Buy a house in Canada as a foreigner is possible, but the process involves several legal, financial, and procedural steps that differ from what local buyers experience. Whether you’re an investor, a future immigrant, or simply interested in Canadian real estate, this guide will walk you through everything you need to know to buy a house in Canada—from eligibility to closing the deal.
Understanding the Canadian Housing Market
Canada is known for its stable and secure housing market. Cities like Toronto, Vancouver, and Montreal consistently attract foreign interest. However, due to recent legislative changes, foreign buyers may face additional restrictions and taxes depending on the province and the property’s use.
Regional Variation in House Prices
Buy a house in Canada as a foreigner prices differ vastly between provinces and cities. While homes in Vancouver and Toronto are among the most expensive in the country, cities like Halifax, Winnipeg, and Regina offer more affordable options. Understanding these regional differences is key when planning to buy a house in Canada.
Who Is Eligible to Buy a House in Canada?
Buy a house in Canada as a foreigner can legally buy residential property in Canada, though rules have become stricter in recent years. Under the Prohibition on the Purchase of Residential Property by Non-Canadians Act (effective January 2023), most non-residents are temporarily restricted from buying residential real estate. However, there are exceptions:
- Permanent residents and Canadian citizens
- Foreign workers with valid work permits
- International students who meet specific residency conditions
- Foreign diplomats and international organizations
Make sure to check your eligibility under the current law before making plans to buy a house in Canada.
Key Steps to Buy a House in Canada
Step 1: Define Your Budget and Financing Options
Buy a house in Canada as a foreigner often face stricter lending criteria. Most Canadian banks require a 35% down payment for non-residents. Proof of income, international credit history, and personal identification are also needed. Mortgage pre-approval is highly recommended.
Step 2: Choose a Location
Choosing the right city or province depends on your purpose: investment, living, retirement, or study. Consider factors such as housing costs, climate, job opportunities, and local amenities.
Explore property listings and options in these Canadian locations:
- Pointe-Claire Apartments: Luxury Comfort
- Luxurious Montreal Apartments for Rent
- Bright Chilliwack Rental Basement Suite
- Modern Apartments Coquitlam Braemar
- Vancouver Apartments Premium City Living
Step 3: Work with a Realtor
Hire a licensed real estate agent familiar with helping international buyers. A good agent will explain local market trends, guide you through offers and negotiations, and connect you with trusted legal and financial professionals.
Step 4: Make an Offer
Once you find a property, your realtor will help you make a formal offer. This may include contingencies such as home inspection, financing approval, and legal review.
Step 5: Secure Financing
If you need a mortgage, work with a Canadian bank that offers financing to foreigners. Provide all necessary documentation including your passport, visa status, proof of income, and bank statements.
Step 6: Hire a Real Estate Lawyer
A Canadian real estate lawyer is essential. They will review the purchase agreement, ensure compliance with provincial laws, and manage the title transfer.
Step 7: Pay the Deposit
You’ll usually need to pay a deposit (often 5% to 10%) when your offer is accepted. This is held in trust until the sale closes.
Step 8: Complete the Purchase
The lawyer finalizes the transaction, including title registration, payment of land transfer taxes, and transferring funds. On closing day, you receive your keys and the property title.
Additional Costs When Buying a House in Canada
- Down Payment: Minimum 35% for non-residents
- Legal Fees: ~$2,000 – $3,000 CAD
- Property Inspection: ~$300 – $500 CAD
- Land Transfer Tax: Varies by province
- Foreign Buyer Taxes: Up to 25% in some provinces
- Insurance: Required before closing
How Much Deposit Do You Need to Buy a House in Canada?
Foreign buyers typically need a minimum 35% deposit of the purchase price, especially if they don’t have Canadian income or credit history. Some lenders may require even more, depending on risk assessment.
Can I Stay in Canada if I Buy a House?
Buy a house in Canada as a foreigner does not grant residency or a visa. Property ownership alone doesn’t influence your immigration status. If you plan to live in Canada, you must apply for the appropriate visa or residency through immigration programs.
What Salary Do You Need to Buy a Home in Canada?
This depends heavily on location. For example:
- Toronto/Vancouver: ~$150,000 annual income (to afford a $900,000 home)
- Montreal: ~$80,000 for a $500,000 property
- Smaller cities: $60,000 – $75,000 may be enough
Use mortgage calculators to assess your affordability based on income, debts, and other expenses.
Rental Income Potential for Foreign Buyers
If your goal is investment, consider renting your property. Many cities, especially Montreal and Vancouver, have strong rental demand. Learn more from these listings:
Foreign Buyer Restrictions by Province
British Columbia (BC)
- 20% Foreign Buyers Tax in Metro Vancouver and surrounding regions
- Speculation and Vacancy Tax if home is left unoccupied
Ontario
- 25% Non-Resident Speculation Tax (NRST) in Greater Golden Horseshoe Area
Quebec
- No extra taxes yet, but discussions ongoing
Alberta & Atlantic Provinces
- Fewer restrictions and no foreign buyer taxes, making them attractive for investment
Best Cities for Foreigners to Buy Real Estate
- Montreal: Growing tech hub, relatively affordable
- Vancouver: High resale value, global appeal
- Halifax: Emerging investment hotspot
- Calgary: No foreign buyer tax, energy sector recovery
- Coquitlam & Chilliwack: Family-friendly suburbs with solid ROI
Important Legal Considerations
- Title Insurance: Protects against fraud and title defects
- Zoning Laws: Determine property usage
- Property Disclosure: Sellers must disclose known defects
- Condo Bylaws: Review rules and monthly fees if buying a condo
Post-Purchase: What to Know
- Pay Property Taxes Annually
- Maintain Property Insurance
- Hire Local Property Manager if renting from abroad
- Stay Updated on regulatory changes affecting foreign ownership
FAQs
Q: How much deposit do you need to buy a house in Canada?
A: Most foreign buyers need at least 35% of the property price as a deposit.
Q: Who is eligible to buy a home in Canada?
A: Permanent residents, work permit holders, international students (with restrictions), and Canadian citizens.
Q: Can I stay in Canada if I buy a house?
A: No. Property ownership doesn’t guarantee residency. You must apply for a visa or residency through immigration.
Q: What salary do you need to buy a home in Canada?
A: It depends on location. In major cities, salaries over $100,000 may be required. In smaller towns, $60,000–$75,000 can be sufficient.
Q: Is mortgage financing available for foreigners?
A: Yes, but usually with higher down payments and stricter documentation.
Q: What are the risks of buying as a non-resident?
A: Market volatility, foreign buyer taxes, and changes in laws can impact your investment.
Q: Can I rent out my property if I don’t live in Canada?
A: Yes, but you may be subject to non-resident withholding tax on rental income.
Conclusion
To buy a house in Canada as a foreigner, preparation is crucial. Understand the laws, secure financing, partner with professionals, and choose the right location based on your goals. Though restrictions exist, the Canadian market still offers excellent long-term value, especially in cities outside the high-cost zones.
Stay informed, compare cities, and make data-driven decisions. Begin your journey today by exploring options like Luxurious Montreal Apartments for Rent or Pointe-Claire Apartments: Luxury Comfort.
