Canada's Foreign Buyer Ban Ends January 1: What It Means for BC

Canada's two-year ban on foreign home buyers is set to expire in under two months. Ottawa still hasn't said what comes next, and for BC, the answer matters less than many people think.

On January 1, 2027, the federal Prohibition on the Purchase of Residential Property by Non-Canadians Act is scheduled to end. With 58 days to go, there is no extension on the table and no replacement announced. For anyone buying, selling or building in British Columbia, here is what we know, what we don't, and how to plan around it.

Ottawa is weighing three options, with no decision yet

The ban took effect in January 2023 and was extended once, in 2024. It stops most non-Canadians from buying residential property with up to three units in Canada's cities and larger towns. Citizens and permanent residents were never affected, and there are exemptions for some work permit holders, students and refugees.

In October, Finance Minister François-Philippe Champagne said the government is "looking at all the options." Those options appear to be:

• Let it expire on January 1, reopening the market to foreign buyers
• Extend it again, as Ottawa did in 2024
• Change it, for example by allowing foreign buyers into newly built homes only, a model Australia uses to bring in construction capital

Until Ottawa announces a decision, the January 1 expiry date stands.

Foreign demand is smaller than the headlines suggest

Non-residents owned about 3.8% of BC homes in 2024, according to Statistics Canada, down from roughly 4.5% in 2021. That share was already falling as interest rates rose, so it's hard to say how much of the drop came from the ban itself.

Most economists don't expect a rush of buyers if the ban lapses. RBC's Robert Hogue has said he doesn't think "the conditions are there" for a wave of foreign demand. University of Ottawa economist Mike Moffatt expects no noticeable effect on prices 12 to 24 months out. Some, like CIBC's Benjamin Tal, argue the ban should end, because foreign capital could help fund new construction at a time when Canada needs more homes built.

In BC, foreign buyers still face extra costs

Even if the federal ban ends, BC has its own measures that stay in place:

• The additional property transfer tax: foreign buyers pay an extra 20% of the purchase price on residential property in Metro Vancouver, the Fraser Valley, the Capital Regional District, the Central Okanagan and the Nanaimo region. On a $1 million home, that's $200,000 on top of the regular transfer tax.
• The speculation and vacancy tax: foreign owners in designated areas who leave a home empty, or don't rent it out, pay a yearly tax based on its assessed value.

These costs already make BC one of the most expensive places in Canada for foreign buyers, which is a big reason most experts don't expect a surge here.

What it means for you

• Developers and presale sellers: if Ottawa opens new homes to foreign buyers, you could see a new pool of presale demand. Watch for the decision and be ready to adjust your marketing.
• Local buyers: don't expect bidding wars because of this change. With inventory well above the 10-year average across Metro Vancouver, buyers still have choice and room to negotiate. Base your timing on your own finances, not this headline.
• Sellers: the end of the ban alone is unlikely to lift prices. Pricing right from day one still matters most.
• Investors and newcomers: if you're a work permit holder or new to Canada, check whether you qualify under the current exemptions, and talk to a lawyer before signing anything around January 1.

The bottom line

Whatever Ottawa decides, the BC market will be shaped far more by interest rates, inventory and local supply than by foreign buyers. We'll share an update as soon as the government announces its decision.

Planning to buy, sell or build in the new year? Get in touch →