Can International Students or Workers Buy Property in Canada? Here’s What You Need to Know

Buying your first home in Canada as an international student or temporary worker can be exciting — but also confusing. With Canada’s foreign buyer ban extended and multiple tax rules in place, it’s important to know the facts before you sign that offer.

Here’s a simple breakdown to help you navigate the process with confidence.

🇨🇦 The Foreign Buyer Ban — Where We Stand in 2025

The Prohibition on the Purchase of Residential Property by Non-Canadians Act was introduced to help cool the housing market by limiting foreign demand.

🕒 What’s the timeline?

The ban started on January 1, 2023
It was extended in February 2024 and now lasts until January 1, 2027

🏠 What properties are affected?

The ban applies to:

Residential properties with 1 to 3 units (including condos, detached homes, semis)
Properties located in urban areas — specifically, Census Metropolitan Areas (CMAs) and Census Agglomerations (CAs)

✅ Not covered:

Vacant land
Properties in rural areas (outside CMAs/CAs)
Multi-unit buildings (4+ units)

🚫 Who Can’t Buy?

You’re considered a “non-Canadian” if you:

Are not a Canadian citizen
Do not have permanent resident status
Are a corporation controlled by a foreign entity or individual

✅ Who Can Still Buy? (Exceptions)

🎓 International Students can buy 1 residential property if they:

Have been in Canada 244+ days each year for the past 5 years
Filed Canadian income taxes for the last 5 years
Purchase a home under $500,000
Have not previously purchased another residential property

💼 Work Permit Holders can buy 1 home if:

They have a valid work permit
There are 183+ days remaining on the permit at the time of purchase

🔑 Note: You must meet all conditions to qualify. No exceptions.

💰 What About Taxes?

Even if you’re allowed to buy, there may still be extra costs to plan for:

1. Non-Resident Speculation Tax (NRST) – Ontario

Rate: 25% of the purchase price
Applies to: Foreign nationals buying residential property in Ontario
Rebate available if:
- You become a permanent resident within 4 years
- You live in the home as your principal residence for that entire time

2. Ongoing Property Taxes

Everyone pays annual municipal property taxes, regardless of citizenship or status.

3. Rental Income

Planning to rent out your home?

You must report rental income to CRA
There’s a 25% withholding tax on gross rent for non-residents
You can reduce this by filing Form NR6 to be taxed on net income (after expenses)

4. Selling Later? Capital Gains Tax Applies

If you’re not a resident of Canada when selling:

You must get a clearance certificate (Section 116) from CRA
Otherwise, the buyer must withhold 25–50% of the sale price
You’ll pay tax on 50% of your capital gain

🧠 Final Thoughts

Buying real estate in Canada is possible for international students and workers — but the process is more complex and costly. Whether it’s the federal ban or provincial taxes, it’s essential to do your homework or speak to a law and/or tax professional.

This blog post is for general informational purposes only and does not constitute legal or tax advice. The law and regulations may change from time to time — please consult a qualified professional for personalized guidance.

Cathy | Real Estate Salesperson

📲 Direct: 647-463-8810 📧 Email: cathy.tse@century21.ca
Instagram – Facebook – Linktree – Subscribe for News – Blog – WhatsApp