The federal government announced a two-track approach to foreign ownership on November 5, proposing to keep non-Canadians out of Calgary's resale market through January 2029 while creating a path for them to buy newly constructed homes. The changes, which require legislation before taking effect, would reshape who can purchase what in a city where the new housing price index stood at 120.2 in September 2026.
Key Takeaways
- Ottawa proposes extending the ban on non-Canadian purchases of existing homes to January 2029, two years beyond the current January 2027 expiry.
- A new exemption would allow foreign buyers to purchase newly constructed residential properties, though qualifying criteria remain undefined.
- The changes require Parliament to pass legislation and implement regulations before taking effect.
- Calgary's new housing price index fell 2.0% year-over-year in September 2026.
- The Bank of Canada policy rate sits at 2.50% as of November 9, 2026.
What the Proposal Changes
The Prohibition on the Purchase of Residential Property by Non-Canadians Act currently blocks foreign buyers from all residential purchases until January 1, 2027. Under the budget proposal, that prohibition would continue for existing and resale homes through January 1, 2029, but newly built properties would become available to non-Canadian purchasers.
The government has not yet defined which properties will count as newly constructed, when the exemption would start, or what documentation builders and buyers will need. Those details will come through legislation and regulatory changes that must pass before any rule takes effect.
The Stated Rationale
Ottawa's position is that keeping existing homes restricted protects affordability for Canadians while allowing foreign capital into new construction encourages builders to add supply. Whether that logic holds depends on how much foreign demand materializes for new builds, how builders price those homes, and whether the added construction would have happened anyway.
For context, Calgary's new housing price index—which tracks what builders charge for new homes, not resale properties—registered a 2.0% decline in September 2026 compared to September 2025. That suggests builders have faced pricing pressure even without foreign buyers in the market.
What It Means for Different Groups
Buyers
Non-Canadians who have been locked out since the ban took effect in 2023 may gain access to presale condos, new townhouses and newly built detached homes if the exemption becomes law. The timing remains uncertain—legislation must pass, regulations must be written, and the government must clarify what counts as new construction.
Canadian buyers face no change to their access. They can continue purchasing both resale and new properties. The question for them is whether foreign demand for new builds affects pricing in that segment or pulls inventory away from the resale market.
Sellers
If you are selling a newly constructed Calgary home and the exemption passes, your buyer pool expands to include non-Canadians. If you are selling an existing home, the restriction continues through at least January 2029, meaning your potential buyers remain limited to Canadian citizens, permanent residents and other exempted categories.
The practical impact depends on how many foreign buyers actually enter the new-construction market and whether that shifts Canadian buyers' attention toward resale properties.
Investors
Non-Canadian investors who have been shut out of Calgary real estate since 2023 may regain limited access through new-build purchases. That could affect presale condo projects, new townhouse developments and build-to-rent properties, depending on how the exemption is defined.
Canadian investors face potential competition in the new-construction segment if foreign capital flows in, though the scale of that competition will depend on how attractive Calgary's fundamentals look to international buyers and how the Canadian dollar trades against other currencies.
Timing and Uncertainty
The proposal is not yet law. Parliament must introduce legislation, debate it, pass it and then implement the necessary regulations. That process could take months, and the final rules may differ from what the budget outlined. Until the legislation is tabled, no one can say with certainty which properties will qualify, what documentation will be required, or when the exemption will start.
The current ban remains in place until January 1, 2027. If legislation does not pass before that date, the prohibition could expire entirely, leaving a gap before any new rules take effect.
Broader Market Context
The Bank of Canada's policy rate stood at 2.50% on November 9, 2026, while the conventional five-year posted mortgage rate at major chartered banks was 6.19% on November 4. Most borrowers negotiate rates below the posted figure, but borrowing costs remain a significant factor for anyone—Canadian or foreign—considering a purchase.
Calgary's housing market has seen varied activity across segments. The new housing price index decline of 2.0% year-over-year in September 2026 suggests builders have adjusted pricing, while resale market conditions vary by neighbourhood and property type. You can explore current Calgary listings to see what sellers are bringing to market right now.
What to Watch
The key questions are when legislation will be introduced, how the government will define newly constructed properties, and whether the exemption will apply to presale purchases or only to completed homes. Builders, buyers and investors all need those answers before they can plan.
If you are a non-Canadian considering a Calgary purchase, or a Canadian buyer or seller wondering how this might affect your market, the best approach is to wait for the actual legislation and then assess the rules as written. Speculation about what might happen is less useful than understanding what the law actually requires.
Frequently Asked Questions
When will the new exemption take effect?
The government has not announced a start date. Legislation must pass and regulations must be implemented before any exemption takes effect.
What counts as a newly constructed property?
The budget proposal does not define this. The government stated that further details will be provided through legislation and regulatory changes.
Does the ban apply to permanent residents?
No. Permanent residents of Canada are exempt from the prohibition. The ban applies to non-Canadians who are not permanent residents and do not fall under other exemptions.
Can non-Canadians buy commercial property in Calgary?
Yes. The prohibition applies only to residential property. Non-Canadians can purchase commercial real estate. You can see what is available in commercial listings.
Outlook
The proposal creates two separate markets for foreign buyers: one closed, one potentially open. How that plays out depends on legislation that has not yet been written, demand that has not yet materialized, and builder response that cannot be predicted. What is certain is that the resale restriction continues for at least two more years, and that anyone planning a purchase—Canadian or foreign—should base decisions on the rules as they exist today, not on proposals that may change before becoming law.
If you are navigating Calgary's market and want to understand what current conditions mean for your situation, Renanza's agents work with buyers, sellers and investors across all property types. Explore our Calgary market overview or request a free home valuation to see where your property stands today.
Sources & References
- Calgary Real Estate Board — Federal budget proposes extending foreign buyer ban to 2029, with exemption for new homes (November 2026)
- Bank of Canada — Target for the overnight rate (November 2026)
- Bank of Canada — Conventional mortgage, 5-year posted rate (November 2026)
- Statistics Canada — New housing price index, monthly (September 2026)
Data last checked: 2026-11-09
