Investments
Why invest in Canadian real estate
Canada pairs secure property rights and a regulated market with a long-running shortage of homes. For buyers outside Canada the rules are also about to change: the federal foreign buyer ban is scheduled to end on January 1, 2027.
At a glance
The dates and numbers that matter now
Jan 1, 2027
Scheduled end of the foreign buyer ban
Ottawa is reviewing its options and has not announced a decision.
Mar 31, 2027
Deadline for the enhanced HST rebate
The last day to sign for a new Ontario home and qualify for up to $130,000 in HST relief.
25% + 10%
Non-resident purchase taxes
Ontario charges 25%. Toronto adds 10% inside the city. Both stay whatever happens to the ban.
4+ units
Already outside the ban
Buildings with four or more homes have been open to foreign buyers throughout.
The case for Canada
What you are buying into
Ownership you can rely on
A foreign buyer who is permitted to purchase holds the same freehold or condominium title as a Canadian. Title is registered in Ontario’s provincial land registration system and purchases close through lawyers. Deposits on resale homes and new condominiums are held in trust, and newly built homes carry a statutory warranty and deposit protection through Tarion.
A regulated market
Brokerages and salespeople in Ontario are registered with the Real Estate Council of Ontario and work under the Trust in Real Estate Services Act. Ayat Realty Group operates under Best Sellers Realty Inc. Brokerage.
Policy that rewards new supply
Governments at every level are trying to get more homes built, and the incentives follow: HST relief on new homes, a full GST/HST rebate for new purpose-built rental buildings, waived development charges on small multi-unit projects in Toronto, and CMHC-insured financing for apartment buildings.
Financing for buyers abroad
Canadian lenders do lend to non-residents, usually against a larger down payment than a resident needs. Terms differ from lender to lender, so we introduce you to mortgage brokers who work with international clients before you make an offer.
Foreign buyer ban
Where the ban stands
Since January 1, 2023, the Prohibition on the Purchase of Residential Property by Non-Canadians Act has barred most people who are not citizens or permanent residents from buying homes in Canada’s cities and larger towns. It covers buildings with up to three homes, including houses and condominium units. In February 2024 the federal government announced a two-year extension, to January 1, 2027.
Status in October 2026. The ban is scheduled to expire on January 1, 2027. On October 7, 2026 the Finance Minister said the government is “looking at all the options” and gave no decision or date. No extension or replacement has been announced. One model raised publicly is Australia’s, which lets foreign buyers purchase newly built homes but not existing ones. Plan for more than one outcome.
What a non-Canadian can already buy
- Buildings with four or more homes
- Vacant land, and property bought for development
- Property outside census metropolitan areas and census agglomerations, which covers many small towns and rural areas
- A home bought together with a spouse or common-law partner who is a citizen or permanent resident
- One home, for holders of a work permit with at least 183 days remaining
- A home priced at $500,000 or less, for international students who meet the residency and tax-filing tests
Each exemption has conditions. Confirm yours with a Canadian real estate lawyer before you sign.
Purchase taxes
What a non-resident pays at purchase in Ontario
The end of the ban would not remove the taxes aimed at foreign buyers. Budget for them from the start.
| Tax | Rate | Where | Applies to |
|---|---|---|---|
| Non-Resident Speculation Tax | 25% of the price | All of Ontario | Land with one to six homes: houses, condominium units, and duplexes up to sixplexes |
| Municipal Non-Resident Speculation Tax | 10% of the price | City of Toronto | Residential property bought by foreign buyers, on top of the provincial tax |
| Land transfer tax | Sliding scale | Ontario, plus a second municipal tax in Toronto | Every buyer, resident or not |
| HST | 13% | Ontario | Newly built homes, less any rebate you qualify for |
The Non-Resident Speculation Tax does not apply to rental apartment buildings with more than six units, or to commercial, industrial and agricultural land. A rebate is available to buyers who become permanent residents within four years and meet the conditions.
That gap is why many international investors look at larger buildings. See how multi-unit and multifamily investments work.
HST on new homes
HST relief in 2026 and 2027
New homes in Ontario are sold with 13% HST. Our pre-construction site, PreConstruction Canada, covers how deposits and builder purchases work. Three relief measures are worth knowing about now.
Homes you or a relative will live in
For purchase agreements signed with a builder between April 1, 2026 and March 31, 2027, Ontario’s enhanced new housing rebate and a matching provincial payment for the federal portion remove up to $130,000 of HST. That is the full 13% on homes up to $1 million, a flat $130,000 up to $1.5 million, and a reduced amount up to $1.85 million. The home must be the primary residence of the buyer or a relation. Construction must start by the end of 2028 and be substantially complete by the end of 2031.
Newly built rental homes
Ontario has also announced enhanced relief for new rental homes. The Canada Revenue Agency has said its detailed guidance is expected in October 2026, and early legal commentary indicates the relief is limited to homes where construction began before March 31, 2026. Ask us for the current position before you rely on it.
Purpose-built rental buildings
A new rental building with at least four self-contained units, or at least ten units, qualifies for a rebate of 100% of the GST and of the Ontario portion of the HST when at least 90% of the units are held for long-term rental. Construction must begin before 2031 and be substantially complete before 2036. Some conversions of non-residential buildings qualify.
Which rebate applies depends on who will live in the home. A buyer who will not live in Canada generally looks to the rental-property rebates, not the primary-residence rebate. We work through this with your accountant before you sign.
Investor consultation
Find out what you can buy and what it will cost
Send us your situation. We will map the purchase taxes, the HST position and the financing route for the property types open to you.
- A 30-minute call by video, phone or WhatsApp, in your time zone
- A straight answer on what you can buy today and what it costs
- No obligation. We use your details only to respond to you
Prefer to message? WhatsApp 647-462-2928 or email sales@ayatrealty.com.
Sources and notes
- CMHC: Prohibition on the Purchase of Residential Property by Non-Canadians Act
- Canadian Mortgage Trends, October 7, 2026: Ottawa reviews foreign homebuyer ban as 2027 expiry approaches
- Government of Ontario: Non-Resident Speculation Tax
- City of Toronto: Municipal Land Transfer Tax rates and fees, including the Municipal Non-Resident Speculation Tax
- Canada Revenue Agency: Notice 346, Ontario Enhanced New Housing Rebate
- Canada Revenue Agency: GST/HST new residential rental property rebate
- Osler: Ontario’s new HST rebate, key details
Last reviewed: October 12, 2026. Rules, rates and deadlines change, and several items on this page are awaiting federal or provincial decisions. This page is general information, not legal, tax or financial advice. Confirm your own position with a Canadian real estate lawyer and accountant before you commit. Ayat Realty Group, Best Sellers Realty Inc. Brokerage.