Canada – Buying Property

Can foreign nationals legally buy and own property in Canada?

The straightforward answer is: it depends heavily on your circumstances, and for the majority of foreign nationals, residential property purchases are currently forbidden. The Prohibition on the Purchase of Residential Property by Non-Canadians Act, which entered into force on January 1, 2023, prohibits most non-Canadians from acquiring residential real estate across the country, subject to certain exceptions. On February 4, 2024, the Government of Canada declared its intention to prolong the existing restriction on foreign housing ownership by a further two years, pushing the earliest possible expiry to January 1, 2027.

Under this extended framework, individuals who are not Canadian citizens or permanent residents are blocked from purchasing residential real estate, encompassing buildings with three dwelling units or fewer, including semi-detached houses and condominium units. In practical terms, this means a standard single-family home, a duplex, or a condo unit are all captured by the ban. Notably, commercial real estate, large multi-unit residential buildings containing four or more units, and farmland situated outside urban zones fall outside these restrictions.

Properties lying beyond the boundaries of a Census Metropolitan Area (CMA) or a Census Agglomeration (CA) are excluded from the prohibition, meaning rural properties and land within smaller communities not classified as a CMA or CA remain open to foreign national purchasers. A Census Metropolitan Area must have a total population of at least 100,000, with a minimum of 50,000 residing in the core, while a Census Agglomeration requires a population of at least 10,000. The Canada Mortgage and Housing Corporation (CMHC) offers an interactive mapping tool that allows you to check whether a particular address falls within a restricted zone.

Several meaningful exemptions exist. International students, temporary residents meeting specific conditions, specially designated foreign nationals, and refugee claimants may all qualify for exemptions, each subject to varying requirements such as tax filing history and residency obligations. Non-Canadian spouses and common-law partners are permitted to purchase residential property jointly with a spouse or common-law partner who holds Canadian citizenship, is registered under the Indian Act, holds permanent residency, or is themselves a non-Canadian to whom the prohibition does not apply.

For those on work permits specifically, you only need 183 days of remaining validity on your permit at the time of purchase to be exempt from the federal ban. Permanent residents enjoy identical property-buying rights as Canadian citizens. The consequences of non-compliance are severe: anyone convicted of violating the prohibition — whether a non-Canadian buyer or someone who knowingly assisted them — faces a fine of up to $10,000, and a court may additionally order the forced sale of the property in question.

Provinces have also introduced supplementary foreign buyer measures alongside the federal ban. Ontario’s Non-Resident Speculation Tax (NRST) stands at 25% of the purchase price as of 2025. Ontario originally introduced the NRST at 15% in 2017, subsequently expanding it province-wide and increasing it to 20%, then to 25% by late 2022. The City of Toronto further imposes a Municipal Non-Resident Speculation Tax (MNRST) of 10% on top of the purchase price, bringing Toronto’s combined foreign buyer surcharge to 35%. British Columbia has enacted comparable provincial-level measures. It is essential to review the latest rules on the Department of Justice Canada website before proceeding with any purchase.

When compared with countries such as New Zealand and Australia — both of which have introduced their own foreign buyer restrictions in recent years — Canada’s current ban stands among the broadest in scope, though it is targeted specifically at residential property rather than all categories of real estate. Countries such as the US and the majority of continental European nations impose no outright purchase ban, making Canada’s present stance considerably more restrictive by international standards.

What are average property prices in Canada, and how do they vary by region?

The national benchmark home price slipped for the eighth month in succession to $658,300 as of January 2026, edging down 0.3% from December 2025 and sitting 4.9% below the same point a year earlier. Across the whole of 2024, the national average home price stood at $707,100 CAD. Price levels diverge dramatically across Canada’s enormous geography, making region-by-region research indispensable.

Toronto, Ontario, and Vancouver, British Columbia continued to lead Canada’s most expensive residential markets in 2025. British Columbia, the priciest province for housing overall, is projected to reach an average house price of 1.15 million Canadian dollars in 2025. In the Greater Toronto Area, the average home sold for $973,289 in January 2026 — a year-over-year drop of 6.5%.

Quebec set a new record for its benchmark home price in January 2026, reaching $535,000. The province has demonstrated relative resilience compared to several other markets in recent years. The Prairie provinces, by contrast, offer substantially more accessible entry points. Alberta remained at the forefront of the Prairies’ fastest-growing housing markets in 2025, buoyed by strong interprovincial migration and robust employment, with average prices climbing roughly 7–9% year-on-year.

Among the most affordable property markets in the country as of 2025 are Saint John, New Brunswick; Trois-Rivières, Quebec; and Saguenay, Quebec. In Trois-Rivières, average home prices have risen but remain comparatively modest at around $190,000–$200,000. Saint John offers average prices in the $330,000–$350,000 range — still comfortably below the national average. For the most current figures, check active listings through the Canadian Real Estate Association (CREA) website.

Where are the most popular locations to buy property in Canada?

Vancouver and Toronto remain the dominant draws for international buyers — their vibrant urban energy, well-developed infrastructure, and established expat communities continue to make them magnets for both investors and lifestyle-motivated purchasers. Both cities boast thriving financial districts, leading universities, and comprehensive public transit systems, though premium price tags accompany these advantages.

Calgary sustained some of the country’s strongest market growth, while Montreal also recorded solid gains. Calgary’s appeal rests on a lower cost of living relative to Vancouver and Toronto, a dynamic energy-sector economy, and easy access to the Rocky Mountains. Alberta’s absence of a provincial sales tax also makes ongoing homeownership costs comparatively favourable.

Montreal is Canada’s second-largest city and cultural heart, offering a distinctly European atmosphere, more affordable property than Toronto or Vancouver, and a flourishing arts, dining, and business environment. Sales volumes in Montreal grew steadily, and modest listing increases kept conditions competitive. Prospective buyers should factor French-language requirements into their relocation planning.

Halifax-Dartmouth continued to function as a seller’s market in 2025, with lean inventory underpinning measured price increases and cementing its reputation as one of Atlantic Canada’s most sought-after destinations. The region attracts buyers seeking coastal living, a lower cost of living than central Canada, and expanding technology and education sectors. Ottawa, as the national capital, offers market stability, strong rental demand anchored by the federal public service, and some of the country’s highest gross rental yields at approximately 6.02%.

Are there any emerging or up-and-coming areas worth considering in Canada?

Saskatchewan has emerged as one of the country’s hottest housing markets, with average home prices rising approximately 9% in 2025. Centres such as Saskatoon and Regina offer comparatively affordable entry points, growing populations, and steadily improving amenities — an attractive combination for buyers who find Alberta’s larger cities increasingly out of reach.

Manitoba recorded solid price growth alongside Saskatchewan in 2025. Winnipeg, Manitoba’s provincial capital, benefits from a diversified economic base, a substantial post-secondary student population, and some of the most affordable urban housing anywhere in the country. The city has gained growing recognition as a rising hub for technology and manufacturing.

Beyond Halifax, smaller Atlantic Canadian cities are also drawing increasing interest. Newfoundland and Labrador stands out as one of the stronger-performing regions in relative terms, with average home prices climbing to around $360,000 by 2025 and sustaining year-on-year growth. Moncton, New Brunswick, has attracted attention for its bilingual character, low housing costs, and improving transport connectivity.

Quebec City represents another compelling emerging destination: demand there has been robust, generating some of the most pronounced price gains in the province and giving sellers a clear negotiating advantage. Despite this momentum, prices in Quebec City remain far below those in Toronto or Vancouver, making it an appealing option for buyers who want urban sophistication and cultural richness at a more manageable cost.

What are the current trends in the property market in Canada?

Lingering economic uncertainty combined with ongoing trade tensions has continued to weigh on home sales activity across the country. CREA data shows that 149,428 residential properties changed hands nationally during the first four months of 2025, a 5.97% decline relative to the equivalent period in 2024. In broad terms, the market as of early 2026 favours buyers across many regions, with greater selection and stronger negotiating leverage compared to the frenzied conditions of 2021–2022.

After closing out 2025 on a subdued note, the Canadian housing market is expected to mount a gradual, measured recovery through 2026. Pent-up demand will provide some upward impetus, though elevated economic uncertainty, a sluggish labour market, and a plateau in interest rates — with the Bank of Canada likely remaining on hold — are expected to restrain any strong rebound.

The national vacancy rate for purpose-built rental apartments climbed to 3.1% in late 2025, up from 2.2% in 2024 — a signal of softening rental conditions that prospective investors should weigh carefully. As rental supply has outpaced new demand since 2024, analysts expect market conditions to ease further in coming periods, with higher vacancy rates curbing rent growth.

As of November 2025, Canada had 356,000 residential units under construction, comprising 298,000 apartments, 29,000 detached homes, 22,000 row houses, and 7,000 semi-detached units. This substantial construction pipeline will continue to shape pricing dynamics in major urban centres for years to come. Energy efficiency and sustainable building practices have become increasingly mainstream expectations, particularly in British Columbia and Ontario where building codes are steadily tightening. For the most current market intelligence, visit the CMHC Housing Market Data portal.

Is buying property in Canada a good investment?

Research conducted by Global Property Guide in Q1 2025 placed the average gross rental yield for residential units across Canada at 5.46% — an improvement of 0.36 percentage points over the Q2 2024 reading. This figure is broadly in line with major Australian cities and marginally ahead of typical London yields, positioning Canada as a competitive rental investment destination, though yields differ considerably depending on city and property type.

Calgary recorded the strongest yields among assessed submarkets at 6.96%, followed by Ottawa at 6.02%, while Vancouver, Montreal, Toronto, and Hamilton all came in below 6%. For foreign investors whose domestic currency is not the Canadian dollar, exchange rate movements can materially influence total returns. A strengthening CAD boosts capital gains upon exit, while a weakening one erodes them. Engaging a currency specialist is advisable when managing substantial cross-border transfers.

Long-term capital appreciation has historically been impressive: Canadian house prices reached an all-time peak in February 2022 when the national average hit $816,720. While values have corrected since that high, structural supply constraints, population expansion, and resilient labour markets have continued to underpin prices despite the headwinds of higher borrowing costs. Canada’s immigration-driven population growth targets remain among the most ambitious in the OECD, providing durable long-run demand for housing.

That said, risks are real and substantial. The foreign buyer ban itself, additional speculative levies — including British Columbia’s house-flipping tax that took effect in January 2025 — and heavy transaction costs, including Ontario’s 25% NRST for those it applies to, can significantly erode investment returns. Non-resident owners also carry complex annual tax filing responsibilities. Property investment always entails risk, and obtaining independent financial and tax advice from a qualified Canadian professional is strongly recommended before making any commitment.

What types of property are commonly available to buy in Canada?

Canada’s housing stock is wide-ranging, reflecting the country’s diverse geography and the varied character of its urban and rural communities. Of the units currently under construction, 298,000 are apartments, 29,000 are detached homes, 22,000 are row houses, and 7,000 are semi-detached units — figures that illustrate the balance of different property types being delivered across the country.

In major urban centres such as Toronto, Vancouver, Calgary, and Montreal, condominiums (condos) dominate the new-build landscape and serve as the most common entry point for purchasers. Owning a condominium in Canada means holding title to the individual unit while sharing ownership of common areas with fellow residents — a structure comparable to the strata title system used in Australia or the leasehold flat model common in the UK. Owners contribute monthly condo fees (sometimes called strata fees) to cover shared facility maintenance and building insurance.

Detached houses are the predominant property type in suburban and rural settings. Semi-detached homes and townhouses (row houses) occupy a popular middle ground within established urban neighbourhoods, offering more living space than a condo at a lower price point than a fully detached property. Across Atlantic Canada, Quebec, and the Prairies, older Victorian and heritage homes can often be found at comparatively accessible prices.

Outside major urban areas, recreational properties and cottages — referred to locally as “cottages” or “cabins” — are enormously popular. These range from simple lakeside retreats in Ontario’s Muskoka region to ski chalets in the Rocky Mountains or beachside homes along the Nova Scotia coastline. Agricultural land and rural acreages are also available but are subject to additional provincial regulations governing farm ownership, which differ from province to province. Always verify the applicable provincial land rules before pursuing a rural or agricultural purchase.

What is the typical step-by-step process for buying property in Canada?

The Canadian property acquisition process differs in meaningful ways from both the US and UK systems: there is no equivalent of the American escrow company or the British “exchange and completion” two-stage structure. Instead, a real estate lawyer oversees the entire transaction from offer acceptance through to title registration. In Quebec, a notary fulfils this role. There is no legally required survey (though one is highly advisable), and title insurance has largely replaced the traditional title search approach still common in the UK.

1. Confirm your eligibility. Establish that you are permitted to purchase under the federal ban and any relevant provincial regulations. Use the CMHC’s interactive map to determine whether your target property lies within a restricted zone. If your immigration status is ambiguous, consult a Canadian immigration or real estate lawyer before proceeding.
2. Secure financing. Non-resident buyers typically face stricter lending requirements — a down payment of 35% is commonly required, along with a Canadian bank account and comprehensive documentation including tax returns and income verification. If you need a mortgage, obtain pre-approval from a Canadian lender. Canadian mortgage rules include mandatory stress-testing requirements that apply even when prevailing rates are low.
3. Engage a real estate agent. A licensed agent will help you identify suitable properties, arrange viewings whether in-person or virtual, and guide you through the offer process. Real estate agents in Canada are licensed at the provincial level. In most provinces, the seller bears the agent’s commission — typically 3–5% of the purchase price, divided between the buyer’s and seller’s representatives — so buyer-side representation generally costs the buyer nothing.
4. Submit an offer. Offers are formalised in writing using a standard Agreement of Purchase and Sale. Negotiation over price and terms is entirely normal, as is paying a deposit of between 5–10% of the purchase price. Condition clauses — covering financing approval, home inspection, and title review — are routinely included. Unlike in the UK, accepted offers are binding, subject only to stated conditions; there is no culture of gazumping.
5. Undertake due diligence. Following acceptance of your offer, you will commission home inspections and appraisals, and your lawyer will conduct a title search to identify any encumbrances or defects. Many buyers also purchase title insurance at this stage. A qualified home inspector should examine the structure, roof, foundation, plumbing, and electrical systems in detail.
6. Fulfil conditions and firm up the agreement. Once all conditions have been satisfied within the agreed timeframe — typically 5–15 business days — the offer becomes unconditional and legally binding. At this point, the deposit is generally released into the seller’s brokerage trust account.
7. Retain a real estate lawyer. Your lawyer (or notary in Quebec) will carry out a title review, undertake all required searches, prepare the closing documentation, and calculate all financial adjustments. They will also advise you on any tax obligations arising from your non-resident status prior to closing.
8. Settle taxes and closing costs. Land transfer tax falls due at closing and varies by province. Ontario and British Columbia apply provincial land transfer tax, and Toronto levies an additional municipal land transfer tax on top. Ensure your lawyer provides a full cost breakdown well in advance of closing.
9. Close and register title. Your lawyer or notary will coordinate the movement of funds, finalise all legal paperwork, and register the property in your name with the provincial land registry. Title registration is handled electronically in most provinces. Once registration is complete, you receive the keys and ownership is legally yours.

Do I need a lawyer to buy property in Canada, and how do I find a reputable one?

Yes — retaining a qualified real estate lawyer (or a notary in Quebec and, for certain transactions, British Columbia) is not merely a good idea but a practical necessity in Canada. Unlike some European countries where a single notary acts for both parties, Canadian practice demands independent legal representation for each buyer. Your lawyer will examine the title, carry out requisite searches, manage the flow of funds, calculate all adjustments, and register the transfer with the relevant provincial land registry.

For foreign national buyers in particular, the lawyer’s role is far more than administrative. They must guide you through compliance with the federal foreign buyer ban, advise on any applicable provincial taxes — such as Ontario’s NRST — explain your CRA obligations, and ensure that all non-resident withholding requirements are correctly observed. Where you are purchasing from a non-resident seller, your own lawyer bears legal responsibility for ensuring the correct amount of tax is withheld from the purchase price pending CRA clearance.

Legal fees for a standard residential transaction typically fall in the range of approximately CAD $1,500 to $3,000 or more, varying by province, transaction complexity, and the extent of any non-resident tax advice required. Disbursements — covering title searches, registration fees, and title insurance — add to this total; ask your lawyer for an itemised estimate upfront. Always confirm these figures at the time of your purchase.

To locate a licensed real estate lawyer, contact the appropriate provincial law society. Key bodies include:

• The Law Society of Ontario: lso.ca — Lawyer referral service available at 1-800-268-8326
• The Law Society of British Columbia: lawsociety.bc.ca
• The Barreau du Québec (for notaries and lawyers in Quebec): barreau.qc.ca
• The Canadian Bar Association: cba.org — National body offering lawyer referrals and consumer guidance

Always confirm that your chosen lawyer holds a current licence in good standing with their provincial law society and has demonstrable experience handling non-resident property transactions.

What are the most common pitfalls and problems expats encounter when buying property in Canada?

Misreading the foreign buyer ban and its exemptions. The rules are layered and subject to change. Many prospective buyers incorrectly assume that a rural location or a particular visa category automatically puts them in the clear — only to discover they are mistaken. Always obtain written legal confirmation of your eligibility before making any offer.

Failing to account for provincial and municipal foreign buyer taxes. A foreign buyer purchasing in Toronto faces both the provincial 25% NRST and the municipal 10% MNRST — a combined surcharge of 35% on top of the purchase price. These levies are additional to standard land transfer taxes. Not budgeting for them can be catastrophic to a buyer’s finances.

Being caught off guard by non-resident withholding tax when selling. Non-resident sellers frequently underestimate the withholding applied at the time of sale — many anticipate a tax on capital gains but do not expect 35% or more of the gross sale price to be held back. Applying early for a CRA Section 116 Clearance Certificate is critical to managing this process effectively. As of the end of 2024, the CRA has been taking six or more months from the date of request to issue a certificate of compliance.

Neglecting annual UHT filing obligations. Non-Canadian citizens and non-permanent residents who own property in Canada are classified as “affected owners” and must file an Underused Housing Tax (UHT) return for each calendar year, due by April 30 of the following year. Even where the tax itself does not apply, a return must still be filed to claim any exemption. The minimum penalty for failing to file is $5,000 for individual owners — a costly oversight.

Forgoing a home inspection. Canada does not require sellers to disclose structural defects beyond whatever they choose to volunteer. A professional home inspection — typically costing CAD $400–$700 — is strongly advisable on all resale properties and can prevent expensive surprises involving foundations, roofing, or plumbing systems.

Attempting to use corporate structures to sidestep the ban. The Act explicitly prevents non-Canadians from circumventing the prohibition by acquiring residential property through corporations or similar entities. Doing so constitutes a criminal offence. Seek proper legal advice if a corporate structure is under consideration for legitimate business reasons.

Exposure to currency transfer risk. Movements in the CAD exchange rate can substantially alter the true cost of a purchase denominated in a foreign currency. Using a specialist currency transfer provider rather than a standard retail bank rate can yield meaningful savings on large international transactions.

Can I buy property in Canada through a company, and is it worth doing?

Purchasing Canadian property through a corporate entity is legally permissible for eligible buyers, but it is governed by strict rules — especially in the context of the foreign buyer ban. The Act captures non-Canadians, including corporations and other entities that are not listed on a Canadian stock exchange and that are controlled by non-Canadians. Any company incorporated outside Canada, or incorporated in Canada but controlled by a non-Canadian — defined as holding 10% or more of shares or voting rights — is treated as a non-Canadian for the purposes of the ban and is subject to identical restrictions.

For buyers who qualify as Canadian citizens, permanent residents, or are otherwise exempt from the ban, acquiring property through a Canadian corporation or limited partnership can offer certain potential advantages: greater flexibility in succession planning, the possibility of income splitting, and a cleaner ownership structure for multi-investor arrangements. However, the complexity involved is considerable. Corporate ownership triggers additional CRA filing requirements, corporate income tax returns, potential shareholder benefit implications, and — depending on the province — land transfer tax surcharges on corporate acquisitions.

The tax advantages historically associated with holding property through a corporation in Canada have also been substantially curtailed by anti-avoidance legislation. Passive rental income generated within a corporation can attract higher effective tax rates than personal ownership in certain scenarios. Any decision to pursue a corporate ownership structure must be preceded by thorough advice from a Canadian tax lawyer or chartered professional accountant (CPA) with specific expertise in non-resident transactions. Independent legal and tax counsel is essential before committing to this approach.

What taxes and ongoing costs should I budget for when owning property in Canada?

Land Transfer Tax (LTT): Imposed by most provinces on the acquisition of real property. Rates are graduated, typically spanning 0.5% to 2.5% of the purchase price depending on the province. Ontario and British Columbia each levy a provincial LTT; Toronto additionally charges a municipal LTT on top. Alberta and Saskatchewan have no provincial land transfer tax, giving buyers in those provinces a cost advantage. Verify the current rates with your lawyer before closing.

Non-Resident Speculation Tax (NRST — Ontario): Set at 25% of the purchase price as of 2025. Ontario first introduced the NRST at 15% in 2017, initially confined to the Toronto region before being expanded province-wide and progressively raised to 25% by late 2022. British Columbia applies an equivalent Additional Property Transfer Tax on foreign buyers in designated areas.

GST/HST: Canada’s Goods and Services Tax (GST) or Harmonised Sales Tax (HST) applies to newly built residential properties. The federal GST rate is 5%, with some provinces incorporating an additional provincial component (combined HST rates differ by province). Resale properties are generally exempt from GST/HST. Buyers of new-build homes should include this in their financial planning.

Annual property tax: Municipal property taxes are levied annually or semi-annually by local governments and are payable regardless of where the owner resides. Rates differ considerably between municipalities. In major cities, effective annual rates typically fall between approximately 0.5% and 1.5% of assessed property value. Contact your local municipality for the precise rate applicable to your property.

Rental income tax: Non-resident owners earning rental income from Canadian real estate must pay Canadian tax on that income. An annual Canadian tax return is required to report rental earnings. The standard tax rate on rental income for non-residents is 25%, withheld at source by the paying agent.

Underused Housing Tax (UHT): A federal annual levy of 1% on the assessed value of vacant or underused residential property held by non-resident, non-Canadian individuals. Even where an exemption applies, affected owners must still submit an annual UHT return by April 30. The minimum penalty for failure to file is $5,000 per individual owner.

Condo and strata fees: Condominium purchasers should budget for monthly fees that cover building insurance, common area maintenance, and contributions to a reserve fund. Fee levels vary widely — from below CAD $200 to over CAD $1,000 per month — depending on the building’s size, age, and range of amenities.

Consult the Canada Revenue Agency (CRA) for authoritative guidance on all tax obligations applicable to non-resident property owners.

What are the official sources I should consult when buying property in Canada?

When investigating a property purchase in Canada, always give priority to official government and regulatory sources. The most important bodies to consult include:

• Canada Mortgage and Housing Corporation (CMHC): cmhc-schl.gc.ca — Canada’s official housing authority; publishes the Foreign Buyer Ban FAQ and interactive zone map, alongside comprehensive housing market data and research reports.
• Department of Justice Canada — Prohibition Act: laws-lois.justice.gc.ca — The authoritative text of the Prohibition on the Purchase of Residential Property by Non-Canadians Act and its associated regulations.
• Canada Revenue Agency (CRA): canada.ca/en/revenue-agency — Administers non-resident withholding taxes, the Underused Housing Tax, rental income reporting obligations, and Section 116 Clearance Certificates.
• Canadian Real Estate Association (CREA): crea.ca — Publishes the MLS Home Price Index and national housing market statistics; also serves as a directory of licensed real estate agents.
• Provincial Land Registries: Each province administers its own land title system. Examples include the Ontario Land Registry and BC’s Land Title and Survey Authority (LTSA).
• Provincial Law Societies: Use these to verify that your real estate lawyer holds a current licence in good standing. Locate your province’s law society through the Federation of Law Societies of Canada (flsc.ca).
• Financial Consumer Agency of Canada (FCAC): canada.ca/en/financial-consumer-agency — Provides consumer-focused guidance on mortgages, homebuying costs, and financial rights in Canada.
• Immigration, Refugees and Citizenship Canada (IRCC): canada.ca/en/immigration-refugees-citizenship — For confirming your residency or visa status and understanding how it affects your eligibility to purchase property.

Frequently Asked Questions

Can I buy property in Canada as a tourist or on a visitor visa?

In most circumstances, no. The federal foreign buyer ban prohibits the overwhelming majority of non-Canadians — including those present on visitor visas — from purchasing residential real estate in Census Metropolitan Areas and Census Agglomerations until at least January 1, 2027. Exemptions are reserved for narrowly defined categories such as qualifying work permit holders, international students who satisfy strict eligibility criteria, and those acquiring property jointly with a Canadian partner. Rural properties lying outside these designated zones are not subject to the ban. Professional legal advice should always be sought before attempting any purchase.

Does Canada’s foreign buyer ban apply to commercial property?

No. The Prohibition on the Purchase of Residential Property by Non-Canadians Act applies exclusively to residential property — defined as buildings containing three or fewer dwelling units. Commercial properties, office and retail premises, and large multi-unit apartment buildings of four or more units fall entirely outside the ban’s scope. Foreign nationals may legally acquire commercial real estate in Canada subject to standard ownership regulations and tax obligations.

Can I get a mortgage in Canada as a non-resident?

Yes, in principle, though lenders impose considerably more demanding conditions than they do for Canadian residents. Most institutions require non-resident buyers to put forward a minimum down payment of 35% of the purchase price and to supply extensive supporting documents including foreign tax returns, proof of income, and employment records. A number of major Canadian banks offer mortgage products designed specifically for international buyers. Engaging a Canadian mortgage broker with hands-on experience in non-resident applications is strongly advisable.

What is the Underused Housing Tax (UHT) and does it apply to me?

The Underused Housing Tax is a federal annual levy of 1% on the assessed value of vacant or underused residential property owned by non-resident, non-Canadian individuals. Crucially, even when your property qualifies for an exemption — for instance, because it is rented at fair market value — you are still required to submit an annual UHT return by April 30 each year to claim that exemption. Failing to file carries a minimum penalty of CAD $5,000 for individual owners, irrespective of whether any actual tax is owed.

How much is land transfer tax in Canada?

Land transfer tax rates are determined provincially and applied on a graduated scale. In Ontario, rates range from 0.5% to 2.5% of the purchase price, with Toronto adding a second municipal layer at comparable rates. British Columbia imposes an equivalent Property Transfer Tax. Alberta and Saskatchewan charge no provincial land transfer tax. First-time buyers in certain provinces may qualify for a partial or full rebate. Confirm the rates in force at the time of your purchase with your real estate lawyer.

Is property in Canada freehold or leasehold?

The vast majority of residential property in Canada is sold on a freehold basis — you own both the structure and the land beneath it outright. Condominiums are conveyed under a condominium (strata) title, under which you own your individual unit and share ownership of common elements with other residents in the building. Genuine leasehold property is uncommon in Canada, appearing most frequently on Indigenous reserve land or within certain older developments. Always clarify the title type with your lawyer prior to purchase.

What happens when I want to sell my Canadian property as a non-resident?

When a non-resident sells Canadian real estate, the buyer is legally obliged to withhold a portion of the purchase price and remit it to the CRA until a Section 116 Clearance Certificate has been issued. As of 2025, the withholding rate is 35% of the gross sale proceeds (or 50% for depreciable or rental property). This withheld amount does not represent your final tax liability — you will lodge a Canadian tax return after year-end and may be entitled to a refund of any excess withholding. Processing times for clearance certificates were running at six months or more as of late 2024, so apply well ahead of any planned sale.

Do I need title insurance when buying property in Canada?

Title insurance is not a legal requirement in Canada, but it has become standard practice and is very strongly recommended. It provides protection against financial loss arising from title defects, undisclosed liens, encroachments, survey errors, and fraudulent dealings that may not surface in a routine title search. Premiums are paid once, at closing, and typically cost CAD $200–$500 for a residential property. Given its relatively modest cost and the breadth of protection it offers, the great majority of Canadian real estate lawyers advise their clients to obtain it as a matter of course.