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Who Can Purchase

Buyers from all Countries can purchase Real Estate in Canada. There are no restrictions on the amount properties that can be purchased. Banks many restrict the number of properties they will finance to 5 properties per person. The main difference between residents and non residents is theNon-Resident Speculation Tax. As of April 21, 2017, there is a 15% Non-Resident Speculation Tax that must be paid by non Citizens and non-permanent residents.

Non-Resident Canadian Citizens:

Citizens of Canada who don’t reside in Canada for more than half the year are considered non-residents by banks (and thus subject to all the same rules) but not by the government for the purposes of the non-resident speculation tax. Canadian citizens are not subject to the 15% non-resident speculation tax.

If a citizen buys a property with a non-resident they will be treated by a Canadian bank as a non-resident and subject to the same requirements. If you are purchasing with a spouse who is a permanent Canadian resident, you are not generally subject to the Non-Resident Speculation Tax.

Financing for Non-Residents

Non-residents are able to obtain bank financing in Canada if they are able to meet the criteria and provide the correct information. Canadian banks and lenders require non-residents have a minimum 35% down payment with a maximum of 65% of the home’s value mortgaged. Different banks may of different criteria and rules.

To qualify for a mortgage for a property in Canada, non-residents will generally require:

  • A 35% downpayment

  • A reference letter from their bank

  • An employment letter verifying income in Canadian or US dollars

  • Three months bank statements

  • Canadian credit check


There are four kinds of taxes you need to be prepared to pay:

  1. Non-Resident Speculation Tax, 

  2. Land transfer taxes,

  3. Property taxes,

  4. Income taxes,

The Non-Resident Speculation Tax is equal to 15% of the price of the property and paid upon closing. When you take possession of the property you will pay land transfer taxes. Land transfer taxes are based on a sliding scale dependent on the price of the property. There are both municipal and provincial land transfer taxes. Every year you’ll need to pay property taxes to the city.  Lastly, if you are buying an investment property and have tenants who pay you rent every month, the government will require you to pay income tax on that rent.

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