Canada's Foreign Buyer Ban: What Budget 2026 Wants to Change for GTA Buyers

If you follow Canadian real estate, you have probably seen the headlines this week: "Foreign buyer ban extended to 2029." Before anyone changes their plans, it is worth slowing down and separating what is actually law today from what the federal government has only proposed. They are not the same thing — and the difference matters a great deal if you are buying, selling, or advising family members abroad.

Where the Ban Stands Today

The Prohibition on the Purchase of Residential Property by Non-Canadians Act came into force on January 1, 2023. In plain terms, it stops most non-Canadians from buying residential property with up to three dwelling units inside Canada's larger metropolitan areas, including all of the Greater Toronto Area.

The ban was originally meant to last two years. In February 2024, the federal government extended it, and under the law as it stands right now, the ban is scheduled to end on January 1, 2027.

Exceptions that already exist

There are important carve-outs in place today. The ban generally does not apply to:

• Canadian citizens and permanent residents
• Refugees and protected persons
• Certain temporary residents, including some international students and work permit holders who meet specific conditions
• Properties with four or more dwelling units
• Homes in smaller communities outside the major metropolitan areas
• Recreational properties such as cottages in many areas

Breaking the ban is not a small matter. A non-Canadian who buys in violation of the Act can face a fine of up to $10,000, and the property can be ordered sold.

What Budget 2026 Proposed on November 5

In the federal budget tabled on November 5, 2026, the government proposed two changes:

• Extend the ban on existing homes for two more years. Foreign purchases of existing (resale) residential properties would stay banned until January 1, 2029.
• Exempt new residential properties. Brand-new homes would be carved out of the ban, so foreign buyers could purchase new construction again. The stated idea is to encourage outside investment in building new housing supply — without opening up competition for the existing homes Canadians are trying to buy.

The government says it will propose legislation and begin a regulatory process "in short order."

The Part the Headlines Leave Out: It Is Not Law Yet

This is the most important section of this post. Nothing has changed yet.

• The extension to 2029 is a budget proposal. Parliament still has to pass a bill, and regulations still have to be written.
• The budget does not define what counts as a "new residential property." It could mean pre-construction purchases, homes that have never been lived in, or homes completed after a certain date. Nobody can tell you which one today.
• The budget gives no start date for the new-home exemption.
• Until a bill passes, the law on the books still says the ban ends on January 1, 2027, for everything.

So if someone tells you foreign buyers can already purchase new builds, or that the ban is already extended to 2029, both statements are ahead of the facts.

One Thing That Does Not Change: Ontario's 25% Tax

Even if the federal ban eventually ends or is narrowed, Ontario's Non-Resident Speculation Tax (NRST) is a separate provincial law with no end date. It charges non-Canadian buyers 25% of the purchase price on properties in the Greater Golden Horseshoe, which includes Toronto, York Region, and most of the GTA.

On a $1,000,000 home, that is $250,000 in tax, on top of the regular land transfer taxes. Any foreign buyer planning a purchase in our area has to budget for this, ban or no ban. (Toronto buyers, Canadian or not, also pay both the provincial and the City of Toronto land transfer tax.)

What This Means If You Are Affected

If you are a non-Canadian hoping to buy a resale home in the GTA: under the current law you are still banned until at least January 1, 2027. If the budget proposal passes, that wait extends to 2029 for existing homes. Do not sign anything based on the headlines.

If you are interested in new construction: watch this file closely. If the exemption becomes law, pre-construction and newly built homes may open up to foreign buyers again, which could also help developers sell and finance new projects. The details will live in the definition of "new," so wait for the legislation before committing.

If you are a work permit holder, student, or newcomer planning to buy: you may already qualify under one of the existing exceptions, or be closer to permanent residence than you think. Your status, work history, and the property type all matter, so get advice on your specific situation before you assume the ban applies to you.

If you are a Canadian seller or buyer: a narrower ban focused on resale homes keeps foreign competition out of the existing housing stock for longer, while new supply gets an extra source of demand. In practical terms, the resale market in the GTA stays a mostly domestic market for now. For the wider picture on where prices and inventory sit, see my latest GTA market update.

My Take

The direction is clear even if the details are not: Ottawa wants to keep foreign buyers out of existing homes, and wants their money in new construction instead. That is a reasonable balance — but until the bill is tabled and the word "new" is defined, every plan should be built on the law as it stands today, not on a budget speech.

Rules in this area have already changed several times since 2023, and they will likely change again before 2029. If you or your family are affected, by all means plan ahead — just do not transact ahead of the law. This is exactly the kind of situation where having the right representation keeps you from acting on a headline.

Sources: Budget 2026, Chapter 3, "A more affordable life" (Department of Finance Canada, November 5, 2026); Prohibition on the Purchase of Residential Property by Non-Canadians Act and its scheduled repeal date of January 1, 2027 under current law; Ontario Non-Resident Speculation Tax. This post is general information, not legal advice. Rules cited are as of November 9, 2026, and the Budget 2026 measures described are proposals that require legislation.