Budget exempts new homes from foreign-buyer ban

CP24 reported that Ottawa will let foreign buyers buy new homes again, in the budget presented on Thursday, November 5. The question is whether they will buy the thousands of unsold new condos in Toronto and Vancouver.

Yahoo News Canada reported that the budget extends the ban on foreign buyers of existing homes to January 1, 2029, but exempts new construction. Daily Hive reported that the budget gives no eligibility rules or start date for the exemption. The exemption does not touch provincial measures meant to discourage foreign buyers; realtor Lucy Hua said Ontario has a 25% foreign-buyer tax.

Some developers argue foreign buyers could clear unsold units and supply the presales, sales made before building, that finance new projects. That matters because Toronto condo starts fell 55% to 9,885 in 2025, the fewest since 2007, Statistics Canada said.

But Ms Hua is skeptical that foreign buyers will return, even with the exemption. Yinnon Geva, a University of Toronto assistant professor, also questions whether the exemption aims at affordability.

Sources: CP24 · Canadian Mortgage Trends · Yahoo News Canada · Daily Hive · Statistics Canada