Purchasing a home in Canada has become easier for newcomers.
The Canadian government is making it more accessible for newcomers as well as Canadian citizens to buy homes.
Last week, the government announced they are reducing some of the restrictions in the law that made it challenging for non-Canadians to purchase properties in Canada.
Moreover, starting from April 1st, financial institutions can now offer tax-exempt savings accounts for first-time homebuyers. This aligns with a proposal outlined in the 2022 Budget.
Reducing limitations for non-citizen homebuyers:
Just a few months after introducing new laws restricting non-Canadians from buying residential properties, the government has amended the law and eased restrictions for those buying homes in Canada with a work permit.
On March 27, the Canada Mortgage and Housing Corporation (CMHC) announced that the law prohibiting non-Canadian property purchases had been amended.
According to the amended law, non-Canadians with a work permit can now purchase land and engage in mixed-use commercial purposes if they meet specific criteria. These amendments take effect immediately upon announcement.
The CMHC stated that those with a valid work permit qualify if their permit is valid for 183 days or more at the time of purchase. Additionally, they must not have purchased more than one residential property in Canada.
The law defines residential property as detached homes or similar buildings, townhouses, attached dwelling units, residential condominium units, and other similar establishments.
Furthermore, there has been an amendment regarding vacant land. Land planned for residential and mixed-use purposes can now be bought by non-Canadians and used for any purpose, including residential development.
Housing prices in Canada:
Data from the Canadian Real Estate Association (CREA) shows that the actual national average house price (not seasonally adjusted) was $662,437 in February 2023, down 18.9% from the all-time high in February 2022.
Other statistics released in March 2023 indicate a 2.3% increase in home sales nationwide from the previous month of February, despite nearly an 8% drop in new listings during the same period.
Housing prices remain varied across Canada. According to CREA, ‘with considerably higher borrowing costs, it’s no surprise that prices have cooled off significantly from their peaks in the more expensive markets in Ontario and British Columbia. Prices have held much firmer in Alberta, Saskatchewan, and Newfoundland and Labrador, with Quebec and the Maritime provinces being even more affordable in certain locations.
