Can newcomers buy a home in Canada? The foreign buyer ban explained
Yes, if you are a permanent resident or citizen: the federal foreign buyer ban does not apply to you. The ban stops most non-Canadians from buying homes with up to three units in cities and towns until January 1, 2027, but work permit holders with at least 183 days left on their permit can buy one home, and some international students, refugees and protected persons are also exempt.
Who the ban covers
The Prohibition on the Purchase of Residential Property by Non-Canadians Act applies to people who are not Canadian citizens or permanent residents, and to some companies they control. It covers residential properties with three or fewer homes located in census metropolitan areas and census agglomerations, which includes most cities and towns. In February 2024 the federal government extended it to January 1, 2027. Check for any later change before you buy.
The main exceptions
Work permit holders: you can buy one home if your work permit or authorization has at least 183 days of validity left on the purchase date and you have not already bought a home under this exception.
International students: an exception applies only under strict conditions, including tax filing and physical presence in Canada for the previous five years, a price limit of $500,000 and one home.
Refugees and protected persons are exempt, and a non-Canadian can buy together with a spouse or common-law partner who is a citizen or permanent resident.
Provincial taxes and down payments
Some provinces add their own taxes for foreign buyers, for example British Columbia's additional property transfer tax and Ontario's non-resident speculation tax. Permanent residents are generally not charged these.
Down payment rules depend on your status and the lender. Permanent residents can often buy with an insured mortgage and the standard minimum down payment. For work permit holders, lenders and mortgage insurers set different minimums, so ask a lender or broker before you house-hunt.
Does the foreign buyer ban apply to permanent residents?
No. Canadian citizens and permanent residents are not affected by the federal ban.
Can I buy a home on a work permit?
Usually yes, one home, if your work permit has at least 183 days left on the purchase date. Provincial foreign buyer taxes and lender rules still apply.
Official sources
- Prohibition on the Purchase of Residential Property by Non-Canadians Regulations (SOR/2022-250)
- Finance Canada: two-year extension of the ban (February 2024)
- CMHC: the Act and amendments
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