Buying in Toronto vs Australia: costs compared

In Toronto, your immigration status matters more than the price: a permanent resident pays two land transfer taxes, while an Australian on a work permit pays those plus 35%.

The short version

Canada bans most non-Canadians from buying homes until 1 January 2027. Work permit holders with at least 183 days left on their permit can buy one home [1]. As of October 2026 Ottawa hadn't said whether the ban would be extended [2].
The single biggest cost difference: a foreign national buying in Toronto pays Ontario's 25% Non-Resident Speculation Tax plus Toronto's 10% municipal version, on top of normal land transfer taxes [4][5]. On a C$980,000 condo that's about A$383,000 in tax, against about A$39,200 of NSW duty on A$1 million [9].
Become a permanent resident and those foreign taxes disappear. You then pay Ontario and Toronto land transfer tax, about C$32,150 on the same condo [3][5].
Canadian lenders need a deposit of at least 5% to 10% from locals, with insurance below 20% [6]. Expect more if your Canadian credit history is thin.
Selling as a non-resident triggers the section 116 process, and buyers can hold back 25% of the price until the CRA clears you [8].

Can an Australian buy in Canada?

While the federal ban lasts

The Prohibition on the Purchase of Residential Property by Non-Canadians Act has applied since 1 January 2023 and runs to 1 January 2027. It covers homes in and around cities, which includes all of Toronto. Australians are caught unless an exception fits. The one most Australians in Toronto can use:

You hold a work permit (or are authorised to work in Canada).
You have at least 183 days of validity left on it on the purchase date.
You haven't already bought another residential property in Canada [1].

Students have a narrower path, with five years of tax returns and 244 days a year in Canada, and a price cap of C$500,000 [1]. A working holiday visa is technically a work permit, but check how much time is left before you sign.

What happens after January 2027 is open. In October 2026 the Finance Minister said the government was "considering the options" [2].

Permanent residency changes everything

Permanent residents and citizens are outside the ban and outside the speculation taxes [4]. A second passport from the UK, Ireland or Italy doesn't help: Ontario's test is Canadian citizenship or PR.

The two foreign buyer taxes

Ontario's Non-Resident Speculation Tax (NRST) is 25% of the price, province-wide, on homes with one to six units [4]. Since 1 January 2025 Toronto adds a Municipal Non-Resident Speculation Tax (MNRST) of 10% [5]. Both apply to "foreign nationals", which includes Australians on work permits. Ontario offers a rebate if you become a permanent resident within four years of buying [4]; check with the City whether and how the municipal tax can be refunded.

Upfront costs side by side

Rates as at November 2026. Canadian dollars converted at the RBA rate of C$0.9786 per Australian dollar on 5 November 2026 (C$1 is about A$1.02).

Cost	Toronto	Buying back home (as an Australian living abroad)
Purchase tax / stamp duty	Ontario land transfer tax: 0.5% to C$55,000, 1% to C$250,000, 1.5% to C$400,000, 2% to C$2 million, 2.5% above [3]. Toronto's municipal land transfer tax on the same scale, rising in steps from 4.4% to 8.6% above C$3 million from April 2026 [5]. First-time buyer refunds exist for citizens and PRs	NSW transfer duty: A$11,602 plus 4.5% of the value over A$387,000, up to A$1.29 million (2026–27) [9]. Other states differ
Foreign buyer surcharge or additional duty	NRST 25% [4] plus MNRST 10% [5] for foreign nationals, on the full price	None for Australian citizens in NSW
Legal or notary fees	A real estate lawyer handles the closing and registration; fees plus title insurance usually run to a few thousand dollars	Conveyancer or solicitor, typically a few thousand dollars
Buyer's agent / commission	Traditionally funded from the seller's side; your buyer representation agreement sets what you owe if not	Optional buyer's agent; common for buyers based overseas
Registration and other fees	Land registration fees, home inspection; new-build condos add development charges and occupancy fees	Land registry transfer and mortgage fees of a few hundred dollars, plus building and pest reports
Loan fees	Mortgage loan insurance premium of 0.6% to 4.5% of the loan with less than 20% down; in Ontario the provincial sales tax on it is paid upfront [6]	Application and valuation fees; lenders mortgage insurance above 80% LVR

Getting a loan

In Toronto

The national minimum deposit is 5% of the first C$500,000 and 10% of the amount above, with mortgage loan insurance needed below 20% [6]. Lenders also stress-test your repayments at a rate above the one you'll actually pay.

Australians on work permits can borrow from Canadian banks, but terms depend on the lender, your permit's remaining time and your Canadian credit file, which starts at zero when you arrive. A larger deposit is common for newcomers without a local history. Your Australian credit record doesn't follow you.

Back home

An Australian lender will count only part of your Canadian salary, apply a lower maximum LVR than for local borrowers and offer a shorter lender list. As an Australian citizen, you don't need FIRB approval and NSW charges no foreign surcharge.

Holding costs

	Toronto	Australia (NSW example)
Annual property tax	Toronto's 2026 residential rate is 0.767311% of assessed value, including city, education and City Building Fund levies [7]. Toronto also charges a Vacant Home Tax on homes left empty for most of the year	Council rates; land tax on investment property above the NSW threshold. Your home is usually exempt
Building costs	Condo fees, which cover building insurance and reserve funds; new towers can bring special assessments later	Strata levies for units, building insurance for houses
Tax on rent	Taxed as income in Canada. Non-resident landlords have tax withheld from gross rent unless they file to be taxed on net rent	Foreign residents pay 30% from the first dollar on Australian rent up to A$135,000 (2025–26)

Canada's federal Underused Housing Tax used to hit many foreign owners each year. Budget 2025 proposed abolishing it from the 2025 calendar year.

Once you're a Canadian tax resident, Canada taxes your worldwide income, including rent from an Australian property, with credits for Australian tax paid. If you're still an Australian tax resident too, Australia taxes your worldwide income, Toronto rent included.

Selling and tax

Toronto

A home that was your principal residence for every year you owned it is generally free of Canadian capital gains tax. On other property, half the gain is added to your taxable income.

Sell after you've left Canada and section 116 applies. You must notify the CRA within 10 days of the sale and pay or secure the tax to get a certificate of compliance. Without one, the buyer can withhold 25% of the price (50% for some property types) [8]. Late notice carries a penalty of C$25 a day, up to C$2,500.

Australia

As a foreign resident you generally can't claim the main residence exemption on your Australian home, even for years you lived in it, unless the narrow life events test applies. Since 1 January 2025 the buyer must withhold 15% of every Australian property price unless you provide an ATO clearance certificate by settlement, and foreign residents can't get one [10]. The May 2026 federal Budget also proposed replacing the 50% CGT discount with indexation and a 30% minimum tax for gains from 1 July 2027, pending legislation.

Currency risk

The Canadian and Australian dollars are close in value but don't move together. Over a decade, a few cents either way adds up on a million-dollar sale.

A worked example

Illustration only. One budget, two places: a C$980,000 two-bedroom condo in Toronto (about A$1,001,400 at the 5 November 2026 RBA rate) against a A$1,000,000 NSW home. Legal, inspection, insurance and loan fees are left out, as are first-time buyer refunds.

Upfront tax	Toronto, Canadian PR or citizen	Toronto, Australian on a work permit	NSW, Australian citizen abroad
Ontario land transfer tax	C$16,075 [3]	C$16,075	Transfer duty A$39,187 [9]
Toronto land transfer tax	C$16,075 [5]	C$16,075	Nil
NRST (25%)	Nil	C$245,000 [4]	Nil
MNRST (10%)	Nil	C$98,000 [5]	Nil
Total	C$32,150 (about A$32,900)	C$375,150 (about A$383,400)	A$39,187

The land transfer sum, which is the same for Ontario and Toronto at this price: 0.5% of C$55,000 (C$275), 1% of C$195,000 (C$1,950), 1.5% of C$150,000 (C$2,250) and 2% of C$580,000 (C$11,600). In NSW, A$11,602 plus 4.5% of A$613,000.

The gap between the two Toronto columns is the price of not yet having PR. Ontario's rebate can return its 25% if you get PR within four years [4], but you have to fund it at settlement first.

Which suits whom

Where you are on the PR path. For most Australians in Toronto, this decides everything. Buying on a work permit is legal but very expensive.
What Ottawa does in January 2027. The ban may lapse, be extended or be changed. The provincial and city taxes stay either way.
How long you'll stay. Two land transfer taxes take a few years to justify even for a PR.
Whether you're moving home. Selling from Australia means section 116 and a Canadian tax return. Keeping a Canadian rental from abroad means non-resident withholding on the rent.
Estate planning. Canada taxes gains at death as if assets were sold. Get advice on both sides.

Want to hear how other Australians timed buying with their PR? Join Cooee Canada, our Facebook group for Australians in Canada, at /join/.

Buying in Toronto vs back home: two transfer taxes, a ban and a 35% catch