The federal government has proposed extending Canada's foreign buyer ban for another two years, while introducing a significant change that would allow non-Canadians to purchase newly constructed residential properties.

Announced in the 2026 federal budget on Nov. 5, the proposed changes would extend the Prohibition on the Purchase of Residential Property by Non-Canadians Act to Jan. 1, 2029, for existing and resale homes. The ban is currently scheduled to expire Jan. 1, 2027.

What's changing?

The federal government has proposed two key changes:

• Extension to 2029: The prohibition on non-Canadians purchasing existing and resale residential properties would continue until Jan. 1, 2029, subject to applicable exemptions.

• Exemption for new homes: Newly constructed residential properties would be exempt from the prohibition, potentially allowing non-Canadian buyers to purchase new homes.

According to the federal government, the proposed approach aims to protect housing affordability by keeping existing homes available to Canadians while encouraging investment in new housing construction.

What does this mean for CREB^® members?

While the proposed exemption could create new opportunities for non-Canadian buyers interested in newly constructed homes, the changes are not yet law.

The federal government must introduce and pass the necessary legislation and implement any required regulatory changes before the new rules take effect.

Until then, members should continue following the existing requirements when working with non-Canadian buyers.

Members should also be aware that further details are needed to clarify which properties will qualify as newly constructed and when the exemption will take effect.

Stay informed

CREB^® members are encouraged to familiarize themselves with the current legislation, confirm buyer eligibility and seek legal advice when questions arise about a client's ability to purchase residential property.

For more information, review our previous CREB^®Talk article, Foreign buyer prohibition: What you need to know, or visit the Canada Mortgage and Housing Corporation's information page.

You can also review the proposed changes in the 2026 federal budget, under Chapter 3, A more affordable life. See Section 3.2, Providing a bridge to tomorrow, Pillar 3, Building a housing market that works for all, and the subsection Homebuilding and the Productivity Mega Deduction.