NRST Rebate and Work Permit Rules: How Newcomers Can Buy in Markham
Neeraj Moolchandani is a top real estate agent in Markham, Ontario. Published November 11, 2026 · By Neeraj Moolchandani, REALTOR®, Cofounder of the Kaizen Real Estate Team, eXp Realty, Brokerage
The short answer
Many work permit holders can buy a home in Markham. The federal foreign buyer ban has an exemption if your work permit has at least 183 days left at purchase and you have not bought under the ban before. You will usually pay Ontario's 25% Non Resident Speculation Tax at closing, but you can get all of it back if you become a permanent resident within four years, live in the home as your principal residence, and apply within 180 days of becoming a PR.
Markham welcomes a lot of newcomers working in tech, health care and professional roles. Many of them rent longer than they need to because the rules feel confusing. Our Kaizen Real Estate Team is one of the teams Markham newcomers trust with their first purchase, and this guide lays out the rules clearly. Our newcomer's guide covers the wider buying process; this post focuses on the tax and eligibility details.
New to Canada and thinking about buying? Ask Neeraj to walk you through the steps.
Call (647) 370 8885Two Different Rules: Federal Ban and Ontario Tax
Newcomers often mix up two separate rules. The federal rule decides whether you are allowed to buy a home. The Ontario rule decides whether you pay an extra tax when you do.
| Rule | Who sets it | What it does |
|---|---|---|
| Prohibition on the Purchase of Residential Property by Non Canadians | Government of Canada | Stops most non Canadians from buying homes, with exemptions |
| Non Resident Speculation Tax (NRST) | Province of Ontario | Adds a 25% tax for foreign buyers anywhere in Ontario, with exemptions and rebates |
The Federal Ban and the Work Permit Exemption
The federal ban took effect on January 1, 2023 and is currently set to end on January 1, 2027. According to CMHC, work permit holders are exempt if they:
- hold a valid work permit or are authorized to work in Canada,
- have 183 days or more of validity left on that permit at the time of purchase, and
- have not already bought a home in Canada while the ban has been in effect.
Want to know if your situation fits an exemption? Start with a quick call to Neeraj.
Call (647) 370 8885A non Canadian can also buy together with a spouse or common law partner who is a Canadian citizen or permanent resident. There are separate exemptions for some students and for protected persons.
Watch this: The federal budget tabled on November 5, 2026 proposes extending the ban on existing homes to January 1, 2029, while exempting new residential properties. As of publishing, this is a proposal that still needs legislation and regulations. Confirm the current rules with your lawyer before you sign.
Ontario's 25% NRST and Who Is Exempt
Since October 25, 2022, the NRST rate has been 25% and it applies to residential property anywhere in Ontario. On a $1,000,000 Markham home, that is $250,000 on top of regular land transfer tax.
Ontario lists exemptions for registered transfers to a nominee, a protected person, or the spouse of a Canadian citizen, permanent resident, nominee or protected person. Buying with a spouse who is a citizen or PR is one of the most common ways Markham newcomers avoid paying the NRST at closing.
Planning around a PR timeline? Neeraj can help you map the purchase.
Call (647) 370 8885How the PR Rebate Works, Step by Step
If you pay the NRST, Ontario's rebate rules let you get the full amount back once you become a permanent resident, as long as you meet every condition:
- You become a permanent resident of Canada within four years of the purchase.
- The home is held only by you, or by you and your spouse.
- You live in the home as your principal residence starting within 60 days after the purchase is registered, and keep living there until you apply.
- You apply within 180 days of becoming a permanent resident. The date you become a PR starts the clock, not the date your PR card arrives.
Only one spouse needs to become a PR, but the person you buy with must already be your spouse on closing day. Simply designating the home as your principal residence with the Canada Revenue Agency is not enough; you must actually live there.
Common Mistakes That Cost Newcomers the Rebate
- Buying with a friend, sibling or parent who is not your spouse.
- Renting the home out instead of living in it.
- Waiting for the PR card and missing the 180 day deadline.
- Assuming the old rebates for students and foreign workers still apply. Ontario says those ended for agreements signed after March 29, 2022, and the application deadline has passed.
- Signing before confirming your work permit has at least 183 days left.
Separately, first time buyers may qualify for Ontario's land transfer tax refund. Ontario's refund page sets out the residency conditions, so ask your lawyer whether you qualify. Markham does not charge a municipal land transfer tax. Our first time buyer guide covers FHSA and down payment basics.
Have a question about the NRST or the federal rules? Call Neeraj.
Call (647) 370 8885Questions Markham Clients Ask
Can I buy a house in Markham on a work permit?
Often yes. The federal ban exempts work permit holders with at least 183 days of validity left at purchase who have not bought under the ban before. You will usually pay the 25% NRST unless an exemption applies.
How do I get the NRST refunded in Ontario?
Become a permanent resident within four years of buying, hold the home alone or with your spouse, live in it as your principal residence starting within 60 days of registration, and apply within 180 days of becoming a PR.
Do I pay the NRST if I buy with my Canadian spouse?
Ontario lists an exemption for the spouse of a Canadian citizen or permanent resident on registered transfers. Your lawyer will confirm the details and file the right forms.
Is the foreign buyer ban ending in 2027?
It is currently set to end on January 1, 2027. The November 5, 2026 federal budget proposes extending it for existing homes to January 1, 2029 while exempting new homes. That is a proposal until it becomes law.
When does the 180 day NRST rebate deadline start?
It starts on the date you become a permanent resident, not the date your PR card arrives. Apply as soon as you can.
Keep Reading
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Start Your Markham Home Plan the Right Way
Neeraj will help you understand your options, connect you with a lawyer and mortgage broker who work with newcomers, and plan each step.
Sources: Ontario, Non Resident Speculation Tax; Ontario, NRST rebates and refunds; CMHC, Prohibition on the Purchase of Residential Property by Non Canadians Act; Jain Immigration Law, Budget 2026 foreign buyer ban proposal; Ontario, Land transfer tax refunds.
Neeraj Moolchandani, REALTOR®, Kaizen Real Estate Team, eXp Realty, Brokerage, 9763 Markham Rd, Markham, ON L6E 1A4. (647) 370 8885 · info@kaizenrealestate.ca. Published November 11, 2026. General information only, not legal, tax, financial or engineering advice. Rules and programs change, so confirm details with the official source and your own professionals before you act. Not intended to solicit properties currently under contract.
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