Can a Non-Resident Buy a House in Ontario? Foreign Buyer Rules

If you are not a Canadian citizen or permanent resident and you want to buy a home in Ontario, two separate sets of rules can apply to you. One is a federal ban on purchases. The other is an Ontario tax. They use different definitions and have different exceptions.

This article explains in plain words how each one works, who is exempt, and what a rebate can do. Both rules can change, so the last section covers what to confirm before you sign anything.

Two rules, not one

The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act says a non-Canadian may not purchase residential property, directly or indirectly. It is a ban, and a purchase that breaks it carries penalties.

Ontario's Non-Resident Speculation Tax (NRST) is different. It is a tax charged on residential property bought by a foreign national, a foreign corporation or a taxable trustee. You can be caught by one rule, both, or neither.

The definitions are not identical. Under the federal Act, a non-Canadian individual is someone 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. For the NRST, a foreign national is an individual who is not a Canadian citizen or permanent resident.

The federal ban: what it covers

The ban started on January 1, 2023. In February 2024 the federal government announced it would be extended from January 1, 2025 to January 1, 2027. Because it was set to run only to a fixed date, confirm with an official federal source or a lawyer whether it is still in force on the day you sign.

The ban covers residential property, meaning 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.

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.

Federal exceptions

Several groups are exempt, or their transactions are not treated as a purchase. The details matter, so read the conditions closely.

• Protected persons under s. 95(2) of the Immigration and Refugee Protection Act are exempt.
• A non-Canadian who buys together with a spouse or common-law partner who is a Canadian citizen, registered Indian, permanent resident, protected person or qualifying temporary resident is exempt.
• A temporary resident with a work permit, or authorized to work under s. 186 of the IRPR, is exempt if the permit or authorization has 183 days or more of validity left on the purchase date and they have not bought more than one residential property.
• A student at a designated learning institution is exempt only if all of these are met: they filed all required income tax returns for each of the five preceding taxation years, they were physically present in Canada at least 244 days in each of those five years, the price is no more than $500,000, and they have not bought more than one residential property.
• Acquisitions resulting from death, divorce, separation or a gift are not a purchase. Neither is 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, or acquisition for development.

Ontario's Non-Resident Speculation Tax

The 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.

There are exemptions. 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.

Exemptions are also 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.

If you pay the tax and later become a permanent resident, a rebate may be possible. You must become a permanent resident within four years of the purchase, hold the property alone or only with your 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.

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

What to do next

• Write down your exact immigration status and your spouse's, and the documents that prove it.
• Confirm the current status of the federal ban before you make an offer.
• Check what kind of property it is and where it is located, since size and location can take it outside the ban.
• Ask whether the NRST applies, whether an exemption fits, and what you must certify, such as moving in within 60 days after registration.
• Have a lawyer review the agreement of purchase and sale before you sign, especially if you buy with a spouse or through a corporation.

Frequently asked questions