Policy update checked November 6, 2026. The changes below are proposals, not new rules buyers can rely on today.
Canada’s Budget 2026 proposes a two-year extension of the foreign buyer ban for existing residential properties, to January 1, 2029, alongside an exemption for new residential properties. The stated aim is to preserve access to existing homes for Canadians while attracting investment into additional housing supply.
What is proposed—and what remains undecided?
The budget sets out a different approach for resale homes and new housing. It says the federal government will bring forward legislation and begin a regulatory process. The budget announcement itself does not establish a detailed definition of qualifying new homes or an effective date for the exemption. Annex 3 separately identifies the proposed legislation to extend the prohibition.
Buyers should not assume that every pre-construction purchase, assignment sale or newly completed home will qualify. Those transaction-specific questions need to be assessed against the final rules once available. Read Budget 2026, Chapter 3 and Annex 3: Legislative Measures.
What are the current rules?
The federal prohibition took effect on January 1, 2023. A previous extension moved its scheduled expiry to January 1, 2027. The proposed 2029 date would extend that period by another two years.
The legal test is whether a purchaser is a “non-Canadian” under the legislation—not simply whether the buyer lives overseas. Canadian citizens and permanent residents are outside that definition. The law and regulations also contain exceptions, including for certain eligible temporary residents and other prescribed circumstances. Eligibility should be checked for the specific purchaser and property.
Official references: Prohibition on the Purchase of Residential Property by Non-Canadians Act, associated regulations and Department of Finance’s 2024 extension announcement.
A federal exemption would not automatically remove foreign buyer taxes
Purchase eligibility and tax liability are separate questions. Ontario currently imposes a 25% Non-Resident Speculation Tax (NRST) on applicable residential property acquisitions by foreign entities and taxable trustees, in addition to provincial land transfer tax. Exemptions and transitional provisions may apply.
Within the City of Toronto, a separate 10% Municipal Non-Resident Speculation Tax (MNRST) applies to qualifying purchases, in addition to municipal land transfer tax. This is a Toronto city tax, not a GTA-wide tax. A property in Oakville is not subject to Toronto’s municipal tax simply because it is in the GTA.
The federal budget proposal should therefore not be read as a tax exemption. Buyers need to confirm all applicable federal, provincial and municipal requirements with their real estate lawyer before signing.
Official tax references: Ontario Land Transfer Tax and NRST and City of Toronto MNRST information.
What could this mean for Oakville and the GTA?
The following is The Fisher Group’s market interpretation, not a government forecast.
Resale homes: Extending the existing restriction would largely continue the current policy direction. The announcement alone does not establish a reason to expect an immediate change in resale prices. Local inventory, comparable sales, financing costs and buyer affordability remain central to pricing decisions.
New construction: If implemented, a new-home exemption could broaden the potential buyer pool for qualifying projects and support sales or project financing. The scale of any effect would depend on the final eligibility rules, taxes, mortgage availability, purchase prices and carrying costs. It does not guarantee a recovery in pre-construction demand or prices.
For buyers and sellers: Keep planning around the rules in force today. Before making a decision based on this proposal, confirm the legislative status and effective date, whether the property qualifies, and the full cost of the transaction.
Planning a move in Oakville or the GTA?
The Fisher Group can help you compare local resale and new-construction options and understand current market conditions. For advice on legal eligibility or tax treatment, work with your real estate lawyer and tax adviser.
The Fisher Group | Royal LePage Oak Park
Call or text 647-598-8488 | Contact our team
Information reflects the official sources reviewed on November 6, 2026 and may change as legislation and regulations develop. This article provides general information, not legal or tax advice.
