Canada Proposes Extending Foreign Homebuyer Ban
The 2026 federal budget would extend the ban to January 1, 2029, while exempting new residential properties.
Updated on Nov. 6, 2026 in Residential
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Canada's 2026 budget proposes extending the foreign homebuyer ban to January 1, 2029. The current ban took effect January 1, 2023, and is set to expire January 1, 2027.
Why it matters
The extension would keep restrictions on non-resident purchases of existing homes in place for two more years, while new residential properties would be exempt. The development industry has asked for the extension, and the ban was originally launched when the Bank of Canada was aggressively raising interest rates.
Non-residents owned 3.8 per cent of B.C. properties in 2024, down from 4.5 per cent in 2021. British Columbia also levies a 20 per cent provincial sales tax on foreign homebuyers, and whether the budget changes provincial taxes is not addressed.
The players
British Columbia
Canada's westernmost province, home to Vancouver and a housing market where non-resident ownership has been a policy focus.
Bank of Canada
Canada's central bank, which sets the country's key interest rate and was aggressively raising rates when the ban was launched.
The details
The 2026 budget extends the Prohibition on the Purchase of Residential Property by Non-Canadians Act to January 1, 2029, and exempts new residential properties from the prohibition. The new BC Conservative government did not mention the foreign buyers tax or the speculation and vacancy tax during the recent provincial election campaign.
Timeline
January 1, 2023: The foreign homebuyer ban took effect.
January 1, 2027: The current ban is set to expire.
January 1, 2029: The proposed extended ban would expire.
Housing Landscape
The Prohibition on the Purchase of Residential Property by Non-Canadians Act, in force since January 1, 2023, is the federal framework the 2026 budget would extend to January 1, 2029. Its new-build exemption marks a departure from a blanket restriction on foreign purchases.
If the extension passes, buyers who are non-residents would remain barred from purchasing existing residential properties in Canada until 2029. New residential properties would stay open to them under the proposed exemption.
The takeaway
Prospective buyers and sellers should note that the foreign buyer restriction on existing homes may be extended for two more years, while new builds remain exempt. Checking current federal rules before any purchase or sale is a practical step as the budget moves forward.
What happens next
The current ban is set to expire on January 1, 2027, and the proposed extension would run to January 1, 2029 if enacted.
Further reading
Explore more residential real estate coverage for context on how these rules affect homebuyers.
Source note: This article includes information reported by Global News.
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