Foreign Buyers and New Homes: What Budget 2026 Proposes, and BC's 20% Tax

Federal Budget 2026, tabled on November 5, 2026, proposes to extend Canada's foreign buyer ban to January 1, 2029 for existing homes while exempting new ones. Here is what the budget says, what the law is today, and why BC's 20% additional property transfer tax still applies in Metro Vancouver and the Fraser Valley, with a worked example for a new Burnaby condo.

The short version

What Budget 2026 proposes

Finance Minister François-Philippe Champagne tabled Budget 2026 on November 5, 2026. It proposes to extend the ban on foreign purchases of existing residential properties for two years, to January 1, 2029, while exempting new residential properties. The budget says this would keep most of the market available for Canadians while drawing investment into new housing supply.

It is a proposal: Ottawa says it will propose legislation and launch a regulatory process "in short order", and the budget's annex of legislative measures lists legislation to extend the Act. Until that legislation passes and the regulations are made, the current rules apply. Two points are still open:

• What counts as new. The budget does not define a new residential property, so it isn't clear how presales, assignments or recently completed units would be treated.
• When it starts. No effective date is given, and nothing says how the exemption would apply to contracts signed before it takes effect.

The federal ban as it stands today

The Prohibition on the Purchase of Residential Property by Non-Canadians Act came into force on January 1, 2023. A 2024 amendment moved its end date to January 1, 2027, when the Act is repealed under current law unless Parliament extends it. The main rules, from the Act, its regulations and CMHC:

• Who it covers. Anyone who is not a Canadian citizen, permanent resident or person registered under the Indian Act, plus corporations formed outside Canada and unlisted Canadian corporations that non-Canadians control, including through 10% or more of the equity or votes.
• What and where. Buildings with up to three dwelling units, and condo or semi-detached units, inside Statistics Canada's census metropolitan areas and census agglomerations, which cover Burnaby and Surrey. CMHC has an online map to check an address.
• Main exceptions. Work permit holders with at least 183 days left on their permit, for one home; international students who meet residence and tax-filing conditions, for one home of $500,000 or less; buyers purchasing with a spouse or common-law partner who is a citizen or permanent resident; protected persons and some refugee claimants; and diplomats.
• Penalties. A fine of up to $10,000 for the buyer and anyone who knowingly helps, and a court can order the home sold.

BC's 20% tax is a separate law

BC's additional property transfer tax, often called the foreign buyers tax, is set by provincial law, and the federal proposal does not change it. The budget says Ottawa will continue to support measures levied by other levels of government that address housing market pressures, including speculation. BC elected a new government on October 24, 2026; as of November 9, 2026, no change to this tax had been announced, and any change would need provincial action.

• Who pays. Foreign nationals (anyone who is not a Canadian citizen or permanent resident), foreign corporations and taxable trustees.
• Where. The Metro Vancouver, Fraser Valley, Capital, Central Okanagan and Nanaimo regional districts, except Tsawwassen First Nation treaty lands.
• How much. 20% of the fair market value of your registered share, on top of the regular property transfer tax: 1% on the first $200,000, 2% up to $2,000,000, 3% above that, and a further 2% on residential value over $3,000,000.
• When. Both are paid when the transfer is registered at the Land Title Office, based on fair market value that day. For a presale, that is usually at completion.

Exemptions and refunds under BC's tax

The federal exceptions don't carry over: a work permit holder who fits one still pays BC's 20%, and so does a foreign national buying with a Canadian spouse, on their own share, unless a provincial exemption applies:

• BC Provincial Nominees. A confirmed nominee under the BC Provincial Nominee Program at registration, buying a principal residence in their own name, can claim an exemption once. A spouse who is also a foreign national still pays on their share.
• Refund for new permanent residents. If you become a citizen or permanent resident within one year after registration, move in within 92 days and live there as your principal residence for at least a year, you can apply after that year and before 18 months from registration.

For the rest of that move, see Buying a Home in BC as a Newcomer to Canada.

Worked example: a new condo in Burnaby

Take a foreign national with no exemption buying a new Burnaby condo at an example price of $800,000 plus GST, with a fair market value at registration equal to the price. Today the federal ban would prohibit the purchase unless an exception applied. If the new-home exemption becomes law and covers this unit, these taxes would still be due at completion:

• Regular property transfer tax: $14,000
• Additional property transfer tax at 20%: $160,000
• GST at 5%: $40,000
• Total: $214,000, about 27% of the price

No GST rebate applies. The Canada Revenue Agency limits the first-time home buyers' GST rebate to citizens and permanent residents, and the general new housing rebate needs a price under $450,000 and a home bought as the buyer's or a relative's primary residence. A citizen or permanent resident buying the same condo as a first home could owe none of the $214,000 by meeting every condition of BC's newly built home exemption and that rebate; see GST on New Homes in BC.

If a foreign national and a Canadian spouse register the condo 50/50, the federal spouse exception applies, but BC's 20% is still charged on the foreign national's half: $80,000. For deposits and disclosure, see Buying a Presale Condo in BC.

After you buy: the speculation and vacancy tax

Owning the condo brings BC's annual speculation and vacancy tax, which applies in Burnaby and Surrey. Unless an exemption applies, a foreign owner pays 3% of the assessed value for 2026 and 4% for 2027 and later years. The principal residence exemptions are limited to citizens and permanent residents who are BC residents for income tax purposes, so a foreign owner usually needs another, such as a tenant living there at least six months of the year under the province's tenancy rules. On an $800,000 assessment, the 2027 tax would be $32,000 before any credit based on BC income. Owners who get a declaration letter must declare before March 31 each year; see BC's Speculation and Vacancy Tax.

Budget 2026 also proposes lower withholding rates when non-residents sell Canadian property, from 25% and 50% to 15% and 30% depending on the property, for sales on or after January 1, 2027; see Selling as a Non-Resident.

Who to ask before you sign

• A real estate lawyer. To check how the ban applies to your contract and completion dates, review the contract and file the property transfer tax return with any exemption claim.
• An accountant. For GST, the speculation and vacancy tax, rental income and selling as a non-resident.
• An immigration lawyer or regulated immigration consultant. If your plan depends on a work permit, a provincial nomination or permanent residence within a year.
• A mortgage professional. Ask early how lenders treat buyers without permanent status.

Questions buyers often ask me

Can a non-Canadian buy a new condo in Metro Vancouver right now?

Generally not, unless a federal exception applies, such as for some work permit holders or buyers with a Canadian spouse. The Budget 2026 exemption for new homes still needs legislation and regulations, and the budget gave no start date.

Is the federal ban ending on January 1, 2027?

Under current law, the Act is repealed on that date. Budget 2026 proposes legislation to keep it in place for existing homes until January 1, 2029, so whether it continues depends on Parliament passing that bill before then.

Does the budget change BC's 20% foreign buyers tax?

No. It is set in provincial law, so only the province can change it. A foreign national buying a new home in Metro Vancouver or the Fraser Valley would still pay it unless a BC exemption applies.

Will presales count as new homes under the proposal?

The budget does not say. It does not define a new residential property or mention presales, so their treatment will depend on the legislation and regulations. If you sign before then, have a lawyer check the contract against the rules in force.

Can I get the 20% tax back if I become a permanent resident?

Possibly, if you become a permanent resident or citizen within one year of registration and the home has been your principal residence. The province also sets deadlines for moving in and applying, and the refund is not available if you claimed the nominee exemption.

Planning a purchase for yourself or a family member? See closing costs in BC, how presale assignments work, and whether you need a notary or lawyer.

This article is general information, not legal, tax or immigration advice. The details come from Budget 2026, the federal Act and its regulations, CMHC, the Canada Revenue Agency and the BC government's property transfer tax and speculation and vacancy tax pages, and were current at the time of writing in November 2026; the federal change is a proposal, and the final rules may differ. For the province's rules, see BC's additional property transfer tax for foreign entities and taxable trustees.