Canada’s Foreign Buyer Ban in 2027: Should You Buy Now or Wait?
Canada’s foreign buyer ban is scheduled to expire on January 1, 2027. If you’re planning to buy your first home, should you purchase before the rules change—or wait to see what happens?
The answer depends on more than government policy. Your budget, savings, plans and local housing market should guide the decision.
In the accompanying video, Brian Hogben, Owner & Mortgage Broker at Mission35 Mortgages, explores three possible policy outcomes and their implications for first-time buyers.
What is Canada’s foreign buyer ban?
Introduced in January 2023, the federal ban restricts certain non-Canadians from purchasing specified residential properties. Its stated purpose was to help address housing affordability and preserve access to homes for Canadians.
The government subsequently announced a two-year extension to January 1, 2027. That remains a scheduled expiry, not a guarantee that the restrictions will end.
The rules contain exceptions. Canadian citizens and permanent residents are not prohibited from buying under this legislation, and certain development-related purchases are already permitted. See CMHC’s explanation of the foreign buyer ban and its exceptions.
What could happen to the foreign buyer ban in 2027?
1. Canada lifts the ban
If the ban expires without replacement, additional buyers could become eligible to purchase properties covered by the restrictions.
More buyers competing for the same available homes could put upward pressure on prices in some markets. However, the effect would depend on local conditions and the amount of additional demand.
There is no basis here for predicting a specific price increase.
For illustration, a $600,000 home increasing by 5% would cost $630,000. That adds $30,000 to the purchase price—not automatically $30,000 to the required down payment. The effect on borrowing and monthly payments depends on the buyer’s circumstances.
Additional sales might also help developers recover capital. But more purchases do not guarantee more construction; buyers could compete for homes that already exist.
2. Canada extends the ban
An extension would maintain restrictions on buyers covered by the rules.
That could limit one source of competition. Depending on the local market, first-time buyers might have opportunities to negotiate.
It would not guarantee lower prices. Interest rates, employment, household incomes and available inventory also influence housing conditions.
Construction faces separate challenges. The CMHC Housing Market Outlook discusses weak condominium pre-sales, construction costs and financing difficulties. Restrictions on certain buyers cannot resolve those problems on their own.
3. Canada introduces targeted changes
Brian proposes exploring whether qualified foreign buyers could purchase certain newly completed, unsold units directly from developers, with clear safeguards.
This is a proposal, not an announced government policy.
The aim would be to help developers recover capital and potentially fund additional projects while maintaining restrictions on purchases of existing resale homes.
Because development-related exceptions already exist, any change would need to define what additional activity it permits and how that activity contributes to housing supply.
The key test is straightforward: does it help create additional homes?
If a change increases prices without supporting new construction, it has not achieved the intended supply benefit. Any additional housing would also take time to become available.
How could the three outcomes affect homebuyers?
Possible outcome | Near-term consideration | Longer-term consideration |
Ban lifted | Potential additional competition in some markets | Additional sales may support developers, but new construction is not guaranteed |
Ban extended | Restrictions remain on certain competing buyers | Construction and affordability challenges still need attention |
Targeted reform | Resale-market effects depend on the policy’s design | Potential support for new supply if the policy produces additional homes |
These are possible effects, not price forecasts.
Should first-time homebuyers buy now or wait?
If you’re starting the process, explore Mission35’s mortgage support for first-time homebuyers. Understanding your financing options can make the decision more concrete.
Focus on four questions.
Can you comfortably afford the monthly costs?
Consider the mortgage payment alongside property taxes, insurance, utilities, maintenance and any condo fees. Leave room for unexpected expenses.
A mortgage preapproval can help clarify your potential borrowing range. It should be a starting point for understanding your options, not a reason to spend the maximum available.
Have you saved for the down payment and closing costs?
The down payment is only part of the money needed to buy. Understand the closing costs that apply to your purchase and how much savings you would retain afterward.
Waiting may be worthwhile if it helps you build a stronger cash position.
Does the home fit your plans?
Consider your expected time in the property, employment situation and household needs.
A longer time horizon can make short-term price changes less central to your decision, but it does not eliminate ownership costs or market risk.
What is happening in your local housing market?
Buying a downtown Toronto condo is different from buying a Hamilton townhouse or a detached home in Brantford.
Review comparable sales, available properties and the condition of the home you want. National policy headlines cannot tell you whether a particular property is appropriately priced or affordable for you.
When could waiting make sense?
Waiting can be productive if you use the time to:
Reduce debt
Improve your credit
Build your down payment
Save for closing costs
Clarify your income or housing plans
Waiting solely for a predicted price decline is a less dependable strategy. No policy outcome guarantees that the home you want will become cheaper.
Get a Free Mortgage Options Review
You do not need to predict the housing market perfectly to prepare for a purchase. You do need to understand your budget.
A Free Mortgage Options Review with Mission35 Mortgages can help you explore your potential purchase budget, down payment, monthly payments and readiness to buy.
Frequently asked questions
Is Canada’s foreign buyer ban definitely ending in 2027?
January 1, 2027 is the scheduled expiry. The government could extend or amend the policy. Check the rules in effect when planning a transaction.
Will Canadian home prices rise if the ban ends?
There is no guaranteed outcome. Additional eligible buyers could increase demand in some markets, while inventory, financing conditions and the economy would also influence prices.
Does the ban prevent all foreign investment in housing?
No. Exceptions already exist, including certain acquisitions for development purposes. Eligibility depends on the buyer, property and transaction.
Should I get preapproved before deciding whether to wait?
Understanding your financing options can help you compare buying now with spending more time preparing. Discuss the pre approval’s conditions and validity period with your mortgage professional.
By Brian Hogben, Mission35 Mortgages.
Policy information reviewed October 28, 2026. Rules may change. The scenarios are possibilities, and the 5% price example is hypothetical. This article provides general information, not personalized financial or legal advice.
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