10/08/2026
🇨🇦 Canada may lift its foreign homebuyer ban in 2027 - but will B.C. follow? 🏡
Canada's housing policy could be heading for a significant change.
Finance Minister François-Philippe Ch*****ne has confirmed that the federal government is reviewing its options ahead of the foreign homebuyer ban's scheduled expiry on January 1, 2027.
Ch*****ne acknowledged that housing markets have changed considerably and emphasized the need to increase housing opportunities for Canadians.
The ban, introduced under Justin Trudeau's government in 2023, was intended to help address housing affordability.
But did it actually solve the problem?
📊 Let's look at the facts.
According to data cited by Bloomberg, foreign ownership accounted for no more than 5% of properties in any major Canadian market in 2020.
Today, Canada's national benchmark home price is approximately 20% below its peak, yet homeownership remains unaffordable for many Canadians.
The real challenges are much broader: housing supply, construction costs, development delays and economic conditions.
📈 Could removing the ban benefit Canada's economy?
Potentially, yes!
✅ Attract additional foreign investment into housing development.
✅ Help finance new residential construction.
✅ Support Canadian builders, contractors and local businesses.
✅ Create opportunities for jobs and economic growth.
CIBC Deputy Chief Economist Benjamin Tal has also called for allowing the ban to expire, arguing that foreign capital could help finance new housing projects.
🇨🇦 But here's the big question for British Columbia!
Even if Ottawa allows the federal ban to expire, B.C.'s additional 20% foreign buyer property transfer tax will remain in place unless the province changes its rules.
And this is where the situation becomes particularly concerning.
🏡 Consider families who came to Canada to rebuild their lives.
Take Ukrainians who were forced to leave their homes because of the war.
Many have established themselves in Canada, found employment, saved money and are ready to purchase a home.
For many, homeownership represents stability, security and the opportunity to build equity instead of renting indefinitely.
Eligible Ukrainians who arrived under the CUAET program are exempt from the federal foreign homebuyer ban. However, that exemption does not automatically eliminate B.C.'s additional foreign buyer tax.
Depending on their circumstances and eligibility for provincial exemptions, some may still face a substantial additional expense.
💰 Consider a $600,000 home in Metro Vancouver.
For a foreign purchaser subject to the full additional tax:
$120,000 in foreign buyer tax alone!
That's ON TOP of the down payment, regular property transfer tax where applicable, legal fees and other closing costs.
Imagine working hard, saving for a down payment, qualifying for a mortgage and finally being ready to buy a home - only to face another $120,000 in taxes.
And this isn't only about Ukrainians. It can affect people from other countries who want to establish their lives and contribute to our communities.
💬 My Perspective as a Mortgage Wealth Strategist
In my opinion, B.C.'s additional 20% foreign buyer tax should be completely eliminated and as soon as p[ossible!
It's an excessive financial burden that can discourage investment and place an enormous obstacle in front of people who are otherwise financially capable of purchasing a home.
Canada needs responsible investment, more housing construction, stronger economic growth and policies that distinguish speculation from genuine homeownership.
The potential expiry of the federal ban is a welcome development. But British Columbia should go further and reconsider the additional tax altogether.
We should be encouraging investment, building more homes and creating opportunities - not placing six-figure financial barriers in the way of homeownership.
👇 What do you think? Is B.C.'s additional 20% foreign buyer tax justified, or is it time to eliminate it completely?
Maria Wirtz
Mortgage Wealth Strategist
📞 (778) 323-9377
