Budget 2026 and New Homes in Burnaby: Foreign Buyer Ban to 2029, New Homes Exempt, and the Tax Rules That Already Apply

Budget 2026, tabled in Ottawa on November 5, 2026, proposes to keep the federal ban on foreign buyers of existing homes for two more years, to January 1, 2029, and to let foreign buyers purchase new homes. If you own a lot in Burnaby and you are planning a custom home or a multiplex, the foreign buyer line is the one in the news. The rules for new homes that are already law are the ones more likely to change your plans, so this post covers both.

It is general information. Tax and immigration rules depend on your own facts, so confirm your case with your lawyer, notary or accountant before you rely on it.

What the budget proposes

Chapter 3 of the Budget 2026 document says:

"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."

The same paragraph says the federal government "will propose legislation and launch a regulatory process on this change in short order." The budget's list of planned laws confirms a bill to extend the Prohibition on the Purchase of Residential Property by Non-Canadians Act to January 1, 2029.

Three things are missing. There is no bill yet. There is no start date for the exemption. And there is no definition of a "new residential property". It could mean a presale, a home nobody has lived in, or a home completed after a set date. We would not change a design or a sales plan on that phrase until the wording is published.

What the ban covers today

The ban took effect on January 1, 2023. On February 4, 2024, the Department of Finance extended it from January 1, 2025 to January 1, 2027. That is still the end date in law.

Section 2 of the Act covers a detached house or similar building "containing not more than three dwelling units", and a semi-detached house, rowhouse unit or condominium unit. A non-Canadian is a person who is not a Canadian citizen, not a permanent resident and not registered under the Indian Act. The fine for breaking the ban is up to $10,000.

The regulations allow some purchases anyway. A non-Canadian can buy residential property "for the purposes of development", and a work permit holder can buy one home if the permit has 183 days or more of validity left on the day of purchase.

For a Burnaby lot owner, that means:

• A house, duplex or triplex bought as a whole is covered.
• One strata home in a new fourplex or sixplex is covered, as a condominium unit.
• A whole building with four or more homes, bought as one property, is outside the definition.
• A lot bought to build on is allowed under the development exception.

BC's foreign buyer tax does not change

BC charges its own additional property transfer tax: 20% of the fair market value of a foreign national's, foreign corporation's or taxable trustee's share of a residential property, in the Metro Vancouver Regional District and four other regions. Burnaby is in Metro Vancouver.

The budget says the federal government will keep supporting measures "levied by other levels of government" against speculation. Nothing in it changes this tax. So even if the new-home exemption becomes law, a foreign buyer of a new Burnaby home still pays the 20% tax on top of the regular property transfer tax. In our view, that limits how many foreign buyers the exemption brings to new homes here.

If you plan to sell an existing house

A house that has been lived in is an existing home. Under the proposal it stays inside the ban until January 1, 2029. The people who can buy it to live in are the same as today: Canadian citizens, permanent residents and the groups the regulations allow. A builder who buys it to develop was never blocked by the federal ban.

The GST rebate for a home you build

The rule we think more Burnaby owners should know about is the federal first-time home buyers' GST rebate. Bill C-4, which carries it, received royal assent on March 12, 2026. It returns all of the GST on a new home up to $1 million, to a maximum of $50,000, and shrinks to zero at $1.5 million.

It covers a home bought from a builder, and also a home you build, or hire someone to build, on land you own. The Canada Revenue Agency sets the test. The person must:

• be 18 or older and a Canadian citizen or permanent resident
• not have lived in a home they or their spouse owned as their primary residence in the year of the claim or the four years before
• be the first person to live in the new home, as their primary residence

For an owner-built home, construction must begin on or after March 20, 2025 and before 2031, and the home must be substantially completed before 2036. For a home bought from a builder, the agreement must be signed on or after March 20, 2025 and before 2031. Each person can receive the rebate once, and not if their spouse already has.

An owner who already lives in a home they own will not pass the first-time test. An adult child building a first home on family land may. When two people own the home, the CRA's guide RC4028 says at least one must be a first-time buyer, the home must be that person's primary residence, and only that person can claim.

When a renovation counts as new

The GST rebate also covers a substantially renovated home. That phrase has a precise meaning. RC4028 says a substantial renovation generally means at least 90% of the building, other than the foundation, external walls, interior supporting walls, floors, roof and staircases, has been removed or replaced.

A kitchen and bathroom update does not reach that line. A full rebuild of the interior inside the existing shell may. If you are weighing a deep renovation against a new build in Burnaby, ask your accountant early which side of the 90% line your scope sits on, because the answer can decide whether the rebate is available at all.

BC's newly built home exemption

BC's newly built home exemption removes property transfer tax on a new home with a fair market value up to $1,100,000, with a partial exemption up to $1,150,000. The buyer must be a citizen or permanent resident and use the home as a principal residence. The buyer does not need to be a first-time buyer.

This exemption is narrower than the GST rebate. The province's list of homes that count covers new construction and buildings converted from a non-residential use. A renovated house is not on it. The province's page also says that if you paid property transfer tax when you bought vacant land, and you now have a newly built home on it, you may be eligible for a refund. Ask your lawyer or notary whether your purchase counts.

Financing changes in the budget

The budget proposes to raise the home price limit for optional mortgage insurance from $1 million to $1.5 million and to allow 30-year amortizations on those insured mortgages, "provided that at least one borrower is a first-time home buyer or the home is newly built." An amortization is the number of years it takes to pay off a mortgage. This change is a proposal.

The second change has a date. The budget says new mortgage insurance rules for "missing middle" homes take effect on February 1, 2027:

• Insured construction financing for newly built three- and four-unit homes, for up to 90% of the property's value.
• No maximum property value, and no rule that the builder lives in one of the units.
• Once built, the homes can be kept and rented with an insured mortgage of up to 30 years, or sold to individual buyers.
• Private mortgage insurers may insure loans on five- to fifty-unit residential properties.

For a Burnaby owner thinking about a triplex or fourplex under the province's small-scale multi-unit housing rules, this may change whether you build to sell or build to keep. Talk with a mortgage broker about how lenders will apply the rules before your design is final. Our guide to building a custom home in Burnaby in 2026 covers the rest of the process.

What we would check before you start

• Whether anyone in your household passes the first-time buyer test, if you are building a home to live in.
• Whether your project is a new build, a substantial renovation, or a renovation that stays below the 90% line.
• Whether the land purchase could qualify for a transfer tax refund under the newly built home exemption.
• Whether a three- or four-unit design could use the insured construction financing from February 1, 2027.
• Whether any owner or buyer is not a citizen or permanent resident. If so, wait for the bill.

If you are planning a build in Burnaby and want to talk through which of these rules fit your lot, get in touch.

Sources

• Department of Finance Canada, Budget 2026, Chapter 3 and legislative annex (November 5, 2026)
• Department of Finance Canada, two-year extension to the ban on foreign ownership of Canadian housing (February 4, 2024)
• Justice Laws Website, Prohibition on the Purchase of Residential Property by Non-Canadians Act
• Justice Laws Website, Prohibition on the Purchase of Residential Property by Non-Canadians Regulations
• Canada Revenue Agency, First-time home buyers' GST/HST rebate: who can apply
• Canada Revenue Agency, Guide RC4028, GST/HST New Housing Rebate
• Parliament of Canada, Bill C-4 (45-1)
• Province of BC, Additional property transfer tax
• Province of BC, Newly built home exemption

All sources read on November 5, 2026. Budget measures are proposals until Parliament passes them.

Frequently asked questions

Is the foreign buyer ban extended to 2029?

Budget 2026, tabled on November 5, 2026, proposes to extend the federal ban on foreign purchases of existing homes to January 1, 2029. It is a proposal. Until Parliament passes a bill, the law still ends the ban on January 1, 2027.

Can a foreign buyer purchase a new home in Burnaby now?

Not under the law today. Budget 2026 proposes to exempt new residential properties, but the exemption needs a bill and regulations, and it does not define a new home. BC's 20% additional property transfer tax would still apply to a foreign buyer's share of a Burnaby home.

Can I get the first-time buyer GST rebate on a custom home I build?

Yes, if you are a first-time home buyer. The Canada Revenue Agency says an owner who builds, or hires someone to build, a home on their own land may qualify if construction begins on or after March 20, 2025 and before 2031, the home is finished before 2036, and they are the first to live in it.

Does a major renovation qualify for the GST rebate?

Only a substantial renovation. The CRA's guide RC4028 says that generally means at least 90% of the building, other than the foundation, external walls, interior supporting walls, floors, roof and staircases, has been removed or replaced. The owner must also pass the first-time buyer test.

Do I pay property transfer tax on a new home in Burnaby?

Often no. BC's newly built home exemption removes property transfer tax on a new home worth up to $1,100,000 and reduces it up to $1,150,000, for a Canadian citizen or permanent resident who uses it as a principal residence. The buyer does not need to be a first-time buyer.

What changes for triplex and fourplex construction loans in 2027?

Budget 2026 says that from February 1, 2027, a builder of a newly built three- or four-unit home can get an insured construction loan for up to 90% of the property's value, with no maximum value and no rule to live in one of the units. Once built, the homes can be kept and rented or sold.