Canada’s foreign buyer ban is expiring — what comes next could reshape the market
An Australian blueprint for Canada?
Australia’s framework, which BLG describes as a model of active interest for Canada’s post-2027 approach, restricts foreign purchases of established dwellings while carving out exceptions for new builds, large-scale redevelopment, and vacant land — investments that add to housing supply rather than competing for existing stock.
The model under consideration would see foreign buyers permitted to purchase new construction and vacant land, but remain barred from buying existing homes, with the idea of directing foreign capital towards adding to the housing supply rather than competing for existing stock.
Canada already has partial exemptions in this direction. Amendments introduced in 2023 created standing category-based exceptions for vacant land and certain redevelopment purchases, as well as for non-Canadian-controlled entities that are publicly traded in Canada.
The key distinction, as BLG notes, is that Australia expressly permits foreign purchases of new dwellings, while Canada’s current exemptions stop short of that.
What brokers need to watch
Mortgage brokers operating in the residential market, particularly those working with developers and investors in major census metropolitan areas, have a direct stake in how this policy evolves.
