Experts doubt foreign buyer ban expiry will spark a housing price surge in Canada
The federal prohibition on foreign homebuyers ends on Jan. 1, 2027, and analysts say it is unlikely to cause a sharp rise in Canadian home prices.
Canada’s foreign homebuyer ban, set to lapse on Jan. 1, 2027, is prompting a reassessment of its role in housing affordability. When the restriction was first imposed, foreign investors had been blamed for fuelling price spikes in cities like Toronto and Vancouver, but data from Statistics Canada show they owned only about 2.75 % of Ontario properties and roughly 4 % of British Columbia homes in recent years. The Bank of Canada’s aggressive rate hikes since 2022 have already dampened market activity, making it hard to isolate the ban’s effect.
Finance Minister Francois-Philippe Champagne said the government is weighing all options as the market evolves. Experts such as Robert Hogue of Royal Bank of Canada and Mike Moffatt of the University of Ottawa argue that even without the ban, conditions are not ripe for a flood of foreign buyers, and any price impact in the next one to two years would be minimal.
Why it matters
Understanding the ban’s limited influence helps gauge future housing policy and price expectations for Canadian buyers.
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