Ottawa Rethinks Foreign Buyers

🤔 Are Foreign Buyers Coming Back?

Source: Borden Ladner Gervais (BLG)

The 411: Canada's foreign buyer ban expires in 2027, and the federal government is signaling it may replace the blanket ban with targeted exemptions instead of extending it.

• The foreign buyer ban is set to expire at the end of 2026, with changes expected in 2027.

• Before the ban, foreign buyers accounted for just 1.1% of home sales in B.C. in 2021.

• Despite the ban, average Canadian home prices still rose more than 20% between 2021 and 2026.

• Ottawa is considering a model similar to Australia's, allowing foreign investment in new construction, redevelopment projects, and vacant land.

• Canada already allows some exemptions for vacant land, redevelopment projects, and certain publicly traded Canadian companies.

• CMHC estimates Canada needs to build 380,000 to 430,000 homes per year through 2035 to meet demand.

Why This Matters: The discussion is moving beyond whether foreign buyers should be banned and toward where foreign investment could support housing construction. The next version of the policy may look very different from the current one.

📝 RECO Expands Realtor Training

Source: RECO

The 411: Ontario's real estate regulator has launched a new insurance training course as part of broader reforms following the collapse of iPro Realty.

• RECO has introduced a new continuing education course focused on professional liability insurance and consumer protection.

• The course covers Errors & Omissions, Commission Protection, and Consumer Deposit insurance.

• Every Ontario real estate professional is legally required to carry professional liability insurance.

• The launch follows the iPro Realty collapse, where trust funds meant for client deposits and agent commissions were allegedly diverted.

• RECO paid roughly $5 million in consumer deposit claims and later approved 100% of eligible commission protection claims.

• Starting October 1, 2026, Ontario brokerages must file annual financial reports, with monthly trust reconciliation reporting planned for 2027.

• The new course also introduces mandatory testing as RECO modernizes its continuing education program.

Why This Matters: While most buyers will never need to use RECO's insurance program, it's an important safeguard when transactions go wrong. The new course is part of the regulator's ongoing effort to strengthen consumer protection and improve industry standards

🚚 People Are Leaving Toronto

Source: Toronto TMU

The 411: Toronto went from North America's fastest-growing metro to near the bottom of the rankings as more Canadians moved away.

• Toronto fell from 1st to 412th out of 435 metropolitan areas in Canada and the U.S. for population growth.

• The ranking compares population growth over the 12 months ending July 1, 2025.

• Toronto still ranked 5th in North America for international migration.

• But those gains were offset by negative domestic migration, with more people leaving the GTA for other parts of Canada than moving in.

• Calgary and Edmonton were the only Canadian cities to crack the top 10 for population growth.

• Researchers say lower immigration played a role, but domestic out-migration was a major reason for Toronto's decline.

• The report suggests housing affordability is pushing more residents to lower-cost regions.

Why This Matters: Toronto is still attracting newcomers from around the world, but it's increasingly losing existing residents to other parts of Canada. The data highlights how housing costs and affordability continue to shape where Canadians choose to live.

🧑‍⚖️ Renters Win Against CAPREIT

Source: The Star

The 411: A court ruled CAPREIT overcharged Toronto tenants by keeping a temporary rent increase in place longer than allowed.

• CAPREIT lost its appeal against 16 tenants at a 427-unit building on Wellesley Street East.

• The landlord received approval for an 8.3% above-guideline rent increase (AGI) in 2013 to pay for building upgrades.

• The increase was approved for 10 years and was supposed to expire in 2023.

• Instead, CAPREIT only removed 2.5% of the increase rather than the full 8.3%.

• Ontario's Divisional Court ruled the entire increase should have been removed after 10 years.

• CAPREIT was ordered to pay $5,000 in legal costs.

• Tenant advocates say many Ontario renters may still be paying expired AGIs without realizing they're temporary.

Why This Matters: Temporary rent hikes can quietly become permanent if no one challenges them. This ruling reinforces that tenants have the right to question whether their rent is being calculated correctly.

🤔 WTF of the Week:

Canada has 218,000 rental units under construction. That's... a lot. Developers have gone all-in on rentals while condo projects dry up.

The question is whether all that new supply will finally slow rent growth.

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