Buying property in Canada as an American: Full guide

Canada is a vast, diverse country full of natural beauty and vibrant cities. With an excellent standard of living and free healthcare, it’s no wonder Americans are investing in property across the border.

But can US citizens buy property in Canada? Let’s take a look at everything you need to know, including fees, property types, legal requirements, and a step-by-step guide to buying a house in Canada.

Table of contents
What’s the property market like in Canada? Can an American buy property in Canada? How to buy property in Canada as an American: step by step Buying property in Canada: costs, taxes, and fees How can you find real estate in Canada? What’s the best city to buy property in Canada?

What’s the property market like in Canada?

Desirable real estate investment opportunities are abundant in Canada. The country has a dynamic property market in a range of growing provinces.

In May 2024, some Canadian provinces broke all-time price records, with the average home price in Canada standing at 699,117 CAD.¹

The property market can differ depending on where you want to buy your Canadian home. You may find it cheaper to invest in rural property, compared to popular urban locations like Toronto.

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Can an American buy property in Canada?

Americans can purchase a house in Canada, but there are certain requirements and restrictions to understand. Let’s take a look at how to buy a home in Canada.

What are the legal requirements of buying a property in Canada?

In January 2023, the Prohibition on the Purchase of Residential Property by Non-Canadians Act came into place. This stops foreign investors from buying property in Canada and driving house prices up, giving Canadian citizens a chance to purchase property for a reasonable price.

Under the act, it may be easier to buy a property if you’re a Canadian citizen or permanent resident. However, you can still buy Canadian property as an American.

Properties like vacation homes and cottages are exempt from the ban – and the law only applies to homes in metropolitan cities with a population higher than 100,000.²

There are a few other exemptions, like if you’ve worked and filed tax returns in Canada for at least 3 out of the 4 years prior to buying a property. Foreign nationals with temporary resident status can also purchase a home in Canada.³

If you want to buy property in Canada, you may need to open an account with a Canadian bank to qualify for your mortgage. You’ll also need to get a Tax Number from the Canada Revenue Agency (CRA) to ensure you meet any tax requirements.⁴

If you want to become a Canadian permanent resident, you may need to go through Canada’s immigration process. However, if you’re buying property as an investment, you can do so without becoming a resident.⁴

Can Americans buy land in Canada?

The Prohibition on the Purchase of Residential Property by Non-Canadians Act also covers land.

However, this only applies to metropolitan areas of at least 100,000 people – and you can still purchase some rural vacant land as an American.⁵ You may also need to pay additional fees and taxes for your purchase.

Can you buy property in Canada and get residency?

Buying property in Canada won’t grant you residency or citizenship – and if you’re applying for permanent residence, owning property won’t affect your application.⁶

If you plan on staying in Canada for longer than 6 months each year, you may need to apply for immigrant status.⁷ Make sure to look into any legal implications before planning your move abroad.

How to buy property in Canada as an American: step by step

Buying a house abroad can be a complicated process. We take a look at how to buy property in Canada.

Determine your eligibility

First, you’ll need to determine your eligibility, particularly under the Prohibition on the Purchase of Residential Property by Non-Canadians Act.

You’ll also need to think about how you’re going to pay for your Canadian home. You should be able to get a mortgage at the same interest rate as a non-resident, but you may need a minimum 35% down payment to qualify.⁷ You may also need a good credit score to purchase property abroad.

Different banks offer different loans to foreign buyers, so speak to your financial institution for further advice and support.

Read further
Guide to international mortgage lenders Funding your overseas property purchase guide Overseas property mortgage: explained

Research your options

Before moving to Canada, you’ll need to research your options. Canada is a huge country with a range of locations – and every province is distinct and unique.

Consider what you want from your new home. Do you want to live somewhere quiet and safe? Are you looking for a vibrant nightlife? Do you need schools within walking distance?

Eastern Canada tends to be more affordable than Western Canada – and life in a rural town will be very different from life in a major city.⁷ The climate and weather can also differ across the country.

Browse properties online and work with a real estate agency that specializes in Canadian property to help you navigate the process of buying your new home.

Make an offer

Your real estate agent can advise you on how to make a sensible offer on your favorite property. You may also want to get a lawyer to look over your offer.

It’s important to do your due diligence before buying property in Canada. Once you’ve found a house you want to buy, conduct the necessary surveys, such as checking for plumbing issues or mold.

At this point, you can typically pull out of the transaction without any financial or legal consequences.

Complete the sale

If your offer is accepted, your realtor will need to draw up the contract of sale and purchase agreement. You and the seller will then need to sign the agreement to complete the sale.

Your real estate agent can also help you transfer your funds, including your down payment and any additional fees or costs.⁷

You’ll need to collect the keys to your new property, too. Make sure to consult your real estate agent, mortgage advisor, or lawyer for support.

Buying property in Canada: costs, taxes, and fees

As with any property purchase, you’ll need to consider costs like property taxes, legal fees, your deposit or down payment, and closing charges.

If you’re buying property in Canada, you’ll also need to consider:

• property appraisal and home inspection costs
• land transfer tax
• provincial sales tax
• title insurance
• mortgage broker commission⁷

You may need to pay Goods and Services Tax (GST) and Harmonized Services Tax (HST) on certain aspects of your Canadian property purchase, including your real estate commission, legal fees, home inspection fees, and moving costs.⁸

How much is an apartment in Canada?

Let’s take a look at how much it costs to buy an apartment in Canada, including a few popular cities for foreigners.

Make sure to consult your real estate agent about whether you can buy a property in your chosen city under the Prohibition on the Purchase of Residential Property by Non-Canadians Act.

Location	Price (sqft) in city center	Price (sqft) outside city center
Ottawa⁹	482.02 USD	440.56 USD
Montreal⁹	676.08 USD	396.72 USD
Vancouver¹⁰	1,021.03 USD	682.77 USD
Calgary¹¹	295.17 USD	281.80 USD
Toronto¹²	954.20 USD	738.81 USD

Wondering how much that would cost in CAD? Check out this handy conversion calculator

What kind of taxes and fees will you need to pay?

Let’s take a look at some common fees and taxes you may need to pay to purchase your Canadian property.

Tax/Fee	Amount (%)
Real estate commission fees	Roughly 3% to 7%¹³
Property transfer tax	Roughly 1% to 5%¹⁴
Land transfer tax	Ranges from 0.4% to 4%¹⁵
Mortgage Default Insurance (down payment <20%)	Ranges from 2.8% to 4% of your mortgage amount¹⁵
Provincial Sales Tax (PST) on Mortgage Default Insurance	Depends on where you buy your home – it could be as much as 8%¹⁵
Exchange rate	Variable Many banks and financial institutions charge a markup above the mid-market exchange rate to convert USD into CAD – this can be as much as 3% of the transaction. Get the most CAD from your USD by using Wise, a cheap and transparent way to move your money abroad. Save on international payments

Buying property abroad? Send money the hassle-free way with Wise

Now that we covered all the basic costs of purchasing a home in Canada, the only question left is: how to send money to pay for your property overseas?

Wise offers you a quick, secure and transparent way of sending money to Canada. You get the mid-market exchange rate for your payments and see how much it’s charged for the transfer before sending the money from your bank.

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How can you find real estate in Canada?

A real estate agent like Sotheby’s Realty® or Sutton® can help you understand how to buy a house in Canada, including up-to-date property listings and advice about the best way to secure your purchase.

You can also use resources like Realtor® to explore properties in Canada or access further support.

For more information about the Prohibition on the Purchase of Residential Property by Non-Canadians Regulations, check out the Canadian Government website.

Types of property in Canada

Popular property types in Canada include:

• detached and semi-detached houses
• apartments
• condos
• townhouses
• bungalows
• cottages

Split-level homes are also popular in Canada. This type of property includes a main floor split across different levels, with interior steps. This can help to maximize space and it’s a great choice for families moving to Canada.

Under the Prohibition on the Purchase of Residential Property by Non-Canadians Act, you may find that you’re limited to certain property types, such as cottages or houses outside major metropolitan centers.

Make sure to check with your Canadian real estate agent before going ahead with your purchase.

How to avoid scams when buying property abroad

Unfortunately, some scammers target property buyers, especially if you’re planning on spending a large down payment to secure your home.

Always work with a real estate agent you trust and never send money overseas without first checking where it’s going.

Ideally, you should view your home in person before making an offer or transferring any funds. Always check with your realtor or lawyer if something seems suspicious.

What’s the best city to buy property in Canada?

There are a few great locations for Americans buying property in Canada. Let’s take a look at 5 popular cities for foreigners.

Ottawa

As the country’s capital, Ottawa has a lot to offer Americans moving abroad. You can get to know the history of your new home or explore some of Ottawa’s local nature spots.

Ottawa is known for its cultural diversity, with gorgeous parks, delicious restaurants, and local museums for foreign buyers and investors.

Vancouver

Vancouver is the perfect location for nature lovers. You can explore the North Shore Mountains or head to Stanley Park to enjoy the city’s natural beauty.

Vancouver also has an excellent standard of living, including access to free healthcare and a good education system.

There’s lots to do in Vancouver, such as film festivals, art galleries, restaurants, and shopping.

Toronto

Toronto is a popular choice for US citizens moving to Canada. Situated in Ontario, it’s one of the biggest cities in Canada – and there are lots of job opportunities for foreigners moving into the country.

Toronto has excellent public transport links and educational institutions, including schools and universities.

The city is known for its diverse neighborhoods, nightlife, and places to eat. However, Toronto is one of the most expensive Canadian cities to buy a new home.

Montreal

Montreal is the largest city in the province of Quebec, offering plenty of history and culture for Americans moving to Canada.

It’s known for its world-class universities and affordable cost of living, but you may need to know both English and French to thrive in Montreal.

Calgary

Calgary is a more affordable option for Americans moving to Canada. It’s a beautiful cosmopolitan center with a booming economy – and Alberta levies lower taxes compared to provinces like Ontario.¹⁷

There are also a few popular surrounding neighborhoods and suburbs for foreigners buying property in Calgary, including Tuscany and Hidden Valley.

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Canada is a popular location for property investors and Americans looking to move abroad.

Although the Prohibition on the Purchase of Residential Property by Non-Canadians Act places restrictions on who can buy property in Canada, it’s still possible to enjoy everything the country has to offer.

Make sure to work with a realtor or advisor you trust – and look into the fees and costs of purchasing Canadian property before moving abroad.

To start sending your money in over 40 currencies – all at the standard mid-market exchange rate – open a Wise account today.

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Sources:

1. WOWA - Canadian housing market report (2024)
2. Canadim - Can foreigners and temporary residents purchase property in Canada?
3. CBC - Canada's ban on foreign property buyers won't apply to many workers, international students
4. Global Citizen Solutions - Buying property in Canada
5. The Lourantos Group - Resources for foreign buyers
6. Canadian Visa Expert - Can I get residency in Canada if I buy a house?
7. Expat Focus - An American expat guide to buying property In Canada
8. Jeremy Scott - GST/HST on real estate in Canada
9. Numbeo - Cost of living: Montreal and Ottawa
10. Numbeo - Cost of living: Vancouver
11. Numbeo - Cost of living: Calgary
12. Numbeo - Cost of living: Toronto
13. Savvy New Canadians - Realtor commissions in Canada
14. Nesto - Land transfer tax by Province
15. Loans Canada - Closing costs in Canada
16. Expatra - 10 best cities to live in Canada

Sources checked on 07.16.2024