Yes, foreigners can buy property in Canada. Permanent residents are fully exempt, and qualifying work permit holders, refugees, and some international students are also eligible depending on their legal status and financial circumstances. While referencing publicly available sources of regulatory compliance data, this article explains who qualifies, what the ban actually prohibits, how financing works, and what taxes apply to non-citizen buyers in Ontario.
Foreign nationals researching property in Canada often hit a wall of conflicting information. The answer to whether you can buy a property in Canada doesn’t depend solely on whether you hold a Canadian passport. Rather, it depends entirely on your residency status, permit type, and the property’s location.
| Buyer Type | Eligibility |
| Permanent Resident | Yes |
| Work Permit Holder | Yes, with qualifying pre-conditions |
| Refugee / Protected Person | Yes |
| Non-Resident | Restricted to commercial/outside CMAs/CAs |
| International Student | Yes, with qualifying pre-conditions |
Why Canada Introduced Foreign Buyer Restrictions
Housing affordability became a national concern after home prices in urban cities increased a lot. Foreign investment was identified as one factor adding pressure on demand in already constrained urban markets. In 2023, the federal government passed the Prohibition on the Purchase of Residential Property by Non-Canadians Act to reduce speculative buying in residential markets. The ban was extended in 2024 and now runs until January 1, 2027.
Understanding Canada’s Foreign Buyer Ban (2026 Rules)
Canada’s foreign buyer rules are very specific. The Act prohibits non-Canadians from purchasing residential property within Census Metropolitan Areas (CMAs) and Census Agglomerations (CAs).
Under the Act, “residential property covers buildings with three or fewer dwelling units, including detached homes, semi-detached homes, townhouses, and condominiums. Commercial property, vacant land not zoned for residential use, and property in areas outside CMA/CA boundaries are not covered.
Temporary residents wondering if they can buy property in Canada often miss a point. The ban does not apply to all foreign nationals. Permanent residents, qualifying work permit holders, and protected persons are exempt regardless of where in Canada the property is located.
Check here if your shortlisted property falls within CMAs or CAs.
Who Can Buy Property in Canada?
| Buyer Type | Eligible? | Key Conditions |
| Permanent Resident | Yes | No restrictions |
| Work Permit Holder | Conditionally | 183+ days remaining on permit; max 1 property purchased under the Act |
| Refugee / Protected Person | Yes | No additional conditions |
| Non-Resident (no PR or work permit) | Generally, No | Restricted in CMAs/CAs under current rules |
| International Student | Conditionally | Narrow eligibility criteria; one property only that must not exceed $500,000 |
Permanent Residents
Fully exempt from the ban. Permanent residents may purchase any residential property in Canada without restriction, on the same terms as Canadian citizens.
Work Permit Holders
Work permit holders can buy property in Canada if two conditions are met: the permit must have at least 183 days of validity remaining at the time of purchase, and the buyer must not have already purchased a residential property while the prohibition is in effect
Refugees and Protected Persons
Individuals recognized as refugees or protected persons under the Immigration and Refugee Protection Act are exempt from the foreign buyer ban without additional conditions.
Non-Residents (No Work Permit or PR)
Foreign nationals without valid citizenship status are generally prohibited from purchasing residential property in CMAs and CAs. However, non-residents buying property in Canada can own commercial property and vacant land outside CMA/CA boundaries.
International Students
To qualify, an international student must be enrolled at a designated learning institution and meet these criteria:
Taxes & Presence: Filed Canadian income taxes for 4 of the last 5 years, while physically present in Canada for at least 244 days per year.
- Property Limit: Maximum of one property, not exceeding $500,000.
If this is your first property purchase in Canada, check our first-time home buyer guide.
Mortgage and Down Payment Requirements for Foreign Buyers
Financing options differ significantly depending on residency status.
Permanent residents qualify for mortgages on the same terms as Canadian citizens. Standard income verification, credit history, and the mortgage stress test apply.
Work permit holders may apply with most major lenders, though requirements vary by institution. Some lenders ask for a larger down payment or additional employment documentation depending on permit type and remaining validity.
Foreigners buying a home in Canada while residing outside the country are typically required to put down a minimum of 35% of the purchase price. This threshold applies even to Canadian citizens living abroad.
CMHC mortgage insurance is available for qualifying work permit holders residing in Canada, making lower down payments possible in some cases. However, it’s not available for non-residents purchasing from outside the country.
Ontario’s Non-Resident Speculation Tax (NRST), currently 25% of the purchase price, is also due at closing and cannot be added into the mortgage value.
Use our mortgage calculator to estimate your costs.
Example Scenario
A software engineer working in Canada on a valid work permit with two years remaining may qualify for a mortgage and purchase a home in Brampton if lender requirements are met. Down payment thresholds and income documentation will vary by lender.
Taxes and Costs That Apply to Foreign Buyers in Ontario
Ontario Non-Resident Speculation Tax (NRST): Non-Canadian buyers who are not permanent residents or citizens pay 25% of the purchase price as a tax on residential property across Ontario, including Brampton. The NRST cannot be financed through a mortgage. Buyers need liquid funds available at closing.
NRST exemptions: Permanent residents are fully exempt. Work permit holders who occupy the property as their primary residence may also qualify for an exemption. Check this link for more information.
Capital gains tax: Non-residents selling a Canadian property owe Canadian capital gains tax on any profit. The CRA requires a certificate of compliance at or before the time of sale.
Land Transfer Tax (LTT): Ontario land transfer tax rates are based on the property’s purchase price and apply regardless of citizenship or residency status.
Harmonized Sales Tax/Good and Services Tax: HST/GST applies to newly constructed homes. Resale properties are generally exempt.
Documents Required to Buy Property in Canada
The typical documents required to buy a property in Canada are:
- Work permit / PR card
- Government ID
- SIN or ITN
- Employment proof
- Income verification
- Credit history
- Down payment proof
H2: How to Buy Property in Canada as a Foreigner: Step-by-Step
- Confirm eligibility before viewing properties. Check your status under the Prohibition on the Purchase of Residential Property by Non-Canadians Act by reading these FAQs.
- Retain a real estate lawyer early. Non-resident transactions carry additional compliance requirements. A lawyer experienced with these purchases will handle NRST assessments and closing obligations.
- Arrange financing before making an offer. Mortgage pre-approval for non-residents takes longer than for residents. A mortgage broker familiar with newcomer applications can identify which lenders will work with your residency status.
- Understand your provincial tax obligations before signing. The NRST is due at closing and must be paid in cash.
- Work with a local realtor who understands the needs of newcomer buyers. Neighbourhood context, school access, and transit access matter as much as price.
What Most People Get Wrong About the Foreign Buyer Ban
“All foreigners are banned from buying property in Canada.” Not accurate. Permanent residents, qualifying work permit holders, and protected persons are all exempt from the ban.
“The ban ended in 2025.” It was extended. The restriction now runs until January 1, 2027.
“The ban applies everywhere in Canada.” It does not. Properties outside Census Metropolitan Areas and Census Agglomerations are not covered by the Act.
“Buying property in Canada leads to permanent residency.” It does not. Property ownership has no direct pathway to PR or immigration status under Canadian law.
Frequently Asked Questions
Does buying property in Canada lead to permanent residency?
Can foreigners buy property in Canada right now?
Can I get a mortgage in Canada without permanent residency?
What types of property are exempt from the foreign buyer ban?
Can foreigners buy investment property in Canada?
Can foreigners buy commercial property in Canada?
DISCLAIMER: This article is for general informational purposes only and is not legal, financial, or immigration advice. Rules on foreign property ownership, mortgage eligibility, and taxes can change and vary by residency status, permit conditions, and property location. Before making any purchase decision, buyers should confirm current requirements with IRCC, the CRA, and the relevant provincial Ministry of Finance. Additionally, we strongly recommend consulting a real estate lawyer, a tax professional, and a licensed local real estate broker.
