How the Foreign Buyer Ban Impacts Alberta Homebuyers
Renee Huse, founder of Spire Mortgage Team in Alberta here. Let’s talk about the Foreign Buyer Ban—what it really is, who it applies to, why it came into effect, and what it actually means here in Alberta. We’ve had a lot of clients ask us if this changes their buying plans, especially newcomers or those on work permits. So let's clear the air. I’ll walk you through how it works and share a real case from Calgary to help you make sense of it—no guesswork, just facts.
- How the Foreign Buyer Ban Works
- Who’s Affected—and Who Isn’t?
- Why It Was Introduced
- Has It Made a Difference?
- Alberta Context & What It Means for You
- Real Alberta Case Study
- Eligibility Checklist for Newcomers
- FAQ: Alberta & the Foreign Buyer Ban
How the Foreign Buyer Ban Works
On January 1, 2023, the government introduced the Prohibition on the Purchase of Residential Property by Non-Canadians Act. It was initially set for two years but has now been extended until January 1, 2027.
- Applies to most non-Canadians—both individuals and companies—unless they meet specific exemptions.
- Only in Census Metropolitan Areas (like Calgary, Edmonton, Red Deer) and Census Agglomerations (like Lethbridge or Grande Prairie).
- Only affects properties with three units or fewer—think single-family homes, duplexes, triplexes.
- Does not apply to vacant land, buildings with four or more units, commercial real estate, or rural areas outside the CMA/CA boundaries.
Who’s Affected—and Who Isn’t?
Who’s restricted: Non-Canadians buying residential real estate in affected urban areas who don’t meet exemption criteria.
Who’s exempt:
- International students meeting strict tax and residency rules, purchasing under $500,000.
- Work-permit holders with valid permits and Canadian tax history (usually 244+ days of physical presence).
- Refugees, diplomats, spouses or common-law partners of Canadians, and those acquiring property through divorce or inheritance.
Why It Was Introduced
The main goal? To cool housing demand and make more room for Canadian residents. The thinking was that limiting foreign ownership would help keep prices in check, especially in overheated markets.
That said, foreign buyers only made up 1–2% of Canada’s housing activity. So while it sounds bold on paper, the practical impact has been pretty small so far.
Has It Made a Difference?
Not really—not in any way that’s moved the needle for affordability.
CMHC predicted maybe a 2% drop in sales. Meanwhile, interest rates, inventory shortages, and population growth are doing the heavy lifting when it comes to price trends.
Alberta Context & What It Means for You
- In Calgary, Edmonton, Red Deer, and Lethbridge, this ban hasn’t changed buyer demand or property values in any significant way.
- In Canmore or Banff, foreign buyers make up a very small part of the market—so there hasn’t been any real shift in pricing or availability.
- The real issue? Inventory. Alberta is still facing limited housing supply, construction delays, and a flood of interprovincial and international migration.
Real Alberta Case Study: Calgary Newcomer Couple Navigating the Ban
We were working with a couple who had just relocated from Texas to Calgary. Both had valid work permits and solid employment in tech. Their dream? A 3-bedroom townhome in Evanston.
But here’s the challenge: they hadn’t yet filed Canadian taxes. That meant they didn’t meet the criteria for a foreign buyer exemption—even though they were working and living here legally.
Our solution? We restructured the deal. We put only the spouse who had just received Permanent Residency on title. Once the second spouse secured PR status, we added them to the title later.
| Detail | Value |
|---|---|
| Property Type | 3-bedroom townhome, Evanston |
| Purchase Price | $465,000 |
| Down Payment | 5% ($23,250) |
| Mortgage Type | Insured (first-time buyer) |
| Interest Rate | 3.99% (5-year fixed) |
| Monthly Payment | $2,255 incl CMHC premium |
Eligibility Checklist for Newcomers
Here’s a quick checklist we use with clients to figure out if they qualify to buy under the current rules:
- ✅ You have a valid work or study permit for at least 183–244 days
- ✅ You’ve filed Canadian taxes for at least 3 of the last 5 years (5 years for students)
- ✅ You’ve lived in Canada for a significant period (often 244+ days)
- ✅ You’re buying a home under $500,000
- ✅ You’re not controlled by a foreign corporation
Check all the boxes? You’re probably eligible. But always confirm with your mortgage strategist and lawyer before making a move.
FAQ: Alberta & the Foreign Buyer Ban
Does the foreign buyer ban apply to rural Alberta?
No. The ban only applies in Census Metropolitan Areas and Census Agglomerations. So if you're buying in smaller towns or rural areas outside places like Calgary or Edmonton, you’re exempt.
Can I get around the ban by putting the property in someone else’s name?
Only if they’re a legal resident or citizen who meets the exemption criteria. But be careful—if it’s done just to sidestep the rules, that’s considered a violation. You can face fines and the sale could be voided. We’ve helped clients structure things legally—so get advice first.
How long do I have to live in Canada to qualify for an exemption?
Usually 244 days in the last calendar year. You also need to meet tax filing requirements, so it’s not just about time—it’s about your legal and tax residency status too.
What if my spouse is a Canadian but I’m not?
If you’re buying jointly with a Canadian spouse or common-law partner, the ban doesn’t apply to you. You’re covered under the spousal exemption.
Will this ban stop housing prices from rising?
Not likely. Foreign buyers make up a tiny slice of the market. Here in Alberta, it’s more about supply shortages and population growth. The ban may sound strong—but it’s not a silver bullet for affordability.
Take action:
Apply online here, or give us a call—we’ll create a strategy tailored to your scenario.
Written by the Spire Mortgage Team, Alberta’s strategic mortgage planning experts.
https://spiremortgage.ca
