The foreign-buyer ban will soon exempt new homes. Housing experts have mixed feelings

Detailed summary

With Canada’s foreign-buyer ban set to expire at the end of this year, Mark Carney’s government has indicated in its 2026 budget that it will keep the ban on the resale market but…

With Canada’s foreign-buyer ban set to expire at the end of this year, Mark Carney’s government has indicated in its 2026 budget that it will keep the ban on the resale market but lift it for new-construction homes.

Some proponents say the policy change could increase demand for new homes and spur more housing construction, while others say the ban has done little to improve affordability while negatively affecting immigrants. Critics, however, say the move stands to incentivize developers to build homes for investors rather than regular Canadians.

The policy change follows a steep downturn in the market for new homes. Preconstruction condo sales especially have evaporated as plummeting values and high interest rates have repelled investors, their primary buyers.

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