Published 7 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
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Get My Free Estimate →Start with eligibility, not with properties. The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act is in force until 1 January 2027, with exemptions including permanent residents, qualifying temporary residents, refugees, diplomats, Canadian-controlled corporations, recreational property outside census metropolitan and agglomeration areas, and purchases for development.
If you are exempt from the ban but still a foreign national, foreign corporation or taxable trustee, Ontario’s 25% Non-Resident Speculation Tax and Toronto’s 10% Municipal Non-Resident Speculation Tax apply on top of both land transfer taxes. That is roughly $2.02 million on a $5 million Toronto house. Establish your position in writing before you view anything.
Step 1: establish eligibility, in writing
Nothing else matters until this is settled. The federal prohibition applies to non-Canadians and runs until 1 January 2027. Exemptions include permanent residents, qualifying temporary residents such as certain workers and students, refugees and protected persons, diplomats, Canadian-controlled corporations, recreational property outside census metropolitan and agglomeration areas, and purchases made for the purpose of development.
Get a lawyer’s written view on your specific status before you look at properties.
Step 2: model the full tax stack
| On a $5,000,000 Toronto house, non-exempt foreign national | Amount |
|---|---|
| Ontario land transfer tax | $111,475 |
| Toronto municipal land transfer tax | $159,975 |
| Ontario NRST at 25% | $1,250,000 |
| Toronto MNRST at 10% | $500,000 |
| Total on closing | $2,021,450 |
Where an NRST rebate may be available — becoming a permanent resident within four years, holding alone or with a spouse, occupying as a principal residence within 60 days, applying within 90 days of obtaining permanent residence — diarise every deadline on closing day.
Step 3: build a remote diligence process
- Live video walkthroughs, not pre-recorded tours, with the ability to direct the camera
- Measured floor plans and confirmation of the measurement standard used
- The survey, plus ravine, TRCA and heritage status for the address
- A full inspection with the specialists a large house requires, before any firm offer
- A trusted person on the ground attending the property in person
- Neighbourhood context from someone who knows it — the street at rush hour, the noise, the walk to the station
Step 4: arrange the mechanics early
- Power of attorney, if you cannot sign in person. Form and execution requirements are specific, particularly when signed outside Canada. Your lawyer arranges this weeks ahead, not days.
- Identity and source of funds. FINTRAC rules require identity verification, beneficial ownership at 25% or more for corporate and trust purchasers, and a third-party determination. This takes longer from abroad.
- Banking. A Canadian account and a clear, documented route for the funds.
- Financing, if any, confirmed before you offer.
Step 5: plan for ownership from a distance
- The Vacant Home Tax declaration is annual and mandatory for every residential property in Toronto, occupied or not. Failing to declare defaults the property to vacant, at 3% of Current Value Assessment, with a penalty of up to $10,000 for a false declaration or failure to provide required information. This is the obligation non-resident owners most commonly miss.
- Insurance vacancy provisions where the property will be empty for extended periods.
- Someone local to attend the property, deal with maintenance and receive mail.
The practical takeaway
Do this in order: status, tax, diligence, mechanics, ownership plan. Buyers who start with properties and deal with eligibility later are the ones who end up either unable to complete or facing a tax bill that changes the economics of the whole purchase.
Frequently asked questions
Can I buy a Toronto home if I live outside Canada?
It depends entirely on your status. Canadian citizens and permanent residents are not caught by the federal prohibition. Non-Canadians generally are, until 1 January 2027, subject to specific exemptions. Get legal advice on your own position before making any commitment.
How do I view properties remotely?
Detailed video walkthroughs conducted live rather than pre-recorded, full photography, floor plans with measurements, the survey, and someone you trust attending in person. For a purchase at this level, an in-person visit before closing is strongly preferable where it is possible at all.
Can someone sign for me?
A power of attorney can be used, and the requirements for its form and execution are specific, particularly when signed outside Canada. Your Ontario real estate lawyer must set this up in advance — it is not something to arrange in the closing week.
What identity documents will I need?
Under FINTRAC rules the brokerage must verify identity, and for a corporate or trust purchaser must determine and record beneficial owners holding 25% or more and make a third-party determination about who is directing and funding the purchase. Expect this to take longer from abroad and start it early.
Can I get a mortgage as a non-resident?
Some lenders offer non-resident programmes with different down payment and documentation requirements. This is a question for a mortgage professional, and it should be answered before you write an offer, not after.
What ongoing obligations will I have?
Property tax, insurance, utilities, condominium fees where applicable, and critically Toronto’s annual Vacant Home Tax declaration — required for every residential property whether occupied or not. Failing to declare defaults the property to vacant and triggers tax at 3% of Current Value Assessment.
Thinking about buying or selling at the top end?
Send me the address, or the shortlist you are considering. I will tell you what the property is actually worth today, what the land is worth without the house, what the transfer tax and carrying costs will be, and whether the deal makes sense. Confidential, always.
connect@jatindua.com · 437-987-1925 · Book a free consultation
Confidential. Read personally and answered within 24 hours. I never share, sell or distribute your information.
Related reading
- Can a foreign buyer purchase a luxury home in Toronto in 2026?
- Ontario’s 25% Non-Resident Speculation Tax, explained properly
- Why your brokerage asks where the money came from
- Toronto’s vacant home tax at 3%: what it costs on a luxury home
Sources
Everything above that is a rule, a rate or a published number comes from these. Verify anything that matters to your own deal.
- Government of Canada — Prohibition on the Purchase of Residential Property by Non-Canadians Act
- Government of Ontario — Non-Resident Speculation Tax
- FINTRAC — Guidance for real estate brokers, agents and developers
- City of Toronto — Vacant Home Tax
About the author — Jatin Dua, Broker of Record
I’m the Broker of Record at RE/MAX Quantum Realty, 799 The Queensway in Etobicoke, and I work with buyers, sellers and investors across Toronto and the west GTA. A large part of my work sits in the upper end of the market, where the comparables are thin, the rules are heavier and the cost of a wrong number is measured in hundreds of thousands of dollars.
The free estimators on this site are mine. I built them because the first question every owner asks is “what is it worth?” and the honest answer starts with a number you can check yourself. connect@jatindua.com or 437-987-1925.