Update: “Effective as of January 1, 2023, the Prohibition on the Purchase of Residential Property by Non-Canadians Act (the “Act”) prevents non-Canadians from buying residential property in Canada for 2 years.”
Key Highlights
- The Act defines residential property as buildings with 3 dwelling units or less. This includes semi-detached houses and condominium units. The Act doesn’t prohibit the purchase of larger buildings with 4 or more dwelling units.
- Non-Canadians can purchase residential properties located outside of Census Metropolitan Areas (CMA) and Census Agglomerations (CA).
- Certain exceptions apply allowing Non-Canadians to purchase a residential property in defined circumstances.
- If a non-Canadian, or anyone who knowingly assists a non-Canadian, is convicted of violating the prohibition, they will have to pay a fine of up to $10,000. Additionally, a court can order the sale of the residential property.
As of March 27, 2023, the following amendments were made by the Government of Canada:
– Enable more work permit holders to purchase a home to live in while working in Canada.
– Repealing existing provision so the prohibition doesn’t apply to vacant land.
– Exception for development purposes.
– Increasing the corporation foreign control threshold from 3% to 10%.
To read the full report of the amendment please visit the Canada Mortgage Housing Corporation.
You can also read our Blog Posts on this subject, which provide detailed information about how non-residents may be able to buy real estate and get a mortgage here in Canada.
Who Qualifies for a Non-Resident Mortgage in Canada?
Navigating Canadian real estate as a non-citizen or non-resident can be complex, especially with the federal Foreign Buyer Ban extended to January 1, 2027. However, viable pathways to homeownership still exist depending on your residency status. Lenders typically divide applicants into two distinct categories:
| Category | Primary Guidelines | Down Payment Requirement |
|
Temporary Residents (On valid Canadian Work Permits) |
• Must have a valid, legally issued Canadian work permit. • Exempt from the Foreign Buyer Ban under specific regulatory criteria. • Qualifies using standard Canadian credit and employment verification. |
As low as 5% to 10% (Subject to default insurance guidelines). |
|
U.S. & International Non-Residents (Living outside of Canada) |
• Eligible to purchase recreational or vacation properties located outside of Census Metropolitan Areas (CMAs). • Requires international credit reports or bank reference letters. • Subject to Canadian non-resident tax laws and provincial speculation taxes. |
Minimum 20% (U.S. Residents) Minimum 35% (Other Countries) (Must be from own, non-gifted resources). |
Clear Guidance Every Step of the Way
Getting a mortgage from outside of Canada comes with a lot of moving parts. We act as your dedicated partner to simplify the journey—handling the details of foreign document requirements and working directly with your real estate lawyer to ensure everything aligns.
Our goal is to make the process as straightforward and stress-free as possible, so you can focus on securing your property with peace of mind.