Canada's ban on foreign buyers purchasing residential property, first introduced on January 1, 2023, has been extended until January 1, 2027. The Prohibition on the Purchase of Residential Property by Non-Canadians Act continues to restrict non-Canadian individuals and corporations from buying residential properties in urban areas across the country.
What the Ban Covers
The ban primarily targets non-Canadians seeking to purchase residential properties with three or fewer dwelling units in census metropolitan areas and census agglomerations. This includes most cities, towns, and their surrounding suburbs across Canada.
Key Exemptions
While the legislation is restrictive, several exemptions exist:
- Permanent residents: those with PR status can purchase property
- Temporary residents: those who have lived in Canada for at least 3 years and meet certain criteria may qualify
- Refugee claimants: approved claimants are exempt
- Spouses/partners: non-Canadians married to or in a common-law relationship with a Canadian citizen or PR may purchase jointly
- Rural properties: properties outside census metropolitan areas are exempt
Looking Ahead to 2027
The government has signalled it will review the policy before its expiration, studying what has worked in countries with similar restrictions (particularly Australia). There is growing discussion about whether to ease the ban starting in 2027 or implement a modified framework that allows foreign investment while protecting housing affordability.
Impact on the Market
While the ban has reduced foreign speculation in the market, its overall impact on housing prices has been modest. Domestic factors — interest rates, immigration levels, and housing supply — continue to be the primary drivers of home prices in Canada.
If you or someone you know is navigating these rules, our team can help clarify your eligibility and guide you through the process.