Canada’s Foreign Buyers Ban: What It Means for Buyers and the Market in 2027

What Is Canada’s Foreign Buyers Ban?

Canada’s foreign buyers ban prohibits most non‑Canadians from purchasing residential properties with 1–3 units in major urban areas. Introduced to improve housing affordability, the ban currently runs until January 1, 2027. Violators can face fines and forced property sales.

The ban exempts Canadian citizens, permanent residents, certain work permit holders, diplomats, protected persons, and individuals buying with a Canadian spouse. Some properties, like vacant land, larger buildings, or homes in smaller towns, are generally outside the ban.

International Students and the Foreign Buyers Ban

International students are included in the regulations with a specific exemption, but the requirements are strict. To qualify, students must:

• Be enrolled full-time at a Designated Learning Institution (DLI)
• Have studied and filed Canadian taxes for five years
• Be physically present in Canada for most of that time
• Purchase a property under $500,000
• Not have purchased more than one property already under this exemption

While the exemption exists, high housing costs in Vancouver and Toronto make it difficult for most students to benefit. Documentation, including study permits, enrollment letters, tax returns, and proof of residence, is required.

How the Ban Has Impacted the Housing Market

Although foreign buyers historically represented a small percentage of sales in Vancouver and Toronto, they often target high-end properties, which can influence price trends in select neighborhoods.

Economists note that the ban’s direct effect on overall housing prices has been limited, with domestic factors like interest rates, inflation, and supply shortages playing a larger role. Still, the ban has shaped buyer expectations and may have contributed to some cooling in certain markets.

What Could Happen in 2027?

As the ban’s expiry approaches, here are key scenarios analysts are considering:

1. Extension of the Ban – Policymakers may extend it if housing affordability remains a challenge.
2. Slow Return of Foreign Buyers – Even if the ban ends, foreign buyers may return gradually, influenced by economic conditions and interest rates.
3. Market Adjustments – Domestic demand and supply constraints could have a stronger effect than foreign buyers, leading to modest price changes.
4. New Policies or Taxes – The government could replace the ban with targeted taxes, vacancy rules, or incentives for new housing, shaping foreign investment differently.

Key Takeaways for Vancouver Homebuyers

• The ban has shaped the urban housing market but is only one factor among many influencing prices.
• International students and other exempt groups can participate in the market but face strict eligibility requirements.
• Interest rates, supply, immigration flows, and regional factors will likely remain the main drivers of Vancouver housing prices beyond 2027.
• Consulting a real estate lawyer or mortgage advisor is recommended for non-Canadian buyers or students considering a property purchase.