Foreign Buyer Ban: Can a Non-Canadian Buy a Home in Ontario?

If you are not a Canadian citizen, you may wonder whether you can buy a home in Ontario at all. A federal law restricts purchases by non-Canadians, but it has many exceptions, and many newcomers are not affected.

This article walks through who is covered, which properties count, and the main exceptions. Your own status and plans matter a great deal, so get legal advice before you sign an agreement.

What the federal ban says

Under the Prohibition on the Purchase of Residential Property by Non-Canadians Act, a non-Canadian may not purchase residential property, directly or indirectly. The ban started on January 1, 2023 and was extended in February 2024 from January 1, 2025 to January 1, 2027.

Governments can change timelines, so check the current federal position on canada.ca before relying on that end date.

Who is a non-Canadian, and which homes are covered

An individual is a non-Canadian if they are neither a Canadian citizen, nor a person registered as an Indian, nor a permanent resident. Certain corporations and entities can also be non-Canadians.

Residential property means buildings with three homes or fewer, plus parts of buildings such as a semi-detached house or a condominium unit. Larger multi-unit buildings are not covered. Property located outside both a census agglomeration and a census metropolitan area is also excluded.

Main exceptions

Each exception has its own conditions, so being close is not enough. A lawyer can check whether your facts fit.

What is not a "purchase"

Some transactions are not treated as a purchase under the ban. These include acquisitions resulting from death, divorce, separation or a gift, renting a unit to live in, a transfer under a trust created before the Act came into force, enforcement of security by a secured creditor, and acquisition for development.

Whether a particular transfer falls into one of these categories depends on the details of how it happens. How this applies depends on your situation, so it is worth confirming with a lawyer.

Penalties, and Ontario's separate tax

A person who breaks the ban can, on summary conviction, be fined up to $10,000. After a conviction, the provincial superior court may order the property sold on the Minister's application.

Ontario also has its own tax on foreign buyers, the Non-Resident Speculation Tax, which is separate from the federal ban and has its own rules. It has been 25% since October 25, 2022. It applies to residential property anywhere in Ontario bought by a foreign national, foreign corporation or taxable trustee, and a foreign national is an individual who is not a Canadian citizen or permanent resident.

• Nominees: a foreign national nominated under the Ontario Immigrant Nominee Program at the time of purchase is exempt if they have applied, or certify they will apply, for permanent residence before the nominee certificate expires. Every transferee must certify they will occupy the property as their principal residence within 60 days after registration.
• Protected persons and spouses: exemptions are available to a protected person under s. 95 of the IRPA, and to a foreign national who is the spouse of a Canadian citizen, permanent resident, nominee or protected person, as long as each spouse is a named transferee. The 60-day principal residence requirement applies to both.
• Rebate: a foreign national can get the tax rebated if they become a permanent resident within four years of the purchase, hold the property alone or only with their spouse, and occupy it as a principal residence starting within 60 days after registration. The application must be received within 180 days of becoming a permanent resident.
• Past programs: the transitional rebates for international students and for foreign nationals working in Ontario are no longer available. They applied only to agreements of purchase and sale signed on or before March 29, 2022, and the application deadline of March 31, 2025 has passed.

What to do next

The federal ban and Ontario's tax are separate questions, so meeting an exception to one does not settle the other. Sorting out both before you make an offer is far easier than fixing a problem afterwards.

• Confirm your status: citizen, registered Indian, permanent resident, protected person, or temporary resident.
• Check whether the property is a building of three homes or fewer, or a condominium unit, and where it is located.
• Gather your work permit dates or tax and travel records if you rely on an exception.
• Confirm on canada.ca whether the ban is still in force on your closing date.
• Ask a lawyer to review your agreement before you sign and before you pay a deposit.

Frequently asked questions