In a recent development, the Canadian government has made amendments to the Prohibition on the Purchase of Residential Property by the Non-Canadians Act, which could make it easier for foreigners to acquire real estate properties in Canada. The changes, which took effect on March 27, now allow non-Canadian work permit holders to purchase residential properties in Canada without the previous restrictions around tax filings and work experience. This move is expected to benefit those applying for the Start-up Visa program.
The amendments to the legislation have been welcomed by the Canada Mortgage and Housing Corporation (CMHC) as it intends to help newcomers put down roots in the country through home ownership and allow businesses to create jobs and add to the housing supply in Canadian cities.
Start-up visa essential applicants are among the groups who could benefit from the changes, as they can now acquire real estate property under less strict conditions. The Start-up Visa program is designed to attract innovative entrepreneurs to Canada and help them start businesses that create jobs for Canadians. The program grants a work permit to qualified entrepreneurs to startup in Canada while waiting for their permanent residence visa.
Before the amendment, work permit holders were only able to purchase a residential property if they had worked in Canada for a minimum of three years within the four years preceding the purchase, filed all required income tax returns for a minimum of three of the four taxation years preceding the purchase, and had not already purchased more than one residential property.
However, under the new rules, work permit holders only need to have 183 days or more remaining on their permit or work authorization at the time of purchase and cannot already own residential property. This means the strict requirements previously in place have been removed, making it easier for start-up visa essential applicants in Canada under a work permit to invest in Canada’s housing market.
Parliament initially passed the ban on foreign homebuyers in Canada in June 2022, and it took effect on January 1, 2023. The legislation aimed to make housing more affordable for Canadians and prevent commercial enterprises and individuals outside of Canada from buying residential properties there. While the ban remains in place for some, the recent amendments are expected to make it easier for certain non-Canadians to purchase residential property in Canada. The Canadian government hopes the changes will attract more innovative entrepreneurs and contribute to Canada’s economic growth.
Advantages of The Canada Start-up Visa Program
The Canada Start-up Visa Program is a federal government program that aims to attract innovative entrepreneurs from around the world to Canada. The program has several advantages, including:
- Access to Canadian market: The program offers entrepreneurs the opportunity to establish their businesses in Canada and gain access to the Canadian market. This can be particularly beneficial for entrepreneurs looking to expand their businesses or enter new markets.
- Support from designated investors: The program requires that the applicant have a business idea that is supported by a designated investor, such as a venture capital fund or an angel investor group. These investors provide not only the required financial support, but also mentorship and support in developing and growing the business in Canada.
- Faster processing times: The processing times for the Canada Start-up Visa Program are generally faster than other Canadian immigration programs.
- Pathway to permanent residence: The program provides a pathway for entrepreneurs to obtain Canadian permanent residence, which can be particularly beneficial for those looking to establish long-term roots in Canada.
- Access to Canadian resources: As a permanent resident of Canada, the entrepreneur will have access to Canadian resources such as education, healthcare, and social services.
- Networking opportunities: The program provides entrepreneurs with the opportunity to network with other business leaders and entrepreneurs in Canada, which can be beneficial for developing business relationships and finding new customers.
