another significant change brought about by the amendments is the repeal of the existing provision that applied the prohibition to all lands zoned for residential and mixed use. This means that vacant land designated for residential and mixed-use development can now be purchased by non-Canadians. As a result, the Montreal real estate market is expected to see an increase in the number of foreign investors looking to develop residential properties in the city, potentially addressing housing supply issues.
Development Purposes: An Exception to the Rule
The new amendments also expand the exceptions to the prohibition, allowing non-Canadians to purchase residential properties for development purposes. This exception has been extended to include publicly traded entities formed under Canadian laws or a province and controlled by non-Canadians. By encouraging foreign investment in property development, the government hopes to create jobs and stimulate the growth of the housing supply in Montreal and other Canadian cities.
Increased Foreign Control Threshold
The amendments have also raised the foreign control threshold for privately held corporations from 3% to 10%. This change aligns with the definition of ‘specified Canadian Corporation’ in the Underused Housing Tax Act. By increasing the foreign control threshold, the government has made it easier for non-Canadian investors to take part in the Montreal real estate market.
Striking the Right Balance
The Hon. Ahmed Hussen, Minister of Housing and Diversity and Inclusion, stated that these amendments aim to strike the right balance between ensuring housing is used for those living in Canada rather than as a speculative investment by foreign investors. By allowing newcomers to pursue homeownership and businesses to create jobs and build homes, the government hopes to boost the housing supply in cities like Montreal while still protecting the interests of Canadian citizens.
Montreal Real Estate: A Market Poised for Growth
The recent amendments to the Prohibition on the Purchase of Residential Property by Non-Canadians Act are expected to bring positive changes to the Montreal real estate market. With increased flexibility for newcomers, businesses, and foreign investors, the city’s housing supply will likely see growth in the coming years.
If you’re interested in exploring the Montreal real estate market and want to work with a local expert who knows the ins and outs, don’t hesitate to contact Pierre Batbatian Real Estate Broker. They’ll help you navigate the complexities of the market and find the perfect property to suit your needs.