Canada’s Foreign-Buyer Ban Is Scheduled to End in 2027: What It Could Mean for Metro Vancouver

Information verified as of September 16, 2026

Canada’s federal ban on certain residential purchases by non-Canadians is currently scheduled to end on January 1, 2027.

That sounds like a major change for a market such as Metro Vancouver, where foreign ownership has been debated for years. However, the practical effect may be more limited—and much more complicated—than the headline suggests.

If the federal prohibition expires as scheduled, some people and companies that are presently unable to purchase certain homes could become eligible. That does not mean B.C.’s foreign-buyer tax disappears, nor does it guarantee a sudden increase in sales or home prices.

Here is what is currently confirmed, what may change and what homeowners and prospective buyers should watch over the coming months.

What is Canada’s foreign-buyer ban?

The Prohibition on the Purchase of Residential Property by Non-Canadians Act took effect on January 1, 2023. It generally prohibits people who are neither Canadian citizens nor permanent residents—and certain foreign-controlled companies and entities—from directly or indirectly purchasing defined residential property in Canada.

The federal definition generally includes:

• Detached houses and similar buildings containing no more than three dwelling units

• Semi-detached homes

• Townhomes and rowhouses

• Residential condominium units

The regulations focus the prohibition on properties located within census metropolitan areas and census agglomerations. That includes the Lower Mainland’s major urban markets.

The law does not cover every non-Canadian, every transaction or every type of property. Exceptions can apply to qualifying temporary residents, protected persons, certain purchases with an eligible spouse or common-law partner, and other prescribed circumstances.

Acquisitions made for development purposes are also excluded from the definition of a prohibited purchase. Properties outside a census metropolitan area or census agglomeration are excluded, and the statutory residential-property definition does not generally include buildings containing more than three dwelling units unless another part of the definition applies.

Because the rules involve immigration status, corporate control, the property itself and the nature of the transaction, eligibility should be confirmed by a lawyer before a buyer enters into an agreement.

Why is January 1, 2027 important?

The federal government initially introduced the prohibition as a temporary measure. It later extended the law by two years, moving the scheduled expiry from January 1, 2025 to January 1, 2027.

Under the legislation currently in force, the Act is scheduled to be repealed on the fourth anniversary of its January 1, 2023 commencement. Unless Parliament extends or replaces it again, the federal prohibition will therefore end on January 1, 2027.

That is the current law—not a guarantee that federal policy will remain unchanged between now and year-end. The government could still announce another extension, a revised prohibition or a different measure.

What would change if the federal ban expires?

The clearest change is that the federal prohibition itself would no longer prevent a non-Canadian from purchasing the residential properties it presently covers.

This could enlarge the potential purchaser pool for some Metro Vancouver properties. A foreign national who does not qualify for a current exception, for example, may be able to purchase after the prohibition ends.

However, becoming legally eligible to purchase is not the same as finding the purchase financially practical. Provincial taxes, financing requirements, exchange rates and the buyer’s own residency and tax circumstances would remain important.

The timing of any proposed transaction also deserves caution. A prospective purchaser should not assume that a contract signed while the prohibition remains in force becomes acceptable simply because completion is scheduled for 2027. The legislation defines a purchase broadly enough to include acquiring a legal or equitable interest, with or without conditions. Anyone affected should obtain legal advice before signing—not after.

B.C.’s 20% foreign-buyer tax would remain

The federal prohibition and B.C.’s additional property transfer tax are separate measures.

Foreign nationals, foreign corporations and taxable trustees generally pay an additional property transfer tax equal to 20% of the fair market value of their proportionate residential interest when purchasing in specified B.C. regions.

Both the Metro Vancouver Regional District and the Fraser Valley Regional District are included. This means properties in South Surrey and White Rock remain within the tax area, subject to the legislation’s exemptions and special rules.

On a $1.2-million residential purchase, a buyer subject to the tax on the entire interest could face $240,000 in additional property transfer tax. That would be on top of the regular property transfer tax and the usual purchasing costs.

Certain exemptions or refunds can apply, including provisions for some confirmed B.C. Provincial Nominees. However, holding a work or study permit does not automatically create an exemption from the provincial tax.

This 20% cost is one reason the end of the federal prohibition may not produce a dramatic return of foreign demand throughout the market.

B.C.’s speculation and vacancy tax is also changing

B.C.’s annual speculation and vacancy tax is another separate consideration for properties in designated taxable areas.

For the 2026 tax year, the rate is 3% of assessed value for foreign owners and untaxed worldwide earners who do not qualify for an exemption. That rate is scheduled to increase to 4% for 2027. Canadian citizens and permanent residents who are not untaxed worldwide earners face a 1% rate when no exemption applies.

Many owners qualify for principal-residence, tenancy or other exemptions, so the tax is not automatically payable merely because someone owns a home. Nevertheless, the scheduled 4% rate could be a significant annual carrying cost for a non-exempt foreign owner.

In other words, January 1, 2027 could bring two changes moving in different directions: the federal purchase prohibition is scheduled to end, while B.C.’s annual tax rate for non-exempt foreign owners is scheduled to rise.

One federal tax has now been removed

The federal Underused Housing Tax previously imposed an annual tax and filing obligation in certain situations, generally involving vacant or underused housing owned by non-resident, non-Canadian owners.

The 2026 Budget 2025 Implementation Act, No. 1 now provides that no Underused Housing Tax is payable—and no return is required—for residential property for the 2025 and subsequent calendar years.

This does not change the federal purchase prohibition or B.C.’s provincial taxes, but it is important when discussing the costs that could apply after 2026.

Could the expiry increase Metro Vancouver home prices?

It is too early to make that conclusion.

Ending the prohibition could create additional demand, but the size of that demand is unknown. The market effect would depend on factors including:

• Whether the federal government allows the law to expire

• The number of newly eligible purchasers who actually enter the market

• B.C.’s 20% additional property transfer tax

• The higher 2027 speculation and vacancy tax rate for non-exempt foreign owners

• Mortgage availability and lender requirements

• Currency exchange rates

• Immigration and population trends

• Employment, interest rates and overall consumer confidence

• The type, location and price of the property

Any effect could also be uneven. Certain luxury homes, investment-oriented condominiums or properties connected to family relocation may attract more interest than the broader market. That remains a possibility, not a forecast.

For homeowners considering a sale, it would be unwise to price a property today on the assumption that a wave of foreign demand will arrive in January. Current comparable sales, active competition and local buyer activity remain more reliable indicators.

Would the expiry increase housing construction?

Possibly at the margins, but it would not remove a complete prohibition on foreign development activity.

The current regulations already exclude acquisitions of residential property made for development purposes. This means the ban has not applied to every purchase involving a builder, investor or development site.

Construction costs, financing, municipal approvals, presale demand, development charges and available land are likely to remain more important influences on the Lower Mainland’s housing pipeline.

What buyers and sellers should do now

Canadian buyers should not panic or accelerate a purchase solely because the prohibition is scheduled to end. There is no reliable basis to conclude that the entire market will become more competitive on January 1.

Non-Canadian buyers should obtain legal and tax advice before entering a contract. Immigration status, beneficial ownership, corporate control and the intended use of the property can all affect the result. Federal eligibility does not determine whether B.C.’s 20% tax applies.

Sellers should continue to base their decisions on present market conditions. The expiry could broaden the audience for some homes, but it is only one factor among many affecting demand.

Realtors should avoid telling clients that they are eligible—or exempt from a tax—without appropriate professional confirmation. The safest role is to identify the issue early, obtain the relevant status information and refer the client to a B.C. lawyer and qualified tax adviser.

Frequently asked questions

Is Canada’s foreign-buyer ban definitely ending on January 1, 2027?

It is scheduled to end on that date under the legislation currently in force. Parliament could still extend, replace or otherwise change the law before then.

Will B.C.’s 20% foreign-buyer tax end at the same time?

No. B.C.’s additional property transfer tax is separate from the federal prohibition and remains in place unless the Province changes it.

Does the scheduled expiry mean Metro Vancouver prices will increase?

Not necessarily. It could add some purchasers, but taxes, financing, exchange rates, immigration trends and overall market conditions will determine the practical effect.

Can a non-Canadian sign a contract now if completion is after January 1, 2027?

That should not be assumed. The federal definition of a purchase is broad, and the applicable date and structure of a transaction require legal interpretation. A prospective purchaser should obtain legal advice before signing an agreement.

The bottom line

The scheduled expiry of Canada’s foreign-buyer ban is worth watching, particularly in Metro Vancouver. However, it should not be viewed as the removal of every barrier facing non-Canadian purchasers.

B.C.’s 20% additional property transfer tax would remain, and the province’s speculation and vacancy tax rate for non-exempt foreign owners is scheduled to rise to 4% in 2027. These costs could substantially limit the number of buyers who decide to enter the market.

For now, the most balanced conclusion is that the eligible purchaser pool may expand, but the effect on South Surrey, White Rock and the wider Lower Mainland remains uncertain.

If you are considering buying or selling and would like to discuss how current market conditions—not speculation about a future policy change—relate to your plans, please feel welcome to contact me.

Steven Foster
Sell Faster With Foster
604-765-0030

This article provides general information only and is not legal, tax, accounting or immigration advice. Rules and policies may change. Obtain advice from the appropriate qualified professional for your circumstances.

Official sources

• Prohibition on the Purchase of Residential Property by Non-Canadians Act

• Prohibition on the Purchase of Residential Property by Non-Canadians Regulations

• Government of Canada: extension to January 1, 2027

• B.C. additional property transfer tax

• B.C. speculation and vacancy tax rates

• Budget 2025 Implementation Act, No. 1: Underused Housing Tax changes