On February 4, 2024, Finance Minister Chrystia Freeland announced that the federal government intends to extend the ban on foreign ownership of Canadian housing by two years.
What changes
- The ban, which took effect on January 1, 2023 and was set to expire on January 1, 2025, will now run to January 1, 2027.
- Foreign commercial enterprises and people who are not Canadian citizens or permanent residents will continue to be prohibited from buying residential property in Canada.
Other measures listed
The release also pointed to the removal of GST on new rental housing, the $4 billion Housing Accelerator Fund, and the Tax-Free First Home Savings Account, which allows contributions of up to $8,000 per year, to a lifetime limit of $40,000.
What it means for Calgary
For most local buyers, nothing changes. Newcomers who are not yet permanent residents should check whether they qualify for one of the exceptions before shopping for a home. Calgary’s demand in 2023 came mainly from interprovincial and international migration, not foreign investors.
Why Ottawa extended it
Finance Minister Chrystia Freeland said the extension will help make sure houses are used as homes for Canadian families and do not become a speculative financial asset class. The government’s release says foreign money has been coming into Canada for years to buy residential real estate, adding to affordability concerns, particularly in major urban centres. The ban was set to expire on January 1, 2025. It will now run to January 1, 2027. Foreign commercial enterprises and people who are not Canadian citizens or permanent residents remain prohibited from buying residential property.
Part of a wider package
The release lists the extension as one part of a broader federal housing plan:
Federal housing measures listed with the extension (billions of dollars)
- Over $40 billion through the Apartment Construction Loan Program, supporting more than 101,000 new rental homes by 2031–32.
- Up to $20 billion in new financing from raising the annual Canada Mortgage Bonds limit from $40 billion to up to $60 billion, aiming for 30,000 more rental apartments per year.
- Over $14 billion through the Affordable Housing Fund for 60,000 new affordable homes and 240,000 repairs.
- The $4 billion Housing Accelerator Fund, which includes Calgary’s agreement from November 2023.
- The removal of GST on new rental housing, now law under the Affordable Housing and Groceries Act.
- The First Home Savings Account, with contributions of up to $8,000 a year and $40,000 over a lifetime.
Compared with when the ban began
When the ban took effect on January 1, 2023, Calgary’s total benchmark price was about $518,800, the December 2022 level. In January 2024, it was $572,300, 10% higher than a year earlier. Prices rose during the ban because of migration and low supply, which CREB has identified as the main drivers of the local market.
What it means for Calgary buyers and sellers
- Most Calgarians: nothing changes; citizens and permanent residents can buy as before.
- Newcomers on work permits or students: the regulations set out specific exceptions, so check eligibility with a lawyer before you make an offer.
- Sellers: the extension keeps the pool of eligible buyers the same as in 2023; it should not affect your price.
- Investors from abroad: residential purchases remain off the table until 2027 unless an exception applies.
How the ban started
Parliament passed the Prohibition on the Purchase of Residential Property by Non-Canadians Act in 2022. The government then consulted on regulations that set out the exceptions, definitions and clarifications needed to apply it, and the ban took effect on January 1, 2023. The original law was written to last two years. The extension doubles that period. The release also notes that average annual federal housing investment has more than doubled since 2015, and that 2023–24 federal housing investment is $9 billion higher than in 2013–14.
