The Canadian federal government intends to extend its ban on residential property purchases by non-Canadians through January 1, 2027, while introducing a new exemption for newly built homes, Telquel.ma reported.
Originally set to expire on January 1, 2027, the restriction aims to ease housing access for domestic buyers by curbing foreign competition in the existing housing market. The federal government first instituted the ban on January 1, 2023, for an initial two-year term before extending it in 2024.
The proposed exemption for new residential properties aims to increase construction investment and housing supply. These federal adjustments operate alongside existing provincial and municipal taxes targeted at non-resident buyers.
The federal strategy attempts to address persistent affordability pressures confronting domestic households across Canada. However, the potential removal of federal barriers for newly built units does not override localized levies already enforced by specific provinces and municipalities.
Ontario currently levies a 25% tax on non-resident buyers, alongside an additional 10% municipal tax in Toronto. Meanwhile, British Columbia maintains a 20% non-resident property tax, and Nova Scotia enforces a 10% rate.
| Province / Municipality | Non-Resident Tax Rate |
|---|---|
| Ontario (Provincial) | 25% |
| Toronto (Municipal) | 10% (in addition to provincial) |
| British Columbia | 20% |
| Nova Scotia | 10% |
The Canadian government says these coordinated housing measures aim to reduce structural affordability challenges in the national real estate market.
The ban extension remains tied to the expiration timeline previously established when authorities prolonged the original 2023 policy.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
