Canada's Foreign Buyer Ban: Budget 2026 Proposes Extending It to 2029 and Exempting New Homes

OTTAWA, Nov. 7, 2026: The federal Budget 2026 proposes to extend Canada's foreign buyer ban, the Prohibition on the Purchase of Residential Property by Non-Canadians Act, by two years to January 1, 2029 for existing and resale homes, while exempting new residential properties. The budget says the government will propose legislation and start a regulatory process "in short order"; until then, the Act and its Regulations apply as written.

In Canada, the ban currently runs to January 1, 2027, after the 2024 two-year extension. It applies across the country, including the census metropolitan areas and census agglomerations of BC and Ontario.

What did Budget 2026 propose for the foreign buyer ban?

Budget 2026 (Chapter 3, "A more affordable life") proposes to "extend the ban on foreign purchases of existing residential properties for two years, to January 1, 2029, while exempting new residential properties." Annex 3 of the budget lists the legislative step: introduce legislation to extend the application of the Act to January 1, 2029. Annex 4 describes the same measure as extending the prohibition for existing and resale properties while lifting it for new residential properties. The budget does not define "new residential property"; that detail is expected in the legislation and regulations.

What does the current law say?

Under section 4 of the Act, a non-Canadian may not purchase, directly or indirectly, residential property in Canada. A non-Canadian is an individual who is not a Canadian citizen, a person registered under the Indian Act or a permanent resident, plus certain foreign-controlled corporations. Residential property means a detached house or similar building with up to three dwelling units, or a semi-detached house, rowhouse unit or residential condominium unit. The Regulations (SOR/2022-250) exclude property outside a census metropolitan area or census agglomeration, and exempt, among others, protected persons, a non-Canadian buying with a Canadian or permanent resident spouse or common-law partner, work permit holders with 183 or more days left on the permit who have bought no more than one property, and some students. A contravention can bring a fine of up to $10,000, and a court may order the property sold.

What it means for landlords

Renting is not affected: the Regulations say the rental of a dwelling unit to a tenant is not a "purchase", so a landlord in BC or Ontario may rent to a non-Canadian tenant. For owners who plan to sell a resale condo or house, the pool of buyers stays the same if the extension passes. Builders and buyers of newly built homes are the ones who would see a change. Non-resident owners who already hold Canadian rentals continue to face the separate tax rules covered in our guide to the 25% non-resident withholding tax, and BC buyers still pay BC property transfer tax.

What to do now

1. Sellers: if a buyer is not a citizen or permanent resident, ask your lawyer or notary to confirm an exemption applies before signing; the Act also makes it an offence to knowingly help a prohibited purchase.
2. Buyers of new homes: wait for the bill and regulations that define "new residential property" before relying on the exemption.
3. Landlords: keep renting as normal; a tenancy is not a purchase.

For more on the budget's other housing measures, see Federal Budget 2026: what landlords and tenants should watch, and our Canadian Landlord Resource Center.