Relaxing foreign buyer ban would benefit B.C. housing market, expert says

Posted November 6, 2026 4:57 pm

2 min read

Canada’s 2026 budget, announced Thursday, proposes extending the Prohibition on the Purchase of Residential Property by Non-Canadians Act to Jan. 1, 2029.

However, it would exempt new residential properties.

The current ban is set to expire on Jan. 1, 2027, but this proposal would extend it by two years, except when it comes to new builds.

Community planner and real estate consultant Michael Geller says the extension would benefit B.C.

“It’s something the development industry has been asking for because while the foreign buyers are not a significant segment of the market, in the past they were an important segment,” Geller said.

“And our housing markets are so weak right now; any benefit would be greatly appreciated.”

0:39 Canada extends foreign home buyer ban for 2 more years

The foreign homebuyers ban was launched on Jan. 1, 2023, when the Bank of Canada was aggressively raising interest rates and as other global economic factors weighed on homebuyers.

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According to Statistics Canada, non-residents made up a very small fraction of property owners in major markets like Ontario and B.C. in recent years.

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Prior to the ban, non-residents in B.C. owned about 4.5 per cent of all properties in 2021, just over four per cent in 2022 and 2023, and 3.8 per cent in 2024.

Geller said that even if the ban is extended, B.C. still has a provincial sales tax of 20 per cent on foreign home buyers.

“So even if this federal ban is removed, a lot of foreign buyers are still going to be deterred by that 20 per cent tax, especially those who might be interested in buying a home to live in as a second home in British Columbia, because in addition to that tax, they would also have to pay the provincial speculation and vacancy tax,” he said.

“And if they’re in Vancouver, there’d be an additional empty home tax. And it’s these taxes which have created so much harm for the industry.”

The new BC Conservative government did not mention the foreign buyers tax or the speculation vacancy tax during the recent provincial election campaign.

Geller said if B.C. removed or modified the taxes, it would be a significant benefit.

“The more we could actually remove some of these taxes, if only for say two year period, I really believe that would spur a lot of new development and we need it,” he added.