Table of Contents
Quick Summary: What You Need to Know
Ban Extended Until
January 1, 2027
Properties Affected
1-3 unit residential in CMAs/CAs
Maximum Penalty
$10,000 CAD fine + forced sale
Who Can Buy?
Citizens, PRs, exempt work permits
1What is the Foreign Buyer Ban?
The Prohibition on the Purchase of Residential Property by Non-Canadians Act is a Canadian federal law that restricts non-Canadians from purchasing certain residential properties in Canada. It was enacted on January 1, 2023 as a response to concerns about housing affordability and foreign speculation driving up home prices.
The official objective, as stated by the Government of Canada, is to ensure that "residential properties are used as homes for Canadian families, and not as speculative financial assets."
Official Source: The Act is administered by Immigration, Refugees and Citizenship Canada (IRCC) and enforced through various provincial land registries.
2Timeline & Extension to 2027
January 1, 2023
Original ban takes effect, initially set for 2 years
March 27, 2023
Amendments expand exemptions for work permit holders and vacant land purchases
February 2024
Government announces 2-year extension of the ban
January 1, 2025
Original expiry date — ban continues under extension
January 1, 2027
Current scheduled end date of the ban
3Who is Prohibited from Buying?
Cannot Buy
- Non-Canadian individuals (not citizens or permanent residents)
- Corporations controlled by non-Canadians
- Foreign commercial enterprises
- Corporations not listed on a Canadian stock exchange and controlled by non-Canadians
Can Buy Freely
- Canadian citizens (including dual citizens)
- Permanent residents of Canada
- Refugees and protected persons
- Anyone buying outside CMAs/CAs
Important Note About Spouses
If a Canadian citizen or permanent resident is married to or in a common-law partnership with a non-Canadian, the non-Canadian spouse is treated as a Canadian for the purposes of this Act and can purchase property.
4What Properties Are Affected?
The ban applies specifically to residential properties defined as buildings containing three or fewer dwelling units, located within Census Metropolitan Areas (CMAs) or Census Agglomerations (CAs).
| Property Type | Ban Applies? |
|---|---|
| Single-family detached homes | |
| Semi-detached homes | |
| Townhouses (freehold) | |
| Condominium units | |
| Duplexes / Triplexes | |
| Buildings with 4+ units | |
| Commercial properties | |
| Vacant land (for development) | |
| Properties outside CMAs/CAs |
Ontario Census Metropolitan Areas (CMAs)
The ban applies in these major Ontario urban centers and their surrounding areas:
5Full List of Exemptions
The following situations and individuals are exempt from the foreign buyer ban:
Property Acquisition Through Divorce/Separation
Non-Canadians acquiring property interest due to divorce, separation agreements, or court orders.
Inheritance (Gift or Death)
Property received as a gift or through inheritance is exempt from the ban.
Renting a Dwelling
Non-Canadians can rent residential properties without restriction.
Creditor Exercising Security Interest
Foreclosure, seizure, or other enforcement of secured debt is exempt.
Refugees and Protected Persons
Individuals with official refugee status in Canada are fully exempt.
Vacant Land for Development
As of March 2023, non-Canadians can purchase vacant land zoned for residential or mixed-use development.
Properties with 4+ Units
Multi-family buildings with more than three dwelling units are exempt to encourage rental housing development.
Qualifying Work Permit Holders
See detailed requirements in the next section.
6Work Permit Holder Rules
Eligibility Requirements (As of March 2023 Amendments)
Non-Canadians with valid work permits may purchase one residential property if they meet the following criteria:
- Must have at least 183 days remaining on their work permit OR possess valid work authorization at time of purchase
- Must not have previously purchased a residential property in Canada under this exemption
- Can purchase mixed-use and commercial land as well
2023 Amendment Simplified Requirements
Previous requirements for work experience and tax filing history were repealed in the March 2023 amendments. The current rules are simpler: valid work permit with 183+ days remaining + no prior purchase.
7International Student Rules
International students face stricter requirements than work permit holders. To be eligible to purchase property:
International Student Requirements
- Must be enrolled full-time at a Designated Learning Institution (DLI) in Canada
- Must have been enrolled for at least 5 years before the purchase date
- Purchase price cannot exceed $500,000
- Must not have purchased more than one residential property
Practical Reality
The $500,000 cap and 5-year enrollment requirement make this exemption impractical in most major Ontario markets. A 4-year bachelor's degree graduate would not qualify. This exemption is rarely used in practice.
8Required Documentation
To prove eligibility under an exemption, non-Canadians may need to provide the following documentation to their lawyer and the land registry:
Work Permit Holders
- • Valid work permit issued by IRCC
- • Verification of status from IRCC
- • Proof of valid work authorization
International Students
- • Valid study permit from IRCC
- • Enrollment letters (5 years)
- • Official transcripts
Proving Residency
- • Rental agreements
- • Utility bills
- • Travel records
- • Bank statements
All Exempt Buyers
- • Government-issued photo ID
- • Statutory declaration
- • Lawyer's certification
9Penalties for Violations
Criminal Offense
Violating the Prohibition Act is a criminal offense. Both the non-Canadian purchaser and any parties who assisted with the illegal purchase can face penalties.
Maximum Fine
$10,000 CAD
Per violation
Forced Sale
Court-Ordered
Proceeds limited to purchase price
Who Can Be Penalized?
- The non-Canadian buyer
- Real estate agents who facilitated the sale
- Lawyers who completed the transaction
- Corporate officers, directors, and senior officials (for corporate violations)
Forced Sale Consequence
If a court orders the sale of the property, the non-Canadian owner receives no more than what they originally paid — meaning any appreciation in value is forfeited.
10Non-Resident Speculation Tax (NRST)
Separately from the federal foreign buyer ban, Ontario imposes a Non-Resident Speculation Tax (NRST) on property purchases by foreign nationals, foreign corporations, and taxable trustees.
25% NRST
The NRST is calculated as 25% of the purchase price and applies province-wide in Ontario (expanded from the original Greater Golden Horseshoe region).
Example: On a $1,000,000 home, the NRST would be $250,000 — payable at closing in addition to all other taxes and fees.
NRST Rebate Eligibility
You may be eligible for an NRST rebate if you:
- Become a permanent resident within 4 years of purchase
- Were a qualifying foreign national nominee under certain immigration programs
- Were a protected person/refugee at time of purchase
11Frequently Asked Questions
Can I buy a condo in Toronto on a work permit?
Yes, if you have at least 183 days remaining on your work permit and haven't previously purchased property under this exemption. You're limited to one property.
Does the ban apply to recreational properties (cottages)?
Only if the property is within a CMA or CA. Most cottage country (Muskoka, Haliburton, etc.) falls outside these areas and is exempt from the ban.
Can a Canadian citizen buy property with a non-Canadian spouse?
Yes. The non-Canadian spouse of a Canadian citizen or permanent resident is treated as Canadian for purposes of this Act.
I bought property before the ban — am I affected?
No. The Act only applies to purchases made after January 1, 2023. Properties purchased before this date are not affected.
Can I buy a 4-unit building as a non-Canadian?
Yes. Buildings with 4 or more dwelling units are exempt from the ban. This exemption encourages rental housing development.
When does the ban end?
The ban is currently scheduled to end on January 1, 2027. However, the government could extend it again as they did in 2024.
12Official Government Sources
This guide is based on official Canadian government sources. For the most up-to-date information, consult:
Government of Canada - Department of Finance
canada.ca/en/department-finance/news/2024/02/government-announces-two-year-extension-to-ban-on-foreign-ownership-of-canadian-housing.html
Justice Laws Website
laws-lois.justice.gc.ca - Prohibition on the Purchase of Residential Property by Non-Canadians Act
Ontario Ministry of Finance
ontario.ca - Non-Resident Speculation Tax
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