Canada does not limit who can buy a home in Canada. However, there are limitation on financing and additional taxes for Buyers who decided to invest in the real estate market in Canada for Buyers who are not Canadian residents.

For the purpose of buying real estate, a Canadian resident is someone who works in Canada and pays taxes in Canada. According to this definition a resident does not have to be a permanent resident or citizen to qualify as a Resident Buyer.

Lenders define non-residents as parties to a transaction who do not earn an income and file taxes in Canada.

What do you need to know about Non-Resident Buyers?

  • Banks and Lenders usually request a larger down payment for buying real estate by a non-resident.
  • US residents who want to buy Canadian property for investment can put down as much as 20% with verification of employment.
  • People who live elsewhere (not in the US or Canada) will be required to put 35% down and the downpayment cannot be gifted or borrowed.
  • Banks will not consider rental incomes as part of the Non-Resident Buyers' income

Many Non-Resident Buyers gravitate towards condos in urban centers such as Toronto, Montreal, Calgary and Vancouver.

Except for the differences mentioned above, Non-Resident Buyers will have access to the same mortgage conditions as Canadian residents. However, some banks and lenders may have additional terms, such as: rate premiums, maximum 25 year amortization period, Non-Resident Buyers cannot qualify for homes lines of credit and cannot refinance.


The subject of tax makes the Non-Resident Buyers' transaction different than that of a Resident Buyer. Non-Resident Buyers can expect to pay the following taxes on a real-estate purchasing transaction. In addition to the usual Ontario Land Transfer tax and Toronto Land Transfer tax (if applicable), Non-Resident Buyers will be obligated to pay a 15% Speculation Tax when purchasing real estate in Canada.

Have more questions? Contact Alisa Fulshtinsky for a private FREE consultation.

  • Alisa Fulshtinsky, REALTOR
  • Sutton Group Admiral 416-739-7200
  • direct: 416-841-0032