Canada Property Buying Guide for Non-Residents

Canada's Prohibition on the Purchase of Residential Property by Non-Canadians Act, in force since January 2023, bars most foreign nationals and foreign-controlled companies from buying residential property in many areas. It was extended to 1 January 2027, so you should confirm whether it has been renewed or modified before relying on any assumption in this guide. It has exceptions, for example for permanent residents, some work-permit and study-permit holders who meet conditions, and refugees, and it does not apply to the same extent to commercial property or some types of land.

Provinces apply their own rules. Ontario charges a non-resident speculation tax and British Columbia a foreign buyer tax, each in the double-digit percentages, and other provinces have additional regimes. Foreign buyers in Canada therefore need to look at both the federal and provincial layers. For stock outside the housing restriction, see commercial properties for sale in Canada and land for sale in Canada, or compare apartments for sale in Canada and houses for sale in Canada.

1. Confirm your status and whether you are covered by the federal prohibition or by one of its exceptions.
2. Check provincial rules: foreign buyer taxes, land transfer taxes and any limits on non-resident ownership.
3. Appoint a Canadian real estate lawyer (or notary in Quebec), who will conduct title and closing.
4. Make an offer through a licensed agent, with conditions such as financing and inspection.
5. Pay the deposit into trust and complete due diligence, including a home inspection and, for condos, a status certificate.
6. Arrange financing and insurance, noting that lenders often require larger down payments from non-residents.
7. Close on the agreed date: your lawyer pays taxes, registers the transfer and delivers the keys.

Canadian purchases are managed by a real estate lawyer (or a notary in Quebec) who searches title, calculates land transfer tax, holds funds and registers the transfer. This professional is essential, particularly where foreign-buyer rules apply.

A licensed agent represents you in negotiation. Commissions are paid by the seller but built into the price. Home inspectors are standard and condo documents should be reviewed by your lawyer. For borrowing as a non-resident, read mortgage options in Canada for foreigners and model payments in the mortgage calculator.

• Whether the purchase is covered by the federal prohibition or an exception, in writing from your lawyer.
• Provincial foreign-buyer tax exposure and any refund conditions.
• Title search for liens, easements and unpaid property taxes.
• For condos: status certificate or equivalent, reserve-fund study, fees and litigation.
• Home inspection results, including roof, foundation, heating and insulation.
• Property tax assessment and zoning, especially if you plan to let the property.

Taxes vary widely across provinces and cities. The ranges are approximate and subject to change, so confirm the current rules in the province where you are buying.

Buying property in Canada does not give a right to live there. Residency comes through immigration programmes such as skilled worker, family, or provincial nominee routes, none of which are triggered by a property purchase. There is no property-based investor visa at present.

That is a reason to look at where you live and what status you hold. Temporary residents often use the exceptions in the prohibition act, but the details are conditional and technical.

Take federal and provincial tax advice before you buy. Non-residents who later rent out the property usually face withholding on gross rental income unless they file for an exemption, and selling triggers capital gains reporting with possible withholding at closing. Canada also maintains reporting obligations for some foreign-owned and vacant property. Understanding these before you purchase avoids surprises. For market direction, read Canada property market data, and use the property valuation tool to compare asking prices.

• Signing an offer without confirming whether the federal ban applies to you.
• Ignoring provincial foreign-buyer taxes when comparing cities.
• Assuming a purchase supports an immigration application.
• Overlooking withholding tax obligations on rental income and sale.
• Relying on an agent's reading of the law instead of a lawyer's.