Key takeaways
- The federal ban on non-Canadians buying homes is in force until January 1, 2027
- Work permit holders can buy if they have 183 days or more left on their permit
- Students can buy only under strict conditions, with a price limit of $500,000
- Ontario charges a 25% Non-Resident Speculation Tax (NRST) on foreign buyers, province-wide
- BC charges a 20% additional property transfer tax in Metro Vancouver and four other regions
The federal foreign buyer ban
The Prohibition on the Purchase of Residential Property by Non-Canadians Act stops most people who are not Canadian citizens or permanent residents from buying a home in Canada’s cities and towns. It started on January 1, 2023, was extended in February 2024, and is now set to end on January 1, 2027. Check for any new extension before you buy.
It covers houses, semi-detached homes, townhouses and condos with up to three units, in census metropolitan areas and census agglomerations. Corporations controlled by non-Canadians are also covered. Breaking the ban can lead to a fine of up to $10,000 and a court order to sell.
Exceptions for temporary residents
- Work permit holders: you can buy if you have 183 days or more left on your work permit or work authorization on the day you buy, and you have not already bought a home under this exception.
- International students: you can buy only if you filed tax returns for each of the last 5 years, were in Canada at least 244 days in each of those years, the price is $500,000 or less, and you have not bought before under this exception.
- Protected persons and refugee claimants are not covered by the ban.
- A non-Canadian who buys with a spouse or partner who is a citizen or permanent resident is generally allowed.
A provincial nomination alone does not make you a permanent resident. Until you land as a PR, you need one of these exceptions.
Ontario Non-Resident Speculation Tax (NRST)
Since October 25, 2022, Ontario charges a 25% NRST on homes with one to six units bought anywhere in Ontario by a foreign national, foreign corporation or taxable trustee. It is on top of the normal land transfer tax.
- Exempt: Ontario Immigrant Nominee Program nominees, protected persons, and foreign nationals buying with a spouse who is a citizen, PR, nominee or protected person.
- Rebate: you can apply for a refund if you become a permanent resident within 4 years of buying, if you meet the other conditions.
On a $700,000 home, the NRST is $175,000.
BC additional property transfer tax
BC charges an extra 20% property transfer tax on the share of a home bought by a foreign national or foreign corporation in five regions: Metro Vancouver, the Capital Regional District, the Fraser Valley, the Central Okanagan and the Regional District of Nanaimo.
- Exempt: confirmed BC Provincial Nominees buying a principal residence.
- A work permit or study permit alone does not make you exempt.
BC also charges a yearly speculation and vacancy tax in many areas, which is higher for foreign owners, and Vancouver has its own empty homes tax.
Other provinces
Alberta, Quebec, Manitoba, Saskatchewan, New Brunswick, Newfoundland and Labrador, PEI and the territories do not have a provincial foreign buyer transfer tax in this calculator, but the federal ban still applies across Canada. Some provinces have other rules, such as limits on non-residents owning large areas of farmland. Always confirm with a local real estate lawyer or notary.
What newcomers should do
- Check your permit expiry date against your closing date, not your offer date.
- Keep proof of your status for your lawyer.
- If you will become a PR soon, it may be worth waiting.
- Then budget the rest: closing costs, mortgage insurance and rent vs buy.
Waiting for PR? See our processing times tracker.