The Short Answer
Can a non-resident buy property in Markham? Generally no. A federal ban, the Prohibition on the Purchase of Residential Property by Non-Canadians Act, restricts most non-Canadians from buying residential property and is in force until January 1, 2027, though exemptions exist. Separately, even buyers who qualify to purchase face Ontario's 25 per cent Non-Resident Speculation Tax. These are complex, high-stakes rules and legal advice is essential.
One of the most common questions from international buyers, newcomers, and families with relatives abroad is whether a non-resident can buy a home in Markham. The answer is nuanced and the stakes are serious.
Michael John Lau, top real estate agent in Markham Ontario, lays out the current rules with a strong caveat to get professional advice.
This Is Not Legal Advice, and the Stakes Are Serious
Foreign-buyer rules are complex, fact-specific, and subject to change. Violating the federal ban is a criminal offence that can result in a fine and a court-ordered sale of the property. Before taking any step, consult a qualified Canadian real estate lawyer who can assess your specific situation. Confirm your eligibility before you make an offer, not after.
Two Separate Regimes
The single biggest source of confusion is that people treat this as one rule. It is two entirely separate things. First, whether you are allowed to buy at all, which is the federal ban. Second, what tax you owe if you do, which is Ontario's Non-Resident Speculation Tax.
You must check both. Qualifying under one does not exempt you from the other.
Regime 1: The Federal Ban
What it is. The Prohibition on the Purchase of Residential Property by Non-Canadians Act took effect January 1, 2023, restricting most non-Canadian citizens and non-permanent residents, plus certain foreign-controlled entities, from purchasing residential property in Canada. Originally set to expire January 1, 2025, it was extended in February 2024 to January 1, 2027.
Where and what it covers. The ban applies within census metropolitan areas and census agglomerations, which include the Markham and Toronto region, and covers residential property of three dwelling units or fewer including detached homes, semis, and condominium units. Buildings with four or more dwelling units are not covered.
Key exemptions. Amendments have carved out exemptions including certain work-permit holders meeting specific conditions, some international students meeting strict criteria, and certain spousal co-purchases where one spouse is Canadian or a permanent resident. Eligibility is fact-specific and must be confirmed with a lawyer.
The penalties. Violating the ban is a criminal offence. Both the non-Canadian buyer and anyone who knowingly counsels, induces, aids, or abets the purchase can face a fine of up to $10,000 on summary conviction. Separately, a court can order the property sold, with the owner receiving no more than what they paid and forfeiting any appreciation. That combination is why confirming eligibility before an offer is non-negotiable.
Neeraj Moolchandani on Working With International Buyers
Neeraj Moolchandani, REALTOR® at Kaizen Real Estate, will not begin a property search with a buyer whose status is unclear until a real estate lawyer has confirmed eligibility in writing. It is not caution for its own sake. Under this Act, a person who knowingly assists a prohibited purchase commits an offence themselves, so the professional standard and the client's interest point the same direction here.
The misunderstanding Neeraj corrects most often is the assumption that being in Canada legally means being able to buy. A valid work permit, a study permit, or a long residence history do not automatically create eligibility. The exemptions are narrow and conditional, and the conditions attach to specifics such as time remaining on a permit and prior purchase history. Getting a written legal opinion first costs a fraction of what getting it wrong costs.
Regime 2: Ontario's Non-Resident Speculation Tax
Even if an exemption lets you buy legally, Ontario's Non-Resident Speculation Tax may still apply. It is a completely separate provincial tax.
Element | Detail |
|---|---|
Rate | 25 per cent of the value of the consideration, province-wide since October 25, 2022 |
Applies to | Foreign nationals, foreign corporations, and taxable trustees purchasing land containing one to six single-family residences |
Charged | At closing, on top of regular Ontario land transfer tax |
Toronto addition | A Municipal NRST of a further 10 per cent applies within the City of Toronto, for a combined 35 per cent. Markham is in York Region, not the City of Toronto |
Rebate | A rebate may be available to buyers who become permanent residents within the prescribed period and meet the conditions |
Two Details That Catch People Out
First, where a foreign national holds even a partial interest, the tax can apply to the entire purchase price rather than only their share, unless a spousal or other exemption applies. Second, the former NRST rebates for international students and temporary foreign workers were eliminated some years ago. The permanent-residency path is the remaining rebate route. Confirm current rules with a lawyer, as both points are fact-specific.
What Happens After January 1, 2027
The federal ban is currently set to lapse on January 1, 2027. Here is the critical point: even if the federal ban ends, Ontario's 25 per cent NRST does not automatically end with it. They are separate laws under separate governments. Unless Ontario changes its own tax, the NRST remains in force regardless of what happens federally.
There is also a timing subtlety for anyone signing late in 2026 with a 2027 closing. Whether the ban applies can depend on when the purchase is legally treated as made, not simply the closing date. That is genuinely complex, and another reason to get advice before you sign anything.
Your REALTOR® Guides the Market. A Lawyer Confirms Eligibility.
Start with the right team, and start before you sign. Book a private consultation with the Kaizen Real Estate Team.
Michael John Lau, top real estate agent in Markham Ontario, guides international buyers, newcomers, and their families through the Markham market, and works alongside qualified real estate lawyers who confirm eligibility and tax implications before any offer.