Can a Non-Canadian Buy a House in Ontario? Ban and Tax Rules

If you are a foreign national or temporary resident, buying a home in Ontario means checking two different sets of rules: a federal ban and a provincial tax. They define who is covered differently, and exceptions under one do not automatically apply under the other.

This article explains who is caught, the main exceptions, and the Ontario tax and rebate. Rules in this area change, so confirm the current position before you sign anything.

The federal ban

Under the federal Prohibition on the Purchase of Residential Property by Non-Canadians Act, a non-Canadian may not purchase residential property, directly or indirectly. A non-Canadian is an individual who is neither a Canadian citizen, nor a person registered as an Indian, nor a permanent resident, and certain corporations and entities are also non-Canadians.

The ban started on January 1, 2023, and in February 2024 the federal government announced it would be extended from January 1, 2025 to January 1, 2027. Because that end date is close, check canada.ca for whether it has been extended again or allowed to lapse.

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

What property is covered

Residential property under the ban means buildings with three homes or fewer, plus parts of buildings such as a semi-detached house or a condominium unit, and larger multi-unit buildings are not covered. Property located outside both a census agglomeration and a census metropolitan area is excluded. Whether a given address falls inside one is worth confirming before you rely on this.

Exceptions to the ban

For students, the tax filing and 244-day tests apply to each of the five preceding taxation years, and every condition must be met.

Ontario's Non-Resident Speculation Tax

Ontario's NRST 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.

This definition differs from the federal one, so you could be exempt from the ban but still owe the tax.

• Ontario Immigrant Nominee Program nominees are exempt if they have applied, or certify they will apply, for permanent residence before the nominee certificate expires, and every transferee must certify they will occupy the property as a principal residence within 60 days after registration.
• Protected persons are eligible for exemptions, as is a foreign national who is the spouse of a Canadian citizen, permanent resident, nominee or protected person, if each spouse is a named transferee, and the 60-day occupancy requirement applies to both.

Rebates and what has expired

A foreign national can get the NRST 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. Some outside sources still quote a shorter period, so rely on Ontario's own guidance.

The transitional rebates for international students and for foreign nationals working in Ontario are no longer available, since they applied only to agreements signed on or before March 29, 2022, and the March 31, 2025 deadline has passed.

What to do next

• Confirm your status under both definitions: non-Canadian for the ban and foreign national for the NRST.
• Check the property type and location against the ban's coverage.
• Check canada.ca for the current end date of the ban before you sign.
• Gather your permit, tax return and travel records if you rely on a work or student exception.
• Ask a lawyer to build the exemption or rebate steps into your closing timeline.
• Diarize the 60-day occupancy and 180-day rebate deadlines.

Frequently asked questions