Most non-Canadians cannot buy a home in Toronto right now. A federal law called the Prohibition on the Purchase of Residential Property by Non-Canadians Act took effect on January 1, 2023 and is currently set to run until January 1, 2027. Toronto sits inside a census metropolitan area, so the restriction covers the entire city.
The prohibition applies to residential property containing three or fewer dwelling units. Detached houses, semis, townhouses and individual condominium units all fall inside it. Buildings with four or more units sit outside the scope, which is why a non-Canadian can still purchase a small apartment building while a single condo suite is off limits. Vacant land zoned residential or mixed use was carved out of the restriction by a 2024 amendment.
Who the ban does not apply to
Canadian citizens and permanent residents buy on exactly the same footing as anyone else, no matter where in the world they happen to live. Protected persons under Canada's immigration system, people registered under the Indian Act and accredited diplomats are also exempt. A non-Canadian married to or in a common-law relationship with a citizen or permanent resident may purchase when the two of them buy the property together.
Work permit holders have their own carve-out. Someone authorized to work in Canada can buy one residential property if the permit has at least 183 days of validity remaining on the day the purchase closes. Earlier versions of the rule also demanded proof of full-time employment and several years of Canadian tax filings, and those conditions were dropped in 2024. The 183 days are measured against the closing date, not the day the agreement of purchase and sale was signed. That distinction matters enormously on a pre-construction condo that will not close for years.
What happens if a non-Canadian buys anyway
A purchase made in breach of the Act is not automatically void. Title still transfers. The consequence is a fine of up to $10,000, plus the risk that a court orders the property sold, and on that court-ordered sale the non-Canadian cannot receive more than what they originally paid for it. Anyone who knowingly assists with the purchase faces the same fine, which is why a real estate lawyer confirms eligibility before closing.
Eligibility is a separate question from cost. Ontario applies a 25% Non-Resident Speculation Tax to many residential purchases by foreign nationals, and mortgage qualification works differently for people who have recently arrived in the country.
Related reading: What Is the Non-Resident Speculation Tax in Ontario?, How Do Newcomers to Canada Qualify for a Mortgage?, and What Does a Real Estate Lawyer Do in Ontario?.
