Silver: It’s time to rethink Canada’s foreign buyer ban

Canada has a housing problem. But after several years of restrictions on non-resident homebuyers, we need to ask an important question: are we still solving the right problem? 

The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act currently prevents many non-Canadians from purchasing residential property in Canada. The ban is scheduled to expire on Jan. 1, 2027. 

Rather than automatically extending it again, now is the time for the Government of Canada to examine whether the policy has actually improved housing affordability—and whether it could now be contributing to a different problem: a shortage of investment needed to build Canada’s future housing supply. 

Canada’s housing market has changed 

When the foreign buyer ban was introduced, Canadians were understandably concerned about rapidly escalating home prices and housing affordability. 

Today’s market looks very different. 

Canada Mortgage and Housing Corporation (CMHC)’s spring 2026 Housing Supply Report warns that while overall housing starts increased in 2025, serious problems are developing underneath those numbers. Condominium presales have collapsed, unsold inventories have increased and developers are delaying or cancelling projects. 

CMHC specifically warns that this threatens the future supply of ownership housing, particularly in Toronto and Vancouver.  

Why does that matter? 

Because large condominium developments typically require substantial presales before lenders will provide construction financing. 

Without buyers, projects don’t launch. 

Without financing, shovels don’t go into the ground. 

And without construction today, we risk another housing shortage tomorrow. 

We need investment to build housing 

Canada cannot regulate its way to more housing. 

Ultimately, we have to build more homes. 

That requires land, labour, approvals, infrastructure and capital. 

International purchasers have historically represented one source of that capital, particularly in markets such as Toronto and Vancouver. Reopening Canada to legitimate international purchasers could help broaden the pool of buyers supporting new housing development. 

That doesn’t mean returning to unrestricted speculation. 

It means recognizing the difference between speculation and investment. 

Canada can maintain strong protections against money laundering, vacant properties and short-term speculation while welcoming legitimate international buyers who invest here, establish businesses here, educate their children here or simply want to own a Canadian residence. 

Canada should be open for business 

We should also think about the message we’re sending internationally. 

Canada competes with the United States, Europe, Asia and other countries for entrepreneurs, executives, companies, skilled professionals and investment. 

We tell the world that Canada is a stable, welcoming place to invest and do business. Yet we simultaneously tell many international citizens that they cannot purchase a home here. 

In Ontario, the situation goes even further. Qualifying foreign purchasers can face a 25 per cent Non-Resident Speculation Tax, on top of regular land transfer taxes. 

These policies may discourage more than residential real estate purchases. They risk communicating that Canada is becoming a difficult place for international capital. 

Where is the evidence? 

This is perhaps the most important question agents should be asking. 

When the federal government extended the foreign buyer ban in 2024, the Canadian Real Estate Association challenged the decision. 

CREA stated that there was no analysis, evidence or data from Statistics Canada, CMHC or Finance Canada demonstrating that the extension would achieve its intended impact on housing affordability.  

Before extending the ban again, Canadians deserve to see the evidence. 

Did the ban materially improve affordability? 

How many purchases did it actually prevent? 

What impact did it have on housing construction? 

And what effect has it had on Canada’s reputation as a destination for international investment? Those are reasonable questions. 

Agents have a voice 

There are more than 160,000 Realtors across Canada. Collectively, we have an extraordinary opportunity to influence this conversation. 

The federal ban expires Jan. 1, 2027. The time to speak is now—not after another extension has been announced. 

I am asking real estate agents across Canada to write their Member of Parliament, the Minister responsible for housing and the Prime Minister of Canada. 

Ask them to allow the federal foreign buyer ban to expire on Jan. 1, publish an evidence-based assessment of the ban’s impact on affordability and housing supply, encourage provinces to review punitive non-resident purchase taxes, replace broad restrictions with targeted measures addressing vacancy and genuine speculation and develop policies encouraging international capital to support new Canadian housing construction. 

This isn’t about putting foreign purchasers ahead of Canadians. 

It is about asking whether a policy created for the housing market of several years ago still makes sense for the housing market Canada faces today. 

We need policies that increase housing supply, attract responsible investment and strengthen Canada’s economy while protecting Canadian homebuyers. 

Canada needs more housing. 

Housing requires investment. 

And good public policy requires evidence. 

Let’s make sure our elected representatives hear that message before Jan. 1, 2027. Write your MP. Write the Prime Minister. Ask your peers to do the same. 

Because if Canada’s housing policy needs to change, Canada’s real estate professionals should be part of the conversation. 

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