Government provides update to foreign buyer ban.
We were speaking with Steven Lewis from The Mortgage Centre this morning and he informed us the government is amending it's foreign buyer policy. Now, if you have a valid work permit in place which has more than 183 days remaining, you are eligible to purchase a home in Canada. We look into some of the other changes to the law below:
Purchasing for the Purpose of Re-Development
Non-Canadians looking to purchase a residential unit with the intent of redevelopment can now do so. The redevelopment cannot be a renovations, but rather a project which substantially changes the use of the building. I.e from a duplex to an apartment building.
Vacant Land Exempt
A Non-Canadian is now permitted to purchase vacant land, which was previously prohibited.
Valid Work Permit Holders Exempt
Those with a work permit or are authorized to purchase in Canada are allowed to purchase residential property, provided they have more than 183 days remaining on their permit and have not purchased more than one residential property.
Our Take on the Proposed Changes
While we understand the need to create fair and equitable housing for all, we were not of the mind the foreign buyer ban was going to address that issue. Moreover, it contradicted the government's lofty immigration goals. A past client of ours is a recruiter for doctors, which we can all agree is an extremely pressing need in Nova Scotia. How are we to attract medicial professionals to the region from another country, if we tell them they are not allowed to purchase a home? This is the same across several different industries. Additionally, the foreign ban would have added a lot more pressure to a rental market that was already extremely competitive.
The changes create a compromise on realistic middle ground. It stops speculators and investors from purchasing homes, but allows individuals who are going to provide extensive value to our community to lay down roots.
Let us know your thoughts in the comments below.
Chris Perkins, Broker/Owner
HaliPad Real Estate Inc.
902 210 1223
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