Canada’s foreign buyers ban could be extended to January 1, 2029, but new residential properties would be exempt under a housing proposal in Budget 2026.
The federal government included the proposal in the budget tabled in Ottawa on November 5, 2026.
The measure would continue restricting non-Canadians from purchasing existing or resale residential properties while opening the door to foreign purchases of newly built homes.
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What the proposed foreign buyers ban changes
Canada’s current foreign buyers ban is set to expire on January 1, 2027.
Budget 2026 proposes legislation to keep the prohibition in place for another two years, but with a different treatment for new housing.
Under the proposal, the restriction would continue to apply to existing homes and resale properties until January 1, 2029.
New residential properties would instead be removed from the prohibition, allowing eligible non-Canadians to purchase newly constructed homes once the necessary legislation takes effect.
The budget describes the approach as a way to keep most of the existing housing market available to Canadians while attracting more investment into new housing supply.
The proposal is not yet law
The announcement does not immediately change the rules for buyers, sellers, developers or real estate professionals.
Parliament would still need to approve legislation implementing the proposed extension and exemption.
Until that process is complete, the existing federal framework remains the governing law, including its current expiry structure and existing exemptions.
The federal statute prohibits non-Canadians from directly or indirectly purchasing residential property, subject to prescribed exceptions for certain people and property types.
The budget documents do not provide a complete operational definition of every property that would qualify as a “new residential property.”
Details such as whether pre-construction purchases, assignments, partially completed projects or homes bought before the new rules take effect would qualify may require further legislation or regulations.
Why Ottawa is changing the policy
The government says the proposed exemption is intended to support homebuilding without reopening the broader market to foreign demand for existing homes.
Foreign investment has been restricted since the federal prohibition came into force on January 1, 2023.
Previous extensions were designed to reduce speculative demand and keep homes available for people living in Canada.
The new proposal reflects a different policy concern: developers and housing advocates have argued that restrictions on foreign capital can make it harder to finance new condominium and rental construction.
Allowing purchases of newly built homes could give builders access to a wider pool of buyers while leaving resale properties subject to the ban.
That distinction may be especially relevant in markets where projects depend on pre-construction sales to secure financing.
What it could mean for buyers and builders
For Canadians, the government says the extension would protect access to existing homes by keeping foreign buyers out of the resale market through 2029.
For non-Canadian buyers, the proposed exemption could create a new route to purchase newly built residential properties, subject to the final rules.
For developers, the measure could expand the potential buyer base for new projects and improve access to foreign investment.
However, the exemption would not necessarily make new homes more affordable for Canadians.
Its effect would depend on how many foreign buyers participate, how developers price new units and whether added investment results in more construction rather than higher prices.
The government is pairing the proposal with broader housing measures, including large investments in non-market housing and policies intended to increase construction.
Key dates to watch
| Date | Development |
|---|---|
| January 1, 2023 | Federal foreign homebuyer prohibition comes into force. |
| November 5, 2026 | Budget 2026 proposes extending the ban and exempting new residential properties. |
| January 1, 2027 | Current scheduled expiry date under the existing framework. |
| January 1, 2029 | Proposed end date for restrictions on existing and resale homes. |
The most important next step is the introduction and passage of legislation.
Until the wording is finalized, people considering a purchase should not assume that a new-build or pre-construction property is automatically exempt.
Buyers should confirm their eligibility and the status of the property with a qualified Canadian real estate lawyer or notary before signing an agreement.
Frequently Asked Questions
What is Canada’s foreign buyers ban?
It is a federal prohibition that generally prevents non-Canadians from purchasing certain residential properties in Canada, subject to prescribed exceptions.
What does Budget 2026 propose for the foreign buyers ban?
It proposes extending the restriction on existing and resale homes to January 1, 2029, while exempting new residential properties.
Can foreign buyers purchase new homes in Canada now?
Not necessarily. The proposed exemption is not an immediate legal change and would require legislation and possibly further regulations.
Would pre-construction homes qualify for the proposed exemption?
The budget does not settle every question about pre-construction purchases, assignments or partially completed projects, so buyers must wait for the final rules.
When does the current foreign buyers ban expire?
Under the existing framework, the current scheduled expiry date is January 1, 2027, unless Parliament changes the law.
Fact-Checked: The Budget 2026 proposal, including the November 5, 2026 tabling date, proposed January 1, 2029 extension and exemption for new residential properties, was verified against official Government of Canada budget documents. The existing January 1, 2027 expiry structure and January 1, 2023 commencement were checked against federal legislative and budget records. ([canada.ca](https://www.canada.ca/en/department-finance/news/2026/10/government-of-canada-to-release-budget-2026-on-november-5-2026.html?utm_source=openai))
Disclaimer: The proposed exemption is not yet law, and buyers should obtain legal advice before relying on it for a real estate transaction.