Answers › Non-Residents & Foreign Buyers
Canada’s foreign buyer ban ends 1 January 2027. What actually changes?
Answered by Rajiv Verma, Mortgage Broker · Position as at August 2026 · About a 7 minute read
⏱ Time-sensitive page. Written August 2026. The federal government could still announce an extension or a replacement before the end of 2026. Confirm the current position with a real estate lawyer before signing anything.
The direct answer
Less than most people expect. If the Act expires without replacement, one legal eligibility screen disappears. Nothing else does. Ontario’s 25% Non-Resident Speculation Tax, Toronto’s additional 10%, land transfer taxes, lender policy, identity verification and source-of-funds checks are all separate law and all remain. The ban was never the most expensive obstacle. The taxes were.
THE SHORT VERSION
- Scheduled to expire 1 January 2027 — not guaranteed
- Removing it removes an eligibility check, not the costs
- Ontario NRST 25% and Toronto MNRST 10% are separate legislation and remain
- Many people are already exempt and don’t realise it
- A 2027 closing date does not automatically fix a 2026 agreement
What the ban actually prohibits
The Prohibition on the Purchase of Residential Property by Non-Canadians Act came into force on 1 January 2023. It generally prevents non-Canadians from purchasing residential property containing three dwelling units or fewer, where the property sits inside a Census Metropolitan Area or Census Agglomeration.
That covers detached and semi-detached homes, townhouses, condominium units, and other residential properties of three units or fewer.
A conviction can carry a fine of up to $10,000, and a court can order the property sold. A purchase made in violation doesn’t automatically invalidate title — but that is not a reason to proceed casually.
The exceptions — check these before you assume anything
Many people who assume they’re prohibited already qualify for an exception, or are looking at property the ban doesn’t cover. This is the most common misconception in this area — and it costs people years of waiting they didn’t need to do.
Work permit holders
A temporary resident working in Canada may qualify if they:
- Hold a valid work permit or are legally authorised to work in Canada
- Have at least 183 days remaining on that authorisation at the time of purchase
- Have not previously purchased residential property in Canada relying on this exemption
International students
May qualify where specific conditions are met, including studying at a designated learning institution, having filed Canadian tax returns for each of the previous five taxation years, having been physically present in Canada at least 244 days in each of the previous five calendar years, not having previously purchased under the exemption, and buying a property for $500,000 or less.
Not covered at all
- Canadian citizens — including those living outside Canada
- Permanent residents
- Refugees and protected persons
- Property outside a Census Metropolitan Area or Census Agglomeration
- Buildings with four or more dwelling units
- Vacant land
- Certain purchases for development purposes
Is it definitely ending?
It is scheduled to. Do not treat that as guaranteed.
The current expiry date comes from the two-year extension announced on 4 February 2024. As at early August 2026, Ottawa has not announced a further extension, a formal repeal, or replacement legislation.
One option reportedly under consideration is an Australian-style framework — foreign buyers permitted to invest in new construction, vacant land, major redevelopment and certain purpose-built rental, while purchases of existing homes stay restricted.
Nothing has been finalised. The legal default is expiry on 1 January 2027, and the government could still act before then.
Be careful with agreements signed in 2026
A January 2027 closing date may not solve the problem if the Agreement of Purchase and Sale was signed while the prohibition was still in force. The legal determination of when a purchase was made can be fact-specific.
Do not assume a January closing makes a December agreement acceptable. Anyone considering signing in late 2026 for a 2027 closing should get legal advice before signing.
What changes at closing — and what doesn’t
Today, where a buyer isn’t a citizen or permanent resident, the lawyer may need to confirm status, determine whether the property sits inside a CMA or CA, establish whether the prohibition applies, check exemption eligibility, review work permit validity, confirm a student’s tax-filing and residency tests, check any purchase price limit, and obtain declarations and supporting documents.
If the Act expires without replacement, much of that federal review may fall away for purchases after the expiry date.
What remains, in every case:
| Requirement | Status |
|---|---|
| Federal foreign buyer prohibition | Scheduled to expire 1 Jan 2027 |
| Ontario Non-Resident Speculation Tax | 25% — remains |
| Toronto Municipal NRST | Additional 10% — remains |
| Ontario land transfer tax | Remains |
| Toronto municipal land transfer tax | Remains |
| Mortgage qualification | Remains |
| Identity and source-of-funds verification | Remains |
| FINTRAC anti-money-laundering requirements | Remains |
Two conclusions follow. A non-resident purchase in Toronto may stay extremely expensive even after the federal restriction ends. And a purchase in Calgary or Edmonton — where there’s no equivalent provincial speculation tax — could look completely different. The cost comparison is here.
What it means for the market
Probably less than the headlines suggest, with one exception.
Non-resident ownership has been measured at roughly 2.2% of residential properties in Ontario and 2.7% in the Toronto CMA — small enough that removing the restriction is unlikely to move the broad market.
The concentration is higher in condominiums. Condo apartments with at least one non-resident owner have been measured at around 6.1% in Ontario and 11.2% in the Vancouver CMA.
Which is why the segment to watch isn’t a detached home in Brampton. It’s pre-construction and newly completed condominiums — a market that has slowed sharply, with GTHA pre-construction sales in Q2 2026 reportedly down around 80% year over year and completed unsold inventory at record levels.
Developers need pre-sales and deposits before construction financing becomes available. Even limited foreign demand could matter there in a way it wouldn’t elsewhere.
Three scenarios worth planning around
1. It expires with no replacement. Access returns, subject to provincial and municipal taxes and lender policy. The 35% Toronto speculation exposure still limits demand.
2. An Australian-style replacement. Foreign investment permitted into new supply; existing homes stay restricted.
3. Another extension. Entirely possible — housing affordability remains politically sensitive, and extending is easier than legislating something new.
Don’t make large non-refundable commitments on the assumption that the law will lapse.
What to do if you’re considering buying now
- Check whether you’re already exempt. Work permit, protected-person status, PR status, property location, property type, development purpose.
- Calculate the taxes before shopping for a mortgage, not after.
- Review mortgage qualification early.
- Allow time for international funds. Aim for 90 days before you apply.
- Get legal advice before signing — not after the deposit is paid and the financing condition waived.
What to do next
Send me your status, the property type and location, and your funding position. I’ll tell you what’s financeable and what the complete cash requirement looks like — and point you to a lawyer for the eligibility and tax confirmation before you commit to anything.
Related questions
- What foreign buyer taxes apply in Ontario, and what do they cost?
- I’m a non-resident selling Canadian property. What’s the CRA holdback?
- I’m on a work permit, not a permanent resident. Does that disqualify me?
Answered by Rajiv Verma, Mortgage Broker · Mortgage Architects — FSRA Brokerage Licence #12728 · Licensed in Ontario · Office 289.505.0631 · Direct 647.291.7116
This page provides general educational information only and is not legal, immigration, accounting or tax advice. Foreign buyer regulations, tax rules and mortgage lender policies may change. Position stated as at August 2026. Buyers and sellers should obtain advice from appropriately qualified professionals based on their individual circumstances.