OTTAWA: The federal government is preparing to extend the ban on foreign buyers purchasing existing homes in Canada for another two years. The budget presented on November 5, 2026, proposes extending this ban until January 1, 2029. However, the budget also includes provisions allowing foreigners to purchase newly constructed homes. To bring these initial proposals into effect, the government will need to complete further legislative and regulatory procedures.
The law prohibiting non-Canadians from purchasing residential properties in the country originally came into effect on January 1, 2023. Alongside exemptions for rural areas and cottage country, the legislation provides limited exceptions for certain temporary workers, refugees, and international students. Additionally, American citizens of Canadian descent are completely exempt from this ban, provided they present a Canadian citizenship certificate.
With Bill C-3 coming into force on December 15, 2025, the first-generation limit on citizenship by descent was eliminated. Under this law, individuals born outside Canada before December 15, 2025, are automatically eligible for citizenship if a parent, grandparent, or earlier ancestor was a Canadian citizen. Since processing applications for a citizenship certificate currently takes around 34 months, Americans looking to buy property in Canada are advised to expedite their application process.
Leading real estate agency Royal LePage stated that interest in the Canadian real estate market among American citizens is at a record high. Inquiries from the U.S. saw a massive surge during the first five months of 2026. Amid political developments in the U.S. and tensions surrounding Iran ceasefire talks, searches from U.S. users jumped by 125 percent within a single week.
Although various Canadian provinces impose special taxes on foreign buyers, citizens by descent receive significant exemptions. Ontario’s 25 percent speculation tax, Toronto’s 10 percent municipal tax, and British Columbia’s 20 percent property transfer tax do not apply to citizens by descent. However, those purchasing property in Nova Scotia will still be required to pay a 10 percent deed transfer tax if they do not relocate there within six months.
