Budget 2026 and Foreign Buyers: What It Means for New Homes in Coquitlam

Michael LeeNovember 9, 20266 min read

Budget 2026 proposes a change that buyers outside Canada have been asking about for months: new homes would be open to foreign buyers, while the ban on existing homes would run to 2029. The proposal is in the budget, it is not yet law, and it leaves BC's own taxes on foreign buyers and owners in place. For a new house in Coquitlam, the budget's wording, the questions it leaves open and BC's taxes all affect what a buyer can do now.

What the budget says

The federal ban on home purchases by non-Canadians came into force on 1 January 2023. In February 2024 the Department of Finance extended it to 1 January 2027.

Budget 2026, on the Department of Finance site with a modified date of 5 November 2026, proposes to extend the ban on foreign purchases of existing residential properties for two more years, to 1 January 2029, while exempting new residential properties. The budget says this would keep most of the market available for Canadians and bring in more investment in new housing. It adds that the government will propose legislation and launch a regulatory process on the change.

What it leaves open

As of 9 November 2026, three things are not known.

Which homes count as new. The budget does not define a new residential property.
When the exemption starts. The budget gives 1 January 2029 as the end of the ban on existing homes, and no start date for new homes.
The gap. The current ban ends on 1 January 2027. If the new law is not in force by then, the rules in between depend on what Parliament passes.

Until the law and its regulations are published, nobody can answer these questions. The chapter on the federal ban in our foreign buyer guide covers the current exceptions, the penalties and the court-ordered sale rules.

Why the signing date matters

The ban's regulations say that acquiring a legal or equitable interest in residential property, with or without conditions, is a purchase. Some new Coquitlam houses are sold while the builder is still building them. A signed contract for one of those houses can give the buyer an equitable interest before completion.

So for a non-Canadian, the day you sign can be the day you buy. The rules in force on that day decide whether the purchase is allowed. Signing in December 2026 because of a budget proposal means relying on rules that are not yet written. The chapter on buying before it is built explains the contract clauses that can deal with this risk.

What does not change: BC's taxes

The federal ban decides who may buy. British Columbia decides what a foreign buyer and a foreign owner pay, and Budget 2026 leaves those taxes in place.

BC tax	Who pays	Rate on 9 November 2026
Additional property transfer tax	Foreign nationals, foreign corporations and taxable trustees buying in the Metro Vancouver Regional District	20% of the fair market value of their share
Speculation and vacancy tax	Foreign owners of a home in a taxable area such as Coquitlam, with no exemption	3% of assessed value for 2026, 4% for 2027

The province's page on the additional tax lists exemptions for a transfer exempt from property transfer tax, a confirmed BC Provincial Nominee and a Canadian-controlled limited partnership. It lists none for a newly built home.

On a new house with a fair market value of $2,400,000, the 20% tax is $480,000. Add the general property transfer tax of $50,000 and GST of $120,000, and a foreign buyer pays $650,000 in tax at purchase, as the taxes chapter shows step by step. A Canadian buyer of the same house pays $170,000.

What to do now

The parts of a purchase that do not depend on the new law can start today.

Check your status. Our chapter on who counts as a foreign buyer explains the four separate tests.
Get a lender's terms in writing. On 9 November 2026 every new Coquitlam house for sale asked more than $1,500,000, and at that price the minimum down payment is 20%.
Build the budget. Include the three purchase taxes and the yearly vacancy tax at the foreign owner rate.
Learn the market. The Coquitlam new homes page lists every new detached house for sale, live from the MLS feed.

Then wait for the law before you sign, unless a current exception already covers you. When the legislation and regulations are published, read them with your lawyer, and check the date on each chapter of the foreign buyer guide to see when its rules were last read.

If you want to talk through a specific house or your own timing, contact Michael.

Frequently asked questions

What did Budget 2026 propose for foreign home buyers?

Budget 2026 proposes to extend the ban on foreign purchases of existing residential properties for two years, to 1 January 2029, while exempting new residential properties. The Department of Finance says this keeps most of the market available for Canadians and brings more investment into new housing. It also says the government will propose legislation and start a regulatory process for the change.

Can a foreign buyer sign for a new Coquitlam house today?

Only if an existing exception applies. As of 9 November 2026 the federal ban runs to 1 January 2027 and covers detached houses, with exceptions for some work permit holders, some students and a buyer with a Canadian spouse. The Budget 2026 exemption for new homes is a proposal. A lawyer should confirm the rules for your signing date before you sign anything.

Which homes will count as new under the Budget 2026 proposal?

The budget does not say. It refers to new residential properties without defining them, and it gives no start date for the exemption. A house finished last year, one finished this year and one still being built could be treated differently. The answer will come from the legislation and regulations the budget says the government will propose.

Will foreign buyers stop paying BC's 20% tax on new homes?

Nothing in Budget 2026 changes it. BC's additional property transfer tax is set by the province, at 20% of the fair market value of a foreign national's share in the Metro Vancouver Regional District. On 9 November 2026 the province's page listed exemptions for confirmed BC Provincial Nominees and two other cases, and none for newly built homes.

What yearly tax does a foreign owner pay on a Coquitlam house?

BC's speculation and vacancy tax applies in Coquitlam. The province's rate page sets the foreign owner rate at 3% of assessed value for 2026 and 4% for 2027, unless an exemption applies, such as a tenant living in the home for at least six months of the year. On a house assessed at $2,400,000 that is $72,000 for 2026 and $96,000 for 2027.

Why does the signing date matter for a foreign buyer of a new house?

The federal regulations say acquiring a legal or equitable interest in residential property, with or without conditions, is a purchase. A signed contract to buy a house still being built can give the buyer an equitable interest. So for a non-Canadian, the signing date may be the purchase date, and the rules in force that day decide whether the purchase is allowed.

What should a buyer from abroad do while the law is written?

Prepare the steps that do not depend on the new law. Confirm your status under each rule with a BC lawyer, get a lender's terms in writing, add BC's transfer taxes, GST and the yearly vacancy tax to your budget, and learn which new houses are for sale. Hold off on signing until a lawyer can confirm the rules for that date.

Where can I read the full rules for foreign buyers of new homes?

City Echo's foreign buyer guide covers the federal ban and its exceptions, who counts as a foreign buyer under each rule, the taxes when you buy and every year, paying from abroad, buying before completion, renting out and selling. Each chapter links the government page behind each rule and gives the date the page was read.

#foreign buyers #new homes #Coquitlam

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