Budget 2026: Foreign Buyers Could Soon Buy New Homes. What It Means for GTA Buyers and Investors

Finance Minister François-Philippe Champagne tabled Budget 2026, "Masters of our Destiny," on November 5, 2026. Housing is one of its biggest themes. Ottawa is committing $44.7 billion over 11 years to housing, built around three goals: ending homelessness within a decade, tripling non-market (non-profit and co-op) housing construction, and building a housing market that works for more Canadians.

For anyone buying or selling new homes and pre-construction, one line in the budget stands out above the rest.

The big news: new homes would be exempt from the foreign buyer ban

"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." — Budget 2026

Since January 1, 2023, most non-Canadians have been banned from buying homes in Canada. The ban was set to end on January 1, 2027. Budget 2026 proposes two changes:

• Resale (existing) homes: The ban is extended two more years, to January 1, 2029.
• New homes: Exempt. Foreign buyers would be able to buy newly built homes, which could include pre-construction condos, townhomes and detached homes.

Why the government is doing this: Ottawa says the change keeps most of the housing market for Canadians while bringing in more investment to build new homes. Builders have asked for this change. Pre-construction projects usually have to sell a share of their units before lenders will finance construction, and more buyers can help projects reach that point and break ground sooner.

What it means:

• Overseas investors and families moving to Canada may soon be able to buy new homes and pre-construction in the GTA again.
• Canadian buyers still have the resale market mostly to themselves until 2029.
• New communities could see more buyers and more projects launching.

Important: this isn't in effect yet

• It's a proposal. It still needs legislation and regulations, and the details haven't been released. We don't yet know exactly what will count as a "new" home (for example, whether assignments qualify) or when the exemption starts.
• Until the new rules are in force, the current ban still applies. Foreign buyers shouldn't sign an agreement based on this announcement alone.
• Ontario's 25% Non-Resident Speculation Tax is a provincial tax and is not affected. It still applies to foreign buyers anywhere in Ontario, on top of land transfer tax.
• Foreign buyers generally won't qualify for the first-time buyer GST rebate or Ontario's HST relief, which are meant for people buying a home to live in.

Buying from outside Canada? Book a call and we'll keep you posted as soon as the details are released. Until then, your lawyer can tell you what applies to you.

Immigration: steady targets and a path to permanent residency

Budget 2026 also includes the government's 2027-2029 Immigration Levels Plan. Population growth drives demand for housing, so it matters for the housing market.

• Permanent residents: 380,000 a year in 2027, 2028 and 2029, the same as the current target.
• New temporary residents (workers and students): 370,000 a year from 2027 to 2029.
• A new path to permanent residency: Up to 200,000 temporary residents already in Canada could become permanent residents by the end of 2027. Half of them would be considered through Express Entry or the Provincial Nominee Program.
• Fewer temporary residents overall: The goal is to bring the temporary resident population below 5% of Canada's population by the end of 2027. It was 6.7% as of July 1, 2026.

What it means for housing

• Newcomers becoming permanent residents aren't covered by the foreign buyer ban, so they can buy any home, new or resale. Depending on their situation, they may also qualify for first-time buyer programs such as the FHSA, the First-Time Home Buyers' GST rebate and Ontario's HST relief.
• Steady, more predictable immigration gives builders and municipalities a clearer picture for planning new communities and the infrastructure they need.
• Fewer temporary residents may mean less pressure on rentals in some areas. Investors should keep this in mind when planning rental units.

New to Canada and thinking of buying? We help newcomers work through deposits, mortgage approval and first-time buyer rebates. Book a free call.

The rest of the budget, in short

• More buyers can get a 30-year mortgage. The price limit for insured mortgages with 20% or more down rises from $1 million to $1.5 million, and those mortgages can run 30 years when the home is newly built or one buyer is a first-time buyer.
• Easier mortgage shopping. The Bank of Canada will publish better information on insured mortgage rates, and Ottawa will consult on clearer prepayment penalties.
• Lower costs on new homes. Ottawa says its work with Ontario on taxes and fees can cut the cost of a new home by up to $200,000, and it's putting $51 billion over 10 years toward lowering development charges.
• New financing for small multi-unit homes starting February 1, 2027.
• No change to the FHSA, the RRSP Home Buyers' Plan or the First-Time Home Buyers' GST rebate. All three stay in place.

1. Higher limit for insured mortgages and 30-year amortizations

How it works today: If you put less than 20% down, your mortgage must be insured (through CMHC or a private insurer). Since December 2024, that's been allowed on homes up to $1.5 million, with a 30-year amortization for first-time buyers and buyers of new builds.

What Budget 2026 changes: Buyers who put 20% or more down can also choose to insure their mortgage. The home price limit for this optional insurance is going up from $1 million to $1.5 million. These mortgages can also be paid off over 30 years if at least one borrower is a first-time buyer or the home is newly built.

Why it matters: Insured mortgages often come with lower interest rates, and a 30-year amortization lowers your monthly payment compared with 25 years. For a move-up family buying a new townhome or detached home in Vaughan, Markham, Milton or Whitby in the $1 million to $1.5 million range, this could make the monthly numbers easier to manage.

A longer amortization means you pay more interest over the life of the mortgage. Ask your lender for both scenarios before you decide. The budget didn't give a start date, so we'll update this post once one is announced.

2. Mortgage shopping gets more transparent

• Rate transparency: New rules would have the Bank of Canada publish better data on insured mortgage rates, so you can see what others are actually paying.
• Prepayment penalties: The government plans to consult on making mortgage break penalties clearer. Nothing is final yet.
• Faster income checks: The CRA would be allowed to verify borrower income directly with lenders and insurers. This should speed up approvals and cut down on mortgage fraud.

For pre-construction buyers, this matters at occupancy and final closing, which is when you usually lock in your actual mortgage, often years after you signed.

3. Lowering the cost of new homes: taxes, fees and development charges

• Ontario tax relief: The federal government says it is working with Ontario to cut taxes, fees and development charges, reducing the cost of a new home by up to $200,000 in Ontario.
• Build Communities Strong Fund: $51 billion over 10 years, plus $3 billion a year after that, starting in 2026-27, to help municipalities lower development charges and pay for the roads, water and sewer lines that new communities need.

A quick reminder on HST relief you may already qualify for

These programs are already in place and still apply:

• First-Time Home Buyers' GST rebate: Up to $50,000 off the federal portion of HST on a new home up to $1 million, with partial relief up to $1.5 million.
• Ontario's enhanced HST relief: Up to $130,000 in combined federal and provincial relief on eligible new homes. It isn't limited to first-time buyers. It covers agreements signed from April 1, 2026 to March 31, 2027, for a home you'll live in as your primary residence. Full relief applies up to $1 million, the maximum dollar amount up to $1.5 million, and reduced relief up to $1.85 million.

The window for Ontario's enhanced relief closes on March 31, 2027. If you've been waiting on a new home, the timing of your purchase agreement matters. Eligibility depends on the price, the type of home and the dates in your agreement, so confirm the details with your builder, lawyer or tax professional before you sign.

4. What it means for investors

Budget 2026 doesn't add new tax breaks for individual investors, but a few changes are worth knowing about:

• New homes exempt from the foreign buyer ban (proposed): See the top of this post. Once in force, this could bring more buyers to pre-construction.
• Small multi-unit homes (effective February 1, 2027): New insured construction financing for 3- and 4-unit homes, up to 90% of property value, with no maximum property value and no requirement that the owner live there. Once finished, these could use an insured mortgage of up to 30 years. Private insurers will also be able to insure 5- to 50-unit residential buildings.
• Purpose-built rentals: The GST rebate on purpose-built rental housing and the Apartment Construction Loan Program (with $32 billion in loans committed) continue, as does a proposed exception to interest deduction limits for rental construction.

Every investment carries risk. Nothing in the budget guarantees future prices or rental income, so run your numbers carefully with your accountant and lender.

5. Supply: more homes, built faster

• Build Canada Homes gets $13 billion over 10 years, starting in 2028-29, to triple non-market housing starts to about 24,000 a year.
• New money supports modern construction methods (factory-built and modular homes), common building standards and faster digital permitting with municipalities.

More supply takes time. These programs mostly ramp up from 2027-28 onward, so for now the market is still driven by current inventory, interest rates and builder incentives.

Where the market stands

The budget points to signs of improvement. Citing the Bank of Canada, it says the share of household income needed to cover ownership costs has dropped from 55% to 41%. It also cites BILD figures showing more than 8,400 new homes sold in Ontario from April to June 2026, compared with about 3,600 in the same period of 2025.

What this means for you

First-time buyers: Your biggest tools are still in place. You can combine the FHSA, the RRSP Home Buyers' Plan, the First-Time Home Buyers' GST rebate and, on eligible new homes, Ontario's enhanced HST relief. A 30-year amortization is already available to you.

Newcomers and new permanent residents: Once you're a permanent resident, the foreign buyer ban doesn't apply to you, and you may qualify for the same first-time buyer programs.

Move-up families: The higher optional insurance limit and 30-year amortization on new builds up to $1.5 million could lower your monthly payment on that next, larger home. Combined with HST relief before March 31, 2027, this may be a good time to compare new communities.

Investors, including buyers outside Canada: Watch for the details of the new-home exemption and the February 2027 changes for 3- and 4-unit homes. Treat every purchase as a long-term decision based on today's numbers, not on forecasts.

Keep in mind

Most budget measures are proposals. Many still need legislation or regulations, and some have no start date yet. Details can change.

Next steps

• Browse new communities across the GTA: See current starting prices, launches and VIP registration on our GTA new homes page.
• Get floor plans and price lists: Register for any community and we'll send current plans, prices and incentives.
• Book a call: Book a free call or call 416.700.3333. We'll go over your deposit structure, rebate eligibility and closing costs, and update you when the foreign buyer rules are final.

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Jay Paramanathan, Broker, RE/MAX Experts, Brokerage. 416.700.3333 · info@newhomecentre.com

This article is for general information only and is based on Budget 2026 as tabled on November 5, 2026. It is not legal, tax, immigration, mortgage or financial advice. Budget measures are proposals and may change before they become law. Prices, incentives and rebates are subject to change, and eligibility depends on your situation. Speak with your lawyer, accountant, lender or a licensed immigration professional before making a decision.