Buying a House in Ontario on a Work Permit (2027)

Published 2 November 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty

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By Jatin Dua · Broker of Record, RE/MAX Quantum Realty · Updated 2 November 2026 · 11 min read — What the foreign buyer ban allows work permit holders in Ontario, what changes on 1 January 2027, and the taxes that still apply.

Short answer

Yes. A work permit holder can buy one home in Ontario if the permit has 183 days or more left on the purchase date. The federal ban is scheduled to end on 1 January 2027, but Ontario’s 25% NRST still applies, plus 10% in Toronto, unless you are exempt, for example by buying with a Canadian spouse.

This guide is for people in Ontario on a work permit who want to buy a home in 2027, and for their families. You will learn exactly what the federal foreign buyer ban allows, what happens when it is scheduled to end on 1 January 2027, the provincial and Toronto taxes that still apply, and how mortgages work for work permit holders.

Can I buy a house in Ontario on a work permit?

Yes, in most cases, as long as you meet two simple conditions under the federal rules. But being allowed to buy is only half the story. Ontario charges a 25% Non-Resident Speculation Tax (NRST) on most home purchases by people who are not citizens or permanent residents, and the City of Toronto adds its own 10% tax. Those taxes are separate from the federal ban and apply even when the ban does not stop you.

So there are really three questions. Am I allowed to buy? How much extra tax will I pay? Can I get a mortgage? This guide takes them one at a time. If you are already a permanent resident, most of this does not apply to you, and my newcomer guide to buying in the GTA is the better place to start.

What does the foreign buyer ban allow work permit holders to buy?

The Prohibition on the Purchase of Residential Property by Non-Canadians Act came into force on 1 January 2023. It stops a “non-Canadian” from buying residential property. A non-Canadian is anyone who is not a Canadian citizen, a person registered under the Indian Act, or a permanent resident.

Work permit holders have an exception in the regulations. You can buy if both of these are true:

Your work permit or work authorization has 183 days or more left on it on the date of purchase. That is about six months.
You have not bought more than one residential property. In practice, the exception covers one home.

That is the whole test for work permit holders today. Older articles mention tax filing or work history requirements. That condition was repealed from the regulations, which were last amended on 27 March 2023. If someone tells you that you need years of Canadian tax returns to buy on a work permit, ask them to show you the current regulation.

International students have a different, stricter test. They must have filed tax returns for each of the five previous years, been in Canada at least 244 days in each of those years, buy for $500,000 or less, and buy only one property.

What property is not covered by the foreign buyer ban?

The ban is narrower than many people think. Under the Act and its regulations:

Only homes with up to three units are covered. The definition covers a detached house or similar building with not more than three dwelling units, plus semis, row houses and condo units. A building with four or more units is outside the definition.
Vacant land is not covered. The rule that once pulled in vacant residential land was repealed in 2023.
Property outside census areas is not covered. Homes outside Statistics Canada’s census metropolitan areas and census agglomerations are excluded. Most of the GTA sits inside these areas, so assume the ban applies to you here and have your lawyer confirm the exact location.

The fine for breaking the ban is up to $10,000, and it can also apply to anyone who knowingly helps a prohibited buyer. For more detail on these limits, see my explainer on what the foreign buyer ban catches.

Is the foreign buyer ban ending on 1 January 2027?

It is scheduled to. In February 2024, the federal Department of Finance announced that the ban, which was first set to end on 1 January 2025, would be extended to 1 January 2027. The repeal of the Act is written into federal law but is shown on the Justice Laws site as not yet in force.

In October 2026, news reports said Ottawa was reviewing its options, including whether to let the ban expire or change it, for example to allow foreign buyers to buy newly built homes. As of the latest reports I found, from mid-October 2026, the government had not announced a decision. Check the news before you sign anything around the turn of the year.

Here is what matters most: even if the federal ban ends, Ontario’s 25% NRST and Toronto’s 10% tax do not end with it. They are provincial and city taxes under separate laws. For most work permit holders, those taxes are the bigger hurdle, not the ban.

Free tool — what can you actually afford?

How much extra tax do work permit holders pay in Ontario?

Ontario’s NRST is 25% of the purchase price. It has applied across the whole province since 25 October 2022, on homes with one to six single-family units, including houses, townhouses and condos. It is charged on top of the regular land transfer tax.

Inside the City of Toronto, the Municipal Non-Resident Speculation Tax (MNRST) of 10% has applied since 1 January 2025, on top of everything else. The City says there is no grandfathering for agreements signed before that date.

Example: $650,000 condo bought by a work permit holder	Ontario NRST (25%)	Toronto MNRST (10%)	Extra tax due at closing
In the City of Toronto	$162,500	$65,000	$227,500
Elsewhere in Ontario (for example Mississauga or Brampton)	$162,500	Not charged	$162,500
Buyer who qualifies for an exemption (see below)	$0	$0	$0

Source: my calculations using rates from the Ontario Ministry of Finance (NRST) and the City of Toronto (MNRST), as of November 2026. Regular land transfer taxes are extra and not shown.

Both taxes have the same three main exemptions. You do not pay them if you are a nominee under the Ontario Immigrant Nominee Program, a protected person under the Immigration and Refugee Protection Act, or buying together with a spouse who is a Canadian citizen, permanent resident, nominee or protected person.

You also cannot claim the first-time buyer land transfer tax refunds at closing. Ontario’s refund (up to $4,000) and Toronto’s rebate (up to $4,475) both require you to be a citizen or permanent resident. If you become one within 18 months after the purchase is registered, you can apply then.

Can I get the 25% NRST back if I become a permanent resident?

Yes, in many cases. Ontario offers a Permanent Resident NRST Rebate when the buyer becomes a permanent resident of Canada within four years of the date the purchase was registered. You apply to the Ministry of Finance with supporting documents.

That rebate is real money, but you still have to pay the full tax at closing first. On a $650,000 home, that is $162,500 in cash you need on top of your down payment, and you may wait years to get it back. I could not confirm whether Toronto’s 10% tax has a similar rebate, so ask your lawyer before you count on getting the city tax back.

Ontario used to offer separate NRST rebates for international students and for foreign nationals working in Ontario. The Ministry no longer lists those as available for new purchases, so the permanent resident rebate is the one that matters for most people.

My take

If you are on a work permit and your permanent residence application is moving, the math often favours waiting. Becoming a permanent resident first removes the federal ban question, the 25% NRST, the Toronto 10% tax, and lets you claim first-time buyer refunds. Paying hundreds of thousands in tax up front and hoping for a rebate later is a big risk with your savings. The exception is a buyer who qualifies for an exemption today, such as someone buying with a Canadian spouse.

Can I get a mortgage on a work permit in Ontario?

Often, yes. CMHC, the federal housing agency, offers mortgage insurance to non-permanent residents for homes they will live in. Its newcomer rules say you must be legally authorized to work in Canada, such as with a work permit, and the purchase must not be prohibited under the foreign buyer ban.

A few CMHC details matter for work permit buyers:

At least one borrower or guarantor needs a credit score of 600 or more. If you have no Canadian credit history, CMHC may accept an international credit report or a reference letter from your bank back home.
Your down payment can come from savings, the sale of a property or a gift. Borrowed down payments, such as personal loans or lines of credit, are not allowed for non-permanent residents.
Insurance covers one- to four-unit homes where you live in one unit.

Lenders still apply the same stress test and debt limits as for anyone else, and each lender can set its own rules on permit length and job history. See how hard it is to get a mortgage in Ontario in 2027 and the minimum down payment at every price.

What if my spouse is a Canadian citizen or permanent resident?

This is the cleanest route for many families. Under the federal Act, a non-Canadian buying with a spouse or common-law partner who is a citizen, registered Indian, permanent resident, protected person or qualifying temporary resident is not caught by the ban. A common-law partner means someone you have lived with in a conjugal relationship for at least one year.

Ontario’s NRST and Toronto’s MNRST also exempt a foreign national buying with a spouse who is a citizen, permanent resident, nominee or protected person. Each tax law has its own definition of spouse, so your lawyer will need proof of the relationship.

Watch out

Do not put the home only in a Canadian relative’s name to avoid the tax while you pay for it. Ontario’s NRST rules target trusts and arrangements where someone holds property for a foreign national, and the federal ban covers buying “directly or indirectly”. Penalties can be serious, and the federal fine can also reach anyone who knowingly helps. Get advice from a real estate lawyer before you sign any offer.

What should a work permit holder check before making an offer?

Your permit dates. Count the days left on your permit on the expected date of purchase. Ask your lawyer which date counts for your deal.
Your tax position. Confirm whether you pay NRST, MNRST, or qualify for an exemption, and get the exact amount in writing.
Your cash. Add down payment, any NRST and MNRST, land transfer tax, legal fees and moving costs.
Your mortgage. Get a pre-approval from a lender that works with non-permanent residents before you shop.
Your timing. If your closing falls near 1 January 2027, check the latest federal news on the ban.

If you want a realtor who works with newcomers every week, here is what to look for: choosing a realtor as a newcomer in Toronto.

What to do next

Check your work permit expiry date and count the days to your planned closing.
Ask a real estate lawyer to confirm whether you pay NRST and Toronto’s MNRST, or qualify for an exemption.
Use the affordability tool above to see your price range, then add any NRST to your cash needs.
Get a mortgage pre-approval from a lender that serves work permit holders.
If permanent residence is close, compare buying now with buying after you land, using real numbers.

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].

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Frequently asked questions

Can you buy a house in Ontario with a work permit?

Yes, in most cases. Under the federal foreign buyer ban, a work permit holder can buy one home if the permit has 183 days or more left on the date of purchase. But Ontario still charges a 25% Non-Resident Speculation Tax on most purchases by foreign nationals, and Toronto adds 10%, unless you qualify for an exemption such as buying with a Canadian spouse.

How many days do I need on my work permit to buy a house in Canada?

You need at least 183 days of validity left on your work permit or work authorization on the date of purchase, under the federal Prohibition on the Purchase of Residential Property by Non-Canadians Regulations. You also must not have bought more than one residential property. The earlier tax-filing condition for work permit holders was repealed in 2023.

Do work permit holders pay the 25% NRST in Ontario?

Yes, unless an exemption applies. Ontario’s Non-Resident Speculation Tax is 25% of the price and applies to anyone who is not a Canadian citizen or permanent resident, across all of Ontario. Exemptions cover Ontario Immigrant Nominee Program nominees, protected persons and buyers purchasing with a spouse who is a citizen or permanent resident, as of November 2026.

Is the foreign buyer ban ending in 2027?

The federal foreign buyer ban is scheduled to end on 1 January 2027, after Finance Canada extended it from 2025 in February 2024. In October 2026 Ottawa said it was reviewing its options, and no decision had been announced in the reports I found. Even if it ends, Ontario’s 25% NRST and Toronto’s 10% tax still apply.

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

Yes, often. Ontario’s Permanent Resident NRST Rebate is available if you become a permanent resident of Canada within four years of the date your purchase was registered. You must pay the full 25% at closing first and then apply to the Ministry of Finance with documents. Ask your lawyer separately about Toronto’s 10% city tax.

How much is the foreign buyer tax in Toronto?

A foreign national buying a home in Toronto in 2026 usually pays 35% in extra tax: Ontario’s 25% NRST plus the City of Toronto’s 10% Municipal Non-Resident Speculation Tax, which started on 1 January 2025. On a $650,000 condo, that is $227,500 on top of regular land transfer taxes, unless the buyer qualifies for an exemption.

Can I get a mortgage with a work permit in Canada?

Yes, many lenders offer mortgages to work permit holders. CMHC insures homeowner mortgages for non-permanent residents who are legally authorized to work in Canada, with at least one borrower holding a 600 credit score or acceptable alternative credit. The down payment must come from savings, a property sale or a gift, not borrowed money, as of November 2026.

Can I buy a house in Ontario if my spouse is a permanent resident?

Yes. Buying together with a spouse or common-law partner who is a Canadian citizen or permanent resident is exempt from the federal foreign buyer ban. It is also exempt from Ontario’s 25% NRST and Toronto’s 10% MNRST. A common-law partner must have lived with you for at least one year, and your lawyer will ask for proof.

Can a work permit holder buy a fourplex in Ontario?

The federal ban covers homes with up to three dwelling units, so a building with four or more units falls outside it. However, Ontario’s 25% NRST applies to properties with one to six single-family residences, so a foreign national buying a fourplex would usually still pay NRST in 2026 unless an exemption applies. Get a lawyer’s opinion first.

Buying a House in Ontario on a Work Permit (2027): What the Foreign Buyer Ban Allows