🏡 Buying or renting

Canada's Prohibition on the Purchase of Residential Property by Non-Canadians Act started January 1, 2023 and was extended to January 1, 2027. As of our last check, no further extension had been passed, but the federal government has been reviewing what comes next. Check the CMHC page before you shop.

It covers homes of up to 3 units (including condos) in and around cities and larger towns (census metropolitan areas and census agglomerations). Renting is not affected.

• Not affected: Canadian citizens and permanent residents.
• Work-permit holders: may buy if their permit has at least 183 days left at the time of purchase and they haven't already bought under this exception.
• Students: only under strict conditions, including 5 years of tax filings and a price of no more than $500,000.
• Spouses and common-law partners: may buy together with a Canadian citizen or permanent resident.

• Ontario: a 25% Non-Resident Speculation Tax applies province-wide when a foreign national buys a home. There's a rebate if you become a permanent resident within four years, and exemptions for some nominees and spouses of Canadian citizens.
• British Columbia: a 20% additional property transfer tax applies to foreign nationals in Metro Vancouver, the Capital Regional District (Victoria), the Fraser Valley, Central Okanagan (Kelowna) and Nanaimo. Confirmed B.C. provincial nominees may be exempt.
• Other provinces have their own rules. Ask your lawyer which taxes apply.

CMHC-insured mortgages are available to permanent residents and, with limits, to people with work permits. Insured down payments start at 5% of the first $500,000 and 10% of the rest. If your Canadian credit history is thin, CMHC may accept an international credit report or a letter from your bank back home. Lenders may ask non-residents for a larger down payment.

• There's no national ban on Canadians buying U.S. homes. Some states have their own limits on foreign ownership, so ask your agent and closing attorney.
• When a foreign person later sells U.S. property, the buyer generally must withhold 15% of the price for the IRS (FIRPTA). There's an exception for sales of $300,000 or less to buyers who'll live in the home.
• Without U.S. credit, expect lenders to ask for a larger down payment or use a foreign-national or ITIN mortgage program. Some lenders can consider your Canadian credit.
• Renting out a U.S. home as a non-resident brings U.S. tax filings.