Foreign-Buyer Ban on Residential Property: Still in Force

Key points

• The short title is the Prohibition on the Purchase of Residential Property by Non-Canadians Act (S.C. 2022, c. 10, s. 235).

• The Act was enacted by s. 235 of the Budget Implementation Act, 2022, No. 1 and came into force on January 1, 2023.

• Subject to the Act's exceptions, a non-Canadian must not purchase, directly or indirectly, any residential property.

• As of November 4, 2026, the Act remains in force on Justice Laws; the repeal is not yet in force.

• Under BIA 2022 s. 237(2) as amended, the repeal comes into force on January 1, 2027.

What the Act prohibits

Under the Act, it is prohibited for a non-Canadian to purchase, directly or indirectly, any residential property, subject to the Act's exceptions.

For the Act, a "purchase" includes acquiring, with or without conditions, a legal or equitable interest or a real right in a residential property.

The rental of a dwelling unit to a tenant for occupation by the tenant is not a "purchase" under the Regulations.

The Act's contravention does not, by itself, affect the validity of the sale to which the contravention relates.

Non-Canadian and residential property

For the Act, "non-Canadian" includes an individual who is neither a Canadian citizen nor a person registered as an Indian under the Indian Act nor a permanent resident; certain corporations and prescribed persons or entities are also non-Canadians.

"Residential property" includes a detached house or similar building with not more than three dwelling units, and parts of buildings such as a semi-detached house, rowhouse unit, or residential condominium unit (plus prescribed property), other than prescribed exclusions.

"Control" of a corporation or entity for the Regulations includes 10% or more of equity value or voting rights, or control in fact.

Where the ban applies

The ban applies only to property inside a census metropolitan area or census agglomeration under Statistics Canada's SGC 2021, which covers Ontario's larger urban areas; property outside every CMA/CA is excluded.

That geographic limit follows from the Regulations: for the portion of the residential-property definition before paragraph (a), a property located outside both a census agglomeration and a census metropolitan area (SGC 2021) is prescribed — so the prohibition targets property in a CMA or CA.

Exceptions in outline

Statutory exceptions include certain temporary residents who meet prescribed conditions, protected persons, purchases with a spouse or common-law partner who is a citizen, permanent resident, Indian Act registrant or listed exception person, prescribed classes, and prescribed circumstances.

Temporary-resident conditions in the Regulations include a study-permit track (5 years' tax filing, 244 days' presence in each of the 5 prior years, price cap $500,000, one property) and work-permit track (183+ days validity remaining, one property).

Those conditions are summarized at a high level only; they are not a how-to for buying under an exception.

Offence and court order

Every non-Canadian who contravenes s. 4, and every person or entity that knowingly counsels, induces, aids or abets (or attempts to) a prohibited purchase, is guilty of an offence and liable on summary conviction to a fine of not more than $10,000.

If a non-Canadian is convicted of contravening s. 4, the superior court of the province may, on the Minister's application, order the residential property sold in the prescribed manner.

Sunset and current status

Section 236 of the Budget Implementation Act, 2022, No. 1 would repeal the Prohibition Act; that repeal is not yet in force.

Under BIA 2022 s. 237(2) as amended, s. 236 comes into force on the fourth anniversary of the day s. 235 came into force. Section 235 came into force on January 1, 2023, so the repeal comes into force on January 1, 2027.

The Regulations are repealed on the day BIA 2022 s. 236 comes into force.

On February 4, 2024, the Department of Finance announced its intent to extend the ban to January 1, 2027. Parliament did so in the Budget Implementation Act, 2024, No. 1 (S.C. 2024, c. 17, s. 149), assented to June 20, 2024.

As of November 4, 2026, the Prohibition Act remains in force on Justice Laws (Act current to 2026-10-19); the ban has not ended.

Schedule a Consultation

Related: Home purchase lawyer | Residential real estate

This article is general information about Canadian and Ontario real estate law as of November 4, 2026. It is not legal advice.

Sources: Prohibition on the Purchase of Residential Property by Non-Canadians Act (https://laws-lois.justice.gc.ca/eng/acts/P-25.2/FullText.html); Prohibition on the Purchase of Residential Property by Non-Canadians Regulations, SOR/2022-250 (https://laws-lois.justice.gc.ca/eng/regulations/SOR-2022-250/FullText.html); Budget Implementation Act, 2022, No. 1, ss. 236–237 (https://laws-lois.justice.gc.ca/eng/acts/B-9.8595/FullText.html); Budget Implementation Act, 2024, No. 1, S.C. 2024, c. 17, s. 149 (https://laws-lois.justice.gc.ca/eng/AnnualStatutes/2024_17/FullText.html); Department of Finance announcement, February 4, 2024 (https://www.canada.ca/en/department-finance/news/2024/02/government-announces-two-year-extension-to-ban-on-foreign-ownership-of-canadian-housing.html).

Wolf Law Professional Corporation. Legal services provided by lawyers licensed by the Law Society of Ontario. The information on this site is general information, not legal advice. Contacting us does not create a lawyer-client relationship.

Privacy Policy | Legal Notice