Who does the foreign buyer ban apply to?

It applies to non-Canadians and corporations they control. Many permanent residents are exempt, and some temporary residents, such as certain workers and students who meet conditions, may still purchase.

How long is the ban in effect?

It took effect on January 1, 2023, and has been extended to January 1, 2027. Because timelines and rules can change, confirm the current status before making a purchase.

Mortgage Glossary

What is Foreign Buyer Ban?

Q: Are there places the ban does not apply?

Yes. The ban generally does not apply to residential properties located outside census metropolitan areas and census agglomerations, so some smaller and rural areas fall outside its scope.

The foreign buyer ban is a federal law, the Prohibition on the Purchase of Residential Property by Non-Canadians Act, that restricts non-Canadians from purchasing certain residential properties in Canada. It took effect on January 1, 2023, and has been extended to January 1, 2027. The ban includes several exceptions, including for many permanent residents and some temporary residents.

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Quick answer

Also known as: non-Canadian property purchase ban, Prohibition on the Purchase of Residential Property by Non-Canadians Act

Key points

Formally the Prohibition on the Purchase of Residential Property by Non-Canadians Act.
In effect since January 1, 2023, and extended to January 1, 2027.
Restricts non-Canadians from buying certain residential properties.
Many permanent residents and some temporary residents are exempt.
Generally does not apply outside census metropolitan areas and agglomerations.
Rules are detailed and evolving, so confirm your status before buying.

Foreign Buyer Ban explained

The foreign buyer ban prohibits non-Canadians, and corporations they control, from buying certain residential properties in Canada. It was introduced to address housing affordability concerns by reducing foreign demand. The prohibition has been extended and currently runs to January 1, 2027.

The law contains important exceptions. Many permanent residents are not affected, and certain temporary residents, such as some workers and international students who meet specific conditions, may still purchase. The ban also generally does not apply to properties located outside census metropolitan areas and census agglomerations, meaning some smaller and rural areas fall outside its scope. Because the rules are detailed and have evolved, anyone unsure of their status should confirm the current requirements.

What a Foreign Buyer Ban is for

The ban exists to ease pressure on housing affordability by limiting purchases by non-Canadians, particularly in higher-demand urban markets. The goal is to keep more homes available for Canadian residents and to dampen speculative foreign demand. It is one of several federal measures aimed at the housing supply and affordability challenge.

How it can help you

Understanding the ban helps buyers confirm whether they are eligible to purchase before they make an offer, avoiding wasted time and potential penalties. It also matters for newcomers who may qualify under an exception. Lenderoo shops 40+ lenders for free, so once you confirm your eligibility, you can compare mortgage options across many lenders to finance your purchase.

When it comes up

The ban comes into play when a newcomer or temporary resident wants to buy a home. A work-permit holder, for example, needs to confirm whether they meet the conditions of an exception or whether the property sits outside a census metropolitan area, where the ban may not apply. Confirming eligibility early prevents a deal from falling apart later.

Example: A temporary resident checking eligibility

Imagine a worker on a valid work permit who wants to buy a condo in a major city. The foreign buyer ban applies in that urban market, so they must check whether they meet the conditions of a temporary-resident exception.

If they meet the criteria, they may proceed; if not, they might instead look at a property outside a census metropolitan or agglomeration area, where the ban generally does not apply. Because the rules are detailed, they would confirm their status before making an offer to avoid a void purchase or penalties.

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Questions & answers

Foreign Buyer Ban: frequently asked questions

Common questions Canadians ask about foreign buyer ban.

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