Can Newcomers and Non-Residents Buy Pre-Construction in Ontario? (2026)

Yes, most newcomers can buy pre-construction in Ontario. Canadian citizens and permanent residents are not covered by the federal foreign-buyer ban, and work-permit holders, some international students and a few other groups can qualify for an exception. If you are not a citizen or permanent resident, budget for Ontario’s 25% Non-Resident Speculation Tax (NRST) and, inside the City of Toronto, a separate 10% municipal tax, unless an exemption applies.

This reflects the rules as of October 2026. The details are strict. Use this to get your questions ready before you speak to a lawyer and a lender.

The federal ban is set to end January 1, 2027

The Prohibition on the Purchase of Residential Property by Non-Canadians Act stops most people who are not citizens or permanent residents from buying residential property in Canada. It was first set to end on January 1, 2025. On February 4, 2024, the federal government announced a two-year extension to January 1, 2027. CMHC’s page on the Act refers to the extension, and the Department of Finance announcement has the federal statement.

As of October 2026, the ban is scheduled to expire on January 1, 2027 unless it is extended again. We have not seen an official source confirming another extension or confirming that it will lapse. With the date this close, check the latest federal announcements, or ask us or your lawyer, before you count on either outcome.

The ban and the NRST are separate rules from separate governments. The ban decides if you can buy. The NRST decides how much tax you pay if you do. The ban ending would not remove the NRST.

Who the ban covers

According to CMHC, the ban applies to:

• Individuals who are not Canadian citizens, permanent residents, or persons registered under the Indian Act.
• Corporations and other entities formed under Canadian or provincial law that are not listed on a Canadian stock exchange and are controlled by non-Canadians. “Control” means holding 10% or more of the equity value or voting rights, or having control in fact.

It does not apply to citizens, permanent residents, or temporary residents who meet one of the exceptions below. If you recently became a permanent resident, you are outside the ban.

Exceptions for newcomers

Each exception has conditions, and you have to meet all of them on the day of purchase.

Work-permit holders

You may be able to buy if:

• You hold a valid work permit or are otherwise authorized to work in Canada.
• You have 183 days or more left on that permit or authorization at the time of purchase.
• You have not already bought a residential property in Canada while the prohibition has been in effect.

In practice, that is one purchase per eligible permit holder while the ban lasts. If your permit is close to expiring, the 183-day rule can stop you. Check the dates before you sign.

International students

This exception is much narrower. You must:

• Be enrolled in a program of authorized study at a designated learning institution.
• Have filed income tax returns for each of the 5 taxation years before the year of purchase.
• Have been physically present in Canada for at least 244 days in each of those 5 calendar years.
• Not have bought a residential property in Canada while the prohibition has been in effect.
• Buy at a purchase price of no more than $500,000.

Most new students won’t pass the five-year tax and residence test. Students who have been here for several years might.

Spouses and common-law partners

A non-Canadian spouse or common-law partner can buy together with a Canadian citizen, a person registered under the Indian Act, a permanent resident, or another person who is not prohibited from buying. This is the route for families where one partner has status and the other doesn’t. Have your lawyer review how names go on the agreement of purchase and sale before you sign.

Refugees, diplomats and other groups

The ban does not apply to refugees and protected persons, to refugee claimants whose claim has been found eligible and referred to the Refugee Protection Division, or to people given temporary resident status on humanitarian grounds after fleeing conflict. CMHC also lists accredited members of foreign missions and purchases connected to Section 35 Indigenous rights.

Location and building-type exceptions

Residential property outside a Census Metropolitan Area (CMA) or Census Agglomeration (CA), as defined in Statistics Canada’s Standard Geographical Classification 2021, is not covered. A CMA has a total population of at least 100,000, with 50,000 or more in the core. A CA has a core population of at least 10,000. Toronto, Mississauga and Brampton are major urban centres, so this exception is unlikely to help there. If you are looking at a smaller town, have your lawyer check the exact address against the Statistics Canada classification.

CBC reported that the February 2024 announcement also included exemptions for buying buildings with four or more residences, and for some less populated areas. That is about buying a whole residential building. Don’t assume it covers a single unit in a condo tower; ask a lawyer.

Agreements signed before 2023

CMHC notes that a purchase can go ahead if the buyer entered a binding offer to purchase before January 1, 2023, even if it closed after the Act came into effect. This mostly matters for older pre-construction agreements.

Summary by buyer type

Buyer	Federal ban (to Jan 1, 2027 unless extended)	Ontario NRST / Toronto MNRST
Canadian citizen	Not covered	Not a foreign national; tax not aimed at you
Permanent resident	Not covered	Exempt (KPMG example)
Work-permit holder	Exception possible: valid permit, 183+ days left, first purchase	Generally applies unless an exemption fits; check ontario.ca
International student	Narrow exception: 5 years of tax returns, 244+ days each year, price up to $500,000	Generally applies unless an exemption fits; check ontario.ca
Spouse buying with a citizen or PR	Exception when buying together	Spouse of a Canadian citizen is exempt (KPMG example)
Refugee or protected person	Exception	Check ontario.ca exemptions
Non-resident living abroad	Covered by the ban unless an exception applies	NRST applies; MNRST also applies in Toronto

Ontario’s NRST and Toronto’s MNRST

Getting past the federal ban is only the first step. The provincial and city taxes come next.

Provincial NRST: 25%

According to a KPMG summary from April 2025, Ontario’s Non-Resident Speculation Tax is a 25% tax on foreign nationals buying a home in Ontario. It was introduced in 2017 and is payable on the closing date. It comes on top of regular land transfer tax and closing costs.

Toronto MNRST: 10%

Since January 1, 2025, the City of Toronto has charged a separate 10% tax on residential purchases by foreign entities, both individuals and corporations, that do not reside in Canada. It is also due on closing. The exemptions for the provincial NRST apply to the MNRST too. KPMG gives a permanent resident and the spouse of a Canadian citizen as examples of buyers who are exempt.

The rebate if you become a permanent resident

If you become a permanent resident within four years of the purchase, you may be eligible for a rebate of the NRST and MNRST, subject to conditions such as making the home your principal residence. Supporting documents include the agreement of purchase and sale and proof that you lived in the home within 60 days of the purchase. Keep every document from day one.

Confirm the current rate, the full list of exemptions and the rebate rules on Ontario’s official NRST exemptions page. We don’t calculate taxes or rebates for buyers. Your lawyer or accountant should do that for your situation.

Why the closing date matters on pre-construction

A resale home closes weeks after you sign. Pre-construction closes when the building is finished, often years later. Because the NRST and MNRST are due on closing, ask your lawyer how your status on the signing date and on the closing date affects what you will owe. Also ask how a change in status, such as becoming a permanent resident before closing, would be treated.

Mortgage and deposit planning

Being legally allowed to buy and getting a mortgage approved are separate questions. Lenders set their own rules for buyers who are new to Canada, on a work permit, or living abroad, and those rules change. We don’t quote down-payment minimums here because they vary by lender and by your status.

• Talk to a lender early. Ask what they need from someone with your status: proof of income, employment history, Canadian credit history, and how much down payment they will want.
• Expect things to change by closing. Your final mortgage is arranged near closing, not when you sign. Your income, status and interest rates may all be different by then. Ask how the lender would treat a change in your permit or residency status.
• Fund the deposits yourself. Builder deposits are paid under the agreement before closing. Make sure you can meet each payment from your own funds.
• Set aside the tax. If the NRST or MNRST applies, that money is due on closing on top of your down payment and closing costs.

What to ask your lawyer before you sign

Pre-construction raises timing questions the general rules don’t answer directly. Ask a real estate lawyer:

• Which date counts for the federal ban and its exceptions on a pre-construction purchase: the signing date, the closing date, or both?
• What happens if the ban is extended, or ends, between signing and closing?
• Does buying or selling an assignment count as a purchase under the Act for someone in my situation?
• Will my work permit have the required time remaining on the relevant date?
• Should my spouse or partner be on the agreement to use the spouse exception or NRST exemption?
• Will the NRST or MNRST apply on closing, and could I qualify for the rebate later?

Builder agreements often include clauses on buyer eligibility and taxes. For condos, your lawyer can review these during the cooling-off period.

Where to start

Many of the newcomers we speak with are looking in Peel Region and Toronto. You can browse current projects in Brampton, Mississauga and Toronto, see all pre-construction condos, or view projects that are selling now. If you are not sure you qualify, contact us through tallproperty.com or call 416-878-0749 before you commit to a project. We can help you compare options and connect you with professionals who can check your eligibility.

Frequently asked questions

Can I buy a pre-construction condo in Ontario on a work permit?

Possibly. You need a valid work permit or authorization to work, at least 183 days left on it at the time of purchase, and no previous residential purchase in Canada while the ban has been in effect. The NRST may still apply unless an exemption fits.

When does the foreign-buyer ban end?

As of October 2026, it is scheduled to expire on January 1, 2027 unless the federal government extends it again. Check the latest announcements before you sign.

Do permanent residents pay the NRST?

KPMG gives a permanent resident as an example of someone exempt from Toronto’s MNRST, which follows the provincial NRST exemptions. Confirm on Ontario’s NRST exemptions page or with your lawyer.

Can international students buy a condo in Ontario?

Only in limited cases: enrolment at a designated learning institution, tax returns filed for the 5 years before the purchase year, at least 244 days in Canada in each of those years, no previous purchase during the ban, and a price no higher than $500,000.

Can I get the NRST back if I become a permanent resident?

You may qualify for a rebate if you become a permanent resident within four years of the purchase and meet conditions such as making the home your principal residence. You will need the agreement of purchase and sale and proof that you lived in the home within 60 days of the purchase.

This is general information, not legal or tax advice; rules can change, so speak to a real estate lawyer and an accountant about your own situation before you sign.