Foreign Buyer Ban 2027: What Budget 2026 Changes (Extension to 2029, New Homes Exempt)

By Jatin Dua · Broker of Record, RE/MAX Quantum Realty · Updated 2 November 2026 · 11 min read — Budget 2026 proposes keeping the ban on resale homes to 2029 and exempting new homes. Here is what is law, what is not, and what still applies.

This guide is for non-Canadians thinking about buying a home in Ontario in 2027, and for the Canadians selling to them, buying with them or advising them. It explains what Budget 2026 proposed for the federal foreign buyer ban, what the law says today, what is still unknown, and the provincial and Toronto taxes that apply no matter what Ottawa decides.

What did Budget 2026 say about the foreign buyer ban?

The federal budget was tabled on 5 November 2026. In its housing chapter, the government proposed two changes to the ban on non-Canadians buying homes:

• Extend it for existing homes. The ban on foreign purchases of existing residential properties would run for two more years, to 1 January 2029.
• Exempt new homes. New residential properties would be taken out of the ban.

The budget gives its reasons in plain terms: keep most of the resale market for Canadians, and attract more investment into new construction. It also says the government will introduce legislation and start a regulatory process on this change “in short order”.

That last line matters most. A budget is a plan. The budget text does not change the law by itself. Until Parliament passes a bill and the regulations are written, the rules in force are the ones described below.

Is the foreign buyer ban still law, and when does it end?

The Prohibition on the Purchase of Residential Property by Non-Canadians Act came into force on 1 January 2023. It makes it illegal for a non-Canadian to buy residential property in Canada, directly or indirectly, unless an exception applies.

The Act was built with an end date. The original law said its repeal would take effect on the second anniversary of the start date. In 2024, Parliament changed that to the fourth anniversary through the Budget Implementation Act, 2024, No. 1. Four years after 1 January 2023 is 1 January 2027.

So here is the honest position as of 10 November 2026:

• The ban applies to every purchase today, including new and pre-construction homes.
• Under the current law, the Act is repealed on 1 January 2027, unless Parliament changes the date first.
• Budget 2026 proposes to replace that with a narrower ban running to 1 January 2029.
• The bill had not been published when the budget came out. Nobody outside government can tell you yet exactly how the change will be timed or worded.

If you want the full background on how the ban works today, my explainer on what the foreign buyer ban actually catches goes through the definitions in detail.

How would the ban change in 2027 if the proposal becomes law?

Source: Budget 2026, Chapter 3; Prohibition on the Purchase of Residential Property by Non-Canadians Act and Regulations (SOR/2022-250); Budget Implementation Act, 2024, No. 1, s. 149. Checked 10 November 2026.

What counts as a “new residential property” under the proposal?

We do not know yet. The budget uses the phrase “new residential properties” and stops there. The definition will come in the bill or the regulations, and it will decide who benefits. These are the questions I would expect the final rules to answer:

• Pre-construction. Does signing an agreement for a condo that is not built yet count as buying a new home? Under today’s regulations, a “purchase” includes getting a legal or equitable interest, with or without conditions. That is why signing a pre-construction agreement is caught today.
• Completed but unsold units. Builders across the GTA are holding finished condos they have not sold. Whether these count as “new” will matter a lot to them.
• Assignments. Buying another buyer’s place in a pre-construction contract is a purchase of an interest under the current rules. Whether an assignment of a new unit will be treated as a new home is open.
• Freehold new homes. Townhouses and detached homes bought from a builder are residential property too. The wording will decide whether they are in.
• Start date. Whether the exemption applies to agreements signed after a certain date, or to closings after a certain date, is not stated.

Until those answers are in the law, treat any sales pitch that says “foreigners can buy new condos now” as an opinion, not a fact.

Who is not affected by the foreign buyer ban?

Many people who are not yet citizens can already buy. The Act and its regulations allow these purchases today:

• Canadian citizens, permanent residents and people registered under the Indian Act. They are not non-Canadians, wherever they live.
• Work permit holders. A person with a work permit or work authorization can buy if they have 183 days or more of validity left on the purchase date and have not bought more than one residential property. See buying a house in Ontario on a work permit.
• Some international students. The test is strict: tax returns filed for each of the five previous years, at least 244 days in Canada in each of those years, a price of $500,000 or less, and only one property.
• Protected persons and certain refugee claimants whose claims have been referred for a hearing.
• A non-Canadian buying with a spouse or common-law partner who is a citizen, permanent resident, registered Indian or an exempt temporary resident or protected person.
• Some property is outside the ban. Homes outside Statistics Canada’s census metropolitan areas and census agglomerations, buildings with more than three dwelling units, and acquisitions for development are not caught. Getting a home through death, divorce, separation or a gift is not a “purchase” either.

Most of the GTA sits inside a census metropolitan area, so assume the ban covers any home you look at here unless your lawyer confirms otherwise.

Do foreign buyers still pay the 25% NRST and Toronto’s 10% tax in 2027?

Yes. Nothing in the federal budget touches them. Ontario’s Non-Resident Speculation Tax (NRST) has been 25% across the province since 25 October 2022. It applies when a foreign national buys land with one to six single-family homes, which includes houses, townhouses and condo units. Inside the City of Toronto, the Municipal Non-Resident Speculation Tax (MNRST) of 10% has applied since 1 January 2025, on top of everything else. The City says there is no grandfathering for agreements signed before that date.

Source: my calculation using Ontario Ministry of Finance land transfer tax and NRST rates and City of Toronto MLTT and MNRST rates, as of November 2026. Legal fees and other closing costs are extra.

Both taxes have the same three main exemptions: a nominee under the Ontario Immigrant Nominee Program, a protected person, or a foreign national buying with a spouse who is a citizen, permanent resident, nominee or protected person. Ontario also offers a rebate of the NRST if the buyer becomes a permanent resident within four years of the purchase being registered, but the tax must be paid at closing first. My guide to who pays the NRST and who is exempt covers the rebate rules.

What does the Budget 2026 change mean for GTA home prices in 2027?

Probably less than the headlines suggest, at least in Toronto. Here is the context:

• The resale market is already soft. TRREB reported 5,603 GTA sales in October 2026, down 7.9% from a year earlier, with the average price at $1,024,108, down 2.7%. Keeping foreign buyers out of resale homes to 2029 changes little for most sellers.
• New condo sales are very low. Urbanation counted only 60 pre-construction condo sales across the Greater Toronto and Hamilton Area in the third quarter of 2026. Most new condo sales that quarter were units in completed buildings.
• The provincial and city taxes stay. In Toronto, a foreign buyer of a new condo would still pay 35% in speculation taxes on top of regular land transfer taxes. That is a large cost for an investor.

Industry reaction was mixed. Trade press reported speculation that the new-home exemption is aimed at reviving pre-construction sales, and National Bank’s chief economist has argued the ban hurts Canada’s case as a place to invest. Neither view is a forecast you should price a home on.

What should a non-Canadian buyer do before signing in 2027?

• Confirm your status in writing. Your immigration documents decide which rules apply. Bring them to your lawyer before you make an offer, not after.
• Check the date of the agreement against the law. Ask your lawyer which version of the Act and regulations will apply on the day you sign and the day you close.
• Price in the taxes. Add the NRST, and the MNRST in Toronto, to your cash budget. They are due when the transfer is registered.
• Check your financing. CMHC mortgage insurance for non-permanent residents requires authorization to work in Canada, and the purchase must not be prohibited under the Act. A buyer living abroad without status in Canada does not fit those rules.
• Plan the exit. Non-residents who sell later face federal withholding rules at closing. See what a non-resident loses at closing under section 116.

What to do next

1. Write down your exact status today: citizen, permanent resident, work permit (with expiry date), student or none.
2. Book a short call with an Ontario real estate lawyer and ask them to confirm, in writing, whether the federal Act applies to your purchase.
3. Work out your total cash to close, including the NRST and Toronto’s MNRST if the home is in the city.
4. Watch for the federal bill and regulations promised in Budget 2026, and do not sign a new-home agreement based on the exemption until they are published.
5. If you are selling, price for the buyers who can buy today, not for a foreign demand that may not come.

Frequently asked questions

Sources

• Budget 2026, Chapter 3 (Government of Canada)
• Prohibition on the Purchase of Residential Property by Non-Canadians Act (Justice Laws)
• Prohibition on the Purchase of Residential Property by Non-Canadians Regulations, SOR/2022-250 (Justice Laws)
• Budget Implementation Act, 2024, No. 1, S.C. 2024, c. 17, Part 4, Division 1 (Justice Laws)
• Non-Resident Speculation Tax (Ontario Ministry of Finance)
• Municipal Land Transfer Tax and Municipal Non-Resident Speculation Tax (City of Toronto)
• Canadian government to extend, but loosen, foreign homebuyer ban (Canadian Mortgage Professional, 5 November 2026)
• GTHA New Condo Sales Double from a Year Ago in Q3 (Urbanation, 19 October 2026)

Related reading

• Can Foreigners Buy New Construction Condos in Toronto in 2027?
• Foreign Buyer Ban Exemptions in Canada for 2027: Who Can Still Buy
• Can International Students Buy a Home in Ontario in 2027?
• Ontario Non-Resident Speculation Tax (NRST) in 2027: 25%, Refunds and Exemptions