While it won’t have a tremendous impact on the majority of Real Estate in the GTA, there has been some amendments to the regulations surrounding the purchasing of real property by foreign buyers/entites.
Exception for development purposes
There is now an exception for development purposes. This exception allows non-Canadians to purchase residential property for the purpose of development.
The amendments also extend the exception currently applicable to publicly traded corporations under the act to publicly traded entities formed under the laws of Canada or a province and controlled by a non-Canadian.
The prohibition no longer applies to vacant land
The prohibition previously applied to all lands zoned for residential and mixed-use, but it now only applies to developed residential properties.
Vacant land zoned for residential and mixed-use can now be purchased by non-Canadians and used for any purpose by the purchaser, including residential development.
More work permit holders eligible to purchase a home
Another amendment will enable more work permit holders to purchase a home to live in while working in Canada.
Work permit holders are eligible if they have 183 days or more of validity remaining on their work permit or work authorization at the time of purchase and they have not purchased more than one residential property.
Increase in the corporation foreign control threshold
Lastly, the control threshold has increased from three per cent to 10 per cent for privately held corporations or privately held entities formed under the laws of Canada or a province and controlled by a non-Canadian.