Canada's Foreign Buyer Ban in 2026: What You Need to Know

What the ban actually covers

The Act makes it an offence for a non-Canadian to purchase, directly or indirectly, residential property in Canada. According to guidance from the Canada Mortgage and Housing Corporation (CMHC), it applies to homes with three or fewer dwelling units, including detached houses and condominium units.

Crucially, the ban only applies to property located in a Census Metropolitan Area or Census Agglomeration. Homes outside those statistical zones, which include many rural and recreational areas, are not caught by the ban at all.

• In force since 1 January 2023
• Applies to residential property with three or fewer dwelling units
• Only applies within Census Metropolitan Areas and Census Agglomerations
• Vacant land is excluded following amendments that took effect on 27 March 2023

Extended to 1 January 2027

The ban was originally due to expire on 1 January 2025. On 4 February 2024 the Department of Finance Canada announced a two-year extension, so it now runs until 1 January 2027. The government framed the extension as part of its wider housing affordability agenda, saying homes should be used by Canadian families rather than as speculative assets.

As of August 2026 there has been no official announcement of a further extension. Whether the ban lapses at the start of 2027 or is renewed again is a political decision, so check the Department of Finance and CMHC websites before timing a purchase around the expiry date.

Who counts as a non-Canadian

The Act defines a non-Canadian as anyone who is not a Canadian citizen, a permanent resident, or a person registered under the Indian Act. It also covers foreign corporations and Canadian corporations controlled by non-Canadians.

There are exceptions written into the law itself: temporary residents who meet prescribed conditions, protected persons such as refugees, and non-Canadians buying jointly with a spouse or common-law partner who is a Canadian citizen or permanent resident.

• Work permit holders can qualify if their permit has at least 183 days of validity remaining
• International students can qualify under strict conditions, including a purchase price cap of $500,000
• Accredited members of foreign diplomatic missions are also exempt

Penalties for breaking the ban

Breaching the Act is a summary offence carrying a fine of up to $10,000, and it applies not only to the buyer but to anyone who knowingly counsels or assists the purchase, which can include agents and advisers. A court can also order the property to be sold, with the non-Canadian recovering no more than the price they originally paid.

Because professionals share the risk, Canadian lawyers and estate agents will ask for proof of citizenship, residency or exemption before completing a transaction.

Taxes still apply where you can buy

Even where a purchase is allowed, provincial taxes on foreign buyers apply on top of the federal rules. Ontario charges a 25 per cent Non-Resident Speculation Tax on homes bought by foreign nationals anywhere in the province, and British Columbia adds a 20 per cent additional property transfer tax in five regions including Metro Vancouver. Budget for these from the start.

Rules and rates can change, so confirm the current position with the Government of Ontario, the Government of British Columbia and CMHC before you commit. Habio's Canada buyer guides and area guides are a sensible place to get oriented before you speak to a lawyer.