Canada's Foreign Buyer Ban Expires January 1, 2027. What Comes Next?

Three months from now, Canada's foreign buyer ban reaches its scheduled end date. The Prohibition on the Purchase of Residential Property by Non-Canadians Act took effect on 1 January 2023 and was extended in February 2024 to 1 January 2027 (CMHC).

What the ban covers today

• Who: non-Canadians, meaning people who are not citizens or permanent residents, plus certain corporations and entities controlled by non-Canadians

• What: residential property of three dwelling units or fewer, including condos and semi-detached homes

• Where: census metropolitan areas and census agglomerations; rural areas are outside the ban

• Penalty: a fine of up to $10,000 for the buyer and anyone who knowingly helps, plus a possible court-ordered sale (Justice Laws)

What happens on January 1

As of July 2026, the government had not announced whether it will extend, replace or let the ban lapse. Lexology reports the federal government is considering a new approach rather than a straight extension, with the housing minister pointing to Australia's model and possible exemptions for new higher-end homes or rental housing. Verify the government's position before publishing, as an announcement may come at any time.

Why lenders should care

• US borrowers. US investors buying Canadian homes to rent are currently blocked in most cities. A lapse or targeted exemptions could reopen that borrower pool.

• US lenders enforcing. A non-Canadian lender that takes title to residential property on enforcement should confirm whether the ban applies. A power of sale to a third-party buyer avoids the issue (Article 5).

• Deal timing. The original Act let buyers with binding agreements signed before 1 January 2023 complete. Watch whether any replacement includes similar transition rules before structuring deals around 1 January 2027.