Are Foreigners Still Allowed to Buy Property in Canada in 2025?

Last Updated On : June 03 , 2025

Yes — but under stricter rules. Canada extended the foreign home buyers ban through January 1, 2027, under the Prohibition on the Purchase of Residential Property by Non-Canadians Act.

However, this does NOT apply to:

• Canadian citizens or permanent residents (PRs)
• International students meeting certain criteria
• Individuals with a valid work permit and at least 183 days of presence in Canada in the past year

Important: The ban covers residential property in major metro regions. Vacant land, commercial properties, and recreational homes (e.g., cottages) remain exempt.

Who Can Buy Property in 2025?

1. Permanent Residents (PRs)

You can buy property freely like any Canadian citizen. The ban doesn't apply to PRs.

2. Work Permit Holders

If you've worked in Canada for at least 183 days in the last 12 months, and:

• Hold a valid open or employer-specific work permit
• Have filed tax returns (or are eligible under LMIAs),
• Then you can legally purchase residential property.

3. International Students

You may purchase a home if:

• You’ve lived in Canada for 5+ years, and
• Filed income tax returns for at least 4 out of 5 previous years.

You can only buy one property, and it must be less than $500,000 CAD.

4. Can an American buy a house in Canada?

Currently, U.S. Green Card holders (Americans) are prohibited from purchasing residential properties in Canada under the Prohibition on the Purchase of Residential Property by Non-Canadians Act (in effect until January 1, 2027).

Nova Scotia, New Brunswick, Newfoundland, and Labrador offer properties in rural or coastal areas outside CMAs.

Americans are not automatically exempt. They must meet the above conditions (PR, work permit, etc.). Dual citizens or business owners in Canada may qualify under business-class exemptions.

Step-by-Step Guide: How to Buy a House in Canada in 2025 (for Non-Citizens)

Step 1: Verify Eligibility

• Check if you're exempt from the foreign buyer ban
• Consult an immigration advisor or real estate lawyer

Step 2: Prepare Finances

• Foreign buyers typically need a 35% down payment
• Build credit or use a Canadian co-signer if needed

Step 3: Mortgage Pre-Approval

• Canadian lenders prefer buyers with local bank accounts and job history.
• Interest rates for foreigners are usually 1–2% higher

Step 4: Hire a Licensed Realtor

• Choose one with experience in non-resident transactions
• Focus on pre-construction or recreational exemptions if applicable

Step 5: Make the Offer & Finalize Deal

• Sign an Agreement of Purchase and Sale
• Complete title search, inspection, and pay LTT & legal fees

2025 New Rules to Buy a House in Canada as a Foreign Buyer

Pro Tip: Recreational properties (cabins, lake homes) and multi-use commercial properties are excellent options for foreign buyers seeking legal investment routes.

Tax Breakdown for Foreign Homebuyers in Canada

• Land Transfer Tax (LTT): Paid at the time of purchase. Rates vary by province.
  E.g., Ontario charges up to 2.5% on properties over $2 million.
• Foreign Buyers’ Tax (NRST):

This is an extra tax (up to 25%) charged on residential properties bought by non-Canadian citizens or non-permanent residents in certain provinces like Ontario and B.C. It applies on top of regular property taxes and is meant to cool the housing market.

• Ontario: 25%
• British Columbia: 20%
• Nova Scotia: 5%

• Property Tax: 0.5% to 2.5% annually depending on province and city.
• Capital Gains Tax: 50% of the gain is taxable upon resale if you’re not a resident.
• Flipping Tax (2025): All profits on resale of homes within 12 months are now fully taxed unless you're exempt due to death, divorce, relocation, etc.

Can I Make Multiple Down Payments?

Only for pre-construction homes, where developers allow phased deposits (e.g., 5% on booking, 5% in 90 days, etc.).
Standard resale homes require a single full down payment before closing.

How Much You Need to Earn to Buy a House in Canada

There’s no official minimum, but mortgage lenders assess your ability using Gross Debt Service Ratio (GDS).

Use online mortgage affordability calculators to estimate your range.

Is Buying Property in Canada Worth It for Foreigners in 2025?

In 2025, buying a house in Canada can be a smart move if you have stable income, long-term plans, and qualify under current rules. While prices have slightly corrected since their 2021 peak, they are stabilizing—so waiting may not guarantee better deals. If you're financially ready, now is a good time to buy before interest rates or prices rise again.

Despite tighter controls, opportunities exist for qualified foreign buyers:

• Pre-construction projects with flexible timelines
• Condos in less regulated provinces (e.g., Alberta, Saskatchewan)
• Vacation or seasonal homes not affected by the ban

Conclusion:

Buying a home in Canada as a non-resident in 2025 is still possible, but you must navigate the legal, financial, and tax framework carefully. If you're a PR, work permit holder, or long-term student, your path to ownership is clear—with attractive ROI and stability. Always consult local experts to avoid legal roadblocks and maximize your investment.

FAQs – Buying Property in Canada as a Foreigner