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.
This content is general information for industry professionals and is not legal, tax or financial advice. Laws change and apply differently to each transaction; obtain advice from qualified counsel in each relevant jurisdiction. Legal counsel to the Cross-Border Private Lenders Association: Jasmine Daya & Co. Questions: info@cbpla.com