Buy property in Canada [2025 Guide]
Many US citizens have close ties to Canada through work, study and travel. But what about buying a place there? Maybe you’ve decided to relocate permanently, or you want a Canadian vacation home. Can a US citizen buy property in Canada – and if so how?
You might have heard of the Prohibition on the Purchase of Residential Property by Non-Canadians Act which is set to run until 2027 and which limits the options for a foreigner buying property in Canada. But what does it really mean?
This guide covers all you need to know about buying property in Canada from the US. And because transferring money for a property overseas can be costly and slow, we’ll also touch on providers like Wise and OFX which offer cheap, fast and safe international transfers which could cut your costs when you buy.
Key points: Buying property in Canada as a foreigner
- Foreigners can only buy property in Canada if they meet strict eligibility criteria about residency and the property location
- You may be able to buy property in Canada if you have a Canadian spouse or common law partner, or if you’re a legal resident of Canada who intends to settle in Canada permanently
- Some very rural properties may be exempt from the rules banning foreign purchase – take professional advice if you’re looking for a home in a country location
- Once you have decided to buy, consider using a specialist payment provider such as Wise which uses the mid-market exchange rate and offers low cost, high-value transfers with discounts of up to 0.17% on fee costs, or OFX which has no transfer fee and no maximum payment limit
| FAQs | Answers |
|---|---|
| Can I buy property in Canada as a US citizen without being a resident? | Foreigners can only buy property in Canada if they meet strict eligibility criteria about residency and the property location. |
| Can I live in Canada permanently if I buy a property? | No. Buying a Canadian property will not give you the right to reside there- you still need the right visa to cover your stay and your activities while you’re there. |
| What is the cheapest way to transfer money from the US to [target-country]? | Consider using a specialist to send your money to the US such as Wise which uses the mid-market exchange rate, or OFX which has no transfer fee and no maximum payment limit |
| How much tax do you pay on buying a property in Canada? | Property taxes can vary depending on where you are buying a place. In some cases, there are additional taxes to pay if you are a foreign buyer. Get legal advice to ensure you understand the rules based on your specific purchase. |
Can US citizens buy property in Canada?
In 2022, the Canadian government passed the Prohibition on the Purchase of Residential Property by Non-Canadians Act, which was initially set to run for 2 years and subsequently extended until at least 2027. This act bans foreign investors from buying residential property in Canada in many cases.
Some exceptions do apply, which can include:
- Permanent residents of Canada
- People buying property with their Canadian spouse or common law partners
- Some legal temporary residents of Canada who intend to settle in Canada permanently
- People buying property outside of Census Metropolitan Areas (CMA) and Census Agglomerations (CA)
- Refugees and protected persons
Census Metropolitan Areas are towns and cities with a population of 100,000 or more, including 50,000 or more people living in the central area, and Census Agglomerations have a population of 10,000 or more. This may mean you can still purchase a place in a very rural area. However, as this law is relatively recent and pretty complex if you’re not familiar with it, it will be essential to get local help before you proceed with any purchase in Canada.
What are the requirements to buy a house in Canada?
To buy a property in Canada as a foreigner you’ll need to prove you meet eligibility criteria, based on the exclusions which apply by law. This may mean you need to prove you’re married to a Canadian for example, or that you’re a legal resident who meets the criteria for property purchase – usually this means providing evidence of paying your Canadian taxes for the last few years.
The rules for foreigners buying property in Canada are strict and can be complicated – get professional advice from a local realtor and a lawyer, before you get too far into your house hunt.
How to buy a home in Canada step by step
Assuming you’re eligible to do so, buying a home in Canada shouldn’t be too complicated as long as you choose a good agent to work with. Here’s a step by step guide to help you piece together the process you’ll follow:
1. Set your budget and engage a real estate agent
The first thing you’ll need to do when you buy a property is set a realistic budget, based on how you intend to finance the purchase. This allows you to start shopping around for homes. While you can do a lot online, you’ll find it far easier to target neighborhoods and property types you’re interested in if you work with an agent who has a deep understanding of your needs.
2. Find your property and negotiate a price
Once you’ve viewed properties and found a place you like, your agent can help you to negotiate a price. You’ll need to write a formal offer which includes proof of funds, and any specific conditions you would need to place on the transaction. There may be some negotiation back and forth, and then once all is agreed you’re ready to move forward. At this stage it’s a good idea to engage a lawyer to help you navigate the final parts of the legal process.
3. Work with your agent and lawyer to complete due diligence
Your agent and lawyer will guide you through agreeing a price and getting an initial purchase agreement in place. You’ll then need to arrange a property inspection to make sure there are no issues with the building, and arrange repairs if needed. Talk to your lawyer about any documents which you will need to provide to prove your eligibility to buy property in Canada as a foreigner, so you’ll have them to hand when it’s time to complete.
4. Complete your purchase
Once you’re satisfied with the property and its condition you can complete the purchase. You’ll need to sign all the documents and then work with your lawyer and a notary to pay the outstanding amount to the seller, and take over ownership. Any additional fees and taxes you owe are also due at this point.
As you can see, there are several large payments involved in buying a property in Canada as a US citizen. You’ll need to pay your down payment and then the balance of the purchase price, naturally, but there will also be legal costs and tax to consider.
When you’re sending money to Canada from the US, using a specialist provider like Wise or OFX could mean you get a faster service – and a lower fee – compared to using your bank. Be sure to shop around before you make any international transfers, to keep down your costs as far as possible, and avoid unnecessary fees and delays.
How much does it cost to buy property in Canada?
The costs of properties in Canada vary a lot, and have seen rapid increases over the past few years, resulting in the limits on foreign property ownership as a measure to cool the market. Once you’ve found the right place for you and your budget, you’ll also need to budget for closing costs.
Closing costs can vary depending on the value of the property you buy as well as the location, and can include things like:
- Legal fees
- Land transfer tax
- Title insurance
In all, closing costs can run to 2% or 3% of the cost of the property. Additional costs may also apply when you’re buying as a foreigner, so do check all relevant fees and taxes based on the property location with your lawyer before you confirm a deal.
In addition to property closing costs and taxes, international transfer fees and marked up exchange rates can also contribute to costs when you’re making an overseas property purchase. Specialist providers like Wise and OFX offer cheap, fast and secure international transfers.
Take a look at these providers compared to your bank – to see if you can cut out a few fees here to bring down your overall cost. Wise offers an automatic discount for higher transfers and OFX can offer competitive rates for large transfers as well. Here’s a summary:
- Wise: Wise uses the mid-market exchange rate and offers low cost, high-value transfers with discounts of up to 0.17% on fee costs. Transfers are typically completed within 1–2 business days.
- OFX: OFX doesn’t have maximum transfer limits meaning you can send as much currency as you need to, making them a good option for substantial property transactions.
Cheapest places to buy property in Canada
On a provincial level, some of the cheapest property in Canada can be found in the east, in places like New Brunswick, Nova Scotia and Newfoundland. Or, if you’re looking to buy in a metropolitan area, then buying somewhere outside of the city center is always a good option if price is a factor.
The right place to buy a property in Canada will come down to your budget but also the type of place you’re looking for and when you would use it. Shopping around and working with a knowledgeable realtor can help you get the most from your money.
Best ways to transfer money to Canada to buy property from US
If you’re transferring money to Canada to buy property, you may find that you can save money on fees if you use a specialist international money transfer service instead of your bank. There are many services available which can offer low costs and high transfer limits, which can make them convenient and quick solutions for transferring money to buy Canadian property.
Here are a few options to consider:
| Provider | Limits | Fees | Exchange rate | Speed |
|---|---|---|---|---|
| Wise | Varied limits, usually up to 1 million USD per transfer | From 0.57% | Wise CAD rate: Mid-market rate | 45% of transfer arrive instantly, 90% in 24 hours* |
| Xe Money Transfer | 535,000 USD per transfer | Variable fee depending on destination | Xe CAD rate: Exchange rate includes a markup | Variable depending on destination and payment method |
| OFX | No limit per transfer | No fee | OFX CAD rate: Exchange rate includes a markup | Variable – usually 1 – 2 days |
| TorFX | No limit per transfer | No fee | Exchange rate includes a markup | Variable – usually 1 – 2 days |
Details correct at time of writing -27th January 2025.
*The speed of transaction claims depends on individual circumstances and may not be available for all transactions
Here’s a quick summary of the providers we’ve selected here:
Wise review: Wise payments can be sent online or in the Wise app, and offer discounts on fees for higher value payments. You’ll be able to fund your transfer from your bank or with a card, and the money could be deposited into a bank account in Canada quickly and using the mid-market rate with a low, transparent fee.
Xe Money Transfer review: Xe is part of one of the largest money transfer companies globally, and offers payments online and in app, to many countries including Canada. Xe uses variable fees and an exchange rate which has a small markup added. You can sign up for an account to view the fees which apply based on different payment methods, and to compare the rate you’re quoted against those from other providers.
OFX review: OFX is a global provider of international payments and currency risk management services. There are no transfer fees and there’s no maximum payment limit, making this a good option for high value transfers such as buying a home. The OFX exchange rate has a small markup added. OFX has a 24/7 phone service if you want to arrange your payment by phone instead of online.
TorFX review: TorFX doesn’t have a transfer fee, but uses an exchange rate which has a small markup added. You can arrange your payment online, in app or by phone, and pay using your bank. TorFX has a very strong reputation for customer service, and the strongest possible credit rating which shows they’re a legit company to use.
Is it a good idea to buy a house as an investment in Canada?
The current measures limiting the option for foreigners to buy property in Canada are designed to bring down the costs of property and ensure availability for local residents. This is likely to discourage people buying purely for an investment, as the government is working towards increasing housing supply and bringing down the costs of buying.
That said, if you’re an experienced investor and choose to buy Canadian property, you’ll be able to cut out unnecessary costs when buying your property in the US by using a money transfer service like Wise or OFX.
Pros and cons of buying property in Canada
| Pros of buying property in Canada | Cons of buying property in Canada |
|---|---|
| ✅ Close neighbor, and a country many US citizens have close ties to ✅ Some US citizens are eligible to buy property in Canada through marriage or their visa status ✅ Lots of different property types available | ❌ Foreigners are extremely limited in the property they can buy in most cases ❌ Property prices have been at historic highs, leading to government intervention to cool the market |
Financing a property purchase in Canada
The main hurdle to buying property in Canada as a US citizen is likely to be your eligibility. Once you’ve established that you’re eligible to buy real estate in Canada, you’ll be able to start to look for finance if you don’t have the savings to buy your new property outright.
US citizens who are living in Canada and have long term or permanent residency may be able to get a mortgage from a Canadian bank. You’ll need to provide extensive documentation to show you’re eligible to purchase the property, and to prove your ability to repay the loan.
If you’re not a resident in Canada you may be able to get a loan in the US for your purchase, but this is likely to need to go through a specialist broker.
Buying a property in Canada with cash
If you have the savings you could buy a property in Canada outright, and avoid interest and other costs associated with taking a loan. However, if you’re paying using international transfers, bear in mind that moving money from USD to CAD can be extremely expensive with a bank.
Consider using an alternative like Wise or OFX instead for a seamless and cheap transfer to Canada.
How much down payment do you need to buy a house in Canada?
Usually the down payment required to buy a home in Canada ranges from 5% to 20% of the purchase price.
Paying property tax in Canada
The property tax system in Canada depends on where you buy a property. Rules are set on a local level, and can mean you pay somewhere in the region of 0.5% to 2.5% of the property price annually.
Factors affecting the house prices
Canadian property prices have risen steeply in recent years, due to high demand and low supply. Foreign buyers entering the market may have also pushed up costs – leading to the 2022 laws which stopped most foreign buyers from purchasing real estate in Canadian cities and towns.
What’s the property market like in Canada?
Canada’s property market has seen high demand which has pushed up prices in recent years. This has led to the government taking measures to cool prices while increasing the supply of housing, to make it easier for local residents to buy a place to live.
The outcomes of many of the measures taken may not yet be visible in the overall costs of property in Canada. As there are many factors affecting the property market, such as economic conditions, government policies, and foreign investment, it’s impossible to say what’s in store for 2025 and beyond.
To keep up, it’s helpful to watch market trends as they appear through online analyst statements and news reports. Ultimately, whether or not to invest in real estate is a very personal decision, which you’ll need to research and consider carefully.
Cheapest ways to pay for a property in Canada
Assuming you’ll be paying for your new property in Canada from the US, you’ll need to figure out the best way to move your money to avoid excessive costs. This will mean looking for a provider which offers low fees and a great exchange rate.
When sending a high amount of money overseas, the exchange rate is especially important. If the provider you use adds a markup to the rate used to convert your USD to CAD, this can add up quickly for higher value transfers.
If you’re sending 250,000 USD for example, and the provider uses a 3% markup, this means paying an additional 3% for the transfer – a huge 7,500 USD. That’s likely to be far more than the transfer fee, but you may never even know you’re paying it.
Not all providers use this approach. Wise uses the mid-market exchange rate and offers low cost, high-value transfers with discounts of up to 0.17% on fee costs.
Here’s a summary of international transfer fees and rates for the providers we looked at earlier:
| Provider | Fees | Exchange rate |
|---|---|---|
| Wise | From 0.57% Discounts of up to 0.17% on fees for high value transfers | Mid-market rate |
| Xe Money Transfer | Variable fee depending on destination | Exchange rate includes a markup |
| OFX | No fee | Exchange rate includes a markup |
| TorFX | No fee | Exchange rate includes a markup |
*Details correct at time of writing -27th January 2025
Another smart option is to open a multi-currency account with a provider like Wise which lets you hold and send both USD and CAD from the same account. You can open a Wise account online or in the Wise app, and use it to manage currency exchange and payments to Canada and around the world.
You’ll also be able to order a Wise Multi-Currency Card for easy spending and withdrawals and there’s no fee to spend the currency you hold in your account. Learn more on Wise Account Review, and How to use Wise Account.
Can I live in Canada permanently if I buy a property?
No. You can’t just buy property in Canada to get residency.
Buying a Canadian property will not give you the right to reside there- you still need the right visa to cover your stay and your activities while you’re there.
If you’re considering moving to Mexico long-term, these guides might help you in your research:
- How much spending money do I need for Canada?
- Best ways to receive money from Canada
- How to get Canadian dollars in the US
- What currency does Canada use?
Tips for foreigners to buy property in Canada
Here are a few final tips to help your purchase go smoothly:
- Foreigners can only buy property in Canada under very strict rules – you will need to confirm if you’re eligible with a lawyer
- Assuming you’re eligible to buy Canadian property, you’ll want to get a local real estate agent to help you navigate the local property market successfully
- Buying a property in Canada does not give you a right of residence – make sure you have the right visa or permit if you intend to stay there long term
- When sending money for your purchase, check out and compare a few different money transfer services like Wise and OFX to make sure you get the best available deal
How to find a Canada property
You’ll want to start your search for properties using online platforms, real estate agents, and local listings. Umbrella websites usually have filter options so you can filter out any properties which you would not be interested in based on their location or cost. Once you’ve narrowed down your requirements there’s no substitute for working with a great local agent who can help you view properties and attend open house events.
Should you rent or buy a house in Canada?
This mainly depends on your long and short term plans – and of course, your eligibility in line with the Canadian law. You may find you’re not allowed to buy a property in Canada, but this does not mean there’s any reason you can’t rent a place. And if you are eligible to buy Canadian real estate, the decision may come down to your personal preferences, finances and view of the market.
Canada property websites
The Canadian property market is well served by large umbrella websites which offer a full range of property types and great filter and search functions. Here are some top places to start your Canadian real estate search:
Conclusion
Foreigners can only buy property in Canada if they meet strict eligibility criteria about residency and the property location. You may be able to buy property in Canada if you have a Canadian spouse or common law partner, or if you’re a legal resident of Canada who intends to settle in Canada permanently.
In addition to this, some very rural properties may be exempt from the rules banning foreign purchase. As the laws relating to foreign ownership of property in Canada are pretty complex you’ll need to take professional advice if you’re looking for a home in Canada.
Once you’ve navigated the eligibility rules, buying a property in Canada is pretty simple – the process looks very similar to buying real estate in the US.
If you’re lucky enough to be able to buy yourself a new home in Canada, take a look at providers like Wise and OFX which can be helpful when buying property overseas, thanks to fast, cheap and secure international transfers, with good USD to CAD exchange rates. Save money on transfer fees when you need to pay for your deposit, for the property purchase, or for ongoing costs of running your Canadian home.
FAQs on buying Property in Canada
Can US citizens buy property in Canada?
Foreigners can only buy property in Canada if they meet strict eligibility criteria about residency and the property location.
How much deposit do you need to buy a property in Canada?
Usually the down payment required to buy a home in Canada ranges from 5% to 20% of the purchase price.
Is Canada a good country to buy property?
Buying a property in Canada is fairly straightforward but subject to strict eligibility rules if you’re not a Canadian citizen or permanent resident. Whether or not it’s right for you will depend on your personal circumstances and your intentions. Take professional advice before you invest in overseas property, to be sure you’re making the right decision for your unique situation.
