Foreign Buyer Ban Extended to 2029—But New Homes Get a Pass: What Budget 2026 Means for Vancouver Real Estate

The federal government's Budget 2026, released November 6, 2026, proposes extending the prohibition on foreign buyers purchasing residential property until January 1, 2029, while carving out a significant exemption for newly constructed homes. The current ban, which expires January 1, 2027, would be prolonged through new legislation and regulatory processes, though specific implementation dates remain unannounced. Concurrently, the budget outlines substantial mortgage insurance reforms, including raising the optional insurance price limit from $1 million to $1.5 million and introducing 30-year amortizations for insured mortgages when at least one borrower is a first-time homebuyer or the property is newly built. These measures accompany $44.7 billion in housing investments over 11 years, including $13 billion for Build Canada Homes, targeting 200,000 new homes over the next decade.

The foreign buyer ban, first introduced to preserve housing stock for Canadian residents, has been modified to channel foreign capital specifically toward new construction rather than existing inventory. Andrew Lis, chief economist at Greater Vancouver REALTORS®, welcomed the tweak, noting it should support construction of new homes while keeping resale properties available to domestic buyers. The mortgage insurance changes represent Ottawa's attempt to address affordability constraints in high-priced markets like Vancouver, where the $1 million insurance cap had become increasingly obsolete. Additionally, new rules effective February 1, 2027, will remove property value limits and owner-occupancy requirements for mortgage insurance on eligible newly built three- and four-unit properties, while permitting private insurers to cover buildings with five to 50 units—measures aimed at unlocking financing for the "missing middle" housing segment.