3 minCan Americans buy property in Canada? Everything you need to know
If you’ve ever dreamed of owning a lakeside cabin in Ontario or a condo in downtown Toronto, you’re not alone. But can Americans buy property in Canada? The short answer is: yes, they can, but there are stipulations. Here’s everything you need to know about buying Canadian property as a US citizen.
Can Americans buy property in Canada?
Yes, Americans can buy property in Canada, whether it's a holiday home, an investment property, or a primary residence. There are no citizenship restrictions on buying real estate. However, there are some tax rules, financing requirements, and new regulations to consider.
What are the rules for US citizens buying property in Canada?
1. Foreign Buyer Ban (2023–2025)
In January 2023, Canada introduced a temporary ban on some foreign buyers purchasing residential properties to stabilize the housing market. However, this mainly targets non-residents with no ties to Canada.
As a US citizen:
- If you are buying recreational property (e.g., cottage, ski lodge) outside major cities, you’re generally exempt.
- If you hold Canadian permanent residency or are in Canada on a work/study visa, the ban does not apply.
- If you are buying in a major urban area as a non-resident, check local exemptions or wait until the ban lifts in 2025.
Always check the most up-to-date federal and provincial rules before making an offer.
2. Taxes and fees
Buying property in Canada comes with:
- Land transfer taxes (varies by province)
- Foreign buyers’ tax in some provinces (e.g., British Columbia, Ontario) – typically around 20% of the purchase price
- Annual property taxes
- Income tax if you rent it out as an investment property
3. Financing options
Getting a Canadian mortgage as a US citizen can be challenging. Many buyers:
- Pay in cash if possible
- Use cross-border mortgage programs offered by some banks (e.g., RBC, TD, BMO)
- Need proof of US income, credit reports, and a larger down payment (often 35%+ for non-residents)
4. Currency considerations
If you’re transferring USD to CAD for a deposit or purchase, exchange rates matter. Services like Paysend can help you move funds securely with low fees and great rates, ensuring your money lands fast in your Canadian lawyer or realtor’s account.
Can Americans live in their Canadian property year-round?
Owning property does not grant you residency rights. As a US citizen, you can typically visit Canada for up to six months at a time without a visa. For longer stays, you’ll need to apply for the relevant permit or residency program.
Key takeaways
Americans can buy property in Canada
Check the Foreign Buyer Ban rules (2023–2025)
Prepare for taxes, fees, and higher down payments
Owning property does not equal Canadian residency
Thinking of buying a cottage in Ontario or a ski chalet in Whistler? Make sure your money transfers are as smooth as your move. With Paysend, you can send funds internationally with low fees, great exchange rates, and fast delivery– so you’re ready to sign that Canadian property deal with confidence.
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