As of Jan. 1, new federal rules stop most non-Canadians from buying for next 2 years
For Dany Yang, life on P.E.I. hasn’t exactly gone as planned so far
Yang moved here from Shanghai, China with her husband and teenage son in August, and rented a small apartment in Charlottetown
For months they searched, unsuccessfully, for a home to buy in the city. Now, it’s too late
According to this new policy, we can’t buy a house until we get permanent residency. This is not good for us
said YangWe have a rental. But for me, there is no sense of belonging. It’s better to have a house
On Jan. 1, new federal rules took effect that ban most non-citizens and permanent residents from buying houses in Canada for the next two years
There are some exemptions, including
international students who meet certain requirements
foreign workers who have filed tax returns in Canada in three of the last four years; and
those purchasing homes in predominantly rural areas, well outside urban centres like Charlottetown and Summerside
Yang doesn’t fall into any of those categories
I feel frustrated
she saidI want to be in the city. It’s more convenient for us to be near friends, to build our business, and for my son to go to school
‘Most of them will plan to move’
Yang’s realtor, Wei Chen, says that frustration is shared by most of her clients. They’re primarily new immigrants to P.E.I. who have work permits through the Provincial Nominee Program, and won’t have permanent residency for at least a few years
Chen said they’re eager to buy homes in the Charlottetown area. Now they’ll have to rent, with limited options available to them, given P.E.I.’s tight rental market
So this has reduced their feeling of belonging here. If you live in your own house compared to a rental, it’s totally different
Chen saidAfter the two-year ban is lifted, I think maybe most of them will plan to move to the big city [outside P.E.I.], because the experience here may not be good enough to get them to stay here
As it stands, P.E.I.’s immigrant retention rate is by far the worst in the country. (new window) Only about a third of those who moved to the Island in 2015 were still here in 2020
P.E.I.’s Real Estate Association predicts the foreign buyers’ ban will hurt the province’s efforts to get more immigrants to stay for the long haul
During consultations on the proposed ban back in September, the association wrote in a letterThrough the Provincial Nominee Program, Islanders have welcomed immigrants from around the world. These individuals move to P.E.I., start businesses, raise families, and stimulate our economy. If they are prevented from home ownership, they will choose to immigrate elsewhere
Stopping foreign investors
According to the federal government, the aim of the new law is stop foreign investors from buying up Canadian real estate and driving up already-high home prices
P.E.I. Real Estate Association president James Marjerrison said there are no clear statistics on how many Island homes have been purchased by foreign buyers in recent years, or how much that’s contributed to rising prices here
Certainly it’s had an impact, but I don’t think it’s been the main driving force in our market on P.E.I
he saidCertainly the driver was low interest rates — almost-free money for a number of years. I think that was the main driver. I wouldn’t peg it to foreign buyers by any means
Marjerrison added that the recent sharp rise in interest rates is now cooling the housing marketso I’d say the ban is unnecessary at this point. I think our market has slowed down and become more balanced in the last few months
CBC News reached out to P.E.I.’s office of immigration for comment on the federal government’s new ban, but didn’t get a response
Steve Bruce · CBC News
