Archive for category: Business

Staff at CIL love to help our clients to get settled in Manitoba. Part of that process may be to buy property in Winnipeg or outside the capital region. In some cases, clients want to know if purchasing a house will help their immigration application. In other cases, they have worker status or student status and they have prohibited from buying the house of their dreams. This article is to provide guidance on Canadian laws and regulations in Manitoba for temporary residents.

In 2023, the Prohibition on the Purchase of Residential Property by Non-Canadians Act came into effect. This is a federal law that may apply to all purchases of property across Canada, including Manitoba.  It applies to all non-Canadians who falls within the relevant definitions under the Act. This Act was designed to address the current housing shortage in Canada and prevent foreign investors from purchasing property without any benefit to residents.

In Feb 2024, this ban on foreign owners who fall within the parameters of the Act has been extended to Jan 2027. As stated by the government:

For years, foreign money has been coming into Canada to buy up residential real estate, increasing housing affordability concerns in cities across the country, and particularly in major urban centres. Foreign ownership has also fueled worries about Canadians being priced out of housing markets in cities and towns across the country.

As part of using all possible tools to make housing more affordable for Canadians, the ban on foreign ownership of Canadian housing, which is currently set to expire on January 1, 2025, will be extended to January 1, 2027. Foreign commercial enterprises and people who are not Canadian citizens or permanent residents will continue to be prohibited from purchasing residential property in Canada.

The ban on foreign ownership of Canadian housing—and this two-year extension—is just one part of the federal government’s economic plan to make housing more affordable for Canadians. The federal government is taking bold action and working with all orders of government to build more homes, faster, and put homeownership back within reach for more Canadians.

The team at CIL works to make sure all our clients are in compliance with Canadian laws and regulations, as they apply to immigration.

There are many exceptions to this legislation for international students and workers, depending on their circumstances. As outlined by CMHC:

The Act and Regulations provide exceptions, including for the following persons:

Temporary residents studying in Canada, if they:

• are enrolled in a program of authorized study at a designated learning institution as defined in the Immigration and Refugee Protection Regulations, and
• have filed income tax returns for each of the 5 taxation years preceding the year in which the purchase was made, and
• have been physically present in Canada for a minimum of 244 days in each of the 5 calendar years preceding the year in which the purchase was made, and
• have not previously purchased a residential property in Canada while the prohibition is in effect, and
• purchase a property for a price not exceeding $500,000

Temporary residents working in Canada, if they:

• hold a valid work permit or are authorized to work in Canada, and
• have 183 days or more of validity remaining on their work permit or work authorization at time of purchase, and
• have not previously purchased a residential property in Canada while the prohibition is in effect

Refugees, if they:

• have been given refugee protection or are a protected person under the Immigration and Refugee Protection Act

Refugee claimants and individuals fleeing international crises, if they:

• have made a claim for refugee protection in accordance with the Immigration and Refugee Protection Act, if that claim has been found eligible and referred to the Refugee Protection Division; or
• have received temporary resident status in accordance with the Immigration and Refugee Protection Act based on humanitarian public policy considerations to provide a safe haven to those fleeing conflict

Accredited members of foreign missions in Canada, if they:

• hold a passport that has a valid diplomatic, consular, official, or special representative acceptance issued by the Chief of Protocol of Canada

Non-Canadians spouses and common-law partners, if they:

purchase residential property in Canada with their spouse or common-law partner who is a Canadian citizen, a person registered under the Indian Act, a permanent resident or a non-Canadian for whom the prohibition does not apply.

If you fall within the above categories, you do not have to worry about the Act. You can purchase your property without any guidance. If you do not fall within the above, we recommend contacting an immigration lawyer to help guide you through the regulations.

Any person in violation of the Act is submit to a fine of $10,000, which includes anyone involved in the transaction both directly and directly. As outlined by Section 6:

• 6 (1) Every non-Canadian that contravenes section 4 and every person or entity that counsels, induces, aids or abets or attempts to counsel, induce, aid or abet a non-Canadian to purchase, directly or indirectly, any residential property knowing that the non-Canadian is prohibited under this Act from purchasing the residential property is guilty of an offence and liable on summary conviction to a fine of not more than $10,000.