Ottawa is seeking to add exemptions to a bill that temporarily bans foreigners from purchasing residential property in the country, according to the Canada Mortgage and Housing Corporation (CMHC).
The act prohibits non-Canadians from purchasing residential property in the country for a period of two years, and restricts them from dodging the prohibition by using corporations or other entities to make purchases. Any person or entity that knowingly assists a non-Canadian in contravening the prohibition is guilty of an offence and subject to a fine of up to $10,000.
The CMHC detailed a list of exemptions for certain groups of foreigners, including immigrants who have filed five years’ worth of income tax returns, foreigners who have lived in Canada for a minimum of 275 days in each of the five calendar years preceding the year in which the purchase is made, and skilled foreigners with work permits, foreign students, diplomats and refugees who “become important contributors to our economy.”
The exceptions are limited to the purchase of residential properties not exceeding a price of $500,000, anywhere in Canada.
The act to ban foreign investment in Canada was part of Prime Minister Justin Trudeau’s election promises made in August of last year.
“I have to say one of my frustrations over the last six and a half years has been the slow pace which the Liberal government undertakes to meet its own commitments,” NDP MP Daniel Blaikie said at the time.
On June 9, 2021, parliamentarians also voted 180-147 in favour of a Conservative motion to “examine a temporary freeze on home purchases by non-resident foreign buyers who are squeezing Canadians out of the housing market,” reported Blacklock’s Reporter. The Cabinet at the time voted against the motion.