Canada's Foreign Buyer Ban Expires in 2027

Canada’s ban on non-resident foreign homebuyers expires on January 1, 2027. The federal government has not decided whether to extend or eliminate the policy. The ban was introduced in 2022 and extended in 2024. It targets non-resident purchases in the national housing market.

A Research Co. poll from last year found that 76% of Canadians support the ban. This majority view remains stable in 2026. The policy was designed to address affordability issues in Toronto and Vancouver. These two cities drove much of the demand during the 2021 market boom.

Industry views split on ban

58% of mortgage professionals surveyed by Canadian Mortgage Professional want the ban to stay. However, some brokers argue for specific exceptions. Drew Donaldson of Donaldson Capital says the US does not ban Canadian buyers. He suggests allowing US citizens to purchase homes in Canada. Sherry Cooper of Dominion Lending Centres Group agrees with this approach. She notes that American buyers are interested in second properties in Canada.

Australia model offers an option

Law firm Borden Ladner Gervais LLP suggests a revised ban is possible. They point to Australia as a model for exceptions. Australia allows non-residents to buy vacant land and new builds. It also permits purchases for large-scale redevelopment projects. These rules apply if the investment adds more than 20 units to the housing stock.

Market impact remains limited

Economist Mike Moffatt says the ban had little impact on the market. He argues that affordability damage occurred before the 2022 rule. The rule was nationwide but targeted two specific cities. Home affordability improved in 10 of 13 major markets last month. Ratehub.ca data confirms this trend. Buyers still face high interest rates and economic uncertainty. The final decision will come from federal policymakers in early 2027.