Buying property in Canada as a foreigner: 2025 guide

Canada is one of the largest countries in the world, covering an area of 9.98 million square kilometers (3.85 million square miles), making it the second-largest country globally by landmass. Its diverse geography includes towering mountain ranges, vast prairies, vibrant cities, and stunning coastlines that border three oceans: the Pacific, Atlantic, and Arctic.

Canada’s regions include:

• 10 provinces and 3 territories;
• diverse metropolitan hubs like Toronto, Vancouver, and Montreal;
• vast natural landscapes like Banff National Park, the Rocky Mountains, and the Northern Territories.

The country operates as a federation, with each province and territory exercising significant autonomy in areas like education, healthcare, and property laws. Canada has an official population of over 40 million people as of 2025, driven by steady immigration growth.

Population distribution across Canada's provinces and territories

Why invest in Canada?

Canada's real estate market is highly regarded due to its economic stability, high quality of life, and global reputation for inclusivity. Its cities consistently rank among the most livable in the world. Toronto and Vancouver are particularly popular for their real estate markets, while smaller cities like Halifax and Saskatoon offer emerging opportunities.

Canada is known for its:

• Stable and transparent legal system: It offers strong property rights and protections.
• High immigration rates: Canada attracts skilled workers and international students, sustaining demand for housing.
• Diverse climate: Ranging from mild coastal regions to snowy alpine areas, there’s a climate to suit every preference.

Tourism also plays a growing role in the Canadian economy. As of 2024, Canada welcomed 22 million international visitors, recovering strongly post-pandemic. Popular destinations include Niagara Falls, Banff, and Quebec City. The surge in tourism has increased short-term rental investments in key markets.

With property prices stabilizing in recent years, particularly after fluctuations in the early 2020s, Canada remains an attractive destination for long-term real estate investments. The government has introduced programs aimed at boosting housing supply, further enhancing the appeal for property buyers, both domestic and international.

• Economic outlook: Canada's economy is projected to experience moderate growth in 2025, supported by sectors such as technology, natural resources, and services. The Bank of Canada is anticipated to maintain a cautious monetary policy, with potential interest rate adjustments to balance inflation and economic expansion.
• Real estate market: The Canadian real estate market is expected to stabilize in 2025. After a period of rapid price increases, housing prices are projected to rise modestly, with forecasts indicating a 2.8% increase in 2025. This moderation is attributed to improved housing supply and subdued demand.
• Housing affordability: Housing affordability remains a concern, with levels near historical lows. Despite anticipated interest rate cuts, affordability is expected to remain stretched for at least another two years.
• Mortgage renewals: A significant portion of Canadian mortgages are set for renewal by the end of 2026, posing potential risks due to higher interest rates. The Office of the Superintendent of Financial Institutions has identified mortgage renewals at higher rates as a key risk to Canada's financial system.
• Housing supply: Housing starts are expected to decline for the third consecutive year in 2024, with a projected decrease to 224,485 units from 240,267 in 2023. This trend may continue into 2025, potentially exacerbating the housing supply shortage.
• Population growth and immigration: Canada's population growth, driven by immigration, continues to support housing demand. However, recent government measures to curtail both temporary and permanent immigration may impact future demand dynamics.
• Regional variations: Real estate trends vary across regions. Cities like Toronto and Vancouver face challenges in the condo market, while markets such as Calgary are emerging as top areas to watch in 2025.

Average cost of buying property in Canada in 2025

These averages provide insight into current trends in the Canadian real estate market. However, prices can vary widely depending on factors such as proximity to city centers, amenities, and neighborhood desirability. Investors should stay updated on regional trends to identify the best opportunities.

You can monitor the latest trends and property price updates for Canada on our dedicated page:

Canada offers a diverse range of provinces and regions, each with its own appeal in terms of lifestyle, culture, and real estate opportunities. Here are some of the most popular areas to consider:

Popular regions for investment and living

• British Columbia (BC): Known for its stunning natural beauty, BC is home to Vancouver, a bustling urban center surrounded by mountains and coastline. Popular among those seeking high-end city apartments, waterfront properties, or mountain retreats in Whistler.

• Ontario: Ontario, home to Toronto and Ottawa, offers a mix of urban and suburban living. Toronto attracts professionals and investors with luxury condos and townhouses, while areas like Muskoka offer beautiful lakeside cottages for vacationers.

• Quebec: Quebec, including Montreal and Quebec City, combines old-world charm with affordability. Montreal offers a vibrant arts scene and diverse property options, while Quebec City attracts buyers with historic homes and more budget-friendly suburban areas.

• Alberta: Known for its affordability and growing economy, Alberta features Calgary and Edmonton as key hubs. Buyers can find modern suburban homes, downtown condos, or ranch properties in the surrounding countryside.

• Nova Scotia: Nova Scotia, with its scenic coastline and charming towns like Halifax and Lunenburg, is perfect for those seeking tranquility. The region is known for affordable seaside properties and a strong sense of community.

• Prince Edward Island (PEI): Famous for its picturesque landscapes and small-town charm, PEI offers opportunities for vacation homes and rural properties. It’s a favorite among retirees and those seeking a quiet lifestyle.

• Manitoba: Winnipeg, the capital, offers some of the most affordable real estate in Canada. The province is ideal for first-time buyers or those looking for investment properties in a growing market.

• Saskatchewan: Known for its expansive prairies, Saskatchewan offers affordable housing in cities like Saskatoon and Regina. It’s ideal for families and those seeking spacious suburban homes.

• Newfoundland and Labrador: For those looking for a unique coastal experience, this province offers affordable housing options in St. John’s and charming rural communities.

• Yukon & Northwest Territories: These northern territories appeal to adventurous buyers interested in vast, untamed wilderness and remote living, with opportunities for cabins and off-grid properties.

Each region in Canada offers distinct advantages, making it crucial to match your property search with your lifestyle preferences and investment goals.

Yes, foreigners can purchase property in Canada, but the process varies depending on recent legislation and the buyer's intentions. While Canada has been historically open to foreign buyers, new policies as of 2025 impose restrictions to address housing affordability and availability.

Recent restrictions and regulations

Canada has introduced measures to limit non-resident ownership in some cases. Specifically, the Prohibition on the Purchase of Residential Property by Non-Canadians Act, effective from 2023, restricts certain categories of foreign buyers from purchasing residential properties. However, there are exceptions for:

• Temporary residents (e.g., students or workers with valid permits).
• Refugees and asylum seekers.
• Properties in smaller or rural communities, where housing pressures are lower.

Visa requirements

Purchasing property does not automatically grant residency or citizenship in Canada. Foreign buyers intending to stay for an extended period need an appropriate visa or permit, such as a temporary resident visa, work permit, or study permit.

Exemptions and workarounds

• Commercial real estate: The restrictions primarily apply to residential properties. Foreigners can still invest in commercial real estate, including apartments with multiple units or properties intended for business use.
• Vacation homes: Non-residents may purchase properties in certain recreational areas, provided they meet local guidelines.

Tax considerations

Foreign buyers in Canada are subject to additional taxes, including:

• Non-resident speculation tax (NRST): Applies in certain provinces like Ontario and British Columbia, typically an extra 15%-20% of the purchase price.
• Vacant home tax: Imposed in cities like Vancouver and Toronto to discourage leaving properties unoccupied.

Golden visa equivalent

While Canada does not have a direct "golden visa" program, it offers immigration pathways for investors, such as:

• Start-up visa program: For entrepreneurs establishing a business in Canada.
• Provincial nominee programs (PNP): Some provinces encourage investments tied to job creation or economic development.

For more detailed information, visit the Government of Canada’s Real Estate Guide or consult a local real estate lawyer to navigate these policies effectively.

1. Obtain a SIN (Social Insurance Number) or ITN (Individual Tax Number)

While a Social Insurance Number (SIN) is typically required for residents conducting financial transactions in Canada, foreign buyers who do not qualify for a SIN may need to apply for an Individual Tax Number (ITN) to comply with tax regulations when purchasing property.

To apply for an ITN, you can:

• Submit a request to the Canada Revenue Agency (CRA) by completing Form T1261 (Application for a CRA Individual Tax Number for Non-Residents).
• Provide proof of identity, such as a valid passport or visa.

The application process may take several weeks, so it’s advisable to apply well in advance of your purchase.

2. Open a Canadian bank account

A local bank account is essential for managing payments related to the property purchase, such as the deposit, closing costs, taxes, and ongoing expenses like mortgage payments or utilities.

To open a Canadian bank account, you will need:

• your SIN or ITN (if available);
• a valid passport or ID;
• proof of address in your home country (or Canada, if applicable);
• details of the source of your funds.

Some Canadian banks cater specifically to non-residents, offering tailored services such as accounts in multiple currencies or remote account setup.

3. Start searching for properties

Explore online listings on Properstar to find properties for sale in your area of interest. You can leverage our advanced filters and even draw your preferred area on the map.

It is highly recommended to hire a real estate agent licensed in the province where you wish to buy. A local agent can:

• Help you understand market conditions in your desired location;
• Assist with negotiating the purchase price;
• Explain regional rules and property restrictions;
• Guide you through the paperwork and due diligence process.

Make sure to check whether the property is subject to foreign ownership restrictions, as these may apply in certain provinces or regions.

4. Find the right real estate agent

The right real estate agent in Canada can provide critical insights into the local market, help you find properties that match your needs, and guide you through the negotiation and purchasing process.

Here’s how to select the best professional for your property search:

• Local expertise: Choose agents who have an in-depth understanding of the area where you intend to buy. They should be knowledgeable about property values, local amenities, zoning regulations, and any regional rules that may affect your purchase.
• Language skills: While most agents in Canada speak English or French, ensure they can communicate fluently in your preferred language if needed. Clear communication is key during negotiations and paperwork.
• Experience and credentials: Work with agents who are licensed by the relevant provincial regulatory body, such as the Real Estate Council of Ontario (RECO) or British Columbia Financial Services Authority (BCFSA). Additionally, check if they are members of the Canadian Real Estate Association (CREA), which ensures adherence to a strict code of ethics and professionalism.

You can search for real estate agents through Properstar: we list hundreds of licensed professionals across Canada. Working with a qualified agent ensures you have the expertise and support needed throughout the buying process.

5. Conduct property viewings

Visit potential properties in Canada to evaluate their condition, location, and suitability for your needs. It's important to physically inspect the property and its surroundings, taking note of potential repairs or renovations required. If you cannot attend in person, many agents offer virtual tours or videos to assist remote buyers.

6. Legal checks and due diligence

The Land Registry in Canada, managed at the provincial or territorial level, is essential for verifying the legal status of the property. It is important to confirm:

• The property is free of liens, encumbrances, or unpaid taxes.
• The seller has the legal right to sell the property.
• The zoning regulations align with your intended use of the property.

Your lawyer or notary can perform a title search to ensure there are no issues with the property. Additionally, hiring a home inspector is highly recommended to assess the structural integrity of the building, identify potential safety concerns, and evaluate the condition of utilities.

7. Make an offer

With the help of your real estate agent, make an offer on the property. Offers in Canada often include conditions such as:

• Financing approval: Ensuring you can secure a mortgage.
• Home inspection results: Allowing you to withdraw or renegotiate based on significant issues.

Once the offer is accepted, it becomes legally binding, and you can proceed to the next steps.

8. Arrange financing (if applicable)

If you are using a mortgage, finalize the terms with your bank or lender. Canadian banks often require:

• Proof of income and employment.
• A minimum down payment (varies depending on the property's value and type).
• A property appraisal to confirm its market value.

Some banks offer financing options tailored to non-residents, but additional documentation or higher down payments may be required.

9. Finalize the purchase agreement

Your lawyer or notary will draft the purchase agreement, outlining all terms and conditions of the sale. This document protects your interests and ensures all legal requirements are met.

10. Sign the deed of sale and close the deal

The final step is closing, where the deed of sale (or title transfer) is signed to officially transfer ownership to you. This process is typically handled by a lawyer or notary, who will:

• Ensure all financial obligations are met, including taxes, fees, and the remaining purchase price.
• Register the new title with the provincial Land Registry Office to complete the ownership transfer.

11. Register the property

After closing, your lawyer or notary will register the property in your name with the provincial or territorial land titles office. This step ensures your legal ownership is documented and protected.

12. Pay associated taxes and fees

Buyers in Canada must pay several taxes and fees, which vary by province:

General taxes and fees

Additional costs for foreign buyers

Consult with your lawyer to fully understand the tax obligations in your chosen location.

13. Transfer utilities

Once the property is registered in your name, set up accounts for utilities such as electricity, water, gas, and waste management. Many utility providers allow you to transfer services online or by phone, ensuring a smooth transition.

It’s highly advisable to work with a lawyer specializing in Canadian property law to navigate these steps, ensuring compliance with all regulations and protecting your rights throughout the transaction. For official guidance, visit:

• Canada Revenue Agency (CRA): For information on tax requirements.
• Provincial Land Registries: For title verification and property records.
• Real Estate Council of Canada: For resources on property buying in Canada.

Many Canadian banks and financial institutions, such as RBC (Royal Bank of Canada), TD Bank, and Scotiabank, offer mortgages to non-residents. However, the terms and conditions for foreign buyers may differ from those for Canadian residents, often requiring higher down payments and stricter documentation requirements.

Interest rates for mortgages in Canada vary depending on the lender, loan type, and financial profile of the borrower. As of 2025, typical rates range from 5.25% to 6.00% for fixed-rate mortgages, while variable rates may start at 4.75%, depending on the market conditions.

How to obtain a mortgage

To apply for a mortgage in Canada as a non-resident, you will typically need the following documents:

• A valid passport or government-issued ID;
• Proof of income (e.g., recent payslips, employment contracts, or tax returns);
• Recent bank statements (typically covering the last 6-12 months);
• A credit report from your home country;
• Proof of the property deposit (usually held in a Canadian bank account);
• Proof of residency in your home country or elsewhere.

It’s advisable to obtain pre-approval from multiple lenders to compare interest rates and mortgage terms before finalizing your purchase. Many Canadian banks have dedicated services for international buyers, and some may offer mortgage options in foreign currencies.

Special considerations for non-residents

Non-residents in Canada typically face stricter lending requirements, such as:

• Higher down payments: Non-residents are generally required to provide a minimum down payment of 35% of the property’s purchase price.
• Proof of funds: Canadian banks require proof that the down payment and closing costs are from the buyer’s own funds and not borrowed.
• Additional conditions: Some banks may require a co-signer who is a Canadian resident, or they may impose limits on the maximum loan amount.

Mortgage types available to non-residents

• Fixed-rate mortgages: These have a consistent interest rate over the term of the loan, offering stability in monthly payments.
• Variable-rate mortgages: The interest rate fluctuates with the market, potentially offering lower initial payments but with increased risk.
• Open vs. closed mortgages: Open mortgages allow for early repayment without penalties, while closed mortgages have lower interest rates but restrict repayment flexibility.

Other costs to consider

When budgeting for a property purchase in Canada, account for additional expenses such as:

• Mortgage default insurance: May be required if your down payment is less than 20%, although this is uncommon for non-residents.
• Legal fees and land transfer taxes: Typically amount to 3%-5% of the property’s purchase price.
• Foreign buyer taxes: Additional taxes apply in certain provinces, such as Ontario and British Columbia, where the Non-Resident Speculation Tax (NRST) can be up to 20% of the purchase price.

Working with a broker or financial advisor

Hiring a Canadian mortgage broker who specializes in working with non-residents can simplify the process and help you secure the best possible terms. Brokers often have access to a wide network of lenders and can negotiate on your behalf.

For more details, visit the official websites of Canadian banks or consult a professional financial advisor familiar with non-resident property purchases.

1. Tax implications and foreign buyer restrictions

Canada has introduced restrictions for foreign buyers in some areas to curb housing affordability issues. For example:

• The Prohibition on the Purchase of Residential Property by Non-Canadians Act limits certain foreign buyers from purchasing residential property until 2025, with exceptions.
• In provinces like Ontario and British Columbia, foreign buyers are subject to additional taxes, such as the Non-Resident Speculation Tax (NRST), which can add 15%-20% to the purchase price. Understanding and accounting for these regulations and costs is crucial before committing to a purchase.

2. Higher down payments

Non-residents typically face stricter mortgage requirements, including higher down payments of at least 35%. This can be a significant financial hurdle for many foreign buyers, especially when combined with other purchase-related costs.

3. Currency exchange risks

Foreign buyers who need to convert funds into Canadian dollars are exposed to fluctuations in exchange rates, which can significantly affect the total cost of the purchase. Working with a financial advisor or using currency exchange services can help mitigate this risk.

4. Maintenance costs and extreme climates

Canada's climate varies significantly by region, and properties in areas with harsh winters may require higher maintenance costs. Heating systems, snow removal, and potential damage from extreme weather conditions can lead to additional expenses, especially for foreign owners who are not on-site year-round.

5. Market fluctuations

Canada’s real estate market is prone to fluctuations. Overpaying for a property during a market high can result in financial losses if the market cools. Foreign investors should conduct thorough research on local market trends or work with an experienced real estate agent to avoid overestimating a property's value.

6. Legal complexities

Each province in Canada has its own real estate laws and regulations. For example:

• Certain properties may have restrictions on short-term rentals or development.
• Title insurance is essential to protect against undisclosed property issues, such as liens or fraud.

Hiring a local lawyer or notary familiar with the specific provincial laws is necessary to ensure all legal requirements are met and avoid costly mistakes.

7. Limited access to local services

Some properties in rural or remote areas may lack essential infrastructure, such as high-speed internet, reliable utilities, or road access. Ensuring the property meets your needs for connectivity and convenience is critical, especially if you plan to use it as a vacation home or rental.

8. Energy efficiency and compliance

Canada has strict building codes and energy efficiency requirements. Older homes may require upgrades to meet modern standards, such as improved insulation, energy-efficient windows, or eco-friendly heating systems. These upgrades can be costly but are necessary to comply with regulations and lower long-term utility bills.

9. Language barriers in French-speaking regions

In predominantly French-speaking areas like Quebec, legal documents and contracts are often in French. Foreign buyers unfamiliar with the language may face communication challenges and misunderstandings. Hiring a bilingual lawyer or real estate agent is advisable in these cases.

10. Managing a property remotely

For foreign buyers not living in Canada, managing a property remotely can be challenging, especially for rental properties. Hiring a property management company is often necessary but adds to the ongoing costs.

Tips to avoid pitfalls

• Work with professionals: Engage a local real estate agent, lawyer, and accountant to guide you through the process.
• Research local regulations: Understand the provincial laws and taxes applicable to foreign buyers.
• Get pre-approved financing: Ensure you understand the terms and conditions of your mortgage if financing is needed.
• Inspect thoroughly: Conduct a detailed property inspection to identify any maintenance or compliance issues before purchasing.