Important Updates for Non-resident Landlords

Canada recently unveiled its Federal Budget for 2022, involving new regulations for foreign home buyers. This comes in addition to current foreign home buyer regulations.

Canada has been experiencing a housing crisis for some time. This crisis can be seen across Canada, but especially impacts larger cities, such as Toronto and Vancouver, with housing prices soaring and a scarcity of available properties.

If you’re a foreign home buyer, you’re likely aware of the current restrictions regarding your ability to purchase residential property in Canada. If you’re a non-resident landlord, this involves a 25% tax on all rental income you earn in Canada. These restriction have increased, however, with the unveiling of Canada’s 2022 Federal Budget.

In April 2022, Trudeau announced that the government would begin to prohibit foreign home buyers from purchasing or acquiring non-recreational, residential homes in Canada for a period of at least two years. Refugees, international students, and those with work permits will be excluded from this ban, however. If you don’t fall into any of these categories, you’ll likely need to wait at least two years before purchasing another investment property.

Many feel this is a step in the right direction to cooling the current housing market. Don’t anticipate seeing housing prices fall anytime soon, though. A large crux of the housing crisis still remains to be a lack of supply.