What happens to the Foreign Buyer Ban after January 1, 2027?

Direct answer

As of May 2026 the federal Prohibition on the Purchase of Residential Property by Non-Canadians Act is scheduled to expire on January 1, 2027 — the second extension of the original two-year sunset (the original 2023-2025 sunset was extended in February 2024 by Order in Council). Whether the federal government extends, modifies, or allows the Act to lapse is a political decision pending as of this writing. Three scenarios buyers should plan for: (1) full sunset on January 1, 2027 — the federal prohibition disappears; non-Canadians become free to purchase residential property in CMAs/CAs subject only to provincial taxes (BC's 20% APTT in five Specified Areas, BC SVT in designated SVT areas, federal UHT). (2) further extension — the Act is extended to a later date with either the same or modified terms; the most likely modifications target geographic scope or exemption breadth. (3) replacement legislation — the prohibition is replaced with a different mechanism (e.g., higher taxes or stricter province-by-province rules). For non-Canadian buyers planning a 2027+ acquisition: contract law allows offers contingent on "lifting of federal foreign-buyer prohibition" but most BC sellers will refuse such a subject. Practitioner truth: monitor Department of Finance announcements + the Order-in-Council registry quarterly through late 2026; nothing is binding until announced.