Non-Resident Home Buyer Rules in Canada (2026): Ban, Taxes, Financing
The federal foreign-buyer ban, provincial non-resident taxes, the 35% down rule, and 25% withholding on sale. Rules for non-residents buying Canadian property.
Three layers. The federal ban: non-Canadians may not buy residential property in census metropolitan areas or agglomerations until 1 January 2027, unless exempt (certain work-permit holders and students, refugees, spouses of Canadians buying jointly). Provincial taxes where a purchase is permitted: Ontario 25% province-wide, BC 20% in designated regions, Nova Scotia 10% for anyone not resident in Nova Scotia (Canadians included), on top of regular land transfer tax. Financing and tax: lenders require 35% down from non-residents, and when a non-resident sells, the buyer withholds 25% of the price until CRA issues a clearance certificate. Canadian citizens living abroad are not "non-Canadians" for the ban, but they are non-residents for the taxes and financing.
Figures come from the CostToClose foreign buyer tax calculator.
The ban
| Question | Answer |
|---|---|
| Who is barred | Non-citizens, non-permanent residents, foreign corporations, and Canadian corporations controlled by them |
| Where | Residential property in census metropolitan areas and census agglomerations — most cities and their suburbs; rural areas are excluded |
| Until | 1 January 2027 (extended in 2024); no further extension announced as of September 2026 |
| Exemptions | Work-permit holders with 183+ days remaining who have not bought during the ban; certain students; refugee claimants; a non-Canadian buying jointly with a Canadian spouse; diplomats; development purchases |
| Penalty | Fines up to $10,000 and a court-ordered sale; professionals who assist are also liable |
Source: CMHC, Prohibition on the Purchase of Residential Property by Non-Canadians Act and regulations. Checked 14 September 2026.
Provincial taxes where a purchase is permitted
| Province | Tax | Who | On what | Refunds |
|---|---|---|---|---|
| Ontario | Non-Resident Speculation Tax, 25% | Foreign nationals, foreign corporations, taxable trustees | Residential property anywhere in Ontario | Rebate if the buyer becomes a permanent resident within 4 years and lived in the home |
| British Columbia | Additional Property Transfer Tax, 20% | Same categories | Metro Vancouver, Capital Region, Fraser Valley, Central Okanagan, Nanaimo | Provincial nominee exemption; rebate on becoming a citizen/PR within 1 year |
| Nova Scotia | Non-Resident Deed Transfer Tax, 10% | Anyone not resident in Nova Scotia, including other Canadians | Residential property province-wide | Exempt if the buyer becomes a resident within 1 year (extended from 6 months, August 2026); 2 years to apply for a refund |
| Quebec, Alberta, others | None |
Run through the CostToClose calculator, 14 September 2026.
Financing
Canadian banks lend to non-residents with 35% down, proof of foreign income (translated, verified), a Canadian bank account, and often a relationship with the bank's international arm. Rates are close to standard; insured mortgages are not available. Some lenders require the down payment to sit in Canada for 30 to 90 days before closing.
Selling as a non-resident
The buyer's lawyer withholds 25% of the gross sale price (50% for depreciable property) until CRA issues a section 116 clearance certificate, which requires filing Form T2062 and paying tax on the gain. The certificate can take three to six months; the holdback sits in trust. A non-resident who sells a $900,000 Toronto condo has $225,000 held until clearance, then files a Canadian return for the capital gain.
Worked example from the calculator
Work-permit holder (183+ days remaining, exempt from the ban) buying a $900,000 condo:
| Metric | Toronto | Vancouver | Halifax |
|---|---|---|---|
| Regular land transfer tax | $28,950 | $16,000 | $13,500 |
| Non-resident tax | $225,000 (25%) | $180,000 (20%) | $90,000 (10%) |
| Transfer taxes on closing | $253,950 | $196,000 | $103,500 |
| Down payment required (35%) | $315,000 | $315,000 | $315,000 |
| Cash needed before fees | $568,950 | $511,000 | $418,500 |
Becoming a permanent resident within the rebate window recovers the Ontario and BC taxes; becoming a Nova Scotia resident within one year recovers the NS tax (extended from six months in August 2026). Reproduce this.
Canadians living abroad
Not subject to the ban or to Ontario's and BC's foreign-buyer taxes (which key on citizenship and PR status), but subject to Nova Scotia's 10% (residency-based), to the 35% down payment requirement, and to the 25% withholding on sale. Rental income earned while non-resident is subject to 25% withholding under Part XIII unless an NR6 election is filed.
Frequently asked questions
Can a foreigner buy a house in Canada in 2026?
Not in most cities until 1 January 2027, unless exempt — chiefly work-permit holders with 183+ days remaining who have not bought during the ban, some students, and joint purchases with a Canadian spouse. Rural property is outside the ban.
How much is the foreign buyer tax in Ontario?
25% of the purchase price for foreign nationals and foreign corporations, province-wide, on top of land transfer tax. Rebates exist for those who become permanent residents within four years.
Do Canadians living abroad pay the foreign buyer tax?
Not in Ontario or BC. They do pay Nova Scotia's 10% non-resident deed transfer tax and need 35% down.
What happens when a non-resident sells property in Canada?
The buyer withholds 25% of the price until CRA issues a clearance certificate; the seller files a Canadian return and pays tax on the gain.
Will the foreign buyer ban be extended again?
No extension has been announced as of September 2026. It is scheduled to lapse on 1 January 2027; the provincial taxes continue regardless.
Sources
- CMHC, Prohibition on the Purchase of Residential Property by Non-Canadians Act — regulations, exemptions, extension to 2027 — checked 14 Sept 2026
- Ontario Ministry of Finance, Non-Resident Speculation Tax — checked 14 Sept 2026
- Government of British Columbia, Additional Property Transfer Tax — checked 14 Sept 2026
- Service Nova Scotia, Non-Resident Deed Transfer Tax; proof-of-residency and refund-window changes, O.I.C. 2026-259 effective 6 August 2026 — checked 5 Oct 2026
- Canada Revenue Agency, section 116 certificates and Form T2062; Part XIII withholding on rental income — checked 14 Sept 2026
This is general information for Canadian home buyers and sellers, checked against the sources listed above on the date shown. It does not constitute legal, tax, or mortgage advice. Because rules and rates change, confirm current figures with your lawyer or notary, your lender, or the government office that administers the tax before you rely on them.