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Budget 2026: Foreign Buyer Ban to 2029, New Homes Exempt, and the Tax a Brand New Home Saves You

Budget 2026 proposes to keep the foreign buyer ban on existing homes to 2029 and exempt new homes. What it means for families, plus the GST and transfer tax savings on a brand new home.

By MultiLiving Editorial · November 6, 2026

Questions about this guide: Gary Paul, REALTOR®, Personal Real Estate Corporation, Grand Central Realty, 778-828-7476

Budget 2026, tabled in Ottawa on November 5, 2026, proposes to keep the federal ban on foreign buyers of existing homes for two more years, to January 1, 2029, and to let foreign buyers purchase new homes. For a family shopping for a brand new multiplex home in Greater Vancouver, the second half sounds like news. In our view, the bigger story for most of our readers is how much tax a brand new home already saves a Canadian family with one first-time buyer in it.

This post explains what the budget says, what has changed today and what has not, and what a brand new duplex, triplex or fourplex home costs in tax under the rules in force now. It is general information. Before you sign a contract, check your own case with a lawyer or notary.

What Budget 2026 says about foreign buyers

The passage is in Chapter 3 of the Budget 2026 document:

"Budget 2026 proposes to extend the ban on foreign purchases of existing residential properties for two years, to January 1, 2029, while exempting new residential properties. This would help protect housing affordability by keeping the vast majority of the market available for Canadians, while unlocking additional investment in new housing supply."

The same paragraph says the federal government "will propose legislation and launch a regulatory process on this change in short order." The budget's list of planned laws adds that the government will introduce a bill to extend the Prohibition on the Purchase of Residential Property by Non-Canadians Act to January 1, 2029.

That is all the detail there is. We read the whole budget and found no definition of a "new residential property" and no date for the exemption to start. A new home could end up meaning a pre-sale, a home nobody has lived in yet, or a home finished after a certain date. Nobody can tell you which today.

What the law says today

The ban started on January 1, 2023. Its first end date was January 1, 2025. On February 4, 2024, the Department of Finance extended it to January 1, 2027, and that is still the end date in law until Parliament passes a new bill.

The Act says a non-Canadian may not purchase residential property "directly or indirectly". A non-Canadian is a person who is not a Canadian citizen, not a permanent resident and not registered under the Indian Act. Residential property includes a house with up to three homes in it, a semi-detached house, a rowhouse unit and a condo unit. A single strata home in a brand new duplex, triplex or fourplex fits that list.

The regulations allow some people to buy anyway. Two matter most for families:

A person on a work permit can buy one home if the permit has 183 days or more of validity left on the day of purchase.
A non-Canadian can buy together with a spouse or common-law partner who is a Canadian citizen, a permanent resident or registered under the Indian Act.

The fine for breaking the ban is up to $10,000, and the Act also allows a court to order the home sold.

Who this changes nothing for

If everyone buying the home is a Canadian citizen or a permanent resident, the ban never applied to you, and the budget does not change that. You can buy a brand new home or a resale home today.

If you plan to sell an existing home to fund your next one, the people who can buy it stay the same under the proposal. Existing homes stay inside the ban until January 1, 2029.

What it could mean for families with a parent abroad

Many of the families we work with buy together across generations. Sometimes one parent is not a citizen or permanent resident. Under the law today, that parent cannot go on title for a home covered by the ban, unless one of the exceptions above applies.

If the new-home exemption becomes law, a parent like this may be able to share ownership of a brand new home. Two things stay the same:

BC's additional property transfer tax still charges a foreign national 20% of the fair market value of their share. It applies across Metro Vancouver and four other BC regions. On a $1,200,000 home where the parent holds a 20% share, that share is worth $240,000, and the extra tax is $48,000.
The budget says the federal government will keep supporting measures "levied by other levels of government" against speculation. We read that as BC's 20% tax staying in place.

Our advice: do not sign a pre-sale contract that depends on a foreign co-owner until the bill and the rules are published. A parent can still help without going on title, for example with a gifted down payment, and lenders will ask for papers that show where the money came from.

The tax a brand new home saves a Canadian family

This is the part we think more families should know about. Two tax breaks for brand new homes are law today.

The first-time home buyer GST rebate: up to $50,000

You pay GST of 5% on a brand new home in BC. The first-time home buyers' GST rebate returns all of it on a home up to $1 million, to a maximum of $50,000. Between $1 million and $1.5 million the rebate shrinks in a straight line, and at $1.5 million it is zero. The Department of Finance gives the example of a $1.25 million home, which gets 50%, up to $25,000.

Bill C-4, which carries the rebate, received royal assent on March 12, 2026, so this one is law.

Here is the detail that matters for families who buy together. The Department of Finance says at least one of the purchasers must be a first-time home buyer who will live in the home as their main residence and be the first person to live there. That first-time buyer must:

be 18 or older
be a Canadian citizen or permanent resident
not have lived in a home they or their spouse owned in the current year or the four years before

The agreement to buy must be signed on or after March 20, 2025 and before 2031. Work on the home must start before 2031, and the home must be finished before 2036. Each person can claim it once in their life.

So a family where an adult child has never owned a home, and will live in the new home, can often qualify even if the parents have owned homes for decades. Confirm your own case with your lawyer or notary, because the rule turns on who lives in the home.

BC's newly built home exemption

BC's newly built home exemption removes the property transfer tax on a brand new home with a fair market value up to $1,100,000, and gives a partial break up to $1,150,000. You must be a Canadian citizen or permanent resident and use the home as your principal residence. You do not need to be a first-time buyer.

Two examples

These use the BC property transfer tax rates: 1% on the first $200,000 and 2% from $200,000 to $2,000,000. They assume the buyer qualifies for both programs. They are for illustration only.

A $1,000,000 brand new half duplex, bought by a first-time buyer:

GST at 5% is $50,000. The rebate returns all $50,000.
Property transfer tax would be $18,000. The newly built home exemption removes all of it.
Tax left to pay: $0.

A $1,250,000 brand new fourplex home, bought by a first-time buyer:

GST at 5% is $62,500. The rebate returns up to $25,000.
Property transfer tax is $23,000. The home is above $1,150,000, so the newly built home exemption does not apply.
Tax left to pay: $60,500, against $85,500 with no rebate at all.

A foreign buyer of that same $1,250,000 home, if the exemption becomes law, would pay the $62,500 of GST with no rebate, the $23,000 of property transfer tax, and $250,000 of BC's additional tax. That adds up to $335,500. We do not expect many foreign buyers in Vancouver pre-sales, even with the exemption.

The budget's proposed change to insured mortgages

The same chapter of the budget proposes to raise the home price limit for optional mortgage insurance from $1 million to $1.5 million and to allow 30-year amortizations on those insured mortgages, "provided that at least one borrower is a first-time home buyer or the home is newly built."

An amortization is the number of years it takes to pay the mortgage off in full. A longer one lowers each payment and raises the total interest you pay. This is a proposal, so ask a mortgage broker how it would change your payment once the rules are final.

What we would do now

If everyone in your family is a citizen or permanent resident, nothing in the budget stops you. Look at brand new homes with the GST rebate and the newly built home exemption in mind, because together they can bring the tax on a home under $1,100,000 to zero.

If one buyer is not a citizen or permanent resident, wait for the bill. Plan the purchase so that the Canadian members of the family can complete it on their own, and treat any help from a parent abroad as a gift until the rules change.

If you are comparing pre-sale homes, ask the seller whether the price includes GST and whether they will credit the first-time buyer rebate on the day you complete. Then read the contract with your lawyer.

What this comes down to

Budget 2026 proposes to keep the ban on foreign buyers of existing homes to January 1, 2029 and to exempt new homes. Neither change is law yet.
The budget does not define a new home or give a start date for the exemption.
BC's 20% additional property transfer tax still applies to a foreign buyer's share of a home in Metro Vancouver.
The first-time home buyer GST rebate is law. It returns up to $50,000, and only one buyer in the family needs to qualify.
BC removes property transfer tax on brand new homes up to $1,100,000 for citizens and permanent residents.

Frequently asked questions

Is the foreign buyer ban extended to 2029?

Budget 2026 proposes to extend the ban on existing homes to January 1, 2029. It is a proposal. Until Parliament passes a bill, the law still ends the ban on January 1, 2027. The government says it will bring in the bill and the rules in short order.

Can a foreign buyer buy a brand new multiplex home in Vancouver now?

No, not under the law today. The exemption for new homes needs a bill and regulations first. Until then, a strata home in a brand new duplex, triplex or fourplex is covered by the ban, unless the buyer fits an exception such as the work permit rule.

What counts as a "new residential property" in the budget?

The budget does not say. It could mean a pre-sale, a home nobody has lived in, or a home finished after a set date. The definition will come in the bill or the regulations, and we suggest waiting to read it before you plan around it.

Can my parent who lives abroad be on title with me?

Under today's law, not for a home covered by the ban, unless your parent fits an exception. If the new-home exemption becomes law, it may become possible on a brand new home, but BC's 20% additional tax would apply to your parent's share.

Can a parent abroad help with the down payment?

Yes. A gift is different from going on title. Lenders will ask for a gift letter and papers that show where the money came from, so start collecting them early. Your mortgage broker can tell you exactly what your lender wants.

Does BC's 20% foreign buyer tax still apply?

Yes. The federal budget does not change it. A foreign national pays 20% of the fair market value of their share on top of the regular property transfer tax, in Metro Vancouver and four other BC regions.

How much GST do I pay on a brand new home in BC?

GST is 5% of the price. On a $1,000,000 home that is $50,000. Ask the seller whether the price you see includes GST or whether it is added on top. A first-time buyer may get some or all of it back through the federal rebate.

Who qualifies for the first-time home buyer GST rebate?

At least one buyer must be 18 or older, a citizen or permanent resident, and must not have lived in a home they or their spouse owned in the current year or the four years before. That person must live in the home as their main residence and be its first occupant.

Can we get the GST rebate if only one of us is a first-time buyer?

Often yes. The Department of Finance says at least one of the purchasers must be a first-time buyer who will live in the home. In a family purchase, an adult child who has never owned a home and moves in can be that person. Confirm with your lawyer.

How much is the rebate on a home over $1 million?

It shrinks in a straight line from $50,000 at $1 million to zero at $1.5 million. The Department of Finance example is a $1.25 million home, which gets 50% of the GST rebated, up to $25,000.

When did the first-time buyer GST rebate become law?

Bill C-4 received royal assent on March 12, 2026. It covers agreements to buy signed on or after March 20, 2025 and before 2031, where work on the home starts before 2031 and the home is finished before 2036.

Do I pay property transfer tax on a brand new home?

Often no. BC's newly built home exemption removes it on a brand new home worth up to $1,100,000 and reduces it up to $1,150,000, if you are a citizen or permanent resident and the home is your principal residence. You do not need to be a first-time buyer.

Does the budget change mortgage rules for brand new homes?

It proposes to raise the price limit for optional mortgage insurance from $1 million to $1.5 million and to allow 30-year amortizations when one borrower is a first-time buyer or the home is newly built. It is a proposal until the rules are final.

Should I wait for the new rules before I buy?

If everyone buying is a citizen or permanent resident, there is nothing to wait for in this budget. If a buyer is not, waiting is safer, because the exemption is not law and its details are unknown. A lawyer can tell you what applies to your family today.

Sources

All sources read on November 5, 2026. Budget measures are proposals until Parliament passes them.

If your family is weighing a brand new home and you want to know which of these rules apply to you, talk to our team, or browse brand new multiplex homes for sale across Greater Vancouver.

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