Announced last week along with the 2026 Budget, the federal government proposed extending the Prohibition on the Purchase of Residential Property by Non-Canadians Act (the foreign buyer ban) by two years, moving its expiration date from January 1, 2027, to January 1, 2029. 
Last time the ban was extended (Jan 1, 2025) the extension was announced in February of 2024 so many speculated The federal government would let the ban lapse in order to boost the stalled Real Estate market. 

The proposed extension would come with a large exemption for new home purchases including presale and move-in ready homes and that exemption fueled some interesting reactions.
In Vancouver, I think it will have minimal effect on the market. At surface level this could help developers move some of their unsold units but here in BC there’s still a very large tax bill attached to a purchase. That tax bill was the reason foreign buyers stepped away from the market long before the ban.

Foreign buyers in BC will still be charged;
•20% Foreign Buyer Tax (aka additional property transfer tax)
•Property Transfer Tax (no new home exemption for non Canadian
  citizens/PR)
•5% Federal GST

So on a 900,000 new home purchased by a foreign buyer, they would be charged;

•$180,000 in Foreign Buyer Tax (aka Additional Property Transfer Tax)
•$16,000 in Property Transfer Tax
•$45,000 in GST
=$241,000 or 26.8% of the purchase price at closing.

And, if the home sits empty for more than 6 months of the year, the new owner will also be responsible for;
•Empty Homes Tax (Vancouver only) 3%
•Speculation and Vacancy Tax (Select municipalities including the entire lower mainland)
     -1% for Canadian citizens/PR
     -3% in 2026 and 4% in 2027 for Foreign Owners or Satellite families
On $900,000 that’s another $54,000 for 2026 and $63,000 for 2027

Reminder, I am writing this in early November 2026, BC has just elected a new majority Conservative Provincial Government which will be sworn into legislature on November 19th. Given that much of this taxation is controlled by Provincial Policy, it’s possible major changes could be coming as they look to overturn NDP policy but in the run up to the election, the interim leader said they intend to keep the 20% Foreign Buyer Tax and Speculation and Vacancy Tax in place.

The only significant opportunity is for buyers in the process of obtaining their Canadian Citizenship or PR…  if they receive this within one year of their purchase registering, they may be eligible for a refund on the 20% foreign buyer tax and property transfer tax. Those buyers must move in within 92 days, occupy this home as their primary residence for that first year and file within 18 months of registration.

The 5% GST has no retroactive refund.

So, for the select few who are confident their PR/Citizenship will be approved within that first year and have 26.8% of the purchase price available upfront on top of their down payment, this is a promising development. But given Canada’s recent tightening of immigration policies and the significant tax burden for buyers who don't qualify for these refunds, I don't see this bringing enough buyers back into the market to make a meaningful dent in Vancouver's unsold condo inventory.


Click these links for more information on refund eligibility for the Additional Property Transfer Tax (Foreign Buyer Tax) and PTT .

Got questions about the market or the buying process? Reach out!
Kade Lacasse
604-401-9199
kadelacasse@gmail.com

Book a 15 minute call

Announced last week along with the 2026 Budget, the federal government proposed extending the Prohibition on the Purchase of Residential Property by Non-Canadians Act (the foreign buyer ban) by two years, moving its expiration date from January 1, 2027, to January 1, 2029. 
Last time the ban was extended (Jan 1, 2025) the extension was announced in February of 2024 so many speculated The federal government would let the ban lapse in order to boost the stalled Real Estate market. 

The proposed extension would come with a large exemption for new home purchases including presale and move-in ready homes and that exemption fueled some interesting reactions.
In Vancouver, I think it will have minimal effect on the market. At surface level this could help developers move some of their unsold units but here in BC there’s still a very large tax bill attached to a purchase. That tax bill was the reason foreign buyers stepped away from the market long before the ban.

Foreign buyers in BC will still be charged;
•20% Foreign Buyer Tax (aka additional property transfer tax)
•Property Transfer Tax (no new home exemption for non Canadian
  citizens/PR)
•5% Federal GST

So on a 900,000 new home purchased by a foreign buyer, they would be charged;

•$180,000 in Foreign Buyer Tax (aka Additional Property Transfer Tax)
•$16,000 in Property Transfer Tax
•$45,000 in GST
=$241,000 or 26.8% of the purchase price at closing.

And, if the home sits empty for more than 6 months of the year, the new owner will also be responsible for;
•Empty Homes Tax (Vancouver only) 3%
•Speculation and Vacancy Tax (Select municipalities including the entire lower mainland)
     -1% for Canadian citizens/PR
     -3% in 2026 and 4% in 2027 for Foreign Owners or Satellite families
On $900,000 that’s another $54,000 for 2026 and $63,000 for 2027

Reminder, I am writing this in early November 2026, BC has just elected a new majority Conservative Provincial Government which will be sworn into legislature on November 19th. Given that much of this taxation is controlled by Provincial Policy, it’s possible major changes could be coming as they look to overturn NDP policy but in the run up to the election, the interim leader said they intend to keep the 20% Foreign Buyer Tax and Speculation and Vacancy Tax in place.

The only significant opportunity is for buyers in the process of obtaining their Canadian Citizenship or PR…  if they receive this within one year of their purchase registering, they may be eligible for a refund on the 20% foreign buyer tax and property transfer tax. Those buyers must move in within 92 days, occupy this home as their primary residence for that first year and file within 18 months of registration.

The 5% GST has no retroactive refund.

So, for the select few who are confident their PR/Citizenship will be approved within that first year and have 26.8% of the purchase price available upfront on top of their down payment, this is a promising development. But given Canada’s recent tightening of immigration policies and the significant tax burden for buyers who don't qualify for these refunds, I don't see this bringing enough buyers back into the market to make a meaningful dent in Vancouver's unsold condo inventory.


Click these links for more information on refund eligibility for the Additional Property Transfer Tax (Foreign Buyer Tax) and PTT .

Got questions about the market or the buying process? Reach out!
Kade Lacasse
604-401-9199
kadelacasse@gmail.com

Book a 15 minute call