Buying a house in Canada: until January 2027 your residence status is the key
Canada prohibits the purchase of homes by whoever isn't a citizen or permanent resident — the ban has been extended to 1 January 2027. For emigrants the opening lies in the exceptions: a work permit with at least 183 days' validity left gives room to buy. After that the province determines the bill, with Ontario as the example: land transfer tax, a rebate for first-time buyers — and 25% extra for whoever doesn't have PR.
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Written and checked by Auke on , against the sources at the bottom. Is something no longer right? Report it below and I'll fix it.
No, without Canadian citizenship or permanent residency (PR) you may in principle not buy a home in Canada. The 2023 ban runs until 1 January 2027.
The opening for emigrants is in the exceptions:
- a work permit that is still valid for at least 183 days at the time of purchase;
- or an address outside the urban areas.
What it costs is decided by the province. In Ontario you pay a land transfer tax (a tax on the transfer of property) on the purchase price. Anyone without PR pays the Non-Resident Speculation Tax of 25% on top.
That is the pitfall: where the federal ban leaves an opening, the provincial levy can still make the purchase unaffordable.
In your first year you do not buy. You rent, you get to know your city and province, and only then do you decide: why that order is fixed. In Canada that order is not advice but law: without the right status you are not even allowed to buy.
May I buy a house in Canada as a foreigner?
Since 1 January 2023 the Prohibition on the Purchase of Residential Property by Non-Canadians Act has banned the purchase of homes by anyone who is not a Canadian citizen or permanent resident. It covers buildings with up to three dwelling units, so also a semi-detached house or a condominium unit.
In February 2024 the government announced an extension to 1 January 2027. The page of CMHC (the federal housing agency) mentions no further extension. So anyone buying in 2027 checks the current position first.
Anyone who breaks the ban risks a fine of up to $10,000, and a court can order the sale of the property.
For emigrants the openings are in the exceptions:
- Work permit holders may buy if their permit is still valid for at least 183 days at the time of purchase and they have not already bought a home under the ban.
- Students at a designated institution may buy under strict conditions: tax returns for the five preceding years, at least 244 days a year in Canada in those five years, and a purchase price of at most $500,000.
- Outside the urban areas, the Census Metropolitan Areas and Census Agglomerations, the ban does not apply. CMHC has a map where you check per address whether it is covered.
The royal route remains your permanent residence via Express Entry: with PR this whole chapter falls away.
What does buying a house in Ontario cost on top of the price?
Canada has no national transfer tax. Each province levies its own land transfer tax. In Ontario you pay it on closing, in brackets over the purchase price:
| Part of the purchase price | Land transfer tax |
|---|---|
| up to and including $55,000 | 0.5% |
| $55,000 up to and including $250,000 | 1.0% |
| $250,000 up to and including $400,000 | 1.5% |
| above $400,000 | 2.0% |
| above $2,000,000, with one or two single-family residences | 2.5% |
A house of $400,000 thus costs $4,475 in land transfer tax. In Toronto a municipal land transfer tax comes on top.
First-time homebuyers in Ontario can get a refund of up to $4,000. That means you pay nothing on the first $368,000. Two conditions:
- you must never have owned a home anywhere in the world, including the Netherlands;
- you must be a Canadian citizen or permanent resident.
If you do not yet have PR at closing, you have 18 months to obtain that status and still apply for the refund.
Who pays the 25% Non-Resident Speculation Tax?
Anyone who is not a Canadian citizen or permanent resident at closing, for a home anywhere in Ontario. If you have applied for permanent residence but not yet received it, you pay it. There are two ways out:
- An exemption for a nominee, someone nominated by Ontario through the provincial immigration programme, and for the spouse of a citizen, permanent resident or nominee.
- A rebate if you become a permanent resident within four years of registration of the purchase, provided you meet the further conditions.
On a house of $400,000, 25% is $100,000. Anyone buying on a work permit and counting on PR therefore has to advance that first.
What do I pay every year after that?
As an owner you pay the municipal property tax every year, based on the assessed value. The amount varies greatly per municipality. For a specific house, ask for the latest tax bill.
Other provinces have their own transfer taxes and surcharges. Work out those of your province before you make an offer. How your first months look otherwise is in your first weeks in Canada and in renting in Canada.
In Vertrekklaar this is phase 5 of 5 of the journey: the same steps, but for your situation — in your order, tickable, and with the deadlines watched. See the whole journey to Canada.
What this rests on
The facts in this article come from these official pages. Rules change. When in doubt, go by the source, not this article.
- CMHC — the Prohibition on the Purchase of Residential Property by Non-Canadians Act and the extension to 1 January 2027 — cmhc-schl.gc.ca
- CMHC — frequently asked questions (exceptions for work permit holders and students, scope of the ban) — cmhc-schl.gc.ca
- Ontario.ca — the land transfer tax, the first-time rebate and the Non-Resident Speculation Tax of 25% — ontario.ca
- Ontario.ca — calculating land transfer tax, the brackets and the worked example — ontario.ca
- Ontario.ca — the refund for first-time homebuyers, up to $4,000 and the 18 months — ontario.ca
- Ontario.ca — the Non-Resident Speculation Tax, the exemption for nominees and the rebate after PR — ontario.ca
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