Mortgages for non-residents and foreign buyers

Two separate questions

Non-resident describes where you live; foreign national describes citizenship. The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act depends on citizenship and permanent residence only, and was extended in February 2024. Confirm its current status with a lawyer.

The Act covers residential buildings with three dwelling units or fewer within Census Metropolitan Areas and Census Agglomerations. It restricts buying, not owning or inheriting. Penalties can include a fine of up to $10,000 and a court-ordered sale. Exemptions exist for some work permit holders, students, refugees, diplomats and buyers purchasing with a spouse who is a citizen or permanent resident.

Non-resident mortgages are uninsured, and only some lenders offer them.

Check purchase eligibility first

Federal restrictions apply to purchases by defined non-Canadians, with rules and exceptions tied to the law. Living outside Canada does not by itself tell you whether those restrictions apply. Nor does being able to obtain financing establish a legal right to buy a particular property.

Have a Canadian real estate lawyer assess your status, the property and the current federal requirements before you commit. Provincial rules and taxes can create separate obligations. Do not rely on a general “foreign buyer” label, an agent's informal assurance or a past transaction to establish eligibility.

Residency means different things in different contexts

Citizenship, immigration status, physical residence and tax residence are not interchangeable. A Canadian citizen working abroad and a temporary resident working in Canada may face very different questions. A lender may also define its non-resident lending category differently from tax legislation.

Prepare identification and status documents, and ask your lawyer and tax adviser which classifications matter for the purchase. In Nova Scotia, provincial deed-transfer rules may need separate review. This guide does not quote current surcharges, exemptions or restriction dates because those details require transaction-specific confirmation.

Document income and the down payment

Lenders may require employment evidence, tax records, account statements and explanations of foreign income. Currency, income stability and the ability to verify documents can affect approval. Translation or additional certification may be requested, depending on the lender and documents.

Funds transferred internationally need a clear source and a practical closing plan. Ask about transfer timing, currency conversion and how the lawyer will receive the money. Do not assume that a large down payment removes income, credit or identity requirements. Keep copies showing the path of funds between accounts.

Plan for ownership as well as purchase

An intended rental and an owner-occupied home may receive different lending treatment. Consider property management, insurance, maintenance and ongoing tax filings while you are outside Canada. A future move to Canada does not automatically make today's application an ordinary resident purchase.

Our brokers can review lender possibilities once the legal purchase question is clear. We cannot guarantee a non-resident product or provide immigration or tax advice. Coordinate the lawyer, tax adviser, lender and closing arrangements early so that an otherwise suitable property is not paired with an unworkable financing timeline.

Closing logistics deserve a separate conversation if you cannot attend in person. Ask the lawyer about accepted identification, signing arrangements and any documents that must be prepared abroad. Arrange this before booking travel or transferring funds, because lender and legal requirements may not match the process used in your home country.

How our brokers can help

Our brokers can review your mortgage questions, explain lender requirements and compare the options that fit your plans. Where legal, tax or investment advice is needed, we will help you identify the questions to bring to the appropriate professional before you commit.