Ninety days out, there is still no decision. The Prohibition on the Purchase of Residential Property by Non-Canadians Act expires on 1 January 2027. As of early August, Ottawa had not announced an extension, a repeal or a replacement, so the default is that the ban lapses (Deeded). A 10 September editorial in The Globe and Mail urged the government to narrow the ban rather than renew it (Globe and Mail).
The option on the table
Reporting through 2026 suggests the government is studying an Australian-style approach rather than a blanket extension. Canadian Mortgage Professional describes it as directing foreign capital to new construction and redevelopment, with Australia expressly allowing foreign purchases of new dwellings. Existing homes would likely stay restricted.
Three scenarios for lenders
| Scenario | What happens on 1 January 2027 | Lender impact |
|---|---|---|
| Ban lapses | Non-Canadians can buy residential property in cities again | New pool of US purchasers needing financing |
| Targeted replacement | Foreign buyers allowed for new builds or rental supply only | Opportunity in construction and pre-sale financing; careful eligibility checks |
| Extension | Current rules continue | No change; keep exception analysis in every file |
What to do now
- Flag US-purchaser files with closings around 1 January 2027 and watch for transition rules
- Prepare an eligibility checklist that can adapt to a new-build-only regime
- Review construction and pre-sale lending appetite in case foreign demand shifts to new homes
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