Buying property in Canada as a foreigner

Considering moving to Canada from the UK? Perhaps you’re moving there to be with family, or to work or start a business. You might even fancy retiring there.

Whatever your plans, one of the most crucial things to do ahead of your move is find somewhere to live. But is it possible to buy property in Canada as a foreigner, and how do you go about it?

Read on for everything you need to know, including info on mortgages, fees, taxes and the latest Canadian property prices. We’ll also cover the rules and exemptions on property purchases for foreigners, along with the main pitfalls to avoid.

And if you’re looking for ways to save money on currency exchange when buying property in Canada, check out the money services provider Wise.

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Table of contents

Can foreigners buy property in Canada? Can you buy property in Canada and get residency? Buying property in Canada as a foreigner - a step-by-step guide 1. Check your eligibility and get your documentation together 2. Get pre-approval for a mortgage 3. Find a property and arrange viewings 4. Make an offer 5. Appoint a solicitor 6. Sign the purchase agreement 7. Get a survey 8. Completion Can you get a mortgage from a Canadian bank as a non-resident? Taxes and fees for owning property in Canada What’s the property market like in Canada? How much are the property prices in Canada? Where is the cheapest place to buy property in Canada? How can you find a property in Canada? Property agencies and agents in Canada Property websites in Canada What are some of the pitfalls of buying property in Canada? How do you choose the right property in Canada? Condition of the property Moving into your Canadian property Insurance Setting up utilities Energy efficiency renovations

Can foreigners buy property in Canada?

As of a new law (the Prohibition on the Purchase of Residential Property by Non-Canadians Act) passed in 2023, foreigners are not allowed to buy residential property in Canada.¹

This ban lasts until 1st January 2027, and is designed to boost the local property market and help Canadians get on the property ladder.¹

However, there are some exemptions, which means that buying property as a UK national isn’t completely out of the question.

You may be able to buy property in Canada as a foreigner if you:¹

• Are purchasing property with a spouse or common-law partner who is a Canadian citizen
• Are in the country on a work or study visa, and are buying property under $500,000 CAD
• Are buying property outside of Census Metropolitan Areas (CMA) and Census Agglomerations (CA)
• Are buying a home for future employment or immigration in the next two years.

Can you buy property in Canada and get residency?

There is no direct route to obtaining legal residency in Canada through the purchase of property.

This means that if you want to live in the country, you’ll need to follow a different route - such as getting a study, business or work visa, for example.

Buying property in Canada as a foreigner - a step-by-step guide

If you are eligible to buy a home in Canada, you’ll need to know a little about how property purchases are typically carried out.

Here’s a quick overview of the steps involved as a buyer:

1. Check your eligibility and get your documentation together

The first thing to do is check your eligibility to buy a home in Canada as a foreign national. You’ll need to see if you fall into any of the exemption categories of the new Prohibition on the Purchase of Residential Property by Non-Canadians Act.

You’ll also need:²

• A Canadian bank account
• A good credit score (in Canada)
• Evidence of sufficient funds to make a down payment - around 35% of the intended purchase price, or more for non-residents
• Valid ID
• Proof of income and assets.

You might also need a social insurance number (SIN).

2. Get pre-approval for a mortgage

Before starting your property search, you need to get your finances in order. This means setting a budget and getting a mortgage offer in principle from a lender.

3. Find a property and arrange viewings

Now it’s time to start searching for your dream home. You can use online property portals and/or local estate agents to find properties. We’ll run through some tips later on how and where to start your search.

If you’ve found somewhere you like, arrange a viewing as soon as you can, and start researching the area in the meantime.

4. Make an offer

The next important step is to submit a competitive offer to the estate agent, or to the buyer directly. You can negotiate, just like in other countries.

5. Appoint a solicitor

While it’s not mandatory, it’s a good idea to find and appoint a property lawyer. They will check over and translate all documents and contracts, as well as carrying out due diligence on the transaction.

A personal recommendation is a good way to find a solicitor, but you can also search the directory on the Canadian Bar Association (CBA) website.

6. Sign the purchase agreement

If your offer is accepted and you’re ready to proceed, both parties will sign the purchase agreement. This is a legally binding document which sets out all the terms and conditions of the sale, so you’ll need your solicitor to check it over carefully before you sign it.

At this stage, you’ll need to go back to your mortgage lender to finalise the details of your mortgage.

You might also need to arrange a transfer for a deposit/down payment. Read our guide to the best UK banks for sending money overseas.

7. Get a survey

While your property lawyer gets on with due diligence tasks (such as carrying out searches and looking into the legal title of the property), you can arrange a building survey.

If the survey flags anything up, you may be able to go back to the seller to negotiate on price or arrange to have issues rectified before the sale completes.

8. Completion

This is the final crucial step, involving the following actions:

• Signing final sales contracts
• Paying the final balance - read our guide to transferring large sums securely.
• Registering the property title and ownership in your name
• Handing over the keys to your new home.

Your solicitor will play a crucial part in all of the steps above, helping to guide the transaction through to completion.

💡 Read more: How to transfer large amounts of money from the UK?

Can you get a mortgage from a Canadian bank as a non-resident?

Unless you have the cash upfront, you’re likely to need a mortgage to finance your Canadian property purchase. UK banks aren’t likely to offer funds for overseas purchases, so you might need to try a Canadian mortgage provider.

Many Canadian banks do offer mortgages to foreign citizens. However, you’ll need to meet strict eligibility and affordability requirements, and generally appear to be an attractive customer to lend to. This can be more difficult for non-residents, as banks and lenders will be unable to access a credit history in Canada.³

You might find it useful to work with a specialist broker, who can help you find the right mortgage for you. Simply having someone on your side who really understands the system and has experience in obtaining mortgages for foreign nationals and non-residents can pay dividends. But bear in mind that this usually comes with a fee.

Taxes and fees for owning property in Canada

Along with the agreed purchase price, you also need to budget for the property taxes and fees involved in your Canadian property purchase.

Let’s take a look at the approximate costs you can expect:⁴

Tax/fee name	Rate/fee
Survey/home inspection fee	$300 to $1,000 CAD
Mortgage fees - Lender appraisal fee - Land survey - Mortgage default insurance - Title insurance	$275 to $500 CAD $1,000 to $2,000 CAD 2.8% to 4% of mortgage value Around $200 to $500 CAD
Land transfer tax (LTT)	Varies by province, usually around 0.5% to 2.5%
Sales tax	Varies by province, could up to 15% of purchase price
Legal fees	$900 to $2,000 CAD

There’s another important charge to know about if you’re buying in Ontario or certain regions of British Columbia. In both, there’s something called the Non-Resident Speculation Tax (NRST), also known as the Foreign Buyers Tax. It’s a whopping 25% in Ontario and 20% in BC, so you definitely need to factor this into your overall budget.⁵

What’s the property market like in Canada?

Canada’s housing market is currently characterised by an unfortunate mix of high prices and unaffordable mortgages.

Prices have increased by a modest 1.6% between 2023 and 2024,⁶ although high house price-to-income ratios mean that Canada remains one of the most unaffordable places in the world to buy property.⁷

However, there are signs of improvement in the country’s rather sluggish property market.

Experts hope that interest rate cuts by the Bank of Canada will make mortgages more affordable and boost demand. There has also been an increase in new property listings in some areas over the last year, helping to tackle the issue of undersupply within the market.⁸

How much are the property prices in Canada?

Now we come to the all important question - how much is property in Canada? This will impact what you can afford to buy and on which areas you should focus your search.

According to cost of living database Numbeo, the cost of buying an apartment in Canada is between 1.4% and 14% more expensive per square meter than in the UK - depending whether you buy inside or outside a major city centre.⁹

Although of course, it depends on the type of home and the exact area you’re buying in.

To narrow it down a little further, here’s a guide to what you can expect to pay per square metre in some of Canada’s major cities:¹⁰

City	Average apartment price per sq.m - city centre	Average apartment price per sq.m - outside city
Vancouver	$13,847 CAD	$9,867 CAD
Toronto	$13,230 CAD	$10,674 CAD
Quebec City	$11,874 CAD	$4,092 CAD
Victoria	$10,987 CAD	$9,643 CAD
Montreal	$9,607 CAD	$5,777 CAD
Ottawa	$7,068 CAD	$6,460 CAD
Calgary	$4,620 CAD	$4,254 CAD
Edmonton	$4,301 CAD	$3,344 CAD

Another thing to note when figuring out the price for property in Canada is that international transfers could get expensive, especially if the bank or provider adds a margin to the exchange rate to convert your pounds.

Consider checking out Wise to securely handle your large transfers with mid-market exchange rates and low, transparent fees*.

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Where is the cheapest place to buy property in Canada?

According to Canadian real estate company Royal LePage, some of the cheapest cities for property in Canada in 2024 are:¹¹

• Thunder Bay, Ontario
• Saint John, New Brunswick
• Red Deer, Alberta
• Trois-Rivières, Québec
• Edmonton, Alberta
• Regina, Saskatchewan
• St Johns, Newfoundland and Labrador.

How can you find a property in Canada?

The two main routes to find property to buy in Canada are local real estate agencies and online property websites.

Property agencies and agents in Canada

You don’t have to, but it could be a good idea to use an agent when looking for property in Canada, especially if you’re moving to Canada from the UK and are unfamiliar with the local property market.

In Canada, estate agents have to be licensed by a provincial regulator and be a member of the Canadian Real Estate Association (CREA). So, make sure you check this before using one - and find out what fees are charged and what exactly you get for your money.

Property websites in Canada

You can also start your search online, using one of the these popular Canadian real estate websites:

• Realtor.ca
• Centris.ca
• Housesigma.com
• Zillow.com
• Zolo.ca
• RoyalLePage.ca
• Properstar
• Rightmove (overseas property)
• Zoopla (overseas property).

What are some of the pitfalls of buying property in Canada?

One of the main things to watch out for when buying property in Canada, or in any foreign country, are scams.

To avoid scams and other pitfalls, make sure to get local advice and recommendations for a broker. You should also check for membership of a professional body when working with any property experts, brokers or agents.

Other important things to remember include:

• Check your eligibility to buy property in Canada before you do anything else - as a foreign citizen, you may not legally be able to buy a home there
• Be cautious and do your homework (including meeting or speaking to the seller) before sending money or a deposit.
• Ensure that the seller has the legal right to sell the property.
• Get an inspection/survey carried out if you have any concerns about the property.
• Never buy a property unseen - if you can’t make it out to Canada in person, you can employ a professional agent to carry out a viewing/inspection on your behalf.
• Make sure to factor in all the professional fees, taxes and other costs involved in the sale.

How do you choose the right property in Canada?

Your dream home in Canada will be the one that closest fits your search criteria. The most important factors will be location, the type of home and of course, how much you can afford to spend.

If you’re not already living there, it’s worth making a trip to the specific town or city in Canada you’re interested in. You’ll want to check out the local area and view properties, making sure to pay attention to local transport links and amenities.

Condition of the property

It’s a good idea to do as much research as possible before committing to purchase a property.

A key step is to assess the condition of the property with a building survey or inspection. This will flag up any major issues and give you a better idea of what you’re buying.

Moving into your Canadian property

Before you can get the keys to your new home, you’ll have a few key tasks to run through.

These include taking out insurance, setting up your utilities and carrying out any energy efficiency renovations.

Insurance

It’s strongly recommended to take out a buildings insurance policy starting from your completion date. In fact, you might find it's a mandatory condition of your mortgage offer.

Setting up utilities

If you know when your completion date will be, it makes sense to get some essentials set up in advance of moving in.

A prime example is utilities, such as heating, power and water. Get these sorted as early as you can, and the moving process should be a little smoother.

Energy efficiency renovations

If you’ve bought an older Canadian property, you might want to make some energy efficiency improvements to it. For example, rewiring the electrics, installing insulation or upgrading the heating system.

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And there you have it - our complete guide to buying property in Canada for foreigners.

We’ve covered all the important stuff, including property prices, fees and taxes, mortgages and how to start your search.

After reading this, you should have a better idea of how the buying process works in Canada, and be ready to start house hunting.

And, if you want to save money while buying your new property in Canada, make sure to use the Wise account to send your international transfer. It’s not a bank account and offers customers an alternative option to a conventional bank account, but has similar features.

Here are the main benefits for using Wise:
Fast and easy setup with no physical paperwork Low, upfront, transparent fees* Fully trackable transfers Fast transfer times Two-factor authentication and real-time notifications Dedicated support for large transfers

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Sources used:

1. Centris - Non-Canadians Can No Longer Purchase a Home in Canada
2. EasyFX - Can foreign nationals buy property in Canada?
3. Online Mortgage Advisor - Mortgages in Canada
4. Ratesdotca - The hidden costs of buying a home
5. Green and Spiegel - What You Need to Know About Foreign Buyers Tax in Canada
6. Global News - Canada’s ‘sluggish’ housing market could be recovering. Here’s why
7. The Conversation - What’s behind Canada’s housing crisis? Experts break down the different factors at play
8. MoneySense - Rates are going down—is now a good time to buy a house in Canada?
9. Numbeo - Cost of Living Comparison Between United Kingdom and Canada
10. Numbeo - Prices by City
11. Royal LePage - 2024 Most Affordable Canadian Cities Report

Sources last checked on date: 05-Dec-2024