The “Foreign Buyer Ban” or federal Prohibition on the Purchase of Residential Property by Non-Canadians Act prevents people who are not Canadian citizens, permanent residents, or registered under the Indian Act from buying most residential properties in many urban areas of Canada. It took effect on January 1, 2023 and was initially set for two years (2023–2024), but in February 2024, the federal government extended it until January 1, 2027.

The federal government introduced the ban to try to make more homes available and affordable for Canadians by limiting certain purchases by non-Canadians. The ban is one tool among several housing measures (supply programs, tax measures, provincial levies) intended to ease affordability pressures. Economists argue that foreign buyers made up a very small share of overall demand, so supply measures (building more homes) are likely more important to affordability than purchase bans but the ban is in effect nonetheless.

The foreign buyer ban covers the following properties:

The prohibition covers residential property defined as buildings with three dwelling units or fewer (e.g., single-family homes, semis, condominiums). It does not apply to buildings with four or more units (so larger apartment buildings and many multi-unit rental buildings are outside the ban).
The rule applies only to properties located inside Census Metropolitan Areas (CMAs) and Census Agglomerations (CAs) as defined by Statistics Canada (i.e., most urban and suburban areas). Properties outside those areas are generally not included in the prohibition. CMHC provides a map tool to check whether a property sits in a CMA/CA - view here.

Who Does the Foreign Buyer Ban Apply To?

The law applies to anyone who is a “non-Canadian”, specifically people who are not:

Canadian citizens,
permanent residents, or
persons registered under the Indian Act.

It also applies to privately-held corporations or entities formed in Canada that are controlled by non-Canadians (publicly traded companies are treated differently).

Exceptions to the Foreign Buyer Ban

The Act and its Regulations include several specific exceptions that allow foreign buyers to purchase property:

Temporary residents studying in Canada can buy if they meet all of these conditions:

enrolled in an authorized program at a designated learning institution,
filed income tax returns for each of the 5 taxation years before the year of purchase,
were physically present in Canada for at least 244 days in each of those 5 years,
have not previously purchased residential property during the ban, and
the purchase price is $500,000 or less.

Temporary residents working in Canada can buy if they meet all of these conditions:

hold a valid work permit (or other work authorization),
have at least 183 days of validity remaining on their permit/authorization at time of purchase,
have worked in Canada for a minimum period (the Regulations require a certain number of years — for many work-permit holders it’s three years out of the prior four),
filed required income tax returns for the qualifying period, and
have not already purchased a residential property while the prohibition is in effect.

Other exceptions include:

Refugees or protected persons and certain refugee claimants (under specific conditions).
Accredited foreign mission members (i.e. diplomats).
Spouses or common-law partners of Canadians (or of other persons for whom the prohibition does not apply), when buying together.
Purchases outside CMAs/CAs (i.e., many rural/ smaller communities).
Some purchases for development purposes and certain corporate exceptions (the Regulations were amended to refine corporate control thresholds).

Penalties and Enforcement of the Foreign Buyer Ban

Fines up to $10,000: A person who is convicted of breaching the prohibition (or who knowingly assists a non-Canadian to breach it) can face fines of up to $10,000
Court-ordered sale: The Minister can apply to a court to order the judicial sale of a property bought in breach of the Act. Regulations require that a non-Canadian who loses a judicial sale receive no more than the purchase price back (after sale costs and other priorities); any remaining funds may be paid to the Receiver General of Canada. In short: a court can force a sale and the non-Canadian will not recover a profit.

Provincial Rules and Taxes

This federal law is separate from provincial or municipal levies and rules (for example, Ontario and British Columbia have non-resident/foreign buyer taxes or regional levies that apply to purchases by non-residents or foreign buyers). Those taxes and surcharges can add substantial cost. If you’re a non-Canadian or temporary resident, check both federal prohibition rules and provincial/municipal taxes or reporting requirements for the area where you plan to buy.

Not Sure If You Are Affected by the Foreign Buyer Ban?

If you’re thinking about buying property in Canada (as a Canadian, temporary resident, or non-Canadian), follow this checklist:

Read CMHC website: CMHC outlines all of the details of the Foreign Buyer ban on their website here.
Get legal advice: The rules are detailed and enforcement mechanisms are serious (fines, forced sale). Before putting down any funds or signing a contract, a real-estate lawyer in the province of the property should review the purchase agreement, ownership structure, and provincial/municipal non-resident taxes (e.g., Ontario NRST, BC foreign buyer tax).
Confirm nationality / status: Are you a Canadian citizen, permanent resident, registered under the Indian Act, or a non-Canadian? This is the legal starting point.
Check the property’s location: Use CMHC/Statistics Canada maps (CMA/CA) — the Act mainly applies inside CMAs/CAs. If the property is outside a CMA/CA, the prohibition may not apply.
Confirm property type: Does the property have ≤3 dwelling units? If >3 units, it’s not captured by the federal prohibition.
If you’re a temporary resident, gather documents: work permit details, tax returns for the required years, proof of presence in Canada (if you’re a student), and ensure you meet the specific time and tax-filing thresholds. These are strict.
Ask about provincial taxes: Make sure your advisor checks provincial/municipal non-resident taxes (e.g., Ontario NRST, BC foreign buyer tax), which can be costly.

Bottom line

If you’re not a Canadian citizen, permanent resident, or registered under the Indian Act and you want to buy a single-family home, semi, or condo inside a Canadian metropolitan area, the federal ban probably applies, then unless you meet one of the very specific exceptions in the Regulations (temporary-resident exceptions, refugees, diplomats, spouse exceptions, purchase outside a CMA/CA, etc.). The consequences of getting it wrong are serious (fines, forced sale and loss of profit). Always check property location, confirm status, gather necessary documents, and get professional legal advice before you sign anything.

Contact me if you need help or a referral to a lawyer.