CLOSED
Market research
The Prohibition on the Purchase of Residential Property by Non-Canadians Act has been in force since 1 January 2023. Originally a two-year measure, it was extended in February 2024 (via the Budget Implementation Act) to 1 January 2027. It bars foreign nationals and non-Canadian-controlled commercial enterprises from purchasing residential property with three or fewer dwelling units in most urban Canada.
Toronto / Vancouver · Foreign purchase banned
Foreign buyers are BANNED — but the ban expires 1 January 2027, and Canada is signalling it will not simply extend it
Where Canada wins
Canada does not currently win anything for a foreign buyer, because a foreign buyer cannot participate. It is on this site for two reasons. First, as an honest answer to anyone asking 'should I look at Toronto or Vancouver?' — the answer is that you legally cannot, and no adviser telling you otherwise is describing the current law. Second, because the 1 January 2027 expiry makes it the one CLOSED market in this set with a credible near-term reopening, and the government's own evidence — foreign buyers were 1.1% of BC sales while prices rose 20% anyway — is why. Watch it. Do not plan around it.
Foreign ownership
The ban applies to residential properties with three or fewer dwelling units located within Census Metropolitan Areas (population 100,000+) and Census Agglomerations (core population 10,000+). It therefore covers most urban and suburban Canada. EXCLUSIONS: rural areas and small towns outside CMAs/CAs are NOT covered; buildings with four or more units are NOT covered; vacant land and property acquired for redevelopment were carved out by 2023 amendments. EXEMPT PERSONS: permanent residents, protected persons, those registered under the Indian Act, diplomats, and — under narrow conditions — certain work-permit holders (183+ days validity remaining, one home only) and certain international students (five years of Canadian tax filings, 244+ days present in Canada in each of those years, one home only).
What happens next
In December 2025, Housing Minister Gregor Robertson confirmed the Carney government is conducting a formal review ahead of the January 2027 expiry. The model under consideration is the AUSTRALIAN one: foreign buyers permitted to purchase NEW CONSTRUCTION and vacant land, but barred from buying EXISTING homes — directing foreign capital toward adding supply rather than competing for existing stock. A July 2026 analysis by Borden Ladner Gervais LLP expects the post-2027 framework to be shaped by property type and development intent rather than blanket eligibility. Nothing is confirmed. But the direction of travel is toward selective reopening.
Did the policy work?
Foreign buyers represented just 1.1% of home sales in British Columbia in 2021 (down from 3% in 2017) — a figure that was already marginal before the ban was imposed. Over the roughly four years the prohibition has been in effect, average Canadian house prices have risen more than 20% (2021–2026). Meanwhile CMHC continues to warn that Canada must roughly DOUBLE annual housing starts — to 380,000–480,000 units per year against a current rate of approximately 259,000 — to restore affordability. The policy targeted a 1.1% cause and left a structural supply shortfall untouched. This is the empirical case the government itself is now confronting, and it is why the ban is under review rather than heading for automatic extension.
Key risks
Unless you are a permanent resident, a qualifying work-permit holder, a qualifying international student, or buying rural / 4+ unit / vacant-redevelopment property, the purchase is prohibited by federal statute. This is not a tax to be planned around — it is an outright legal bar.
BC and Ontario levy Non-Resident Speculation Taxes, and Toronto has pursued a Municipal Non-Resident Speculation Tax. Even a legally-permitted foreign purchase can attract substantial provincial/municipal surcharges. Verify at all three levels of government.
The government is reviewing; nothing is legislated. Do not commit capital on the assumption that the market reopens on schedule or on favourable terms.
Research only
CoreSpaces is not licensed to broker or advise on property transactions in Canada. This page is research only — and for most foreign buyers it is currently academic, because purchase is prohibited by federal law until at least 1 January 2027. Engage Canadian legal counsel before assuming any exemption applies to you.
