January 2026 - Legal Update - A Guide For Non-Residents

Non-residents in Canada are generally prohibited from purchasing residential property in most circumstances, but several key exemptions exist for temporary residents and others who meet specific criteria outlined in the Regulations to the Prohibition on the Purchase of Residential Property by Non-Canadians Act (the “Act”). Temporary residents can qualify under two main categories. First, international students may be exempt in certain circumstances. An international student is restricted to a single home purchase that does not exceed $500,000. They must have filed any necessary Canadian income tax returns for the past five (5) years, and have been physically present in Canada for at least 244 days in each of those years. Second, temporary residents working in Canada under a valid work permit or authorization may also qualify if their permit remains valid for at least 183 days beyond the purchase date and they have not previously purchased a property. Additional exemptions apply to diplomats, protected persons under refugee protection, and those who are purchasing with a Canadian spouse or a spouse who is a permanent resident. Even with the exemptions available, non-residents face practical challenges buying a home. Securing financing can be complex, and lenders frequently impose stricter conditions for non-resident buyers. Seeking advice early in the process from a trusted mortgage broker and lawyer is highly recommended. There are other important financial considerations, including the Non-Resident Speculation Tax (NRST), the Municipal Non-Resident Speculation Tax (MNRST), the Land Transfer Tax (LTT) and the Municipal Land Transfer Tax (MLTT). To recover the NRST, MNRST, and LTT, the applicant must meet the strict conditions and filing deadlines, so working with an accountant is highly advised even prior to the closing of the purchase. Non-residents face significant challenges owning real estate. However, with the appropriate advice and guidance, it is still technically possible to complete a home purchase. Liddiard Law is experienced in real estate transactions, so if you have questions about non-resident transactions, reach out for a consultation today! Michael Craig Liddiard, BA MA JD (905) 932-5437 [email protected] Liddiard Law Professional Corporation