Is there still a foreign buyer ban in Canada in 2026?

Yes. The Prohibition on the Purchase of Residential Property by Non-Canadians Act is in effect until January 1, 2027. Non-Canadian citizens and non-permanent residents are prohibited from purchasing residential property (1–3 units) in census metropolitan areas and census agglomerations. The ban was originally set to expire January 1, 2025, but was extended by two years.

Who is exempt from the foreign buyer ban?

Exemptions include: refugees and protected persons, temporary residents who have lived in Canada for at least 183 days in each of the 4 calendar years preceding the purchase, work permit holders who have 183 days remaining on their permit and have not purchased more than one property, international students who have been in Canada for at least 5 years and meet other criteria, and foreign nationals purchasing with a Canadian spouse or common-law partner.

What happens if a foreign buyer purchases property in violation of the ban?

Penalties include a fine of up to $10,000 for the buyer and anyone who knowingly assists (such as a real estate agent or lawyer). A court can also order the forced sale of the property. The buyer, their real estate representative, and their legal representative can all be held liable.

Does the foreign buyer ban affect property prices?

The effect has been modest. Foreign buyers represented a relatively small share of total purchases even before the ban (estimated 2%–5% in most markets). The ban removes some demand at the high end of the market in Vancouver and Toronto, but it has not been a major driver of price changes. Other factors — interest rates, domestic demand, and housing supply — have had a much larger impact on prices since the ban took effect.

Foreign Buyer Ban in Canada: Current Status and What You Need to Know (2026)

Canada’s foreign buyer ban — officially the Prohibition on the Purchase of Residential Property by Non-Canadians Act — has been in effect since January 1, 2023. Originally set to expire after two years, it was extended to January 1, 2027. The ban restricts non-Canadian citizens and non-permanent residents from purchasing residential property in most urban areas across the country.

This article covers the current rules, exemptions, penalties, and the real impact on the Canadian housing market.

The Law at a Glance

Factor	Details
Official name	Prohibition on the Purchase of Residential Property by Non-Canadians Act
In effect	January 1, 2023 – January 1, 2027
Original expiry	January 1, 2025
Extended to	January 1, 2027 (2-year extension)
Who is banned	Non-Canadian citizens and non-permanent residents
Property types	Residential property (1–3 dwelling units)
Geographic scope	Census metropolitan areas (CMAs) and census agglomerations (CAs)
Penalties	Up to $10,000 fine; court-ordered sale of property

Who Is Prohibited from Buying?

Prohibited Buyers

Category	Prohibited?
Non-Canadian citizens (not a citizen or PR)	Yes
Non-permanent residents	Yes
Foreign-controlled corporations	Yes
Entities formed outside Canada	Yes
Corporations where non-Canadians control 3%+ of shares (publicly traded)	Yes
Corporations where non-Canadians control 10%+ of shares or equity (private)	Yes

Not Prohibited (Can Still Buy)

Category	Can Buy?
Canadian citizens	Yes
Permanent residents	Yes
Persons registered under the Indian Act	Yes
Refugees and protected persons	Yes
Qualifying temporary residents (see exemptions below)	Yes
Foreign nationals buying with a Canadian citizen/PR spouse	Yes

Exemptions

The regulations include several important exemptions that allow certain non-Canadians to buy:

Work Permit Holders

Requirement	Details
Valid work permit	Must have at least 183 days remaining at time of purchase
Property limit	Can only purchase one residential property
Tax filing	Must have filed income tax returns for at least 1 of the 4 preceding tax years
Property price	No price restriction

International Students

Requirement	Details
Time in Canada	Must have been physically present for at least 244 days in each of the 5 calendar years preceding purchase
Tax filing	Must have filed income tax returns for at least 1 of the 5 preceding tax years
Property price	Maximum purchase price of $500,000
Property limit	One property only

Other Exemptions

Category	Exemption Details
Refugees and protected persons	Fully exempt from the ban
Spouse/common-law partner of Canadian citizen or PR	Can purchase jointly with their Canadian partner
Diplomatic and consular staff	Exempt under international agreements
Vacant land (zoned residential)	Exempt — non-Canadians can buy vacant land
Properties with 4+ units	Exempt — commercial/multi-family (4+ units) is not covered
Properties outside CMAs and CAs	Exempt — rural and small-town properties are not restricted

Geographic Scope

The ban only applies within census metropolitan areas (CMAs) and census agglomerations (CAs) as defined by Statistics Canada. This covers most urban and suburban areas but excludes rural Canada.

Major CMAs Covered

CMA	Covered?
Toronto	Yes
Vancouver	Yes
Montreal	Yes
Calgary	Yes
Edmonton	Yes
Ottawa–Gatineau	Yes
Winnipeg	Yes
Quebec City	Yes
Hamilton	Yes
Kitchener–Cambridge–Waterloo	Yes
Halifax	Yes
Victoria	Yes
London	Yes

Not Covered (Examples)

Rural areas, small towns, and communities outside CMAs/CAs are not subject to the ban. A non-Canadian can purchase a cottage, farm, or home in a rural area without restriction.

Penalties for Violations

Penalty	Details
Fine	Up to $10,000 for the buyer
Fine for assistants	Up to $10,000 for any person who knowingly assists (real estate agent, lawyer, lender)
Court-ordered sale	A court can order the sale of the property
Sale proceeds	If court-ordered, the buyer receives the lesser of the purchase price and the sale price — meaning they may absorb any loss
Statute of limitations	Charges can be laid within 2 years of violation

Anti-Avoidance Rules

The Act includes provisions to prevent avoidance through corporate structures:

Avoidance Attempt	Covered?
Using a Canadian corporation controlled by non-Canadians	Yes — prohibited
Using a trust with non-Canadian beneficiaries	Covered under corporate control provisions
Using a Canadian nominee buyer	The person knowingly assisting faces penalties
Purchasing through a private corporation (10%+ non-Canadian equity)	Prohibited
Purchasing through a public corporation (3%+ non-Canadian shares)	Prohibited

Impact on the Canadian Housing Market

What the Data Shows

Metric	Finding
Foreign buyer share (pre-ban)	Estimated 2%–5% of transactions in Toronto and Vancouver; lower elsewhere
Transactions blocked (2023–2025)	Limited data; anecdotal evidence suggests few outright violations but some deterrent effect
Price impact	Marginal — the ban coincided with interest rate hikes, which had far greater impact
Supply impact	No significant impact on housing supply
Rental market impact	Some evidence of reduced foreign-owned rental supply in Vancouver condos

Why the Impact Has Been Modest

Factor	Explanation
Foreign buyers were already a small share	The ban addresses 2%–5% of demand at most
Interest rates dominate	Rate hikes in 2022–2023 reduced demand by 20%–30% across all buyer types
Provincial measures already existed	BC’s foreign buyer tax (20%), Ontario’s Non-Resident Speculation Tax (25%), and Quebec’s tax were already deterring foreign purchases
Avoidance paths exist	Buyers with PRs, spouses, or work permits are exempt

Provincial Foreign Buyer Taxes (Still in Effect)

The foreign buyer ban operates alongside provincial and municipal taxes that apply to non-residents:

Province/Region	Tax	Rate
British Columbia (province-wide)	Additional Property Transfer Tax	20% of purchase price
Ontario (province-wide)	Non-Resident Speculation Tax (NRST)	25% of purchase price
Quebec	Additional tax on non-resident purchases	Currently based on municipal assessments
Prince Edward Island	Non-Resident Land Tax	25% surcharge

These taxes apply even if the foreign buyer qualifies for an exemption under the federal ban. A work permit holder who is exempt from the ban may still owe 20%–25% in provincial foreign buyer tax depending on the province.

What Happens After the Ban Expires (January 1, 2027)?

Scenario	Likelihood	Impact
Ban expires as scheduled	Moderate	Foreign demand may increase modestly in Vancouver and Toronto
Ban extended again	Possible	If housing affordability remains a political priority
Ban made permanent	Less likely	Would require new legislation
Replaced with permanent tax-based measures	Possible	Similar to Australia’s model (foreign buyers allowed but taxed)

Provincial foreign buyer taxes will remain regardless of what happens to the federal ban. Any returning foreign demand will face 20%–25% provincial tax premiums in BC, Ontario, and Quebec.

How This Affects Canadian Homebuyers

Factor	Impact
Competition	Marginally less competition, particularly in luxury segments and Vancouver/Toronto condos
Prices	Minimal price impact attributable specifically to the ban
Market psychology	The ban signals government willingness to intervene in housing, which may affect investor sentiment
For sellers	Smaller pool of potential buyers at the high end