Budget 2026 proposes to extend Canada's foreign buyer ban on existing homes to January 1, 2029 and exempt newly built homes. The details are not set. What it means if you are abroad or planning to move.
On November 5, 2026, the federal budget proposed two changes to Canada's foreign buyer ban. The ban on existing homes would be extended by two years, to January 1, 2029. Newly built homes would be exempt, so non-Canadians could buy them. If you live outside Canada and have been waiting to see whether the door would open, this is the first real signal. It is also only a proposal: the budget does not define "new", does not give an effective date, and the legislation has not been introduced. This article sets out what is confirmed, what is not, and how the change fits with a plan to move to Canada. It reflects public information as of November 6, 2026.
Status as of November 6, 2026: a budget proposal, not yet law. Until the legislation, the definition of a "new" home and the start date are published, do not sign a contract or pay a deposit on the assumption that you will qualify.
What the budget proposes
Press coverage of the budget, including the Globe and Mail, Daily Hive and Canadian Mortgage Trends (linked below), reports the following:
- The Prohibition on the Purchase of Residential Property by Non-Canadians Act, currently scheduled to end on January 1, 2027, would be extended by two years to January 1, 2029.
- The ban would keep applying to existing and resale homes, subject to the exemptions that already exist.
- New residential properties would be exempt.
- Ottawa says it will bring forward legislation and begin a regulatory process on the change soon.
- The stated aim is to keep most of the market available to Canadians while drawing investment into new housing supply.
What has not been decided
The headline is simple. The rules that decide who can actually buy are not yet written. The reports we reviewed say the following are still to come:
- What counts as "new". It could turn on whether anyone has lived in the home, when construction finished, or when the contract was signed. Which test applies, and how homes sold before construction are treated, has not been published.
- The effective date, and what happens to contracts already signed.
- Conditions. Whether the exemption carries limits such as price, number of units or intended use. The reports describe none.
- Everything else in the ban. No change was reported to the areas covered, the temporary-resident exemptions or the rules for foreign-controlled companies.
- Timing. As the law stands, the ban is scheduled to end on January 1, 2027, so when the legislation passes matters.
Why it is debated
The Globe and Mail reports that the Canadian Home Builders' Association welcomed the change as protecting affordability while bringing investment to new supply. A policy economist at the Canadian Centre for Policy Alternatives, quoted in the same report, called the exemption a significant loophole: it may help developers with unsold condos but could weaken affordability for new homes. The legislation could still change how this plays out.
Who is covered today, and what the proposal changes
The rules below are the ones in force now, as summarised by CMHC. Confirm the conditions with a real estate lawyer before you rely on any of them.
| Your situation | Today | Budget proposal |
|---|---|---|
| Canadian citizen or permanent resident | Not covered by the ban. | No change. |
| Foreign national outside Canada with no status | Cannot buy covered residential property in a census metropolitan area or census agglomeration. | Resale homes: still barred through January 1, 2029. New homes: proposed to be allowed, details pending. |
| Work permit holder | Exempt if you hold a valid work permit or work authorization with at least 183 days of validity left at purchase, and have not bought under the prohibition before. | No change reported. |
| International student | Exempt only if the property costs no more than $500,000, you filed Canadian tax returns for each of the five preceding years, you were in Canada at least 244 days in each of those years, and you have not bought before. | No change reported. |
| Refugee, refugee claimant or protected person | Exempt. See CMHC for who qualifies. | No change reported. |
| Foreign-controlled private company | Covered if formed in Canada, not listed on a Canadian stock exchange and controlled by a non-Canadian. | No details reported. |
Two points matter to buyers abroad. First, the ban applies only to properties in census metropolitan areas and census agglomerations; CMHC says property outside them is not covered. Second, breaking it is costly: CMHC lists fines of up to $10,000 and the possibility of a court-ordered sale. Provincial taxes on non-resident or foreign buyers, such as those in Ontario and British Columbia, are separate from the federal ban. The reports we reviewed do not mention them.
If you are outside Canada and considering a new home
Practical steps that do not depend on how the legislation turns out:
- Treat the new-home exemption as unconfirmed until the legislation and regulations are published.
- Ask the builder and your real estate lawyer how the contract handles a change in the law. In a purchase before construction, closing can be years after signing, so ask which date the rules are applied on and what happens to your deposit if the purchase turns out not to be allowed.
- Price in the costs outside the federal ban: provincial non-resident taxes, financing available to non-residents, and tax on rental income and on a later sale. A lender, an accountant and a lawyer can give figures for your case.
- Be cautious of anyone who says the exemption is already in force. Be equally cautious of anyone who suggests buying through a friend or relative to get around the ban; that is a legal risk for you and for them. Ask a lawyer.
If your goal is to move to Canada
A property purchase and an immigration application are separate things. Owning a home in Canada does not, by itself, give you permanent residence, a work permit, a study permit or any other status, and there is no property-based immigration category. What the ban means for you depends on where you are in the process:
- Planning to apply for permanent residence. Permanent residents are not covered by the ban, so the 2029 date matters less if you are willing to buy after you land. Permanent resident status begins when you land in Canada, not when you are approved, so ask your lawyer how the rules treat the period in between.
- Coming on a work permit. If your permit meets the 183-day condition you may already qualify under today's exemption. Check the details before you rely on it.
- Coming to study. The student exemption counts five preceding years of tax returns and time in Canada, so in practice it is out of reach for a newly arrived student.
- Choosing a route. Start with the immigration route, not the property. Our breakdown of the 2027–2029 Immigration Levels Plan shows how many permanent resident spaces Canada plans to offer each year, and our assessment is the place to start if you want to know which route may fit you.
For who is exempt in more detail, see Canada's Foreign Buyer Ban: Who's Exempt? Our earlier article, Canada's Foreign Buyer Ban Is Set to Expire Jan. 1, 2027, was written before the budget and is kept as published.
Considering a purchase in Ontario?
Fara Homayoonkhah is a RECO-registered real estate broker with CENTURY 21 Heritage Group Ltd. in Ontario.
Fara is a real estate professional independent of ITC iLand's immigration advice. Whether you are allowed to buy is a legal question; ask a real estate lawyer.
What we will do
We will update this article when the legislation and regulations are published. ITC iLand provides immigration consulting only; questions about the property transaction itself belong with a real estate lawyer. This article is general information, not legal advice about a specific purchase.
Sources
Checked November 6, 2026. The first two are official. The rest are news reports of the November 5 budget, because we could not retrieve the budget chapter itself; we will check it and the draft legislation when available.
- CMHC: Prohibition on the Purchase of Residential Property by Non-Canadians Act (who is covered, exemptions, areas, penalties)
- Justice Laws Website: the Prohibition on the Purchase of Residential Property by Non-Canadians Act
- Canadian Mortgage Trends: Canadian budget relaxes foreign buyer ban (November 2026)
- Daily Hive: federal government to exempt new homes from the foreign buyer ban
- The Globe and Mail: Budget 2026 housing commitments and the new exemption to the foreign buyer ban
