Published 2 November 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
Yes. A non-Canadian can buy a home in Canada in 2027 together with a spouse or common-law partner who is a citizen or permanent resident. In Ontario, you avoid the 25% NRST (and Toronto’s 10% MNRST) only if you are both on title, both move in within 60 days, and meet Ontario’s spouse definition: married, or three years living together.
This guide is for couples where one partner is a Canadian citizen or permanent resident and the other is not, and who want to buy a home in Toronto or anywhere in Ontario in 2027. You will see exactly when the federal foreign buyer ban lets you buy together, when Ontario’s 25% tax and Toronto’s 10% tax still apply, and the definition traps that catch common-law couples.
Can a foreigner buy a house in Canada with a Canadian spouse?
Yes. The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act has a specific exception for this. A non-Canadian who buys residential property together with their spouse or common-law partner is not caught, as long as that partner is one of the following:
- a Canadian citizen;
- a person registered under the Indian Act;
- a permanent resident;
- a temporary resident who meets the regulation’s conditions (for example, a work permit holder with 183 days or more left on the permit who has not bought more than one home); or
- a protected person under immigration law.
The key word is “with”. The exception is written for a joint purchase. It does not say the foreign spouse can buy alone just because they are married to a Canadian.
But the federal ban is only the first of three hurdles. Ontario’s Non-Resident Speculation Tax (NRST) and, inside the City of Toronto, the Municipal Non-Resident Speculation Tax (MNRST) are separate taxes with their own spouse rules. They are stricter, and they are where the real money is.
Who counts as a spouse under the federal ban and under Ontario’s tax?
This is the part most couples get wrong. The two governments use different definitions.
- Federal ban: a “common-law partner” is someone you have lived with in a conjugal relationship for at least one year. Married spouses qualify too.
- Ontario NRST and Toronto MNRST: “spouse” follows section 29 of Ontario’s Family Law Act. You qualify if you are married, or if you have lived together continuously for at least three years, or if you are in a relationship of some permanence and are the parents of a child together.
So an unmarried couple with no children who have lived together for 18 months passes the federal test but fails Ontario’s. They can legally buy together, but the foreign partner’s presence on title triggers the full 25% NRST, plus 10% in Toronto.
Do you pay Ontario’s 25% NRST when buying with a Canadian spouse?
Not if you meet every condition of Ontario’s spousal exemption. According to the Ministry of Finance:
- The foreign national is the spouse of a Canadian citizen, permanent resident, Ontario Immigrant Nominee Program nominee or protected person.
- Both spouses are named as buyers on the transfer.
- Any other buyers on title are also citizens, permanent residents, nominees, protected persons or the spouse of one.
- Every buyer certifies they will live in the home as their principal residence within 60 days after the transfer is registered.
- You are spouses on the closing day. Getting married after closing does not qualify you, and no refund is paid.
Miss any one of these and the tax is 25% of the full price. Ontario does not prorate it to the foreign buyer’s share. The Ministry’s own example shows three buyers, one of them a foreign national with a 34% interest, paying NRST on the whole $1.5 million price. For the full NRST picture, see my explainer on who pays the NRST and who is exempt.
Does Toronto’s 10% MNRST apply when you buy with a Canadian spouse?
The City of Toronto’s 10% MNRST has applied since 1 January 2025, on top of the provincial NRST and the regular land transfer taxes. Its exemptions match the province’s: a foreign national who buys jointly with a spouse, as defined in Ontario’s Land Transfer Tax Act, who is a citizen, permanent resident, nominee or protected person can be exempt. If you qualify for the provincial spousal exemption, you will usually qualify for Toronto’s too. If you fail the provincial test, expect to pay both.
| Rule | Federal foreign buyer ban | Ontario NRST (25%) | Toronto MNRST (10%) |
|---|---|---|---|
| Common-law partner counts after | 1 year living together | 3 years, or sooner with a child together | Uses Ontario’s Land Transfer Tax Act definition (same as NRST) |
| Canadian partner can be a work permit holder | Yes, if the permit conditions are met | No (citizen, PR, nominee or protected person only) | No |
| Both partners must be on title | Yes, the purchase must be “with” the spouse | Yes | Yes, joint purchase |
| Must live in the home | No occupancy rule | Yes, principal residence within 60 days | Exemptions set to match Ontario’s |
| Applies where | Inside census metropolitan areas and agglomerations | All of Ontario | City of Toronto only |
Source: Prohibition on the Purchase of Residential Property by Non-Canadians Act and Regulations (Justice Laws); Ontario Ministry of Finance NRST exemptions page; City of Toronto MLTT and MNRST page, as of November 2026.
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Can you use the spouse exemption for a rental property or cottage?
For the federal ban, there is no rule that you must live in the home, so a couple can buy a rental or a cottage together. Ontario is different. Because every buyer must move in as their principal residence within 60 days, the NRST spousal exemption does not fit a rental, a second home or a cottage you visit on weekends.
Here is what that means in dollars on a $1,000,000 purchase:
| Situation | Ontario NRST | Toronto MNRST (if in Toronto) | Total extra tax in Toronto |
|---|---|---|---|
| Married couple, both on title, moving in | $0 | $0 | $0 |
| Common-law 18 months, no child, both on title, moving in | $250,000 | $100,000 | $350,000 |
| Married couple buying a rental together | $250,000 | $100,000 | $350,000 |
| Canadian spouse buys alone (foreign spouse not on title) | $0 | $0 | $0 |
Source: my calculations using the 25% NRST (Ontario Ministry of Finance) and 10% MNRST (City of Toronto) rates, November 2026. Regular land transfer taxes are extra. The $1,000,000 price is an example only.
Having the Canadian spouse buy alone is legal, but it has to be real. Ontario says it enforces anti-avoidance rules where a citizen or permanent resident holds property in trust for a foreign entity, and the federal Act bans purchases made “directly or indirectly”. If the plan is that the foreign spouse is the true owner on paper later, talk to a real estate lawyer before you sign. Adding a spouse to title after closing has its own tax rules too.
Should only the Canadian spouse go on title?
Sometimes that is the cleanest answer, especially for a common-law couple short of three years or for an investment property. It removes the federal question and both foreign buyer taxes. The trade-offs are real, though. The foreign spouse has no ownership on title, so their protection depends on family law and any written agreement between you. The mortgage may have to qualify on the Canadian spouse’s income alone, unless the lender lets the other spouse join as a guarantor or co-borrower, and each lender sets its own rules.
If you are married or past three years together, and you will both live in the home, buying together usually costs nothing extra and gives you both ownership. A good lawyer can explain which option fits your family. My guide for newcomers choosing a realtor in Toronto covers what to ask before you start viewing homes.
Can you still get the first-time buyer land transfer tax refund?
Partly. Ontario’s first-time buyer refund (up to $4,000) is limited to Canadian citizens and permanent residents. If your spouse is not a citizen or permanent resident on the closing date, you cannot include their share of the home when working out the maximum refund. That means a Canadian spouse who owns half the home claims against their own share only. If your spouse becomes a citizen or permanent resident within 18 months after the transfer is registered, you can claim their share then, up to the $4,000 total.
Ontario also says no refund is available to either spouse if your spouse owned a home anywhere in the world while they were your spouse. My 2027 guide to the Ontario first-time buyer refund walks through the other cases, and Toronto buyers should read about the city’s own land transfer tax as well.
What if your foreign spouse becomes a permanent resident later?
If you paid the NRST, Ontario’s Permanent Resident NRST Rebate can return all of it. The main conditions:
- The foreign buyer becomes a permanent resident within four years of the purchase.
- The home is held by that buyer alone or with their spouse only, and they were spouses on closing day.
- They live in it as their principal residence, starting within 60 days of registration.
- The application reaches the Ministry within 180 days of becoming a permanent resident. Use your Confirmation of Permanent Residence date, not the date your PR card arrives.
Read that second condition carefully. A common-law couple short of three years who buy together are not “spouses” on closing day under Ontario’s definition, so they pay the NRST and cannot get it back through this rebate later. I could not confirm on toronto.ca whether the City’s 10% MNRST has a matching rebate, so ask your lawyer before counting on it.
What changes for spouses in 2027?
The federal ban is currently scheduled to end on 1 January 2027. Budget 2026, released in November 2026, proposes to extend it to 1 January 2029 for existing and resale homes while exempting new residential properties. The government said it would bring forward legislation and a regulatory process, but the details had not been published when the budget came out.
The budget describes extending the existing Act, not rewriting its exceptions. Even so, do not assume anything until the new law is published. Two things will not change on 1 January either way: Ontario’s 25% NRST and Toronto’s 10% MNRST, with their stricter spouse definition. For work permit couples, my guide to buying in Ontario on a work permit covers the separate permit test.
If you are married, or have lived together for three years or more, and you are buying the home you will live in, buying together in 2027 is usually simple and costs nothing extra. The couples I worry about are common-law partners just short of three years, and anyone buying a second property. In those cases, check the dates on your lease or utility bills, and talk to a lawyer before you make an offer, not after. A few months of waiting can be worth $250,000 or more.
What to do next
- Write down your exact status: married or common-law, how long you have lived together, any children, and each partner’s immigration status.
- Decide whether this will be your principal residence. If it will not, assume the 25% NRST applies to a foreign spouse on title.
- Book a real estate lawyer to confirm the federal exception and the NRST and MNRST spousal exemptions before you make an offer.
- Talk to a lender about whose income will qualify and who must be on title.
- If a permanent residence application is under way, keep your Confirmation of Permanent Residence date handy for the 180-day rebate deadline.
Need help with this? Talk to me.
I’m Jatin Dua, Broker of Record at RE/MAX Quantum Realty, and I’m the best agent to do this kind of work for you in Toronto and across the GTA. Over $100 million in GTA sales and 100+ families helped sell. Feel free to contact me any time: call or text 833-330-1925 or email [email protected].
Frequently asked questions
Can a foreigner buy a house in Canada if their spouse is Canadian?
Yes. Under the federal foreign buyer ban, a non-Canadian can buy residential property in Canada together with a spouse or common-law partner who is a citizen, permanent resident, registered Indian, protected person or qualifying temporary resident. In Ontario in 2027, the couple must also meet Ontario’s separate NRST spousal exemption, or the foreign spouse’s presence on title triggers a 25% tax.
Is there a foreign buyer ban exemption for spouses in Canada?
Yes. Section 4(2)(c) of the Prohibition on the Purchase of Residential Property by Non-Canadians Act exempts a non-Canadian who buys with their Canadian spouse or common-law partner. The exception applies to a joint purchase. It does not let the foreign spouse buy alone. Budget 2026 proposes extending the Act to 1 January 2029 for existing homes, so confirm the final wording when the bill is published.
Do I pay the NRST in Ontario if my spouse is a Canadian citizen?
No, if you qualify for Ontario’s spousal exemption. Both spouses must be named buyers, you must be spouses on closing day, and every buyer must move in as their principal residence within 60 days. If any condition fails, the 25% Non-Resident Speculation Tax applies to the full price in 2027, not just the foreign spouse’s share.
Does common-law count for the foreign buyer ban and the NRST?
Yes, but the time needed is different. The federal ban treats you as common-law partners after one year of living together. Ontario’s NRST and Toronto’s MNRST use the Family Law Act, which needs three years of living together, or a relationship of some permanence with a child. A couple together 18 months in 2027 passes the federal test but not Ontario’s.
Can my non-Canadian spouse be on title in Ontario?
Yes. A non-Canadian spouse can be on title in Ontario in 2027 when buying with a Canadian spouse, because the federal ban has a spouse exception. To avoid the 25% NRST and Toronto’s 10% MNRST, you must meet the spousal exemption, including both being named buyers and both moving in as your principal residence within 60 days.
Does the NRST spousal exemption apply to a rental property or cottage?
No. Ontario’s NRST spousal exemption requires every buyer to occupy the home as their principal residence within 60 days of registration. A rental, second home or weekend cottage bought with a foreign spouse on title in 2027 is charged the 25% NRST on the full price, plus 10% MNRST if it is in Toronto, even though the federal ban allows the purchase.
Does Toronto’s 10% foreign buyer tax apply if I buy with my Canadian spouse?
Usually not, if you meet the spouse exemption. The City of Toronto’s 10% Municipal Non-Resident Speculation Tax, in force since 1 January 2025, exempts a foreign national who buys jointly with a spouse who is a citizen, permanent resident, nominee or protected person. Its exemptions are set to match Ontario’s NRST, so failing the provincial test usually means paying both.
Will the spouse exception continue after the foreign buyer ban is extended to 2029?
Probably, but it is not confirmed. Budget 2026 proposes extending the existing Act to 1 January 2029 for resale homes and exempting new homes. The legislation had not been published when the budget came out in November 2026. Until it is, confirm with a lawyer that the spouse exception in section 4(2)(c) carries forward unchanged.
Can we claim the first-time buyer land transfer tax refund if my spouse is not a permanent resident?
Partly. In Ontario, if your spouse is not a citizen or permanent resident on closing, you cannot include their share of the home in your refund. If your spouse gains that status within 18 months after registration, you can claim their share then, up to the $4,000 maximum. No refund is allowed if your spouse owned a home while your spouse.
If my spouse becomes a permanent resident later, can we get the NRST back?
Often, yes. Ontario’s Permanent Resident NRST Rebate returns the full tax if the foreign buyer becomes a permanent resident within four years, owns alone or with their spouse, and lives in the home. You must apply within 180 days of becoming a permanent resident. Couples who were not spouses under Ontario’s definition on closing day cannot use it.
Sources
- Justice Laws: Prohibition on the Purchase of Residential Property by Non-Canadians Act
- Justice Laws: Prohibition on the Purchase of Residential Property by Non-Canadians Regulations (SOR/2022-250)
- Ontario Ministry of Finance: Non-Resident Speculation Tax
- Ontario Ministry of Finance: Non-Resident Speculation Tax exemptions
- Ontario Ministry of Finance: Non-Resident Speculation Tax rebates and refunds
- City of Toronto: Municipal Land Transfer Tax and Municipal Non-Resident Speculation Tax
- Ontario Ministry of Finance: Land transfer tax refunds for first-time homebuyers
- Department of Finance Canada: Budget 2026, Chapter 3, A more affordable life
Related reading
- Foreign Buyer Ban 2027: What Budget 2026 Changes (Extension to 2029, New Homes Exempt)
- Can Foreigners Buy New Construction Condos in Toronto in 2027?
- Foreign Buyer Ban Exemptions in Canada for 2027: Who Can Still Buy
- Can International Students Buy a Home in Ontario in 2027?
About the author — Jatin Dua, Toronto and GTA real estate broker
I am Jatin Dua, Broker of Record and co-founder of RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway, Toronto. I work with buyers and sellers across Toronto and the GTA and have helped more than 100 families sell. Four-plus years of active GTA transactions and over $100 million in sales volume.
Reach me at [email protected] or 833-330-1925, or book a call.