Learn how foreigners can buy property in Canada. Discover laws, costs, and top cities for real estate investment in 2025.
Canada attracts property investors from all over the world due to its stable economy, high living standards, and strong legal protections. Whether looking for a home to live in or an investment opportunity, foreign buyers find the real estate market appealing despite certain restrictions. Knowing the legal framework, financial obligations, and regional differences helps in making an informed purchase.
While non-residents can buy property in Canada, regulations vary depending on location. Some provinces impose foreign buyer taxes, while others offer more lenient rules. Understanding these variations prevents unexpected costs and ensures compliance with government policies. In addition to legal requirements, evaluating property values, mortgage options, and long-term investment potential helps in making the right decision.
Toronto, Vancouver, and Montreal remain top choices for international buyers, but emerging markets in Calgary, Halifax, and Ottawa provide excellent alternatives. Identifying high-growth areas with strong rental demand enhances investment success. Taking time to research mortgage eligibility, property taxes, and maintenance costs allows for a well-planned purchase.
Legal Requirements for Foreign Buyers
Who Can Buy Property in Canada?
Non-residents can own real estate, but certain restrictions apply. While Canadian citizens and permanent residents face no limitations, foreign investors must follow federal and provincial guidelines.
- Temporary residents, such as students and workers, can buy property in most provinces without restrictions.
- Non-residents can purchase homes but may be subject to additional taxes and ownership limitations.
- Foreign corporations must adhere to specific regulations regarding property acquisition.
Prohibited Purchases and Recent Regulations
The Prohibition on the Purchase of Residential Property by Non-Canadians Act, introduced in 2023, temporarily restricted foreign ownership in certain urban areas. However, exemptions exist for:
- Individuals with valid work or study permits meeting residency requirements.
- Purchasers investing in multi-unit buildings with more than four units.
- Buyers acquiring properties in designated recreational or rural zones.
Ontario and British Columbia impose foreign buyer taxes, increasing purchase costs. These policies aim to regulate housing affordability and availability for local residents.
Costs Associated with Buying Property in Canada
Real Estate Prices and Market Trends
Housing prices vary significantly by region. Metropolitan areas like Toronto and Vancouver command premium prices, while cities such as Calgary and Halifax offer more budget-friendly options.
- Toronto: The average home price exceeds $1.1 million, with condominiums starting at $600,000.
- Vancouver: Property values surpass $1.2 million, particularly in high-demand neighborhoods.
- Montreal: More affordable compared to other major cities, with home prices averaging $500,000–$700,000.
- Calgary: Lower real estate prices, with homes available for $550,000 on average.
Additional Taxes and Fees
Foreign buyers must budget for extra costs beyond the purchase price. Common expenses include:
- Foreign Buyer Tax: British Columbia and Ontario charge a 25% tax on the purchase price.
- Land Transfer Tax: Ranges from 0.5% to 2.5%, depending on location.
- Legal Fees: Hiring a real estate lawyer costs between $1,500 and $3,000.
- Property Taxes: Annual rates range from 0.5% to 1.2% of the home’s assessed value.
- Home Inspection Costs: Typically between $300 and $600, ensuring structural integrity.
Financing Options for Foreign Investors
Mortgage Eligibility for Non-Residents
Foreign buyers can apply for mortgages, but banks impose stricter lending requirements. Financial institutions assess creditworthiness, income stability, and down payment amounts before approving loans.
- Minimum Down Payment: Lenders require 35% of the property’s value as a down payment.
- Proof of Income: Bank statements, employment records, or investment portfolios may be requested.
- Credit History: A strong international credit score improves mortgage approval chances.
- Canadian Bank Account: Required for loan repayments and transaction processing.
Major lenders such as RBC, TD Bank, and Scotiabank offer specialized mortgage programs for non-residents, often with higher interest rates compared to local buyers.
Alternative Financing Options
For buyers unable to secure a mortgage through traditional lenders, other financing options exist:
- Private Lenders: Alternative financing with flexible terms but higher interest rates.
- Developer Financing: Payment plans for pre-construction properties.
- Joint Ventures: Partnering with a Canadian resident or company to co-invest in property.
Top Cities for Property Investment in Canada
Toronto - Economic Hub with High Rental Demand
Toronto remains a top real estate market due to its economic strength and housing demand. Prime investment areas include:
- Downtown Core: High-rise condominiums with excellent rental income potential.
- North York: Family-friendly homes with long-term appreciation potential.
- Scarborough: More affordable housing with strong resale value.
Vancouver - Limited Supply and High Returns
Vancouver’s real estate market remains competitive due to its scenic location and strong job market. Investment-worthy areas include:
- Downtown Vancouver: Premium apartments with high occupancy rates.
- Burnaby: Affordable housing with good access to transit networks.
- Richmond: Strong demand from international investors.
Montreal - Affordable Market with Strong Growth
Montreal provides lower property prices while maintaining strong rental yields. Popular investment zones include:
- Le Plateau-Mont-Royal: Trendy area popular among professionals and students.
- Griffintown: A rapidly expanding district with modern developments.
- Old Montreal: Historic charm with tourism-driven rental opportunities.
Calgary - Lower Prices with High Appreciation Potential
Calgary offers affordable real estate and a growing economy. Key investment locations include:
- Downtown Calgary: High-rise apartments with business district access.
- Aspen Woods: Luxury housing with scenic views.
- Bridgeland: A revitalized neighborhood attracting young buyers.
Making a Smart Property Investment in Canada
Timing the Market for Maximum Gains
Real estate values fluctuate based on economic cycles, government policies, and interest rates. Purchasing during a market dip often leads to higher long-term returns. Staying informed about regional trends helps in making better investment choices.
Legal and Financial Considerations
Hiring a real estate lawyer simplifies transactions and ensures compliance with ownership regulations. Preparing financial documents in advance improves mortgage approval chances. Understanding ongoing property maintenance and taxation obligations prevents unexpected costs.
Choosing the Right Location
Selecting a property in a high-demand area improves resale potential and rental income. Growing cities with strong infrastructure, employment opportunities, and population growth provide better investment security. Evaluating local trends and long-term urban development plans assists in making informed decisions.
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