If you're living outside of Canada and Thinking about getting into the Canadian real estate market, I’ve put together a quick guide to the basics of buying property in Canada.

Even if you are a Canadian citizen but don’t reside in Canada for more than half the year than you are considered non-resident ( thus subject to all the same rules).

Canada welcomes home buyers from all arund th world, and there are no restrictions on the amount or kind of real estate you can buy. But purchasing a property in Canada does not give you any immigration advantages and if you decide to live in Canada, you’ll still need to qualify under Canada’s Immigration Laws.


While Canadian lenders do finance the home purchases of non-residents, they usually require significantly larger down payments. Most of our non-resident clients are required to have a 35% cash downpayment.  All Lenders will require that you verify your income and credit worthiness. Also, mortgage interest rates may be higher than what Canadian residents would pay (though in our experience, they are still very attractive rates).


As with any investment, it’s important to contact your accountant to fully understand how the purchase or sale of a property in Canada will affect you from a tax perspective.

When buying a property in Toronto, foreign buyers pay the same land transfer taxes as Canadian residents. Recently there was a change in rules for foreign buyers in Ontario, There is an additional 15% tax added. First time home buyers who plan to use the purchase as their primary residence may be eligible for land transfer tax rebates.

There are tax implications for non-residents when selling a property. There are forms, processes and penalties for not complying with Canada Revenue Agency (CRA)’s rules. Full details of the tax implications for non-residents selling property can be found on the CRA website though you should contact your accountant to understand the tax implications of selling a property in Toronto as a non-resident


It’s sometimes difficult (and more expensive) for non-residents to obtain insurance for an investment property. Given that proof of home insurance is required to obtain a mortgage. If you’re looking to buy real estate property in Toronto , make sure to get insurance quotes and information before making an offer.

Making An Offer

In this days, signing the legal documents to make an offer on a house or condo can be done digitally, and with apps such as Skype and Facetime, it’s easy to get the same advice and information from your REALTOR that you’d get if you were physically in Toronto. Many lenders require a foreign buyer to sign the mortgage paperwork in person (though this can be avoided with an executed Power of Attorney).

Contact Me Today

Want more information? Check out our send me an email or give us a call to discuss buying a property in Toronto.

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