Canada’s ban on non-resident foreign homebuyers is set to expire on January 1, 2027, and the federal government faces a critical decision: extend, scrap, or revise the policy that has shaped the GTA market for nearly five years.
The ban, introduced in 2022 during the COVID-era housing boom, was designed to cool skyrocketing prices and fierce bidding wars. However, its impact remains debated. Economist Mike Moffatt argues the measure came too late and had minimal effect, while 76% of Canadians still support keeping it in place, according to recent polling.
The mortgage industry is split. A Canadian Mortgage Professional survey found 58% favour maintaining the ban, but some prominent voices—including Toronto mortgage broker Drew Donaldson and Dominion Lending Centres economist Sherry Cooper—argue for opening doors to US buyers, particularly for Toronto’s struggling condo market.
If amended rather than renewed, the government could look to Australia’s model, which allows exceptions for new builds, vacant land, and developments adding 20+ housing units. Housing Minister Gregor Robertson has hinted offshore capital could play a future role.
With affordability improving in 10 of 13 major Canadian markets but uncertainty persisting, this January decision will significantly impact GTA buyers, sellers, and investors. Read the full analysis to understand what’s at stake.
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