Foreign Buyer Ban Extended, With New Exemptions for Homebuyers

The federal government has extended the ban on foreign buyers purchasing existing residential properties until January 1, 2029, while introducing an exemption for newly constructed homes. The ban, first introduced in January 2023, restricts non-Canadians from purchasing residential properties such as houses and condominiums with three or fewer units. However, permanent residents (PR holders) are not subject to the ban and can continue purchasing existing homes in Canada, just like Canadian citizens.

The updated rules will also allow foreign nationals who do not qualify as permanent residents to purchase newly constructed properties. The change is intended to protect housing affordability by keeping existing homes available to Canadians and permanent residents while encouraging additional investment in new housing supply. It also recognizes the role provinces and municipalities play in regulating their local housing markets.

Despite improvements in housing affordability since the pandemic, Canada continues to face a significant housing supply shortage. New housing starts declined from 271,198 units in 2021 to 259,028 in 2025, while estimates suggest the country needs an additional 187,000 to 238,000 homes annually to restore pre-pandemic affordability levels by 2036. The federal budget includes $100 million over three years to help municipalities speed up housing approvals, along with $13 billion in additional funding over 10 years to support affordable housing construction.

Other housing measures include $11.2 billion over four years to address homelessness, including investments in housing, health, mental health and social support services. An additional $3.6 billion will support transitional and supportive housing, while the Canada Housing Benefit will be renewed for another 10 years to help Canadians manage housing costs.

Overall, the new investments will bring the federal housing agency's total funding to $45 billion, with a goal of supporting the construction of 200,000 homes over the next decade. The measures are intended to increase housing supply, improve affordability and provide additional support to Canadians facing housing challenges.