Moving to Canada is an exciting journey, and for many newcomers, owning a home is a top goal. But can foreigners buy property in Canada in 2025? The answer isn’t straightforward, especially with the introduction of federal restrictions. Whether you’re eyeing an investment property or a vacation home in East Toronto, understanding the rules is key to making smart real estate decisions.
The Foreign Buyer Ban: What You Need to Know
The Prohibition on the Purchase of Residential Property by Non-Canadians Act, introduced in 2023, restricts foreign nationals from buying residential properties in Canada until January 2027. This legislation aims to improve housing affordability by curbing speculative investment in high-demand areas like Toronto and Vancouver.
Who’s affected? The ban applies to non-Canadians who are neither permanent residents nor citizens. It also includes corporations controlled by foreign interests. However, certain exemptions exist.
Exceptions That Allow Foreign Property Ownership
While the law restricts most foreign buyers, there are several exceptions:
- Work and study permit holders, refugees, and diplomats can purchase property.
- Vacation homes and recreational properties are permitted, especially in rural areas.
- Homes outside Census Metropolitan Areas (CMAs) and Census Agglomerations (CAs)—like parts of Eastern Ontario—are not covered by the ban.
If you’re interested in buying in East Toronto, it’s important to check zoning and classification before making an offer.
➡️ Learn more about Canadian immigration and residency requirements for homebuyers.
Can Americans Buy Property in Canada?
Yes—but owning property doesn’t provide immigration status. Americans must apply for temporary or permanent residency through proper channels. Additionally, U.S. citizens may face dual tax filing obligations.
We strongly recommend consulting with a cross-border tax specialist to ensure compliance with both countries’ regulations.
➡️ This guide by PwC offers a good overview of tax issues for U.S. buyers.
The Buying Process for Foreigners in 2025
If you qualify to buy, here’s what the process looks like:
- Document Collection: Legal immigration status and proof of funds are required.
- Down Payment: At least 5%, rising to 20% for homes over $1.5 million.
- Mortgage Options: Fixed and variable rates are available. Canadian mortgage terms are shorter than in other countries.
- Closing Costs: Include legal fees, land transfer taxes, and inspections.
Local market knowledge is vital. For example, East Toronto real estate offers unique opportunities in both residential and vacation property categories.
➡️ Consider reviewing our guide on first-time home buying in East Toronto for detailed insights.
Final Thoughts: Can Foreigners Buy Property in Canada?
So, can foreigners buy property in Canada? Yes—if you meet the exemption criteria. Whether you’re an international investor, a new immigrant, or a temporary resident, understanding the rules can help you navigate the Canadian housing market with confidence.
