If you've caught the headlines since the federal budget came out on November 5, you might be wondering whether foreign buyers are about to return to the Victoria market. It's a fair question, and the short answer is that nothing has changed yet. I've lived in 26 homes and moved from Toronto to Victoria myself, so I know how unsettling it can feel when the rules seem to shift while you're planning your next chapter.
Here's what's been proposed, what it could mean here on the Island, and what we're still waiting to learn.
What's Been Proposed
Canada's foreign buyer ban came into effect on January 1, 2023, and it's currently set to expire on January 1, 2027. Budget 2026 proposes to keep the ban on existing and resale homes for two more years, until January 1, 2029. It also proposes to exempt newly built homes, which means some buyers who can't purchase here today could become eligible to buy new construction. The government's stated goal is to keep existing homes available for Canadians while encouraging investment in new housing.
It's important to know that none of this is law yet. Ottawa still has to pass legislation and set out regulations, and today's restrictions stay in place in the meantime. Because the current ban ends on January 1, 2027, the extension would need to pass before then.
What We're Still Waiting to Learn
The budget doesn't define what counts as a newly built home. We don't yet know whether presale contracts signed before a building is finished would qualify, or whether completed new homes that haven't sold would be included. There's also no start date for the exemption.
Those answers will shape who this helps and how quickly. Until the rules are published, no one should assume a new construction purchase is permitted just because an exemption has been announced.
BC's 20% Foreign Buyer Tax Still Applies
For those of us in Greater Victoria, this may be the most important part of the story. BC charges an additional 20% property transfer tax on foreign nationals, foreign corporations and certain taxable trustees who buy residential property in designated areas. The Capital Regional District is one of those areas, and it includes Victoria, Saanich, Oak Bay, Langford, Sidney and the communities around them. Because this tax is provincial, a federal exemption wouldn't remove it.
As an example, on a newly built $800,000 condo in Victoria, the additional tax would be $160,000, bringing the total to $960,000 before regular property transfer tax, GST and other closing costs, assuming no provincial exemption applies. Community planner Michael Geller told Global News that he expects this tax to keep deterring many foreign buyers, even if the federal rules loosen.
It's also easy to mix this up with BC's Newly Built Home Exemption, which is a separate program. That one can reduce or eliminate regular property transfer tax for buyers who meet residency, occupancy and other requirements, and it has nothing to do with whether someone is allowed to buy under the federal rules.
If You're Downsizing
If you're selling an existing home, this proposal wouldn't change who can buy it. The people who are eligible to purchase your home today would be the same people who are eligible next year. If you're a Canadian citizen or permanent resident looking at a new condo or townhome for your next chapter, the ban doesn't apply to you, so your options stay as they are.
It's too early to say whether more foreign buyers would show interest in new developments here, especially with the 20% tax in place. I wouldn't change your timing based on this news alone. Your plans, your health, your family and the right home in the right neighbourhood are much better reasons to move or to wait.
If You're Relocating to the Island
If you're moving here from Toronto, Vancouver or anywhere else in Canada as a citizen or permanent resident, the ban doesn't affect you. You can keep exploring neighbourhoods and getting to know the community with the same options you had last month.
If you're coming from outside Canada, the current rules already include exceptions for some temporary residents, protected persons and others who meet specific requirements. Those exceptions are separate from the proposed new home exemption, so please confirm your eligibility before you enter into a purchase agreement.
What It Could Mean for New Homes Here
Developers often rely on presales to show demand and secure construction financing. A wider pool of eligible buyers could help some projects move ahead, which matters in a region where housing supply and affordability remain ongoing concerns. The real effect will depend on the final regulations, how much foreign demand exists, and BC's continuing tax rules.
Before Anyone Signs
Presale agreements are often signed long before a home is complete, so the details matter. If you're considering a purchase that could be touched by these rules, a real estate lawyer can review your federal eligibility, the tax picture and whether the contract addresses regulatory change, financing and completion. I'm always glad to connect you with someone local you can trust.
Headlines like this one can make a big decision feel more complicated than it needs to be. If you'd like to talk through what this means for your home, your neighbourhood and your timing, I'm here whenever you're ready. You can reach me at 250-415-5656 or jac@yourvanislehome.com.
This post reflects the changes proposed in Budget 2026, as of November 9, 2026, and those details may change before they become law. It's general information and isn't legal or tax advice.
Jacqueline Ross, REALTOR®
Your Van Isle Home
call/text: 250-415-5656
jac@yourvanislehome.com
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