Can we buy a home in Canada?
It depends on your status. Citizens and permanent residents buy like anyone else. On a work permit you count as a non-Canadian: a federal ban stops most purchases, but there’s an exception for work permit holders, and Ontario and BC add heavy taxes for foreign buyers on top.
In 30 seconds
- The federal ban on non-Canadians buying homes runs to 1 January 2027. A work permit holder can buy one home if the permit has at least 183 days left on the purchase date, or if their spouse is a citizen or permanent resident
- Foreign buyers who are allowed to buy still pay Ontario’s 25% Non-Resident Speculation Tax (plus 10% more in Toronto) and BC’s 20% additional tax in Vancouver, Victoria and other regions
- First-time buyer tax breaks in Ontario, Toronto and BC are lost if you have ever owned a home anywhere in the world, so a UK home counts against you
The foreign buyer ban
The Prohibition on the Purchase of Residential Property by Non-Canadians Act started in 2023. In February 2024 it was extended to 1 January 2027. It stops “non-Canadians” buying most homes. Permanent residents and citizens aren’t affected. Exceptions in the Act and its regulations include:
- Work permit holders with 183 days or more left on their work permit on the date of purchase, who haven’t bought more than one home
- Couples: a non-Canadian buying with a spouse or common-law partner (living together for at least a year) who is a citizen, a permanent resident or a First Nations person with registered status
- Some students who meet tax-filing and other conditions, protected persons and diplomats
Breaking the ban is an offence, and a court can order the home to be sold. As of August 2026, the federal government was reviewing what happens after 1 January 2027, with the Australian approach (new homes allowed, existing homes banned) mentioned as one model, but nothing had been passed. Check the current status of the ban with your lawyer before you make an offer
Foreign buyer taxes still apply
Being exempt from the federal ban doesn’t exempt you from provincial taxes. Ontario says so directly.
| Where | Extra tax for foreign nationals | Ways out |
|---|---|---|
| All of Ontario | Non-Resident Speculation Tax (NRST): 25% of the price | Exemption for a spouse of a citizen or permanent resident, and for Ontario nominees. A rebate if you become a permanent resident within 4 years |
| Toronto | Municipal NRST: a further 10%, since 1 January 2025 | City rebates, on similar lines to Ontario’s |
| BC: Metro Vancouver, Capital (Victoria), Fraser Valley, Central Okanagan (Kelowna), Nanaimo | Additional property transfer tax: 20% of your share | Exemption for confirmed BC Provincial Nominees |
On a C$800,000 home in Toronto, the two foreign buyer taxes come to C$280,000 (about £151,000). If one buyer is a foreign national, Ontario charges NRST on the whole price, not just their share. Many people on work permits rent until permanent residence comes through. See permanent residence and renewing your lease.
Getting a mortgage
With less than 20% down, your mortgage must be insured, for example by CMHC. CMHC insures newcomers with permanent residence or a work permit, with no minimum time in Canada. At least one borrower needs a credit score of 600, and if your Canadian history is thin CMHC may consider an international credit report or a letter from your UK bank. Only buyers exempt from the federal ban can be considered. Lenders can add their own rules, such as a bigger deposit for work permit holders. See building a credit history.
| Price | Minimum down payment |
|---|---|
| Up to C$500,000 | 5% |
| C$500,000 to C$1.5 million | 5% of the first C$500,000, 10% of the rest |
| C$1.5 million or more | 20%: no mortgage insurance |
On a C$800,000 home the minimum is C$55,000 (about £29,700). The insurance premium is a percentage of the loan: 4% when you borrow more than 90% of the price, falling to 2.8% between 80% and 85%. Since December 2024 first-time buyers, and anyone buying a new build, can take a 30-year insured mortgage instead of 25 years, for a 0.20% extra premium. Lenders also test whether you could afford a higher rate. For uninsured mortgages, the federal regulator’s minimum qualifying rate has been the higher of 5.25% or your rate plus 2 points. Check the current qualifying rate with your lender or broker
Land transfer tax
Unlike UK stamp duty, rates vary by province and some cities add their own.
| Where | Tax on the price |
|---|---|
| Ontario | 0.5% to C$55,000; 1% to C$250,000; 1.5% to C$400,000; 2% above; 2.5% over C$2 million for one or two homes |
| Toronto (on top) | Same bands as Ontario up to C$3 million. From 1 April 2026, higher rates on houses above C$3 million: 4.40% rising to 8.60% over C$20 million |
| BC | 1% to C$200,000; 2% to C$2 million; 3% above; a further 2% on homes over C$3 million |
| Quebec (“welcome tax”) | 0.5% to about C$55,000, 1% to about C$276,000, 1.5% above. Montreal adds higher bands, reaching 4% |
| Alberta | No land transfer tax: only registration fees |
On a C$800,000 Toronto home you pay C$12,475 to Ontario and the same again to the city: C$24,950 (about £13,500). On a C$900,000 home in BC it’s C$16,000. Use the province’s or city’s calculator for your price
First-time buyer help, and why your UK home matters
| Scheme | What you get | The catch for Brits |
|---|---|---|
| Ontario refund | Up to C$4,000: no tax on the first C$368,000 | You, and your spouse while together, must never have owned a home anywhere in the world. Citizens and permanent residents only, or within 18 months of buying |
| Toronto rebate | Up to C$4,475 | Same “anywhere in the world” test |
| BC exemption | No tax on the first C$500,000 if the home is worth up to C$835,000; partial up to C$860,000 | Never owned a main home anywhere in the world; citizen or permanent resident; in BC for a year or 2 BC tax returns |
| First Home Savings Account (FHSA) | Save C$8,000 a year, C$40,000 in total, tax-free, with tax relief on what you pay in | You, or your partner, mustn’t have lived in a home either of you owned this year or in the previous 4 calendar years |
| Home Buyers’ Plan | Borrow up to C$60,000 each from your RRSP, repaid over 15 years | Needs RRSP savings, which takes Canadian earnings |
| GST rebate on new homes | The full 5% GST, up to C$50,000, on new homes up to C$1 million; less up to C$1.5 million | Citizens and permanent residents who haven’t owned and lived in a home in the last 4 years |
If you sold your UK home years ago, the FHSA and GST tests may still work for you, but the Ontario, Toronto and BC land tax breaks won’t. Ask the CRA or your FHSA provider how a UK home you lived in counts. More on RRSPs and the FHSA in pensions and savings.
Closing costs
Budget 1.5% to 4% of the price on top of your deposit: land transfer tax, a lawyer, a home inspection, title insurance and adjustments for property tax the seller has prepaid. You can’t usually add these to the mortgage.
BC’s speculation and vacancy tax
In Metro Vancouver, Victoria, Kelowna, Nanaimo and other listed areas, every owner must declare by 31 March each year how they used the home the year before. Miss it and you’re charged at the top rate.
- 2026 rates: 3% of the assessed value for foreign owners, 1% for citizens and permanent residents. From 2027, 4% for foreign owners
- Principal residence exemption: only for citizens and permanent residents who are BC residents for tax. Before permanent residence, a tax credit may cut the bill, but check
- A home let to tenants can be exempt if the tenancy rules are met
What to do next
- Check whether your work permit has at least 183 days left, or your partner’s status, before you look
- Work out land transfer tax and any foreign buyer tax for your city
- Ask a mortgage broker and a real estate lawyer before you make an offer
Keep going
- Justice Laws: Prohibition on the Purchase of Residential Property by Non-Canadians Act
- Justice Laws: Prohibition on the Purchase of Residential Property by Non-Canadians Regulations
- Aird & Berlis: Federal government extends prohibition on purchase of residential property by non-Canadians to 1 January 2027 (Feb 2024)
- Pegasus Lending: Foreign buyer ban Canada: what Ottawa’s review means (Aug 2026)
- Government of Ontario: Non-Resident Speculation Tax
- City of Toronto: Municipal Land Transfer Tax and Municipal Non-Resident Speculation Tax rates and fees
- City of Toronto: MLTT and MNRST rebate opportunities
- Government of BC: Additional property transfer tax for foreign entities and taxable trustees
- CMHC: CMHC Newcomers, insured financing for permanent and non-permanent residents
- CMHC: Premium information for homeowner and small rental loans
- Moving2Canada: New mortgage rules in Canada offer benefits for newcomers (Dec 2024)
- OSFI: Amendments to the minimum qualifying rate for uninsured mortgages
- Government of Ontario: Land transfer tax
- Government of Ontario: Calculating land transfer tax
- Government of Ontario: Land transfer tax refunds for first-time homebuyers
- Government of BC: Property transfer tax
- Government of BC: First time home buyers’ exemption
- Canadian Money Help: Quebec welcome tax (estimate, 2026)
- Canada Revenue Agency: First Home Savings Account (FHSA)
- Knowledge Bureau: HBP withdrawal limits and repayment periods increased (Jun 2026)
- Department of Finance Canada: GST relief for first-time home buyers on new homes valued up to $1.5 million (May 2025)
- Sarah Nixon-Miller, mortgage broker: GST rebate gives first-time buyers up to $50,000 off new homes
- RE/MAX Canada: Closing costs in Canada
- Government of BC: Tax rates for the speculation and vacancy tax
- Government of BC: How the speculation and vacancy tax works
- Government of BC: Speculation and vacancy tax exemptions for individuals
- Government of BC: Speculation and vacancy tax taxable areas