The Other Housing Proposal Nobody Is Explaining: Foreign Buyers, 25-Year Rentals, and Canadian Housing Policy

by Debbie Evans

Housing Policy · June 2026 · Debbie Evans, REALTOR® & Registered Interior Designer | eXp Realty · westvanliving.ca

The Other Housing Proposal Nobody Is Explaining: Foreign Buyers, 25-Year Rentals, and Canadian Housing Policy

There are two very different housing proposals circulating right now — and they keep getting confused. One has been officially announced. The other has been discussed in industry and policy circles but is not government policy. Knowing which is which matters.

While the $1.45 billion condo conversion program has dominated housing headlines, a separate proposal has been circulating in the background — one that would allow foreign buyers to purchase Canadian residential property despite the current federal ban, on the condition they lock the units into a 25-year rental pool with CMHC-backed financing. This post separates the two programs, explains what the foreign buyer proposal actually involves, where it came from, and what questions it raises for buyers, sellers, and renters in BC.

This is part of an ongoing series on Canadian housing policy and the BC market. Related reading: BC's 2,200 Condo Conversion Plan: What Buyers, Sellers and Taxpayers Need to Know · Build Canada Homes in Vancouver: What's Actually Being Built · Canada's Rental Economy Shift

What Has Been Publicly Discussed

In March 2025, a prominent Vancouver real estate industry figure publicly described pitching a housing concept to then prime minister-designate Mark Carney at an industry panel event hosted by Postmedia. The remarks were reported by Business in Vancouver, Canadian Mortgage Professional, and other credible outlets. The proposal attracted significant attention — and criticism — because of both its structure and the profile of the person describing it.

The core idea, as reported across multiple outlets, was straightforward: allow foreign buyers to purchase residential property in Canada — despite the existing federal ban — provided they committed to placing those units into a mandatory 25-year rental pool at preferred rates, with CMHC providing backing to lower the financing costs for investors.

"I'm trying to get a rental program in where people can buy, put it into a 25-year pool, get a preferred rate from CMHC, and let's allow foreign buyers to buy it. They have to rent it out for 25 years, and it will show the world we are open for business." — Vancouver real estate industry representative, Conversations Live panel, March 4, 2025, as reported by Business in Vancouver

The proposal has been discussed publicly in industry and media coverage but has not been adopted as government policy. It has since been conflated in public discussion with the officially announced condo conversion program — two programs that are structurally very different.

How the Proposal Would Work

The proposal, as described in industry reporting from March 2025, has three core components:

Years the unit must remain in a mandatory rental pool

CMHC

Government-backed financing to lower investor borrowing costs

Foreign

Buyers currently prohibited from residential purchases under federal ban

2027

Current expiry date of the federal foreign buyer ban

Under the concept, a foreign buyer would be permitted to purchase a residential unit — creating an exemption from the current federal ban — provided they committed to placing that unit into a long-term rental pool for 25 years at preferred rates. CMHC would backstop the financing, reducing the borrowing cost for the investor and, in theory, making the economics attractive enough to bring foreign capital into Canadian rental supply.

The stated rationale: attract outside investment capital to fund new rental housing development, increase rental supply, and signal to global investors that Canada is open for business.

The Current Foreign Buyer Ban — Where Things Actually Stand

To evaluate this proposal, you need to understand the legal framework it would have to work around.

The Prohibition on the Purchase of Residential Property by Non-Canadians Act has been in effect since January 1, 2023. It was originally set to expire after two years, extended in February 2024, and now runs until at least January 1, 2027. The ban applies to residential properties with three or fewer dwelling units located within Census Metropolitan Areas — which covers Metro Vancouver, the North Shore, and virtually all major BC markets.

Important Exemptions Already in Place

The ban is not a complete blanket prohibition. Permanent residents face no restrictions. Work permit holders with 183+ days remaining on their permit may purchase. Foreign nationals can already purchase vacant land zoned for residential use, and a formal development exemption allows non-Canadians to purchase specifically for the purpose of new construction. These exemptions were added in March 2023 after criticism that the original ban was restricting housing development rather than speculation. The 25-year rental pool proposal would create a new exemption category on top of these existing ones.

In December 2025, Housing Minister Gregor Robertson confirmed the Carney government is conducting a formal review of the ban ahead of its January 2027 expiry, with particular attention to the Australian model — which permits foreign buyers to purchase new construction and vacant land, but bars them from buying existing homes. That review is ongoing. No changes have been announced.

Separately, a July 2025 open letter from Canadian business and real estate leaders urged the federal government to consider removing the ban entirely, arguing it was suppressing housing construction and threatening jobs. Premier Eby responded firmly that BC was "not going back" to the conditions of rampant foreign-driven price growth.

Why the Proposal Attracted Criticism

When details of the proposal became public, housing analysts raised several structural concerns. Stephen Punwasi at BetterDwelling.com was among the first to examine it in detail, describing it as raising "significant concerns around the issue of concentrating the country's economy and reinforcing the declining homeownership rate."

The Case For

Brings new capital into rental supply without direct government spending
25-year rental lock-in prevents short-term speculation
CMHC backing lowers costs for builders and investors
Could accelerate rental construction in a market that desperately needs it
Signals international openness at a moment of trade tension with the US
Targets new construction rather than existing homes — different risk profile than pre-2016 foreign buying

The Case Against

Rent payments would flow to foreign owners, exiting the Canadian economy
CMHC backing shifts financial risk onto taxpayers if investors default
Concentrates rental housing ownership in non-Canadian hands — potentially permanently
Three in four Canadians support the foreign buyer ban; any modification is politically sensitive
CMHC has previously warned that state-backed mortgage credit can distort the market and lead to net losses
After 25 years, foreign owners would hold titled property in Canada's most constrained markets

The Rent-Exit Problem

One of the less-discussed structural issues with this proposal is the direction of cash flows. When a Canadian landlord collects rent, that money largely circulates within the Canadian economy. When a foreign-owned rental property collects rent, a significant portion of that income flows offshore to the property owner. Over 25 years and across a significant volume of units, that represents a substantial and ongoing transfer of Canadian housing wealth to foreign investors — backstopped by CMHC, a Crown corporation funded by Canadian taxpayers.

How This Is Different From the Condo Conversion Program

These two proposals have been conflated repeatedly in public commentary. They are not the same thing, and the difference matters.

Condo Conversion Program

Officially announced June 18, 2026
Government purchases existing unsold units
Converts to rent-to-own for Canadians
$1.45B total cost, $300M direct government capital
Target: Canadians who can pay rent but can't save a down payment
Government holds the asset; renters build toward ownership
Full program details expected fall 2026

25-Year Rental Pool Proposal

Discussed publicly March 2025; not official government policy
Foreign buyers purchase units privately
Units enter a 25-year mandatory rental pool
CMHC backs the financing — no direct government purchase
Target: attracting foreign capital to fund new rental supply
Foreign investors hold the asset; Canadians pay rent
Under consideration as part of broader foreign ban review

The condo conversion program is a government acquisition strategy — public money buys existing units, Canadians eventually own them. The foreign buyer rental pool proposal is an investment attraction strategy — foreign money buys new units, Canadians rent them, and foreign investors own them for 25 years. These are not variations of the same idea. They are structurally opposite approaches to the same housing supply problem.

Why This Proposal Matters for Canadian Housing Policy

The 25-year rental pool concept reflects a broader debate that will intensify as the federal ban approaches its January 2027 expiry: whether foreign capital, properly structured and constrained, can be part of a solution to Canada's rental housing shortage — or whether any relaxation of ownership restrictions would primarily benefit investors at the expense of Canadian renters and prospective buyers.

That debate is not unique to Canada. Australia, New Zealand, and several European countries have grappled with variations of the same question, with different policy outcomes. Australia's model — foreign buyers permitted for new construction only, banned from existing homes — is now under active review by the Carney government as a possible framework for post-2027 Canada.

The specific 25-year rental pool concept adds a layer of supply-side logic: if foreign capital funds the construction of new rental units that Canadians actually live in for a generation, does the nationality of the ultimate owner matter? Proponents say no, provided the conditions are enforced. Critics say yes — because of the cash flow problem, the wealth concentration risk, and the difficulty of enforcing 25-year rental commitments across a large portfolio of units with changing ownership over time.

The Industry Access Question

One dimension of this debate that receives less coverage is how housing policy proposals originate and move from industry discussion to government consideration. The foreign buyer rental pool concept entered public discourse through an industry event, was reported in credible real estate publications, and triggered a measurable policy response — the government's formal review of the ban's future. Understanding how ideas move from industry advocacy to policy review is relevant context for evaluating any housing program, regardless of who first articulated the idea.

My Perspective as a REALTOR®

What This Means for BC Buyers, Sellers, and Renters

The 25-year rental pool proposal is not currently government policy. The ban remains in effect until January 2027, and the government's review of what comes next is ongoing. But the direction of that review — and the sustained pressure from industry to create new pathways for foreign capital — is worth tracking carefully.

For buyers: the foreign buyer ban has been one factor reducing competition at the upper end of the Metro Vancouver market. Any modification to that ban — even a targeted one focused on new construction — changes the demand picture for new condo product. If foreign capital re-enters the pre-sale market, it affects pricing, absorption rates, and the conditions under which developers will launch new projects.

For renters: a 25-year mandatory rental pool adds to rental supply, which is genuinely needed. But it does so under a foreign ownership model that raises questions about rent levels, property management quality, and the long-term trajectory of housing wealth in this market. The quality and affordability of that rental supply would depend entirely on the conditions attached — which have not been specified in any publicly available version of the proposal.

For the broader market: the foreign buyer ban has had "virtually no impact" on housing prices according to Royal LePage's 2024 analysis, which raises a legitimate question about whether lifting or modifying it would cause the price surge critics fear. The evidence on that point is genuinely mixed — and worth understanding before the policy debate intensifies in late 2026 and 2027.

Frequently Asked Questions

Is the 25-year rental pool proposal actually government policy?

No. As of June 2026, it is not. The proposal was described publicly at an industry panel in March 2025 and reported by Business in Vancouver and other credible outlets. The federal government has not announced this proposal as policy. The federal foreign buyer ban remains in effect until January 1, 2027. Housing Minister Gregor Robertson confirmed in December 2025 that the government is reviewing what comes after 2027, with the Australian model — new construction permitted, existing homes banned — under consideration. That review is ongoing.

Who proposed this and why does it matter?

The proposal was publicly described by a prominent Vancouver real estate industry representative at a March 2025 industry panel and subsequently reported by Business in Vancouver, Canadian Mortgage Professional, and other outlets. It matters because it represents a specific policy idea — foreign ownership of Canadian rental housing backed by CMHC financing — that has entered the broader policy debate at a moment when the federal ban is up for review. Understanding where policy ideas come from, and who benefits from them, is relevant context for evaluating housing programs. The proposal is worth examining on its merits regardless of its origin.

Does the foreign buyer ban actually affect housing prices?

The evidence is mixed and contested. Royal LePage stated in 2024 that the ban had "virtually no impact" on housing prices. CMHC and others have pointed to other factors — interest rates, construction costs, zoning, immigration levels — as far more significant drivers of affordability. The original rationale for the ban was to reduce speculative demand, particularly in Metro Vancouver and Toronto. Critics argue that foreign buying was never large enough as a share of total transactions to meaningfully move prices. Supporters argue the symbolic and psychological effect on market behaviour was real. A Research Co. poll found 76% of Canadians support the ban — so whatever its economic effect, its political support is strong.

What is the Australian model the government is considering?

Australia permits foreign buyers to purchase new construction and vacant land, but bars them from buying existing homes. The rationale is that foreign capital directed toward new builds adds to supply rather than competing for existing stock. This is meaningfully different from the pre-2016 Vancouver model, where foreign buying included significant volumes of existing resale properties. If Canada moves toward an Australian-style framework after January 2027, it would likely affect the new construction pre-sale market more than the resale market — which is where a 25-year rental pool program would logically sit.

How does BC's provincial foreign buyer tax interact with all of this?

Separately from the federal ban, BC has its own Additional Property Transfer Tax for foreign buyers — currently 20% of the purchase price in designated regions including Metro Vancouver, the Fraser Valley, Capital Regional District, Central Okanagan, and Nanaimo. This provincial tax applies regardless of what happens to the federal ban. Premier Eby stated clearly in July 2025 that BC was "not going back" to conditions of foreign-driven price growth. Even if the federal ban is modified in 2027, foreign buyers in BC would still face a 20% provincial surcharge — which significantly affects the economics of any foreign buyer rental program in this province specifically.

Related Reading — Housing Policy Series

The companion post BC's 2,200 Condo Conversion Plan covers the officially announced program in full — including the corrected financial structure, the existing buyer equity question, and the opportunity cost analysis. Build Canada Homes in Vancouver examines the federal construction program operating in parallel. BC Has Everything. So Why Are We Still Borrowing Money to Buy Condos? puts the resource wealth context underneath all of it.

Sources & References

Business in Vancouver — "BC condo marketer Bob Rennie pitches incoming PM on foreign investment in rentals," Graeme Wood, March 13, 2025. biv.com
Canadian Mortgage Professional — "Canada's next PM reportedly weighs plan to boost foreign investment in rentals," March 11, 2025. mpamag.com
BetterDwelling.com — "Canada's Next PM Working With Vancouver Condo King On Foreign Investment," Stephen Punwasi, March 10, 2025. betterdwelling.com
Bloomberg — "Canada Considers Easing Ban on Foreign Home Buyers Starting in 2027," December 22, 2025. bloomberg.com
Canadian Mortgage Professional — "Is it time for Canada's foreign homebuyer ban to go?" September 2025. mpamag.com
CMHC — Prohibition on the Purchase of Residential Property by Non-Canadians Act — program overview and exemptions. cmhc-schl.gc.ca
BC Real Estate Association — "Federal Foreign Buyers Ban is in Effect," updated August 2024. bcrea.bc.ca
Research Co. — Foreign buyer ban polling, cited in Canadian Mortgage Professional, September 2025. 76% of Canadians support the ban across all major parties.
Royal LePage — 2024 analysis stating the foreign buyer ban had "virtually no impact" on housing prices, cited in Canadian Mortgage Professional.

Debbie Evans | REALTOR® & Registered Interior Designer

eXp Realty | West Vancouver · North Shore · Sea-to-Sky

Nearly 40 years of combined real estate and design experience across West Vancouver, the North Shore, and the Sea-to-Sky corridor. My role is to help clients understand the market as it actually is — not as the headlines describe it. If you are trying to evaluate how these policy changes affect your buying, selling, or investment strategy, that conversation is worth having before you make your next move.

westvanliving.ca · debbie.evans@exprealty.com

Housing policy is evolving rapidly. This article reflects publicly available information at the time of publication and will be updated as additional information becomes available.

This article is prepared for informational and educational purposes only. It does not constitute legal, financial, or investment advice. All information is sourced from publicly available news reporting, government communications, and industry analysis as referenced above. Readers should seek independent legal, financial, and real estate advice before making any property decision.