New Builds Just Got an Exception to the Foreign Buyer Ban
Canada's federal ban on foreign home purchases just got its first real carve-out. Budget 2026 extends the ban on existing homes to January 1, 2029, but exempts new residential properties entirely. If you're buying, selling, or investing in GTA real estate, this is worth understanding now.
What Budget 2026 Actually Changed
The federal government's foreign buyer ban, first introduced in 2023, was set to expire. Budget 2026 extends it by two years for existing homes but carves out new residential properties, meaning a newly built home, condo, or pre-construction unit can now be purchased by a non-resident buyer. The government frames this as protecting the resale market for Canadians while drawing foreign capital into new supply.
Why This Matters in the GTA
GTA developers are sitting on near-record unsold inventory, and Toronto's typical home price is down 28.4% ($363,000) from its 2022 peak as of October. Opening new construction to foreign buyers could bring fresh capital into stalled pre-construction projects. It's also a notable shift: new-build condos were a major target of foreign buying before the original ban, so this reopens a market segment that's been closed for about three years.
What Hasn't Changed
Resale homes are still off-limits to non-resident buyers, now through January 1, 2029. If you're listing an existing house or condo, this exemption doesn't change your buyer pool. The carve-out applies specifically to new residential properties, not the existing-home market most GTA sellers compete in.
Bottom Line
If you're considering a pre-construction purchase, expect more interest in that segment going forward, which could support pricing in new-build projects that have struggled to sell. If you're selling a resale home, the ban still shields you from this particular source of competition. Either way, this is a policy shift worth watching as it moves through Parliament. Have questions about what it means for your specific situation? Reach out and let's talk it through.