Canada's Foreign Buyer Ban Ends January 2027 Unless Extended: What It Means in BC

Canada's ban on non-Canadians buying residential property is due to end on 1 January 2027. As of 1 November 2026, the federal government has not announced a further extension or a replacement, so for now the scheduled end date stands.

Even if the ban ends, buying in BC as a non-Canadian will not look the same as buying as a resident. BC's 20% additional property transfer tax and the speculation and vacancy tax stay in place. Here is what applies now, what changes if the ban lapses, and what to watch if you plan to buy around the deadline.

Where things stand as of 1 November 2026

The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act took effect on 1 January 2023, originally for two years. In February 2024 the federal government announced a two-year extension to 1 January 2027, and Parliament amended the Budget Implementation Act, 2022, No. 1 so that the section repealing the Act comes into force on the fourth anniversary of 1 January 2023 (s 237(2)).

As of 1 November 2026, no further extension or replacement has been announced or passed, so the repeal is still scheduled for 1 January 2027. The federal government has said it will table Budget 2026 on 5 November 2026, and any decision could come with little notice. Check the current position before you rely on either date.

What the ban prohibits until then

While the Act is in force, a non-Canadian may not purchase residential property in Canada, directly or indirectly (s 4(1)). In outline:

• Who is a non-Canadian. An individual who is not a Canadian citizen, permanent resident or person registered under the Indian Act, plus certain corporations and entities controlled by non-Canadians. Under the Regulations, control includes holding 10% or more of the equity.
• What property. Buildings with no more than three dwelling units, and parts of buildings such as semi-detached homes and condominium units. Property outside a census metropolitan area or census agglomeration is excluded, and since 27 March 2023 the ban has not applied to vacant land. CMHC's page links to a map for checking an address.
• Main exceptions. Work permit holders with at least 183 days left on the permit when they buy; students who meet strict tax-filing, presence and $500,000 price conditions; protected persons and eligible refugee claimants; a non-Canadian buying with a spouse or common-law partner who is a citizen, permanent resident or exempt; interests acquired through death, divorce, separation or gift; and purchases for development. Workers and students cannot have bought more than one residential property.
• Penalty. A fine of up to $10,000 for the buyer and anyone who knowingly helps, and a court may order the property sold (ss 6 to 7).

What changes if the ban ends on 1 January 2027

If the repeal takes effect, the federal prohibition will no longer stop non-Canadians from buying homes. It does not touch BC's own taxes, which apply whether or not the federal ban exists.

BC's additional property transfer tax

Foreign nationals, foreign corporations and taxable trustees pay an additional property transfer tax of 20% of the fair market value of their share of residential property in the Capital, Fraser Valley, Metro Vancouver, Central Okanagan and Nanaimo regional districts. It is charged on top of the general property transfer tax, and an exemption from the general tax does not automatically exempt you from the additional tax. Our guide to property transfer tax in BC explains the general tax.

Two reliefs exist. Confirmed BC Provincial Nominees buying a principal residence can claim a one-time exemption. A buyer who becomes a permanent resident or citizen within one year of registration may get a refund if they moved in within 92 days, lived in the home as their principal residence for at least a year, and apply after the first anniversary of moving in but before 18 months from registration.

Speculation and vacancy tax

Owners of residential property in BC's designated taxable areas must declare every year. Foreign owners and satellite families pay the highest rate, 3% of assessed value for 2026, unless an exemption applies.

Federal underused housing tax

Following legislation passed in March 2026, owners no longer file a return or pay the underused housing tax for 2025 and later years. The requirements for 2022, 2023 and 2024 still apply.

Timing a purchase around the deadline

If you are a non-Canadian hoping to buy in early 2027, do not sign a contract in 2026 on the assumption that a January completion date takes you outside the ban. The Regulations treat acquiring a legal or equitable interest in residential property, with or without conditions, as a purchase, so the date you become bound may matter as much as the completion date. Get advice on the contract first, and check the status of the ban again before you sign: Ottawa could extend it, let it lapse, or replace it with narrower rules.

Sellers and their agents should ask the same question early. A buyer who turns out to be caught by the ban cannot complete without risking a fine and a court-ordered sale.

Who is not affected

Canadian citizens, permanent residents and people registered under the Indian Act were never covered. If you have recently become a permanent resident, see buying your first BC home as a new permanent resident. If you plan to buy through a company, remember that corporations controlled by non-Canadians are caught too; see buying BC property through a corporation.

Buying with a non-Canadian on the deal? Check the rules before you sign

Our real estate lawyers can review a contract before you sign, confirm whether the ban or one of its exceptions applies, and work out the property transfer tax and other costs due on completion.

Call 604-259-2844 or send us a message to arrange a consultation at our Vancouver office.