Buying a home in Toronto as a Brit: the foreign buyer ban, two land transfer taxes and your first mortgage
Buying in Toronto isn't like buying in Bristol: until you're a permanent resident or fit an exemption, the law may stop you buying at all, and when you can, the city charges its own land transfer tax on top of the province's.
The short version
- Canada's ban on foreign buyers has applied since 1 January 2023 and is set to run until 1 January 2027. It covers houses and condos in Toronto [1].
- Permanent residents and Canadian citizens aren't caught. Work permit holders can usually buy one home if their permit has at least 183 days left on the purchase date [6].
- Toronto buyers pay two land transfer taxes: Ontario's and the city's. On a CAD 800,000 home that's roughly CAD 25,000 (about £13,230) between them [2][3].
- Foreign nationals also pay Ontario's 25% Non-Resident Speculation Tax and, since 1 January 2025, Toronto's own 10% version [2][3].
- With less than 20% down you need mortgage insurance, and the minimum deposit is 5% of the first CAD 500,000 and 10% of the rest up to CAD 1.5 million [4].
Pound conversions use the Bank of England spot rate of 5 November 2026 (£1 = CAD 1.8858).
The foreign buyer ban: who it stops
The Prohibition on the Purchase of Residential Property by Non-Canadians Act came into force on 1 January 2023. In February 2024 the federal government extended it to 1 January 2027 [1]. Check for any later extension before you make an offer; it has been extended once already.
A "non-Canadian" is anyone who isn't a Canadian citizen, a person registered under the Indian Act or a permanent resident [1]. So a Brit on a work permit, a working holiday or a visitor record is a non-Canadian, even if they live and pay tax in Toronto. The FCDO's Living in Canada guide puts it simply: if you're not a citizen or permanent resident, you generally can't own property in Canada, though there are exceptions [5].
The ban covers houses with up to three units, semis, terraces ("rowhouses" here) and condo units in Canada's cities and their commuter belts, which takes in all of Toronto [1]. Buying in breach of it can mean a fine of up to CAD 10,000 (about £5,300) and a court order to sell [1].
Who's exempt
| You are… | Can you buy? |
|---|---|
| A permanent resident or Canadian citizen | Yes, the ban doesn't apply [1] |
| A British citizen by descent who's also Canadian | Yes, as a Canadian citizen |
| On a work permit with 183 days or more left on the purchase date | Yes, one home only [6] |
| Buying with a spouse or partner who is a citizen or PR | Yes [1] |
| An international student | Only if strict conditions are met, including five years of tax returns and a price of no more than CAD 500,000 [1] |
| A visitor, or living in the UK | No, not until the ban ends |
For most Brits, the real answer is to buy once you're a permanent resident. Our guide to permanent residence and citizenship explains the routes. Until then, renting in Toronto is the normal path.
Two land transfer taxes (and two foreign buyer taxes)
Back home, stamp duty is one bill. In Toronto, you pay Ontario's land transfer tax and the City of Toronto's municipal land transfer tax (MLTT), which has applied on top of the provincial tax since 2008 [3].
Ontario's rates on homes bought since 2017 are [2]:
| Slice of the price | Rate |
|---|---|
| Up to CAD 55,000 | 0.5% |
| CAD 55,000 to 250,000 | 1.0% |
| CAD 250,000 to 400,000 | 1.5% |
| Over CAD 400,000 | 2.0% |
| Over CAD 2 million (one or two single-family homes) | 2.5% |
Toronto's MLTT follows a similar banded structure. City Council added higher graduated rates for high-value homes with one or two single-family residences from 1 April 2026 [3]. Use the city's MLTT calculator for the exact figure.
A worked example. On a CAD 800,000 condo, Ontario's tax comes to CAD 12,475 (about £6,615). Toronto's MLTT on the same price is in the same ballpark, so budget roughly CAD 25,000 (about £13,230) for the two together before legal fees.
First-time buyer refunds. Both Ontario and Toronto offer refunds for first-time buyers, but read the rules closely. Ontario's refund is for people who have never owned a home anywhere in the world, so if you sold a flat in Manchester before you came, you won't qualify. Toronto's rebate has its own conditions, including citizenship or permanent residence documents [3].
Foreign buyer taxes. If you're a foreign national (not a citizen or PR) and buy under an exemption, you'll also face:
- Ontario's Non-Resident Speculation Tax of 25% on homes anywhere in the province, since 25 October 2022 [2]
- Toronto's Municipal Non-Resident Speculation Tax of 10% on certain residential properties, since 1 January 2025 [3]
On that CAD 800,000 condo, that's CAD 200,000 (about £106,000) for Ontario and CAD 80,000 (about £42,400) for Toronto, on top of the land transfer taxes. Rebates can apply in some cases, for example if you become a permanent resident within a set period, but don't plan a purchase around getting money back. For most Brits it makes sense to wait for PR.
Mortgages for newcomers
The minimum deposit ("down payment" here) depends on the price [4]:
| Purchase price | Minimum deposit |
|---|---|
| CAD 500,000 or less | 5% |
| CAD 500,000 to 1.5 million | 5% of the first CAD 500,000, 10% of the rest |
| CAD 1.5 million or more | 20% |
So that CAD 800,000 condo needs at least CAD 55,000 (about £29,170). Put down less than 20% and you'll normally pay for mortgage loan insurance, with premiums from 0.6% to 4.5% of the loan [4]. Ontario adds provincial sales tax on that premium, which you must pay in cash at completion; it can't go on the mortgage [4].
Things that work differently from the UK:
- Your UK credit history doesn't come with you. Canadian lenders use Equifax and TransUnion Canada, and you'll start with a thin file. Some banks run newcomer mortgage programmes that accept foreign income evidence and a bigger deposit. Our guide to banking in Canada covers building a relationship with a bank first.
- The stress test. Federally regulated lenders assess you at a higher rate than the one you'll actually pay, so you may be able to borrow less than you expect.
- Terms are short. Most Canadians fix for five years or less on a 25-year amortisation, then renew, a bit like remortgaging at the end of a UK fix.
- Lawyers, not solicitors. In Ontario a real estate lawyer handles the closing, registers the transfer and pays the land transfer taxes for you.
- Where your deposit comes from. Expect to show a full paper trail for money sent from the UK. Moving a large sum? Our guide to sending money between the UK and abroad can help.
A mortgage broker who works with newcomers can compare lenders, but check who pays them and how.
Step by step
- Check your status. Are you PR, a citizen, or exempt from the ban today? If not, rent and wait.
- Get pre-approved by a lender, with your deposit's source documented.
- Budget for closing costs: two land transfer taxes, legal fees, title insurance, and any mortgage insurance tax.
- Make an offer through a local agent. Offers are often conditional on finance and an inspection; in a hot market, buyers sometimes drop conditions, which carries real risk.
- Let your lawyer close, register and pay the taxes.
What about your UK home?
If you keep a house back home and let it out, you'll be a non-resident landlord in the UK, and Canada will tax the rent too, with credit for UK tax. Our guide to UK income while you live abroad covers the Non-Resident Landlord Scheme. A tax adviser who knows both countries can check your case, especially if you sell a UK property after moving.
Thinking of buying and want to hear how others got on? Our community group for Brits in Canada has plenty of people who've done it, some of them twice.
Sources
- WealthNorth: Non-resident mortgages in Canada and the foreign buyer ban (updated October 2026, citing CMHC and Finance Canada)
- Government of Ontario: Calculating Land Transfer Tax
- City of Toronto: Municipal Land Transfer Tax and Municipal Non-Resident Speculation Tax rates and fees (modified 7 April 2026), and MLTT rebate opportunities
- Financial Consumer Agency of Canada: How much you need for a down payment
- GOV.UK (FCDO): Living in Canada (updated 11 December 2025)
- Justice Laws Website: Prohibition on the Purchase of Residential Property by Non-Canadians Regulations (SOR/2022-250) (current to 19 October 2026)