How to Buy a House in Canada as a Foreigner (2025 Guide)

As of 2025, Canada continues to restrict foreign purchases of residential property. This guide explains the federal foreign-buyer ban (extended to 2027), who is exempt, the major provincial taxes that may apply, and how non-residents typically finance a purchase.

1) Federal Foreign-Buyer Ban (extended to 2027)

The Prohibition on the Purchase of Residential Property by Non-Canadians Act bars most non-Canadians from purchasing residential property in Canada. The federal government has extended the restriction to January 1, 2027.

Official overview (CMHC): https://www.cmhc-schl.gc.ca/…

2) Key Exceptions

Canadian citizens, permanent residents, and persons registered under the Indian Act (not restricted).
Certain work-permit holders may buy one residential property if they have at least 183 days of validity remaining at the time of purchase (per 2023 amendments).
Purchases of vacant land without a dwelling may be allowed even if zoned residential/mixed-use (check local rules).
Protected persons and some other narrow categories may also be exempt.

Regulation & FAQ: Regulations · Amendments (work-permit rule)

3) Provincial Add-On Taxes (if you qualify to buy)

Ontario (ON)

NRST 25% province-wide on residential purchases by foreign nationals/foreign entities, in addition to Ontario Land Transfer Tax (and Toronto municipal LTT if buying in Toronto).

Ontario details: Non-Resident Speculation Tax

British Columbia (BC)

Additional Property Transfer Tax 20% for foreign buyers in specified regions (e.g., Metro Vancouver, Fraser Valley, Capital, Central Okanagan, Nanaimo). Separate from regular PTT. BC also has a speculation & vacancy tax; check your situation.

BC details: Foreign Buyers’ Additional PTT

Nova Scotia (NS)

Provincial Non-resident Deed Transfer Tax 10% (from April 1, 2025) on top of the usual municipal deed transfer tax.

NS details: Provincial Deed Transfer Tax

4) Financing for Non-Residents

Typical down payment: around 35% for non-resident borrowers (varies by lender).
CMHC default insurance is generally not available to non-residents; documentation and rates can be stricter.
Banks may request proof of foreign income/employment, international credit report or bank reference, and larger cash reserves.

General down-payment rules (residents): FCAC guide

5) Step-by-Step Checklist

Confirm you are eligible under the federal rules (or clearly exempt).
Budget for provincial add-on taxes (ON 25% / BC 20% in specified areas / NS 10%).
Speak to lenders early; expect ~35% down and additional documents.
Hire a local realtor and a real-estate lawyer to draft an offer with correct ban/tax representations.
Include conditions (financing, inspection, condo docs if applicable).
On closing, pay regular transfer taxes plus any foreign-buyer tax; arrange title insurance and utilities.

6) Typical Closing Costs (quick list)

Land/Property Transfer Tax (provincial and sometimes municipal)
Foreign-buyer add-on tax (if applicable)
Legal fees and disbursements
Inspection and appraisal
Title insurance and adjustments

7) Useful Official Links

Federal overview: CMHC
Ontario NRST: Ontario
BC Additional PTT: British Columbia
Nova Scotia PDTT: Nova Scotia

This article is for general information only and not legal or financial advice. Always confirm current rules with official sources or qualified professionals.