Buying in Simcoe but not a Canadian citizen or permanent resident? The rules changed recently, and a few missteps can derail your deal or add unexpected costs. You want clear answers so you can plan with confidence. In this guide, you’ll learn what the federal purchase prohibition means in Simcoe, how Ontario’s 25 percent NRST works, who may be exempt, and the practical steps to move forward. Let’s dive in.
Federal rules in Simcoe: what applies
The Prohibition on the Purchase of Residential Property by Non‑Canadians Act has been in effect since January 1, 2023, and was extended on February 4, 2024 to remain in force until January 1, 2027. You can review the extension in the Department of Finance announcement and the Act itself for full details. The extension announcement is here and the Act is here.
Simcoe sits inside the Norfolk Census Agglomeration. That means most residential properties in Simcoe are captured by the federal prohibition unless you qualify for a specific exemption. You can confirm the census geography on Statistics Canada’s Norfolk CA page.
Who is a “non‑Canadian” under the Act
Under the federal law, a non‑Canadian is an individual who is not a Canadian citizen, not a permanent resident, and not registered under the Indian Act. Certain corporations controlled by non‑Canadians are also included. You can find the definitions in the Justice Laws text.
Federal exemptions to know
Some buyers may be allowed to purchase if they meet strict conditions set out in the regulations. Common categories include:
- Temporary residents who meet prescribed conditions. These often involve time in Canada, work history and tax filings.
- Protected persons (as defined under immigration law).
- A non‑Canadian buying jointly with a spouse or common‑law partner who is a Canadian citizen, permanent resident or otherwise exempt.
- Other prescribed classes or circumstances in the regulations.
These exemptions are technical and change over time. Review the regulatory text for details in the Canada Gazette regulations.
Ontario’s NRST: 25 percent tax
Separate from the federal prohibition, Ontario charges the Non‑Resident Speculation Tax on certain residential purchases by foreign nationals, foreign corporations or taxable trustees. The current NRST rate is 25 percent of the purchase price. It is payable on registration unless a valid exemption applies. See the province’s overview of rules and examples on Ontario’s NRST page.
NRST exemptions and rebates
Ontario provides limited exemptions and a post‑closing rebate in specific cases. Highlights include:
- Exemptions: Ontario Immigrant Nominee Program nominees, protected persons, and spousal purchases where conditions are met. Transferees typically must certify they will occupy the home as a principal residence within 60 days. See the list on NRST exemptions.
- Rebates: If you later become a permanent resident within four years of the purchase and meet occupancy and other conditions, you may apply for a rebate. Learn more on NRST rebates and refunds.
Remember, NRST and the federal prohibition are different regimes. Qualifying under one does not automatically mean you qualify under the other.
Local costs and property taxes
Budget for Ontario Land Transfer Tax in addition to any NRST. You should also plan for ongoing municipal property taxes in Norfolk County. For example, the total residential rate for 2024 was about 1.5088 percent. Check current local rates on Norfolk County’s property tax page.
Financing as a non‑resident
You can often get a mortgage, but lenders are more conservative with non‑resident files. Typical market practices include:
- Larger down payment, often around 35 percent for non‑residents.
- Proof of funds from verifiable accounts, sometimes held in a Canadian account before closing.
- More documentation and pre‑approval to keep your timeline on track.
Policies vary by lender and can change. See examples of typical requirements from a non‑resident mortgage guide.
Compliance and penalties
All parties should verify eligibility before you sign or close. The federal law can impose fines of up to 10,000 dollars for contraventions, and courts may order the property to be sold. Professionals who knowingly assist a contravention can also face penalties. Review the regulatory framework in the Canada Gazette regulations.
If the seller is a non‑resident
If you are buying from a non‑resident for tax purposes, you may need to withhold and remit a portion of the purchase price to the Canada Revenue Agency under Section 116 unless the seller obtains a Certificate of Compliance. The buyer can become liable if required withholding is missed, so start this process early to avoid delays. See CRA’s guidance on Section 116 procedures.
Quick checklist to move forward
- Confirm location: verify the property is inside a Census Agglomeration. Simcoe is within the Norfolk CA.
- Do an early legal check: ask a Canadian real‑estate lawyer to confirm any federal exemptions and Ontario NRST status before signing.
- Plan for NRST: if it could apply, confirm exemptions or whether a future rebate may be possible.
- Get mortgage ready: speak with a mortgage broker who handles non‑resident files and gather proof of funds, income and IDs.
- Selling or buying from a non‑resident: plan for CRA Section 116 certificates or buyer withholding to avoid closing delays.
- Document your due diligence: professionals who knowingly assist a contravention can face penalties, so keep a clear paper trail.
Let’s talk next steps
Every file is unique, especially when the buyer or seller is a non‑resident. If you are weighing a purchase or sale in Simcoe, get tailored guidance on eligibility, timelines and strategy. Reach out to Alicia Haight for discreet, high‑touch advice.
FAQs
Can a non‑Canadian buy a home in Simcoe right now?
- Simcoe is inside the Norfolk Census Agglomeration, so the federal prohibition applies to many non‑Canadians until January 1, 2027 unless you qualify for an exemption.
What is Ontario’s NRST and when is it charged?
- The NRST is a 25 percent tax on certain residential purchases by foreign nationals, foreign corporations or taxable trustees and is typically paid on registration unless an exemption applies.
Are work‑permit or study‑permit holders exempt from the federal ban?
- Some temporary residents may be exempt if they meet specific regulatory conditions related to presence, work history, tax filings and other limits set in the regulations.
How large a down payment do non‑residents usually need?
- Lenders often require larger down payments, commonly around 35 percent for non‑resident borrowers, with policies varying by lender and borrower profile.
What happens if a purchase violates the federal prohibition?
- Contraventions can lead to fines up to 10,000 dollars, and a court may order the property to be sold; those who knowingly assist can also face penalties.
What if the seller is a non‑resident for tax purposes?
- The buyer may need to withhold and remit funds to CRA under Section 116 unless the seller gets a Certificate of Compliance, which should be arranged early to avoid delays.
