Foreign Buyer Ban in Canada Expires January 1, 2027—Government Still Silent on Renewal
Canada's ban on foreign residential property purchases is set to expire in less than four months, with no federal announcement yet on renewal, repeal, or replacement. Provinces maintain separate foreign buyer taxes ranging from 20–25%.
Canada's effort to make housing more affordable by keeping most foreign buyers out of the market may have failed to address the problem it was designed to solve. The federal ban, introduced more than three years ago, is set to expire Jan. 1, and Ottawa has yet to say whether it will be extended. But Mike Moffatt, economist and founding director of the Missing Middle Initiative at the University of Ottawa, said there is little evidence the measure had much impact.
Current Rules and Provincial Taxes
In British Columbia, foreign buyers face a 20% Additional Property Transfer Tax in Metro Vancouver and several surrounding regional districts. Ontario levies a 25% Non-Resident Speculation Tax across the province. On top of that, the Speculation and Vacancy Tax is an annual bill that just went up: 3% for foreign owners and satellite families in the 2026 tax year, rising to 4% in 2027. Canadians and permanent residents pay 1%.
The ban only applies within census metropolitan areas (CMAs) and census agglomerations (CAs) as defined by Statistics Canada. This covers most urban and suburban areas but excludes rural Canada. Rural areas, small towns, and communities outside CMAs/CAs are not subject to the ban. A non-Canadian can purchase a cottage, farm, or home in a rural area without restriction.
What Could Change After January 1, 2027
In December 2025, Housing Minister Gregor Robertson confirmed that the Carney government is conducting a formal review of the ban, with an eye on what happens when it expires in January 2027. The model under consideration is one already in use in Australia: foreign buyers would be permitted to purchase new construction and vacant land, but would remain barred from buying existing homes. The idea is to direct foreign capital towards adding to the housing supply rather than competing for existing stock.
What This Means for Newcomers
If you hold a work permit or have just arrived as a permanent resident, understand that the non-Canadian spouse of a Canadian citizen or permanent resident is treated as Canadian for purposes of this Act—so spousal status may unlock buying eligibility. Work permit holders can currently purchase one property if you've worked 183+ days in Canada and meet income requirements. Provincial taxes still apply regardless. Watch for federal announcements in late 2026; any change to the ban structure could significantly affect your home-buying timeline and costs. Permanent residents are not subject to the ban at all and can purchase freely.
Sources
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