Posted by Maryann Quenet on Friday, September 19th, 2025 11:16am.
Canada’s foreign buyers ban has evolved since it came into force in 2023. If you are a newcomer, an investor, or a Canadian seller trying to understand who can legally buy right now, the details matter. This guide translates the legalese into plain language, highlights the 2023 amendments that softened parts of the policy, and explains the 2024 extension that keeps the ban in place until 2027.
The Prohibition on the Purchase of Residential Property by Non-Canadians Act stops most non-Canadians from buying residential property in Canada. It took effect on January 1, 2023, and initially covered two years, but the federal government extended it to January 1, 2027. The policy aims to keep homes for people living in Canada, rather than as speculative assets for foreign buyers.
The ban targets homes in Census Metropolitan Areas (CMAs) and Census Agglomerations (CAs), essentially cities and larger towns. Properties outside CMAs and CAs are not covered by the ban. If you are looking at a rural cottage, for example, location can decide whether the ban applies.
The Act covers buildings with three dwelling units or fewer and parts of buildings such as condo units and semi-detached homes. It does not prohibit buying larger multi-unit buildings with four or more units.
On March 27, 2023, the federal government amended the regulations to address newcomer flexibility and housing supply. Four changes are especially important.
Eligible work-permit holders can purchase one residential property if, at the time of purchase, their work authorization has at least 183 days of validity remaining. Earlier tax-filing and work-experience requirements were repealed. This is designed to help people put down roots while working in Canada.
The government repealed the provision that pulled vacant land zoned for residential or mixed use into the ban. Non-Canadians can now buy vacant land, including land intended for residential development.
A formal development exception now allows non-Canadians to buy residential property for the purpose of development. CMHC guidance explains that “development” involves evaluating, planning, and undertaking alterations or improvements, including redevelopment. Routine renovations alone generally do not qualify.
For privately held corporations and entities formed under Canadian or provincial law, the definition of “control” now means 10% or more of equity or voting rights, up from 3%. This change aligns with the Underused Housing Tax’s “specified Canadian corporation” concept.
On February 4, 2024, the federal government announced a two-year extension, moving the expiry from January 1, 2025 to January 1, 2027. The stated goal was to continue using every tool available to support housing affordability, particularly in major centres.
Even with the ban, several exceptions allow some non-Canadians to purchase homes. The most common scenarios are below.
Certain international students can buy one home if they meet all of the following:
Filed Canadian income tax returns for each of the five preceding taxation years,
Were physically present in Canada for at least 244 days in each of those five calendar years,
The purchase price is not more than $500,000, and
They have not previously purchased a home while the prohibition is in effect.
As noted above, eligible work-permit holders can buy one home if they have 183+ days of validity remaining at purchase, and have not previously purchased during the ban.
Protected persons and some individuals granted status on humanitarian grounds are exempt. Details are set out in the regulations and CMHC’s summary.
Accredited members of foreign missions with appropriate documentation may be exempt.
If a non-Canadian buys with their spouse or common-law partner who is a Canadian citizen, a permanent resident, or a person registered under the Indian Act, the prohibition does not apply.
The regulations confirm that the prohibition does not apply where it conflicts with section 35 rights of Indigenous peoples, as recognised and affirmed in the Constitution Act, 1982. Justice Laws
Outside a CMA or CA: Residential properties outside these zones are not covered by the ban. This can include many recreational or rural properties. Always verify the address against CMHC’s CMA/CA map.
Four or more units: Larger multi-unit buildings (4+) are not within the Act’s definition of “residential property.”
Vacant land: As of March 27, 2023, vacant land is no longer captured by the prohibition.
Renting: Renting a unit does not constitute a purchase, and is not restricted by the Act.
Transfers through life events or security interests: Acquisitions due to death, divorce, separation, or gift, and seizure or foreclosure by a secured lender, are not “purchases” under the Act.
Offers signed before Jan 1, 2023: Binding purchase agreements entered before the Act took effect are honoured, even if they closed later.
Violating the prohibition is a criminal offence. Individuals who breach the ban — and anyone who knowingly assists — can face fines of up to $10,000. A court may also order the property sold, with the non-Canadian receiving no more than the purchase price they paid. Enforcement relies on local police investigating, with prosecutions handled by the Attorney General.
If you are listing a GTA home, your buyer pool may be narrower than pre-2023, but not closed to every newcomer. Work-permit holders, qualifying students, protected persons, and development-driven purchasers can still transact, and rural properties or 4+ unit buildings remain options for non-Canadians. A strong listing strategy includes verifying buyer eligibility early, aligning pricing to the realities of demand, and leveraging targeted marketing to reach qualified segments.
Confirm the property’s location status: Is it inside a CMA/CA?
Verify eligibility early: Immigration status, work-permit validity, tax-filing history, presence in Canada, and prior purchases all matter.
Align your financing and timing: Ensure the permit validity or student criteria will still be met at closing.
Document development intent: If you are relying on the development exception, align your plan with municipal processes, and keep evidence tidy.
Canada’s foreign buyers ban is not one-size-fits-all. The 2023 amendments opened important (but narrow) doors for workers, students, developers, and corporate structures with limited foreign control, and the 2024 extension keeps the framework in place until January 1, 2027. If you are a buyer or seller in the GTA, success starts with accurate screening, clear strategy, and expert guidance grounded in up-to-date rules.
Ready to buy or sell in the GTA? Partner with The Johnson Team. Whether you are navigating the ban’s exceptions, assessing development options, or simply deciding when to list, you deserve a team that understands market conditions, government regulations, and upcoming policy changes — so you do not have to.
If you are ready to start your move, contact The Johnson Team today to speak with an agent and get a custom plan for your next step. Your home goals, our expertise, and a clear path forward — let’s get you there.