Buying an apartment in Canada in 2026: the ban and prices

Until 1 January 2027 housing in Canadian cities is closed to foreigners. There are exceptions, but even then Ontario charges a 25% tax on the price and British Columbia 20%.

In detail

A foreigner cannot buy a flat in Toronto or Vancouver until 1 January 2027: Canadian cities are under a ban on home purchases by foreigners. There are exceptions, but even then Ontario charges a 25% tax on the price and British Columbia 20%. The full review is on the page investment property in Canada; here is the short answer.

Can a foreigner buy a flat in Canada in 2026

The law banning home purchases by foreigners has been in force since 1 January 2023 and was extended to 1 January 2027. It closes housing in large cities and their suburbs to foreigners. You can buy:

• housing in small towns and rural areas outside urban agglomerations;
• a vacant lot zoned for residential construction;
• a flat while holding a work permit valid for at least another 183 days, one property only;
• any home once you have permanent resident status.

A breach means a fine of up to $7,100 and a court-ordered sale of the home. The same fine applies to anyone who helped carry out the deal in breach of the ban.

How much a flat in Canada costs in 2026

• The national average price of homes sold in August 2026 was about $470,000, up 0.6% over the year.
• Toronto: about $710,000, with prices down 5% over the year.
• Vancouver and its suburbs: about $860,000.

Big-city markets have cooled, but for a foreigner they are still a shop window: you can look, but not buy.

Taxes and costs of buying a home in Canada

• Ontario: the tax on home purchases by foreigners is 25% of the price across the province, on top of the regular land transfer tax.
• British Columbia: an additional 20% tax for foreigners in certain areas, including Vancouver.
• In all provinces, a land transfer tax or registration fee at the provincial rate; Toronto adds its own city tax.

The annual federal 1% tax on foreigners' underused housing has been abolished from 2025. On a non-resident's rent, 25% of the gross amount is withheld, and on a sale the buyer withholds up to 25% of the price until the seller obtains a tax clearance certificate. More on the page taxes in Canada.

What happens after 1 January 2027

The Government of Canada is reviewing the ban and discussing a new scheme: open new builds and construction projects to foreigners while keeping existing homes closed. Until a decision is made, the ban applies as it stands, and a deposit on a future repeal is a bad idea.

Does a flat give residence in Canada

No. A home gives no right to live in Canada; people move through immigration programmes. Permanent resident status also lifts the purchase ban. Most foreign buyers need a Canadian visa or an electronic travel authorisation to travel for viewings. More on moving on the page Canada permanent residence by investment.

FAQ