The foreign buyer ban was originally meant for individual Canadians and the resale market. However, a less talked-about effect of the ban was how it affected the development industry, since a company was considered foreign if at least 3% of it was owned by a non-Canadian. In the few months since the ban went into effect on January 1, developers have criticized this 3% restriction as being overly restrictive, especially for real estate investment trusts (REITs). With this amendment, the maximum amount of non-Canadian control authorized in a REIT subject to the foreign buyer prohibition is now 10 percent.

The new rule that lets non-Canadians buy homes for development purposes could be an even bigger benefit. Previously, only publicly traded corporations were subject to this requirement. According to CMHC’s Frequently Asked Questions, “development” does not include “the primary purpose of leasing or renting the property to tenants or managing it as part of its portfolio of rental properties.” Neither do repairs, renovations, or remodeling count as “development.” Nevertheless, the CMHC states that some additions and renovations that are “equivalent to the construction of a new structure or a change of use—such as those that establish a new residential property—are approved and will continue to be so.