P.E.I. homebuyers, real estate agents happy as restrictions eased for non-Canadians

A couple from Ukraine is among the immigrantsnow shopping for a home on Prince Edward Island, less than three months after new federal government rules bannedthem from purchasing a house.

Parliament passed the Prohibition on the Purchase of Residential Property by Non-Canadians Actin June 2022, after hearing concerns that purchases by overseas investorswere causing housing prices to spike in a manner that left many Canadians unable to afford a home in many markets.

The law cameinto effect on Jan. 1, 2023, preventing non-Canadians from buying residential property in Canada for two years.

"We got upset, but we had the hope that everything will change for the better in the near future," said Vasyl Salabai.

Elina Salabai said she and Vasyl were intending to buy a house of their own because they have been living with theirdaughter.

"But unfortunately, due to the introduction of the new law, we were not able to do that."

Restrictions eased

The ban on purchasing a house prompted outcry from the real estate community, as well as from newcomers to Canada.

Then therules altered on March 27, with federalHousing and Diversity and Inclusion MinisterAhmed Hussenannouncing the changes.

People who are in the country on a work permit, or are otherwise authorized to work in Canada, can now purchase one residential property.

Non-Canadians and foreign businesses can purchase residential property if they intend to develop it, and they can also purchase vacant land.

"It's a good thing that it's changed," said Jennifer Hubley, the real estate agent representing the Salabais.

"We've had so many newcomers come in. The government wants them here, but then to turn around and put a ban in place when you've got the people here, and pretty much leaving them high and dry"

Other real estate agents on P.E.I. said their clients were not only upset by the ban, but also confused that the rules could change again so soon after the new law took effect.

"My clients feel a little bit shocked," said Wei Chen."I'm a newcomer too. We didn't think the government can change their policy so quick, only three months."

We didn't think the government can change their policy so quick, only three months.Wei Chen, real estate agent

"I'm quite happy to hear this because I think the previous prohibition [was] doing harm, banning them from buying," said real estate agentAlly Guo.

"Buying a house is not just a home purchase, but also like you're belonging to somewhere."

Restrictions remain

Guo said allowing non-Canadians to purchase vacant land may also have some benefits on Prince Edward Island.

"We don't have big developers, like the big cities, for the big condos," she said.

"But if people want to develop something, maybe not big projects, maybe [a] smaller project and they were given the chance to develop that is good to add to the supply to the people who wantto buy."

Guo said she would like to see more of the restrictions lifted, including those applying tointernational students in Canada on study permits.

"They still have that ban, and that's not fair for them," she said.

"People are really deciding to work here, they want to make [a] home here. So it shouldn't be any ban for those people who really want to settle down."

People are really deciding to work here, they want to make [a] home here. So it shouldn't be any ban for those people who really want to settle down.Ally Guo

In hisMarch 27 news release, housing minister Hussensaid: "These amendments will allow newcomers to put down roots inCanadathrough home ownership and businesses to create jobs and build homes by adding to the housing supply in Canadian cities.

"These amendments strike the right balance in ensuring that housing is used to house those living inCanada, rather than a speculative investment by foreign investors."