Published 2 November 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
In 2027 the federal ban covers houses with up to three units, semis, townhouses and condo units inside Statistics Canada census areas. Cottages outside those areas (most of Muskoka, Tiny, Prince Edward County), vacant land and buildings with four or more units are not covered. Ontario’s 25% NRST still applies to one to six units anywhere in the province.
This guide is for non-Canadians, and the people helping them, who want to know whether a specific property in Ontario is caught by the federal foreign buyer ban in 2027. You will find which property types and places are covered, which Ontario cottage towns sit outside it, and why Ontario’s 25% tax often matters more than the ban itself.
What does the foreign buyer ban cover in 2027?
The Prohibition on the Purchase of Residential Property by Non-Canadians Act stops a “non-Canadian” from buying “residential property”, directly or indirectly. A non-Canadian is anyone who is not a citizen, a permanent resident or registered under the Indian Act, plus certain foreign-controlled corporations. Residential property has a narrow meaning. It covers:
- a detached house or similar building with no more than three dwelling units, with the land it needs;
- a semi-detached house, a rowhouse unit or a residential condominium unit that is, or will be, its own parcel.
A “dwelling unit” means a unit with its own kitchen, bath and living area. On top of that, the regulations take any property outside a census metropolitan area (CMA) or census agglomeration (CA) out of the definition entirely. A “purchase” includes buying a legal or beneficial interest, with or without conditions, so a conditional offer counts.
The ban is currently scheduled to end on 1 January 2027, after the federal government extended it once in February 2024. Budget 2026, released in November 2026, proposes to extend it again to 1 January 2029 for existing and resale homes, while exempting new residential properties. That is a proposal until Parliament passes it. For a deeper look at the Act’s history, see my explainer on what the foreign buyer ban catches.
Can a foreigner buy a cottage in Ontario?
Often, yes. CMHC, which administers the Act, says recreational properties such as summer cottages and vacation homes are exempt when they are outside a CMA or CA, and covered when they are inside one. The test is location, not use.
CMAs and CAs are Statistics Canada areas built from whole municipalities around a population centre. A CMA needs a total population of at least 100,000, with 50,000 or more in the core. A CA needs at least 10,000 people. The regulations use Statistics Canada’s 2021 boundaries, so a cottage is either in or out depending on which municipality it sits in.
Which Ontario cottage and GTA-edge towns are outside a census area?
I checked the municipalities buyers ask me about most against Statistics Canada’s 2021 list of census areas and the municipalities inside each one:
| Municipality | 2021 census area | Federal ban applies? |
|---|---|---|
| Huntsville, Bracebridge, Gravenhurst, Muskoka Lakes, Lake of Bays, Georgian Bay (Muskoka) | None | No |
| Tiny, Tay, Oro-Medonte, Ramara, Severn | None | No |
| The Blue Mountains, Clearview | None | No |
| Dysart et al, Minden Hills (Haliburton) | None | No |
| Prince Edward County | None | No |
| Brock, Scugog (Durham Region) | None | No |
| Kawartha Lakes (the whole city) | Kawartha Lakes CA | Yes |
| Wasaga Beach; Collingwood | Their own CAs | Yes |
| Midland, Penetanguishene | Midland CA | Yes |
| Innisfil, Springwater | Barrie CMA | Yes |
| Georgina, Uxbridge, King, Caledon, Mono | Toronto CMA | Yes |
Source: Statistics Canada, Table 98-10-0003 (2021 Census, census metropolitan areas, census agglomerations and their census subdivisions), checked November 2026.
Two things surprise people. The whole City of Kawartha Lakes is a census agglomeration, so its lake country is covered. And Brock and Scugog in Durham Region are outside every census area, even though they are part of the GTA. For more on the practical side, read my guide to buying a cottage or second home in Ontario.
Do foreigners still pay Ontario’s 25% NRST outside a census area?
Yes. Ontario’s Non-Resident Speculation Tax (NRST) applies to residential property anywhere in Ontario, and Ontario says cottages, cabins and similar structures count as single family residences even if they are only used part of the year. Being outside a census area gets you past the federal ban, not past the province.
| Municipality (Durham and York edge) | Federal ban | Detached median, Jan–Oct 2026 | 25% NRST on that price |
|---|---|---|---|
| Brock | Does not apply | $661,000 | $165,250 |
| Scugog | Does not apply | $885,000 | $221,250 |
| Georgina | Applies (Toronto CMA) | $800,000 | $200,000 |
| Uxbridge | Applies (Toronto CMA) | $1,126,750 | $281,688 |
Source: TRREB MLS data via REALM, January–October 2026 (median sold price, municipality level); NRST rate from the Ontario Ministry of Finance; census areas from Statistics Canada Table 98-10-0003.
So a foreign buyer can legally buy a detached home in Brock in 2027, but unless an exemption applies, they pay about a quarter of the price again in tax at closing. My explainer on Ontario’s 25% NRST covers the exemptions and the permanent resident rebate.
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Can a foreigner buy vacant land in Canada in 2027?
Yes. The regulations used to pull vacant residential land into the ban, but that rule was repealed on 27 March 2023, and CMHC confirms vacant land is no longer covered. Ontario’s NRST applies to “designated land”, meaning land that contains at least one and not more than six single family residences. A bare lot has no residence on it, so it generally falls outside the NRST too. If you are buying a lot together with a builder’s contract to put a house on it, have a lawyer confirm how the tax applies to your deal.
Are fourplexes and multiplexes covered by the foreign buyer ban?
A building with four or more dwelling units is outside the federal ban, and CMHC says so directly. Ontario’s NRST is broader: it covers buildings with up to six single family residences. So the two rules leave a gap that catches investors off guard.
| Property type | Federal ban (inside a CMA/CA) | Ontario NRST 25% | Toronto MNRST 10% |
|---|---|---|---|
| Detached, semi, townhouse, condo unit | Covered | Applies | Applies in Toronto |
| Duplex or triplex | Covered | Applies | Applies in Toronto |
| Fourplex, fiveplex, sixplex | Not covered | Applies | Applies in Toronto |
| Apartment building, 7+ units | Not covered | Does not apply | Does not apply |
| Vacant land | Not covered | Generally does not apply | Generally does not apply |
| Purely commercial or industrial property | Not intended to apply | Does not apply | Does not apply |
| Farm land in the farm property class | Depends on the homes on it | Farm residence excluded | Agricultural land excluded |
Source: the Act and Regulations (Justice Laws), CMHC FAQ, Ontario Ministry of Finance NRST page and City of Toronto MNRST page, as of November 2026.
Toronto has allowed up to four units on most residential lots as of right since 2023, so fourplexes are a real option in the city. Read what a fourplex costs to build or buy in Toronto before you run the numbers, and add 35% in foreign buyer taxes if they apply to you. Ontario also says parking and storage units in a condo are designated land when bought on their own, since 27 March 2024.
Can a foreigner buy a house to tear down and redevelop?
Federally, yes. Since 27 March 2023 the regulations exclude a purchase made for the purposes of development. CMHC describes development as evaluating, planning and carrying out real alterations or improvements, including redevelopment, that usually go through municipal approvals. It is not:
- buying to rent the property out as part of a portfolio;
- repairs, renovations or remodels, such as finishing a basement or adding a deck.
If approvals fail, CMHC says a buyer who acted in good faith has not committed an offence, but should keep records such as consultant reports and city correspondence. Ontario’s NRST has no matching development exemption. If the land has a house on it when you buy, Ontario says zoning does not matter, so expect the 25% unless another exemption or rebate applies. My guide on buying land to build a multiplex in Toronto covers the planning side.
Which purchases are not caught by the ban at all?
The regulations say these are not a “purchase” under the Act:
- getting an interest through death, divorce, separation or a gift;
- renting a home to live in it;
- a transfer under a trust created before the Act came into force;
- a lender taking the property under its security, such as a foreclosure;
- buying for development, as above.
Some things are covered that people do not expect. CMHC says mobile and modular homes are caught when they are fixed to the land, and buying a condo with a tenant in it is still a purchase.
The fine for breaking the ban is up to $10,000, and it applies to anyone who knowingly helps a prohibited buyer, not only the buyer. A court can also order the home sold, with the buyer getting back no more than what they paid. Census areas follow municipal lines, so check the exact address, not the nearest town name. CMHC’s FAQ links to a map tool for this.
What changes in 2027 for foreign buyers?
As of 10 November 2026, the Act is still scheduled to end on 1 January 2027. Budget 2026 proposes to extend it to 1 January 2029 for existing and resale homes and to exempt new residential properties. The government said it would introduce legislation and start a regulatory process, but those details were not published with the budget. Until they are, we do not know how “new” will be defined or whether the property types above will change.
What will not change on 1 January: Ontario’s 25% NRST applies across the province, and Toronto’s 10% MNRST has applied inside the city since 1 January 2025. For most foreign buyers, those taxes are the bigger cost.
Before you fall in love with a property, answer three questions in this order. Is it inside a census area? How many dwelling units does it have? And will Ontario’s 25% NRST apply even if the ban does not? A Muskoka cottage, a Brock farmhouse or a Toronto fourplex can all be legal for a foreign buyer, and still cost a quarter more than a Canadian pays. If the numbers only work without the tax, they do not work.
What to do next
- Find the property’s municipality and check it against Statistics Canada’s census areas or CMHC’s map tool.
- Count the dwelling units, and confirm the count with the municipality if the building has been converted.
- Work out the NRST, and MNRST in Toronto, before you make an offer.
- Have a real estate lawyer confirm the ban, the taxes and any exemption, especially for development or mixed-use deals.
- Watch for the federal legislation that follows Budget 2026 before signing anything that closes after 1 January 2027.
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 foreigners buy a cottage in Ontario in 2027?
Yes, if the cottage is outside a Statistics Canada census metropolitan area or census agglomeration. CMHC says recreational properties outside those areas are exempt from the federal foreign buyer ban, while those inside are covered. Ontario’s 25% Non-Resident Speculation Tax still applies to cottages anywhere in the province unless the buyer qualifies for an exemption.
Does the foreign buyer ban apply outside census metropolitan areas?
No. The regulations under the federal ban treat any property outside a census metropolitan area or census agglomeration, based on Statistics Canada’s 2021 boundaries, as excluded from residential property. In Ontario that includes Muskoka towns such as Huntsville and Bracebridge, Tiny, Prince Edward County, and Brock and Scugog in Durham Region, as of November 2026.
Can a non-Canadian buy vacant land in Canada?
Yes. Vacant land has not been covered by the federal foreign buyer ban since 27 March 2023, when the rule that included it was repealed. In Ontario, the 25% NRST applies to land containing one to six single family residences, so a bare lot is generally outside it too. Confirm with a lawyer if a house will be built under the same deal.
Can a foreigner buy a fourplex in Canada?
Yes, federally. The foreign buyer ban covers buildings with no more than three dwelling units, so a fourplex is outside it. In Ontario, though, the 25% Non-Resident Speculation Tax applies to properties with up to six single family residences, and Toronto adds a 10% MNRST. A foreign buyer of a Toronto fourplex in 2027 can face 35% in extra tax.
Is Muskoka covered by the foreign buyer ban?
No. Huntsville, Bracebridge, Gravenhurst, Muskoka Lakes, Lake of Bays and Georgian Bay are not part of any census metropolitan area or census agglomeration in Statistics Canada’s 2021 list, so the federal ban does not apply there. A foreign buyer of a Muskoka cottage in 2027 still pays Ontario’s 25% NRST unless an exemption applies.
Does the foreign buyer ban apply to new construction homes in 2027?
Not if Budget 2026’s proposal becomes law. The budget proposes extending the ban to 1 January 2029 for existing and resale homes while exempting new residential properties. As of November 2026 the legislation and the definition of a new home had not been published, so foreign buyers should confirm the final rules with a lawyer before signing.
Can a foreigner buy a house to redevelop it in Canada?
Yes, under the federal development exception added on 27 March 2023. CMHC says development means real alterations or redevelopment, usually needing municipal approvals, not renting out or renovating. Ontario’s 25% NRST has no matching exemption, so a foreign buyer of a teardown with a house on it in 2027 should expect to pay it unless another exemption applies.
Does the foreign buyer ban cover commercial property?
No. CMHC says the ban is not intended to apply to existing property that is purely commercial, such as an office tower or grocery store with no dwelling units. Ontario’s NRST and Toronto’s MNRST also do not apply to commercial, industrial or agricultural land. Mixed-use buildings need a closer look, because the NRST applies to the residential portion.
Do foreigners pay NRST on property outside a census area?
Yes. Ontario’s Non-Resident Speculation Tax applies anywhere in the province, whether or not the property is inside a census metropolitan area. On the January–October 2026 detached median in Brock of $661,000, a foreign buyer without an exemption would pay $165,250 in NRST, even though the federal ban does not apply there.
How do I check if a property is inside a census metropolitan area?
Find the municipality the property is in and check it against Statistics Canada’s 2021 list of census metropolitan areas and census agglomerations, which are built from whole municipalities. CMHC’s foreign buyer ban FAQ also links to a map tool where you can enter an address. Ask your lawyer to confirm the result before you make an offer in 2027.
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)
- CMHC: Prohibition on the Purchase of Residential Property by Non-Canadians Act, FAQ
- Statistics Canada: Table 98-10-0003, Population and dwelling counts, census metropolitan areas, census agglomerations and census subdivisions
- Ontario Ministry of Finance: Non-Resident Speculation Tax
- City of Toronto: Municipal Land Transfer Tax and Municipal Non-Resident Speculation Tax
- Department of Finance Canada: Budget 2026, Chapter 3, A more affordable life
- Department of Finance Canada: Two-year extension to ban on foreign ownership of Canadian housing (February 2024)
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.