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Budget 2026 and New Homes in Vancouver: Foreign Buyer Ban to 2029, New Homes Exempt, and the Rules for Building New

By Costar ConstructionNovember 5, 2026

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. If you own a lot in Vancouver and you are planning a multiplex or a new house, you will hear about the foreign buyer part first. The rules for new homes that are already law, and a financing change for three- and four-unit homes in February 2027, are the parts more likely to change your plans. This post walks through all of them.

It is general information. Tax and immigration rules depend on your own facts, so check your case with your lawyer, notary or accountant before you rely on it.

What the budget says

Chapter 3 of the Budget 2026 document says:

"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."

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 confirms a bill to extend the Act to January 1, 2029.

That is all the detail there is today. There is no bill. There is no start date for the exemption. There is no definition of a "new residential property". A new home could mean a presale, a home nobody has lived in yet, or a home finished after a set date. We would not change a design or a sales plan on that phrase until the bill and the regulations are published.

What the ban covers today

The ban took effect 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.

Section 2 of the Act covers a detached house or similar building "containing not more than three dwelling units", and a semi-detached house, rowhouse unit or condominium unit. A non-Canadian is a person who is not a Canadian citizen, not a permanent resident and not registered under the Indian Act. The fine for breaking the ban is up to $10,000.

The regulations let some people buy anyway. A non-Canadian can buy residential property "for the purposes of development". A work permit holder can buy one home if the permit has "183 days or more of validity remaining" on the day of purchase.

Here is how that reads for a Vancouver multiplex:

What is being bought	Covered by the ban today?
A house, duplex or triplex, bought as a whole	Yes
One strata unit in a new fourplex, fiveplex or sixplex	Yes, as a condominium unit
A whole building with four or more homes, bought as one property	No
A lot bought to build on	No, under the development exception

BC's 20% tax stays in place

BC charges its own additional property transfer tax. A foreign national, foreign corporation or taxable trustee pays 20% of the fair market value of their share of a residential property in the Metro Vancouver Regional District and four other regions.

The budget says the federal government will keep supporting measures "levied by other levels of government" against speculation, and nothing in it changes this tax. So even after the exemption becomes law, a foreign buyer of a new Vancouver home pays the 20% tax on top of the regular property transfer tax. In our view, that cost keeps the number of foreign buyers of new Vancouver homes low.

If you are building a multiplex to sell the units

If you build a strata multiplex and sell the homes one by one, each unit is covered by the ban today. The exemption could open those sales to some buyers who are not citizens or permanent residents. We would plan the sales, and any presale count a lender asks for, around Canadian buyers. If foreign buyers become possible later, count them as extra demand.

The buyers you plan for already have two tax breaks that are law today. They are worth knowing when you set unit sizes and finishes, because each one has a price limit.

The federal first-time home buyers' GST rebate returns all of the GST on a new home up to $1 million, to a maximum of $50,000, and shrinks to zero at $1.5 million. Bill C-4, which carries it, received royal assent on March 12, 2026. The Canada Revenue Agency says the buyer must be 18 or older, a citizen or permanent resident, and must not have lived in a home they or their spouse owned as their primary residence in the year of the purchase or the four years before. The agreement with the builder must be signed on or after March 20, 2025 and before 2031.

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

When two people buy together, the CRA's guide RC4028 says at least one must be a first-time buyer, the home must be that person's primary residence, and only that person can claim the GST rebate. For families who buy across two generations, that can mean an adult child who has never owned a home makes the claim.

If you are building a home for yourself

The GST rebate also covers a home you build, or hire someone to build, on land you own. The CRA says construction must begin on or after March 20, 2025 and before 2031, the home must be substantially completed before 2036, and the first-time buyer must be the first person to live in it. An owner who already lives in a home they own will not pass the first-time test. An adult child building a first home on family land may.

A substantially renovated home can also qualify for the GST rebate. RC4028 says a substantial renovation generally means at least 90% of the building, other than the foundation, external walls, interior supporting walls, floors, roof and staircases, has been removed or replaced. A new kitchen and bathroom do not reach that line. A full rebuild of the interior may.

BC's newly built home exemption is narrower. The province's list of homes that count covers new construction and buildings converted from a non-residential use, and a renovated house is not on it. The province's page also says that if you paid property transfer tax when you bought vacant land, and you now have a newly built home on it, you may be eligible for a refund. Ask your lawyer or notary whether your purchase counts.

Insured construction loans for three- and four-unit homes

The budget says new mortgage insurance rules for "missing middle" homes take effect on February 1, 2027:

Insured construction financing for newly built three- and four-unit homes, for up to 90% of the property's value.
No maximum property value, and no rule that the builder lives in one of the units.
Once construction is complete, the builder can keep the home and rent out all the units with an insured mortgage of up to 30 years, or sell them to individual buyers.
Private mortgage insurers may insure loans on five- to fifty-unit residential properties.

The budget's own example is a $3 million fourplex. Under the current rules it does not qualify, because its value is over the $1.5 million cap and the builder would have to live in one unit. Under the new rules it could.

For a Vancouver owner, this may change the choice between building to sell and building to keep. A fourplex held as a rental could be financed without selling units first. Talk to a mortgage broker about how lenders will apply the rules before your drawings are final. Our multiplex guide covers the rest of the planning, and our post on Vancouver multiplex zoning and permits covers the City side.

The budget also proposes, for buyers, 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 a mortgage off. That one is still a proposal.

What we would check before you start

Whether anyone in your household passes the first-time buyer test, if you are building a home to live in.
Whether your project is a new build, a substantial renovation, or a renovation below the 90% line.
Whether the homes you plan to sell will be priced under $1,100,000, the limit for BC's full transfer tax exemption.
Whether a three- or four-unit design could use the insured construction financing from February 1, 2027.
Whether any owner or buyer is not a citizen or permanent resident. If so, wait for the bill.

If you own a lot in Vancouver and want to go through which of these rules fit your plans, talk to our team. We can look at your lot and the type of project that suits it, and point you to the questions your lawyer, accountant or mortgage broker should answer.

Frequently asked questions

Is the foreign buyer ban extended to 2029?

Budget 2026, tabled on November 5, 2026, proposes to extend the federal ban on foreign purchases of 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 date the Department of Finance set in February 2024.

Can a foreign buyer purchase a unit in a new Vancouver multiplex now?

Not under the law today. A strata unit is a condominium unit under the Act, so it is covered by the ban. Budget 2026 proposes to exempt new residential properties, but that needs a bill and regulations, and the budget does not say what counts as new.

Can a non-Canadian buy a Vancouver lot to build a multiplex?

Yes, under the rules in force today. The federal regulations allow a non-Canadian to buy residential property for the purposes of development. BC's 20% additional property transfer tax can still apply to a foreign national's share of residential property in Metro Vancouver, so get tax advice before an offer.

Does BC's 20% foreign buyer tax apply to new homes in Vancouver?

Yes. BC's additional property transfer tax charges foreign nationals, foreign corporations and taxable trustees 20% of the fair market value of their share of a residential property in the Metro Vancouver Regional District. The federal budget does not change it.

Can I get the first-time buyer GST rebate on a home I build in Vancouver?

Yes, if you are a first-time home buyer. The Canada Revenue Agency says an owner who builds, or hires someone to build, a home on their own land may qualify if construction begins on or after March 20, 2025 and before 2031, the home is finished before 2036, and they are the first to live in it.

Do buyers of a new Vancouver home pay property transfer tax?

Often no. BC's newly built home exemption removes property transfer tax on a new home worth up to $1,100,000 and reduces it up to $1,150,000, for a Canadian citizen or permanent resident who uses it as a principal residence. The buyer does not need to be a first-time buyer.

What changes for multiplex construction loans on February 1, 2027?

Budget 2026 says a builder of a newly built three- or four-unit home will be able to get an insured construction loan for up to 90% of the property's value, with no maximum value and no rule to live in one of the units. Private insurers may also insure loans on five- to fifty-unit residential properties.

Does a full renovation count as a new home for the GST rebate?

Only a substantial renovation. The CRA's guide RC4028 says that generally means at least 90% of the building, other than the foundation, external walls, interior supporting walls, floors, roof and staircases, has been removed or replaced.

Sources

Budget 2026, Chapter 3 and legislative annex Department of Finance Canada, November 5, 2026
Government announces two-year extension to ban on foreign ownership of Canadian housing Department of Finance Canada, November 5, 2026
Prohibition on the Purchase of Residential Property by Non-Canadians Act Justice Laws Website, Government of Canada, November 5, 2026
Prohibition on the Purchase of Residential Property by Non-Canadians Regulations Justice Laws Website, Government of Canada, November 5, 2026
First-time home buyers' GST/HST rebate: who can apply Canada Revenue Agency, November 5, 2026
Guide RC4028, GST/HST New Housing Rebate Canada Revenue Agency, November 5, 2026
Bill C-4 (45-1) Parliament of Canada, November 5, 2026
Additional property transfer tax for foreign entities and taxable trustees Government of British Columbia, November 5, 2026
Newly built home exemption Government of British Columbia, November 5, 2026

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October 19, 2026

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Budget 2026 and New Homes in Vancouver: Foreign Buyer Ban to 2029, New Homes Exempt, and the Rules for Building New

What the budget says

What the ban covers today

BC's 20% tax stays in place

If you are building a multiplex to sell the units

If you are building a home for yourself

Insured construction loans for three- and four-unit homes

What we would check before you start

Frequently asked questions

Is the foreign buyer ban extended to 2029?

Can a foreign buyer purchase a unit in a new Vancouver multiplex now?

Can a non-Canadian buy a Vancouver lot to build a multiplex?

Does BC's 20% foreign buyer tax apply to new homes in Vancouver?

Can I get the first-time buyer GST rebate on a home I build in Vancouver?

Do buyers of a new Vancouver home pay property transfer tax?

What changes for multiplex construction loans on February 1, 2027?

Does a full renovation count as a new home for the GST rebate?

Sources

Insurance While You Build in Vancouver: Who Covers the House, the Site and the People on It

Heat Pumps for a Vancouver Home: Choosing, Sizing, Placing and Paying for One in a New Build, Multiplex or Renovation

Building Through Vancouver's Wet Season: How to Keep a New House or Multiplex Dry While It Goes Up

Create your dream home. Tell us about your project today.

What the budget says

What the ban covers today

BC's 20% tax stays in place

If you are building a multiplex to sell the units

If you are building a home for yourself

Insured construction loans for three- and four-unit homes

What we would check before you start