There is a lot of noise right now around foreign ownership rules in Canada, and a fair amount of it is out of date. Between the federal ban, Ontario's provincial tax, and a federal review that could reshape everything in 2027, it is easy to lose the thread. Here is a clear, current breakdown of what is actually in place today, and where things appear to be heading.
What is the foreign buyer ban?
The formal name is the Prohibition on the Purchase of Residential Property by Non Canadians Act. It came into force on January 1, 2023, and it prevents most foreign nationals from buying residential property in Canada. "Residential property" under the Act means buildings with three dwelling units or fewer, which captures most detached homes, semis, and individual condominium units.
Is the ban still in effect right now?
Yes. It was originally meant to last two years, but in February 2024 the federal government extended it to January 1, 2027. The prohibition remains fully in place throughout 2026.
Does the ban apply in Oakville?
Yes. The ban applies inside Census Metropolitan Areas and Census Agglomerations, which is the technical way of describing Canada's larger urban and suburban regions. Oakville sits within the Toronto area and falls squarely inside that scope. Rural communities and small towns outside these defined regions are not covered, but that carve out does nothing for anyone shopping in Oakville, Burlington, Mississauga, or the rest of the GTA.
Who is exempt from the ban?
The Act sets out several exempt groups:
- Permanent residents are treated exactly like Canadian citizens and face no restriction at all.
- Refugees and protected persons.
- People registered under the Indian Act, and accredited diplomats.
- Temporary residents on a valid work permit can buy one property, provided the permit has at least 183 days of validity remaining at the time of purchase and they have not already bought a home during the ban.
- Certain international students who meet residency and filing conditions.
There is also a development exemption: a foreign buyer may purchase property specifically to develop it, and the restriction was lifted entirely on vacant land zoned for residential or mixed use.
What happens if someone breaks the ban?
The penalties are real. A purchase that breaks the rules can bring fines of up to $10,000, and a court can order the property sold. Just as importantly, anyone who knowingly helps a foreign national make a prohibited purchase, including agents and other professionals, can be penalized as well. This is exactly why eligibility gets verified early in any transaction.
So does Ontario also have a foreign buyer tax?
Yes, and this is the part people most often confuse. The ban and the tax are two entirely separate things. The ban is a federal law that says certain foreign buyers cannot purchase at all. Ontario's tax is a provincial charge that applies to foreign buyers who are permitted to purchase, for example through one of the exemptions above.
That tax is the Non Resident Speculation Tax, or NRST.
How much is the NRST?
The NRST is currently 25 percent of the purchase price, charged on top of the regular Ontario land transfer tax and due in full at closing. It cannot be rolled into a mortgage.
A little history explains the number. Ontario introduced the NRST in 2017 at 15 percent, limited to the Greater Golden Horseshoe. In March 2022 it rose to 20 percent and expanded across the entire province. In October 2022 it climbed to its current 25 percent. It applies to foreign nationals, foreign corporations, and certain trustees.
To put that in perspective: on a $2 million Oakville home, the NRST alone would add $500,000 at closing, entirely separate from land transfer tax and every other cost.
Is there an extra tax inside the City of Toronto?
Yes, but only inside Toronto's city limits. As of January 1, 2025, the City of Toronto added its own Municipal Non Resident Speculation Tax at 10 percent, stacking on top of the provincial 25 percent for a combined 35 percent on foreign purchases within the city. This municipal layer does not apply in Oakville or the rest of Halton. Oakville buyers are looking at the 25 percent provincial NRST, not the 35 percent Toronto figure.
Can the NRST ever be refunded?
In some cases, yes. A foreign buyer who becomes a permanent resident within four years of closing may apply for a full rebate, provided the home has been their principal residence. Nominees under the Ontario Immigrant Nominee Program may also qualify for relief. These rules are detailed, and worth reviewing with a real estate lawyer before you count on them.
Is the ban being lifted or softened any time soon?
This is the question generating the most conversation, and the honest answer is that change is clearly on the table, but nothing has been confirmed.
In December 2025, federal Housing Minister Gregor Robertson confirmed the government is conducting a formal review of the ban. The stated plan is to hold the existing prohibition through 2026, then potentially rewrite the rules when the ban reaches its expiry on January 1, 2027.
The model drawing the most attention is Australia's approach: allow foreign capital into new construction and vacant land, while keeping existing resale homes off limits to foreign buyers. The logic is to direct foreign money toward building new supply rather than competing for the homes already on the market. Developers, particularly in British Columbia, have been pushing hard for exactly this kind of easing, arguing the current rules are stalling new projects.
So the direction of travel does point toward loosening, most likely a partial opening tied to new construction, around the 2027 expiry. But as things stand it remains a review, not a decision, and the full ban stays in force through 2026.
What does this mean if you are buying or selling in Oakville?
A few practical takeaways:
- If you are a Canadian citizen or permanent resident, none of this restricts you. The ban and the NRST simply do not apply.
- If you are buying as a foreign national, eligibility and tax exposure should be confirmed before you make an offer, not after. The difference can run into hundreds of thousands of dollars.
- If you are selling, buyer eligibility is worth verifying early, since a prohibited sale carries consequences for everyone at the table.
- And if you are watching 2027 with interest, keep in mind that any easing being discussed would likely favour new construction, which could matter more for preconstruction and development opportunities than for the resale market.
The landscape is shifting, and the rules that apply at closing are the ones that count. Before committing to anything, it is always worth a conversation with a real estate lawyer and an advisor who follows these changes closely.
This article is general information and is not legal or tax advice.
