Published 2 November 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
The main 2027 changes in Ontario are: the foreign buyer ban’s current end date of 1 January 2027 (Budget 2026 proposes extending it to 2029), reduced Tarion deposit coverage for freehold buyers who miss the 45-day notice, a 1.9% rent guideline, and the 31 March 2027 deadline for the new-home HST rebate. The freehold cooling-off period moved to 2028.
This is for anyone planning to buy, sell, build or rent out a home in Ontario in 2027. Below is every rule change I could confirm from an official source as of 10 November 2026, what is already law and what is only proposed, and what each one means in practice.
What real estate rules change in Ontario in 2027?
Most of the changes land on or around 1 January 2027. Some are already law. Others are federal budget proposals that still need legislation or regulations. The table sorts them by date.
| Date | Change | Who it affects | Status (10 Nov 2026) |
|---|---|---|---|
| 1 Jan 2027 | Federal foreign buyer ban: current law runs to this date; Budget 2026 proposes extending it to 1 Jan 2029 for existing homes and exempting new homes | Non-Canadian buyers | Extension proposed, not yet law |
| 1 Jan 2027 | Tarion: freehold buyers who did not notify Tarion within 45 days face reduced deposit coverage | Buyers of new freehold homes | In force (transition ends) |
| 1 Jan 2027 | Legacy listed heritage properties without a notice of intention to designate come off municipal registers | Owners and buyers of listed properties | Law, unless the province sets a later date |
| 1 Jan 2027 | Rent increase guideline of 1.9% applies to increases taking effect in 2027 | Landlords and tenants | Set |
| 1 Feb 2027 | Mortgage insurance changes for new three- and four-unit homes and five- to fifty-unit properties | Small builders and investors | Announced, effective date set |
| 31 Mar 2027 | Last day to sign an agreement that qualifies for Ontario’s enhanced new housing rebate | Buyers of new homes to live in | In force |
| 1 Jan 2028 | 10-day cooling-off period for new freehold homes, and new information sheets and addenda | Buyers of new freehold homes | Delayed from 2027 to 2028 |
Sources: Budget 2026 Chapter 3; Tarion; City of Toronto heritage register review; ontario.ca rent increase guideline; CRA Notice 346. Proposed measures can change before they become law.
Is the foreign buyer ban ending in 2027?
Under the law as it stands, the federal ban on most non-Canadians buying residential property in Canada is set to run to 1 January 2027. Federal Budget 2026 proposes extending the ban on existing homes for two more years, to 1 January 2029, while exempting new residential properties. The government says it will introduce legislation and start the regulatory process “in short order”. As of 10 November 2026, the details of the new-home exemption had not been published.
Some exceptions already exist. Under the current regulations, a work-permit holder can buy one home if they have at least 183 days left on the permit on the date of purchase.
The federal ban is separate from provincial and city taxes, and those stay in place. Ontario’s Non-Resident Speculation Tax is 25% for foreign nationals buying residential property anywhere in Ontario. Inside Toronto, the City adds a 10% Municipal Non-Resident Speculation Tax on top of its regular land transfer tax. If you are not a citizen or permanent resident, have a lawyer confirm what applies before you sign anything.
Is there a cooling-off period for new homes in Ontario in 2027?
Not for new freehold homes. Ontario had planned a 10-day cooling-off period for buyers of new freehold houses and townhouses, along with new home information sheets and addenda. Tarion now says the Ministry has moved the start of those requirements to 1 January 2028. Until then, builders must attach the current addenda (dated 7 October 2020) and the condominium information sheet (dated 20 April 2022) to new home agreements signed on or after 1 January 2027.
Buyers of new condo units are different. The Condominium Authority of Ontario explains that condo buyers already have a 10-day period to rescind the agreement after receiving the disclosure statement and the Condo Buyers’ Guide. Resale homes have no cooling-off period at all. Once your resale offer is accepted and firm, you are bound by it.
What changes for new home deposits with Tarion on January 1, 2027?
Since 1 April 2026, buyers of new freehold homes must notify Tarion of their purchase within 45 days of signing the agreement with the builder. Tarion deferred the consequences of missing that deadline until 1 January 2027.
- If you give notice on time, you keep the maximum deposit coverage, which for freehold homes is up to $100,000.
- If you give notice late or not at all, any deposit claim falls under a special fund capped at $15 million a year. If total claims exceed it, payouts are reduced to a proportional share.
- Your lawyer or agent can give notice for you, but you should confirm it was done.
- Condo buyers do not need to give this notice, because the Condominium Act requires builders to hold condo deposits in trust.
My post on Tarion’s 45-day notice rule explains what deposit coverage is worth for each type of home.
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When is the deadline for Ontario’s new home HST rebate?
To qualify for Ontario’s enhanced new housing rebate, you must sign the agreement of purchase and sale with the builder between 1 April 2026 and 31 March 2027. CRA’s Notice 346, updated in August 2026, sets out how it works:
- Homes up to $1 million: full rebate of the 8% Ontario part of the HST, up to $80,000.
- Over $1 million to $1.5 million: a flat $80,000.
- Over $1.5 million and below $1.85 million: a partial rebate.
- Ontario’s New Home Affordability Payment can add up to $50,000 toward the federal part of the HST, reduced by any federal rebate you already get.
The home must be the primary place of residence for you or a relation. If you are thinking about a new build in early 2027, that 31 March date matters more than almost anything else on this list. I cover a worked example in the $80,000 rebate on a new Caledon or Brampton home. Confirm your eligibility with your lawyer before signing.
What mortgage rules change in 2027?
The rules for a regular home buyer stay mostly the same. The insured mortgage price cap is still $1.5 million, and first-time buyers and buyers of newly built homes can still get a 30-year amortization on an insured mortgage. The changes are aimed at small builders and at making mortgages easier to compare.
Confirmed for 1 February 2027
Budget 2026 says new mortgage insurance flexibilities for three- and four-unit homes, and permission for private insurers to cover five- to fifty-unit residential properties, take effect on 1 February 2027. The budget’s example is a builder of a new $3 million fourplex who could get insured construction financing for up to 90% of value, with no price cap and no need to live in one unit.
Proposed in Budget 2026
- Raising the price limit for optional mortgage insurance (on loans where the buyer puts 20% or more down) from $1 million to $1.5 million, with a 30-year amortization if at least one borrower is a first-time buyer or the home is new.
- Regulations so the Bank of Canada publishes better information on insured mortgage rates.
- A CRA income verification service for lenders and insurers, with a pilot funded from 2027-28.
- Consultations on clearer prepayment penalties for insured mortgages.
Rates themselves are not a rule, but they will shape 2027. The Bank of Canada raised its policy rate to 2.50% on 28 October 2026, and its next decision is 9 December 2026.
What changes for Ontario landlords and tenants in 2027?
The rent increase guideline for 2027 is 1.9%, down from 2.1% in 2026. It is the most a landlord can raise rent for most existing tenants without Landlord and Tenant Board approval. It does not apply to units first occupied for residential purposes after 15 November 2018, or to a new tenancy where the landlord and new tenant agree the rent.
The bigger tenancy changes already happened. Several amendments to the Residential Tenancies Act took effect on 21 September 2026, including shorter notice periods for arrears. My summary of everything that changed in Ontario tenancy law lists them.
What happens to listed heritage properties in Toronto on January 1, 2027?
Under the Ontario Heritage Act, properties that were “listed” on a municipal heritage register before 2023 must either receive a notice of intention to designate or come off the register by 1 January 2027, unless the province sets a later date. The City of Toronto says about 4,000 properties are listed, and only some can be designated in time.
For buyers and sellers this cuts both ways. A home that comes off the register cannot be re-listed for five years, which gives owners more freedom. A home that gets designated instead stays under heritage protection, which can limit what you change. Check the City’s heritage register for any older home before you firm up. My post on heritage designation in Ontario goes deeper.
Which home buying taxes stay the same in 2027?
No change to land transfer tax had been announced for 2027 as of 10 November 2026. Inside Toronto you pay both Ontario’s land transfer tax and the City’s municipal land transfer tax. The City added higher municipal rates for one- or two-family homes over $3 million on 1 April 2026, rising in steps to 8.60% above $20 million. First-time buyers can still get up to $4,000 back from Ontario and up to $4,475 from Toronto.
Property tax rates for 2027 are not set yet. Toronto sets its rates with its annual budget early in the year; the 2026 budget was approved in February 2026.
If you are buying a new home to live in, the date to circle is 31 March 2027, not 1 January. The rebate can be worth up to $130,000 combined, which dwarfs most other changes on this list. If you are buying a resale home, very little changes for you in 2027 apart from interest rates. I would spend my energy on getting a rate hold and a solid pre-approval rather than worrying about new rules.
Do not treat a budget proposal as law. The foreign buyer ban extension, the new-home exemption and the optional insurance change all need legislation or regulations first, and the details can change. If any of them affects your plans, get written advice from a real estate lawyer before you sign, and build a condition into your offer where you can.
What to do next
- If you are signing for a new build, check the 31 March 2027 rebate deadline and register your purchase with Tarion within 45 days.
- If you are not a Canadian citizen or permanent resident, have a lawyer confirm the federal ban, NRST and Toronto MNRST position before you make an offer.
- If you own or are buying an older Toronto home, search the City’s heritage register now.
- If you are a landlord, apply the 1.9% guideline only to units it covers, with at least 90 days’ written notice.
- Check back after the federal legislation is tabled; I will update this post when the foreign buyer rules are final.
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
What are the new real estate rules in Ontario for 2027?
Ontario’s main real estate changes for 2027 are the end of Tarion’s deposit transition on 1 January, a 1.9% rent increase guideline, the 31 March 2027 deadline for the enhanced new-home HST rebate, and new mortgage insurance rules for multi-unit homes from 1 February. Federally, Budget 2026 proposes extending the foreign buyer ban on existing homes to 2029.
Is the foreign buyer ban in Canada extended past 2027?
Not yet. As of November 2026, the federal ban on non-Canadians buying residential property runs to 1 January 2027 under current law. Budget 2026 proposes extending it for existing homes to 1 January 2029 and exempting new homes, but legislation and regulations were still to come. Confirm the rules with a lawyer before signing.
When does the cooling-off period for new freehold homes start in Ontario?
The 10-day cooling-off period for new freehold homes in Ontario now starts on 1 January 2028, not in 2027. Tarion says the Ministry moved the date, along with the new information sheets and addenda. Buyers of new condos already have a 10-day rescission period, and resale buyers have none.
Do I need to register my new home purchase with Tarion?
Yes, if you buy a new freehold home in Ontario. Since 1 April 2026, you must notify Tarion within 45 days of signing with the builder. From 1 January 2027, buyers who miss the deadline get deposit coverage from a special fund capped at $15 million a year, which could mean a reduced payout. Condo buyers are exempt.
What is the rent increase guideline for 2027 in Ontario?
The 2027 rent increase guideline in Ontario is 1.9%, down from 2.1% in 2026. It applies to increases taking effect between 1 January and 31 December 2027 for most existing tenants. Units first occupied for residential purposes after 15 November 2018 are exempt, and landlords must give at least 90 days’ written notice.
When does the Ontario HST rebate on new homes end?
Ontario’s enhanced new housing rebate applies to agreements of purchase and sale signed from 1 April 2026 to 31 March 2027, according to CRA Notice 346. It refunds the 8% Ontario part of the HST up to $80,000, and Ontario’s New Home Affordability Payment can add up to $50,000 toward the federal part.
Are mortgage rules changing in Canada in 2027?
For most home buyers, mortgage rules stay the same in 2027: the insured price cap is $1.5 million and first-time buyers and new-build buyers can get 30-year insured amortizations. From 1 February 2027, mortgage insurance changes for three- to fifty-unit properties take effect, and Budget 2026 proposes more changes that are not yet law.
Is land transfer tax changing in Ontario in 2027?
No change to Ontario land transfer tax had been announced for 2027 as of November 2026. Ontario charges its tax in brackets, and Toronto adds its own municipal tax, which rose for one- or two-family homes over $3 million on 1 April 2026. First-time buyers can still claim up to $4,000 from Ontario and $4,475 from Toronto.
What happens to Toronto heritage-listed homes in 2027?
Toronto heritage-listed homes that were listed before 2023 and have not received a notice of intention to designate come off the register on 1 January 2027, unless the province sets a later date. The City says about 4,000 properties are listed. Removed properties cannot be re-listed for five years, while designated ones face permanent alteration limits.
Sources
- Budget 2026, Chapter 3: housing and mortgage measures
- Prohibition on the Purchase of Residential Property by Non-Canadians Regulations (SOR/2022-250)
- Condominium Authority of Ontario: Pre-construction condos
- Tarion: update on cooling-off period, information sheets and addenda
- Tarion: changes to deposit protection (45-day notice Q&A)
- CRA Notice 346: Ontario enhanced new housing rebate
- City of Toronto: Heritage Register review
- City of Toronto: MLTT and MNRST rates and fees
Related reading
- GTA Housing Market Forecast 2027: City-by-City Numbers
- Mississauga Housing Market 2027: Prices, Sales and What to Expect
- Brampton Housing Market 2027: Prices, Sales and What to Expect
- Markham and Richmond Hill Housing Market 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.