Foreign buyer ban외국인 주택 구매 금지법

What is it?

The foreign buyer ban (full name: Prohibition on the Purchase of Residential Property by Non-Canadians Act) is a federal law that makes it illegal for a "non-Canadian" to buy residential property in Canada, directly or indirectly. It has been in force since January 1, 2023.

It was first set to be repealed two years later, on January 1, 2025. The Budget Implementation Act, 2024, No. 1 changed the repeal date to the "fourth anniversary" of the start date, so it is now set to end on January 1, 2027. On November 5, 2026, the federal budget proposed extending it to January 1, 2029 for existing homes and taking new homes out of the ban. That is not law yet, so read “The Budget 2026 proposal” below and check the law in force before you sign.

This law is a ban, not a tax. Ontario’s Non-Resident Speculation Tax (NRST) is a separate provincial tax of 25% on foreign buyers, and the two are applied independently.

Who is a "non-Canadian"?

• An individual who is not a Canadian citizen, not a permanent resident and not registered under the Indian Act. People in Canada on a work permit, study permit or visitor visa are non-Canadians.
• A permanent resident is "Canadian" wherever they live. A permanent resident living in Korea is not caught by the ban.
• A foreign corporation: a company not incorporated in Canada or a province, or a Canadian company that is not listed on a Canadian stock exchange and is controlled by a non-Canadian. The Regulations treat owning 10% or more of the equity or votes, or control in fact, as "control".
• Other entities (partnerships, trusts and so on) controlled by non-Canadians are also included by the Regulations.

Which homes are covered?

• A detached house or similar building with no more than three dwelling units (with its land), and separately owned parts of a building such as a semi-detached house, a rowhouse (townhouse) unit or a condo unit.
• Only homes inside a Statistics Canada census metropolitan area (CMA) or census agglomeration (CA). Rural property outside those areas is excluded by the Regulations. Toronto, Vaughan, Markham, Richmond Hill and Mississauga are in the Toronto CMA. Other GTA cities may belong to a different CMA or CA, so check each one. Check the Statistics Canada maps for borderline areas.
• Buildings with four or more dwelling units are outside the definition of "residential property".
• The scope is different from Ontario’s NRST, which applies everywhere in Ontario, rural or urban, to homes with up to six units.

Exceptions: when a non-Canadian can still buy

Temporary residents who meet the conditions in the Regulations (SOR/2022-250), and a few other groups, may buy. These are exceptions to the federal ban only; Ontario’s 25% NRST is decided separately.

• International students: enrolled at a designated learning institution, filed Canadian tax returns for each of the five years before the purchase, physically in Canada at least 244 days in each of those five years, a purchase price of $500,000 or less, and no more than one residential property ever purchased.
• Work permit holders (or people allowed to work without a permit): 183 days or more left on the permit on the date of purchase, and no more than one residential property ever purchased. An earlier condition was repealed by the March 27, 2023 amendments (SOR/2023-66).
• Protected persons (refugees), refugee claimants whose claim has been referred for a hearing, diplomats, and holders of special visas for people fleeing conflict.
• A non-Canadian buying together with a spouse or common-law partner (living together at least one year) who is a Canadian citizen, permanent resident, registered Indian, or a temporary resident or protected person who qualifies above.
• Acquisitions that are not a "purchase": receiving property through death, divorce, separation or gift; renting as a tenant; a secured creditor enforcing security; and buying for development.

What happens if the law is broken?

A non-Canadian who breaks the ban, and anyone (an agent, a lawyer, anyone) who knowingly helps or encourages the purchase, can be fined up to $10,000 on summary conviction.

After a conviction, the Minister can ask the court to order the home sold, and the non-Canadian cannot receive more from the sale than the price they paid. The sale itself is not void just because the law was broken (section 5).

Compared with Ontario’s NRST

You must clear both. Qualifying for a federal exception does not exempt you from NRST.

Agreement dates and when a "purchase" happens

The ban does not apply if the non-Canadian became bound by an agreement of purchase and sale before January 1, 2023 (section 4(5)).

The Regulations treat acquiring a legal or equitable interest in a home, "with or without conditions", as a purchase. So your status and the days left on your work permit may be tested when you sign the agreement, not on closing day. Ask your lawyer which date applies to you.

If the ban is repealed on January 1, 2027 as the current law says, it will not apply to later purchases, but Ontario’s NRST will remain. If the Budget 2026 extension becomes law, the ban on existing homes would run to January 1, 2029.

The Budget 2026 proposal (not law yet)

• What was proposed: the federal budget tabled on November 5, 2026 (Budget 2026) proposes to keep the ban on existing homes (homes already built, including resale homes) for two more years, to January 1, 2029, and to take newly built homes out of the ban. The budget’s own words are in the official text box below.
• It is not law yet: the budget only says the government will propose legislation and start a regulatory process soon. Parliament must change the law and the Regulations must be changed before anything takes effect. The budget gives no date for the new-home exemption.
• As of today (November 6, 2026): the current law still applies. For new homes, resale homes and pre-construction condo contracts alike, a non-Canadian cannot buy unless one of the exceptions above applies.
• If no extension is passed before January 1, 2027, the current wording of the law would repeal the ban on that date. This is a reading of the Budget Implementation Act, 2024 text, not something the budget says. If you plan to sign between late 2026 and early 2027, ask your lawyer about the law on that day just before you sign.
• Either way, Ontario’s 25% NRST and Toronto’s 10% MNRST are separate from this federal law and stay in place.

In practice

• Your agent and lawyer will check the status of every buyer. Have your citizenship or PR documents, work permit or study permit ready. This is separate from the anti-money-laundering (FINTRAC) identification.
• If you are on a work permit, check the expiry date. You need 183 days or more left on the date of purchase. The Act and Regulations do not say how an extension application in progress (implied status) is treated, so ask your lawyer.
• The student exception has five conditions and a $500,000 price cap, so it rarely works in the GTA.
• Buying in the name of a child studying in Canada, or through a company controlled by non-Canadians, can be an "indirect" purchase that the ban also covers.

Example