Foreign Buyer Ban in Canada: What International Buyers Can Still Buy in Toronto (2026 Update)

Buying property in Toronto as an international buyer may seem complicated, especially with Canada's foreign buyer restrictions still in place. But does the foreign buyer ban Canada mean non-Canadians can no longer purchase residential property in the country? Not entirely.

Introduced in 2023, the ban restricts many non-Canadians from purchasing residential properties, but several exemptions still allow eligible buyers to enter the market. If you live overseas and want to explore your options, our guide to working with international clients can help you understand the support available throughout the process.

The rules are also approaching another turning point. The federal budget tabled on November 5, 2026, proposes changes to the scope of the ban, while the current law is set to expire on January 1, 2027. So, can foreigners buy property in Toronto in 2026? Yes, in certain circumstances. 

Work permit holders, some international students, and buyers interested in specific property types may still qualify. This guide explains who can buy, what they can purchase, and which additional taxes may apply.

What Is Canada's Foreign Buyer Ban?

The rules confuse many buyers, so start with the basics. What is Canada's foreign buyer ban? It is a federal law that restricts non-Canadians from buying certain residential property in Canada. Its formal name is the Prohibition on the Purchase of Residential Property by Non-Canadians Act.

The Law and Its Current Expiry of January 1, 2027

The foreign buyer ban Canada put in place took effect on January 1, 2023. It was meant to last two years. In February 2024, the government extended it to January 1, 2027. Under the law as it stands today, the ban ends on that date. A proposed extension could change that, and the next section explains how.

Which Properties It Covers

The ban applies to residential property with townhouses, which are dwelling units. That includes detached houses, semi-detached homes, townhouses, and individual condominium units. It applies in census metropolitan areas and census agglomerations, which are Canada's cities and larger towns. Toronto sits inside one of these areas, so a typical house or condo purchase falls within the ban's reach. Rural areas and very small communities fall outside it.

Penalties for Breaking It

A non-Canadian who buys covered property without an exemption faces a fine of up to $10,000. A court can also order the sale of the property. The fine is small compared with a purchase price, yet a forced sale can cost far more. Check your status before you sign anything.

Proposed Extension to 2029: What the 2026 Federal Budget Changes

Search results about the foreign buyer ban extended 2029 can be misleading, because the extension is a proposal, not law. Is the foreign buyer ban being extended past 2027? Budget 2026 proposes to extend the ban on existing residential properties by two years to January 1, 2029. The government says it will introduce legislation and start a regulatory process in short order.

Resale Homes Stay Covered

Budget 2026 keeps existing homes off limits to most non-Canadians for two more years. The government says this keeps most of the market open to Canadians. If you want a resale house or condo in Toronto, plan around today's exemptions instead of waiting for a change.

New Builds Proposed as Exempt

The biggest change is the proposal to exempt new residential properties. If Parliament passes it, the foreign buyer ban Canada has applied since 2023 would become narrower rather than stricter. Overseas buyers could then look at pre-construction condos in Toronto without needing a separate exemption. The government says the exemption would unlock more investment in new housing supply.

What Isn't Confirmed Yet

None of this is law yet. Parliament must pass the change, and under the current Act the ban expires on January 1, 2027. The budget also points to a regulatory process, so the exact definition of a new property is not final. Until the legislation arrives, plan around today's rules and watch for updates.

Who Can Still Buy in Toronto?

Eligibility depends on your status. Can a non-Canadian buy a house in Toronto in 2026? Sometimes, yes. Who is exempt from the foreign buyer ban? The foreign buyer ban exemptions cover specific groups, and most come with conditions. Anyone who qualifies under the foreign buyer ban Canada rules usually has a clear tie to the country through status, work, study, or family.

Permanent Residents and Citizens

The ban does not apply to Canadian citizens or permanent residents. They can buy in Toronto like any other resident, though they still pay the usual land transfer taxes. If you are a citizen helping a relative abroad, the relative's own status matters whenever they go on title.

Work Permit Holders

Temporary residents with a valid work permit or work authorization can buy if the permit has at least 183 days of validity remaining at the time of purchase. The exemption generally allows one purchase. Keep your permit dates in mind when you set a closing date.

International Students

Students face tougher conditions. You must be enrolled at a designated learning institution, have filed Canadian tax returns for each of the past five years, and have been in Canada at least 244 days in each of those years. The price cannot exceed $500,000, and the purchase must be your first.

Spouses of Citizens or Permanent Residents

A non-Canadian who buys together with a spouse or common-law partner who is a citizen, permanent resident, or otherwise eligible is not blocked by the ban. The eligible partner must be part of the purchase.

Refugees and Protected Persons

People recognized as refugees or protected persons under Canada's immigration law are exempt. Diplomats and some international-organization staff also qualify.

Every exemption turns on documents and dates. A real estate lawyer can verify your status before you commit to an offer.

What International Buyers Can Still Buy

Even buyers who do not qualify for an exemption have options. Some property types sit outside the ban, and one major category may open up if the budget proposal passes. The table gives a quick view.

Property type	Covered by the ban today?	What to know
Resale house, townhouse, or condo unit	Yes	Proposed to stay covered until January 1, 2029
Pre-construction or new build	Generally yes.	Budget 2026 proposes an exemption; it is not law yet.
Entire building with four or more units	No	Regular financing and taxes still apply.
Commercial property	No	The ban targets residential property.
Vacant land zoned residential	No	Exempt since the March 2023 amendments

Pre-Construction and New Builds

Today, new homes do not get a special carve-out. A buyer needs an exemption, just as with a resale home. Budget 2026 proposes to change that. Either way, plan for HST on new homes, and ask your lawyer which rebates apply to your purchase.

Buildings With Four or More Units

The ban does not cover an entire building with four or more dwelling units. That puts apartment buildings and other multi-unit properties within reach of overseas investors. An individual condo unit inside such a building is different because the ban still covers it. Investors can learn more about real estate investing in Toronto.

Commercial Property

The ban targets residential property, so commercial buildings fall outside it. Offices, retail space, industrial sites, and warehousing are all options. Explore commercial real estate in Toronto if you want an investment route that avoids the residential rules. Financing and tax rules still differ, so get advice first.

Residential-Zoned Vacant Land

A March 2023 amendment removed vacant land from the ban, including land zoned for residential or mixed use. That gives overseas buyers a way to buy land and plan a future build. Check zoning, permits, and any other conditions with your lawyer before you commit.

Extra Taxes for Non-Residents

Clearing the foreign buyer ban Canada does not end your tax bill. Ontario and Toronto both add taxes for foreign buyers on top of the regular land transfer tax.

Ontario's 25% NRST

How much is Ontario's non-resident speculation tax? The non-resident speculation tax Ontario charges is 25% of the purchase price. It has applied across the province since October 25, 2022. It covers foreign nationals, foreign corporations, and taxable trustees who buy residential property, and it sits on top of the regular provincial land transfer tax. Federal ban exemptions and this tax are separate tests, so qualifying for one does not automatically exempt you from the other.

Toronto's 10% Municipal NRST

Toronto adds its own municipal non-resident speculation tax of 10% of the purchase price. The city adopted it effective January 1, 2025. It applies in addition to the municipal land transfer tax.

How the Two Stack

In Toronto, the two taxes combine to 35%. On a $1,000,000 home, the Ontario tax is $250,000 and the Toronto tax is $100,000. That adds $350,000 on top of the regular provincial and municipal land transfer taxes. Use our land transfer tax calculator to estimate the regular taxes, and ask your lawyer to confirm the non-resident amounts for your purchase.

NRST Rebates for People Who Become Permanent Residents

Ontario offers a rebate of the provincial tax to a foreign national who becomes a permanent resident within four years of the purchase, subject to conditions such as living in the home. Whether Toronto's municipal tax can also be rebated depends on the city's current rules, so confirm with your lawyer before you rely on it. In most cases you pay the full amount at closing and claim any rebate afterward.

Step-by-Step Checklist for Buying from Abroad

The process of buying property in Canada as a non-resident works best in a set order. Before you make an offer, confirm that the foreign buyer ban Canada does not cover your target property or you.

1. Lawyer: Choose a Toronto lawyer before you start shopping. They confirm your exemption, review the agreement, and handle closing.
2. Financing: Review your mortgage options early. Lenders often set stricter terms for non-residents, so confirm what you qualify for before you bid.
3. Deposit: Plan how and when to send your deposit. Your lawyer will explain the rules for moving funds into Canada and the documents that show their source.
4. Proof of status: Gather your passport, permit, study records, permanent resident documents, or marriage certificate, depending on your exemption.
5. Offer and Conditions: Make the offer through your agent, with your lawyer reviewing every term.
6. Closing: Your lawyer registers the transfer and pays land transfer taxes and any NRST. Budget for these costs on top of the price.

FAQs

Can I buy a Toronto condo on a visitor visa?

Generally, no. A visitor with no work permit or other qualifying status falls under the ban when the condo sits in a covered area.

Can a Canadian buy a home for a relative abroad?

A citizen buying in their own name is not caught by the ban. If the relative goes on title, their status matters. Speak with a lawyer before you structure the purchase.

Does the ban apply to commercial property?

No. The ban targets residential property. Commercial purchases follow different financing and tax rules.

What happens if I become a permanent resident after buying?

You may qualify for a rebate of Ontario's NRST if you become a permanent resident within four years and meet the conditions. Confirm Toronto's rules separately.

Where Overseas Buyers Stand Heading Into 2027?

The foreign buyer ban Canada now enforces is shifting, but the core picture is clear. Under the proposal, existing homes would stay off-limits to most non-Canadians, and new builds may open up, and a short list of exemptions already works today. Buildings with four or more units, commercial property, and vacant land sit outside the ban. 

Taxes remain the big cost, with 25% from Ontario plus 10% from Toronto. If you have questions about your own situation, speak with an international buyer specialist before you make an offer.