Canada’s foreign buyer ban has been part of the housing conversation since 2023, but with the current legislation set to expire in 2027, the bigger question is what comes next.
And honestly, I think we could see some changes.
The original goal of the ban was to help improve affordability by limiting foreign buyers from purchasing Canadian homes. But foreign buyers were already a relatively small portion of the market, while factors like interest rates, population growth and, most importantly, a lack of housing supply have had a much bigger influence on prices.
So What Could Change?
Rather than completely removing the restrictions, Canada could take a more targeted approach and allow foreign investment in areas that actually add housing supply.
That could include:
New construction
Vacant land
Large-scale redevelopment
Purpose-built rental housing
Australia has taken a similar approach, allowing certain foreign investment where it contributes to increasing housing supply. Canada already has some exemptions for development and vacant land, but new-build purchases could become a bigger part of the conversation after 2027.
What Could This Mean for Calgary?
For Calgary, I think the biggest impact could initially be felt in development and new construction, rather than the typical resale market.
More investment could mean more capital available to build homes and rental properties, which is ultimately what Calgary needs more of.
But there is another side of this that buyers should pay attention to.
Buyers Could Be Competing Globally
If the federal government eventually loosens the restrictions enough to allow foreign buyers back into the resale market, the competition for certain homes could change.
Right now, when you're buying a home in Calgary, you're primarily competing with other buyers looking in Calgary.
Open that market to international buyers, and suddenly the pool of potential buyers becomes much larger.
That doesn't mean foreign buyers will flood Calgary or drive prices through the roof. But it does mean that buyers could be competing for homes with a much larger pool of capital than they are today.
For anyone thinking about buying in 2027 or beyond, it's something worth keeping an eye on.
My Take
I don't think foreign investment is necessarily a bad thing, especially when that investment helps create more housing.
But if the rules change, I think it's important to understand where that investment is going and what it could mean for the average buyer.
More investment into building homes could help affordability by increasing supply.
More competition for existing homes could do the opposite.
With 2027 getting closer, this is definitely one I'll be watching, especially for what it could mean for Calgary buyers, sellers and investors.
