Foreign Home Buyers Ban

Canada Extends the Ban on Foreign Buyers

Canada’s government recently announced the extension of its ban on foreign home buyers through the end of 2026, a move aimed at addressing the country’s escalating housing affordability crisis. The home buyers ban was initially implemented as a temporary measure to cool down an overheated housing market, the ban sought to make homeownership more accessible to Canadians by reducing competition from overseas buyers, who were believed to be driving up property prices. The original objectives of the ban centered around stabilizing the housing market, ensuring that Canadian residents and citizens had priority access to the real estate market, and mitigating speculative buying that was contributing to unprecedented price surges in major cities across Canada. 

Housing Ban Canada

Overview of the Home Buyer Extended Ban

The foreign home buyer ban which was initially introduced in 2022 as a temporary two year measure has been extend into the end of 2026. The ban was introduced by the Canadian Federal Government and prevents non-Canadians, including those without permanent residency, from purchasing residential properties within the country. The goal of the policy is to reduce foreign speculative investments that inflate housing prices. The ban consists of residential real estate, including single-family homes, condos and apartments.


This policy is enforced through legislation that delineates the boundaries of foreign property ownership in Canada, establishing clear penalties for violations and setting forth exemptions for permanent residents and prospective citizens. This legal groundwork underscores the government’s resolve to safeguard the housing market for Canadians, ensuring it remains responsive to the needs of the populace rather than external investment pressures.


The extension of the ban is aimed at curbing price escalation and making homeownership more accessible to Canadian buyers, particularly younger demographics and first-time homeowners. By reducing foreign demand, the government seeks to moderate the market, fostering an environment where Canadian families can afford to buy homes. This measure is part of a broader strategic approach to housing, illustrating a profound commitment to prioritizing the welfare of Canadian residents in the real estate domain and mitigating the impact of speculative buying on the nation’s housing affordability.

Housing Ban Canada

How the Ban Affects Immigration

The extension of Canada’s ban on foreign home buyers has implications for immigrants, with the impact varying based on their immigration status. Understanding these distinctions is crucial for immigrants in the Canadian housing market.



Permanent Residents (PR): Permanent residents are exempt from the ban, reflecting Canada’s commitment to ensuring those who have made a significant commitment to living and working in the country can invest in their future through property ownership. This exemption acknowledges the importance of homeownership in the integration process, allowing PRs to lay down roots and establish a long-term presence in Canada.



International Students: While the ban primarily targets foreign investors, international students without permanent residency status may find themselves affected by the restrictions. However, there are considerations that may offer leeway for these students, especially those who demonstrate a clear pathway to permanent residency, they would be able to purchase a property.



Temporary Workers: Temporary workers are another group significantly affected by the ban, with specific exemptions in place for those meeting certain criteria. These criteria include having to have 183 days or more remaining on their permit at the time of purchase are now eligible to buy a home in Canada.


Refugees: Refugees are exempted from the ban, acknowledging their situation and the importance of facilitating their integration into Canadian communities through homeownership. This exemption allows refugees who are entitled to work in Canada to purchase residential property, aiding in their settlement and long-term establishment within the country.



The government’s rationale behind these exemptions is to strike a balance between cooling the housing market and recognizing the value that immigrants and potential future citizens bring to Canada. By allowing permanent residents and qualifying temporary workers to purchase homes, Canada reinforces its commitment to those who choose to build their lives in the country. For international students and other temporary residents, the path to property ownership might be more indirect, but it aligns with policies encouraging their eventual transition to permanent residency, reflecting a long-term investment in Canada’s demographic and economic future.

Other Levels of Government: Home Buyer Bans and Taxes

British Columbia: BC introduced a Foreign Buyer’s Tax, initially set at 15% in 2016 for the Metro Vancouver area, aimed at curbing foreign investment thought to be driving up housing prices. The province later expanded and increased the tax to other regions and raised the rate.

Ontario: In a similar vein, Ontario launched a Non-Resident Speculation Tax (NRST) in the Greater Golden Horseshoe area in 2017. This 15% tax applies to non-Canadian citizens, non-permanent residents, and foreign corporations buying residential properties.

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The information in this blog is not to be interpreted or construed as legal advice. Everyone’s immigration goals, objectives and situations are different. Please contact us to speak to a consultant for advice.

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