Foreign buyers and new homes in Ontario: what the budget proposes.

What the budget proposes

Budget 2026, tabled on November 5, 2026, proposes to extend the ban on foreign purchases of existing residential properties for two more years, to January 1, 2029, while exempting new residential properties. The government says it will introduce legislation and regulations shortly. The current ban ends January 1, 2027.

What is still unknown

• What counts as a “new” home: pre-construction only, never occupied, or built after a set date.
• Whether assignments of pre-construction contracts qualify.
• When the exemption starts.

What has not changed in Ontario

Ontario charges a Non-Resident Speculation Tax of 25% of the purchase price when a foreign national buys a home with one to four units, anywhere in the province. On a $1,000,000 home, that is $250,000 on top of the price. Some buyers who later become permanent residents may qualify for a rebate. Lenders also usually ask non-residents for a larger down payment.

Who this may help most

1. People already in Canada on a work permit or study permit who expect permanent residence before a 2027 or 2028 closing.
2. Families abroad buying a home for a child who studies or works here, or before their own move.
3. Overseas investors, once the final rules are published and the full cost, including the Ontario tax, is clear.

How I can help

I keep a list of builders that will accept foreign buyers once the rules are final, along with their deposit schedules and payment options. I work alongside a real estate lawyer and a mortgage specialist, so you get clear answers on tax, financing and closing before you sign. Every buyer completes identity and source-of-funds checks required by law.

This page is general information as of November 6, 2026, and is not legal, tax or immigration advice. Rules may change when legislation is introduced. Please confirm your situation with a lawyer before signing.

Sources: Canadian Mortgage Trends, Sitka Media, Vanplex, CBC News.