Top 6 Things Americans Need to Know About Buying a House in Canada [2025–2026 Guide]

TL;DR: Yes, Americans can buy a house in Canada, but non-residents face extra rules like paying a non-resident speculation tax in certain provinces, may have higher down payment requirements, and must report the purchase to the Canadian government. Financing and tax obligations differ from the US—plan ahead and get professional advice to make the process smooth.

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Can Americans legally buy property in Canada?

Yes, Americans can legally buy residential property in Canada, including houses, condos, and land. There are no federal laws that outright prohibit US citizens from purchasing real estate in Canada, but non-residents must follow specific provincial rules, tax requirements, and in some cases, pay additional fees or taxes. It’s important to understand that being a non-resident may affect your mortgage options, tax liabilities, and even the type of property you can buy in certain regions.

Key facts:

• No citizenship or residency is required to buy property in Canada.
• Non-residents must report the purchase to the Canada Revenue Agency (CRA).
• Some provinces, like Ontario and British Columbia, impose additional taxes on non-resident buyers.
• Financing may be more challenging for non-residents, often requiring a larger down payment.

If you’re considering a move or investment, use Evola AI’s Immigration Success Predictor to explore your long-term residency options, which can impact your property ownership experience.

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Are there restrictions on where Americans can buy property in Canada?

Generally, no—Americans can buy property anywhere in Canada, but some provinces and municipalities have extra rules or taxes aimed at non-resident buyers. For example, Ontario and British Columbia have implemented a Non-Resident Speculation Tax (NRST) on home purchases in certain areas to cool foreign investment in hot housing markets. These taxes can add a significant cost to your purchase, so it’s essential to research local regulations before you buy.

According to the Government of Ontario’s official page on the NRST, this tax applies to foreign entities buying residential property in the Greater Golden Horseshoe Region, and it is currently set at 25% of the purchase price. British Columbia has a similar tax for some regions.

Key facts:

• Ontario’s NRST is 25% for non-residents buying in designated areas.
• British Columbia applies an additional property transfer tax for foreign buyers in certain parts of the province.
• Rural and less competitive markets may have fewer restrictions.
• Municipal bylaws (e.g., zoning) apply equally to residents and non-residents.

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What taxes do Americans pay when buying a house in Canada?

Americans buying property in Canada will encounter several taxes, including property transfer tax, non-resident speculation tax (if applicable), and annual property taxes. Additionally, when you sell the property, you may be subject to capital gains tax. It’s crucial to understand that the US and Canada have a tax treaty to avoid double taxation, but you must report your Canadian property and any rental income to both the IRS and CRA.

According to the Canada Revenue Agency (CRA), non-residents who sell Canadian property must notify the CRA and may need to pay withholding tax on the sale proceeds. You should also be aware of GST/HST on new home purchases, though rebates are often available.

Key taxes for American buyers:

• Property Transfer Tax: Levied by provinces on the purchase price (rates vary).
• NRST: In Ontario (25%) and BC (additional 20% for foreign buyers in covered areas).
• Annual Property Tax: Paid to the municipality where the property is located.
• Capital Gains Tax: Applies when selling, with principal residence exemption possibly available.

For personalized insights on how buying property might affect your immigration prospects, try Evola AI’s CRS Calculator to see if property ownership aligns with your goals for Canadian permanent residency.

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How can Americans get a mortgage in Canada?

Americans can get a mortgage in Canada, but it may be more challenging than for residents. Canadian banks and lenders often require non-residents to make a larger down payment (usually at least 35% of the purchase price) and provide extensive documentation, such as proof of income, credit history, and identification. Some US-based lenders also offer cross-border mortgage products designed for Americans buying in Canada.

Working with a mortgage broker experienced in non-resident deals can simplify the process. It’s also wise to get pre-approved before house hunting to understand your budget and strengthen your offer.

Key mortgage tips for Americans:

• Down payment: Minimum 35% for non-residents, per Canadian lending guidelines.
• Documentation: Passport, US credit report, proof of income, and details of the Canadian property.
• Interest rates: May be higher than for residents due to perceived risk.
• Consider using a Canadian bank with US ties or a cross-border mortgage specialist.

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What are the steps for an American to buy a house in Canada?

The process for Americans buying a house in Canada is similar to that for Canadians, but with extra steps related to taxes, financing, and legal requirements. It’s highly recommended to work with a Canadian real estate agent, lawyer, and accountant familiar with non-resident transactions to ensure compliance and avoid pitfalls.

Here’s a step-by-step overview:

1. Determine your budget: Factor in purchase price, taxes, legal fees, and higher down payment.
2. Get financing pre-approved: Shop for mortgages from Canadian lenders or cross-border specialists.
3. Find a real estate agent: Choose one experienced with foreign buyers.
4. Make an offer: Your agent will help negotiate and draft the agreement.
5. Hire a real estate lawyer: Essential for closing, title transfer, and tax compliance.
6. Close the deal: Pay required taxes, down payment, and fees; lawyer registers the deed.
7. Report to CRA: Non-residents must file a T2062 form for the property purchase.

For many, buying property is a step toward eventually immigrating. Check your eligibility with Evola AI’s tools, like the Success Predictor, to see how home ownership might support your application.

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Do Americans need to immigrate to Canada to buy a house?

No, Americans do not need to immigrate or become Canadian residents to buy a house in Canada. You can purchase property as a non-resident, whether you plan to use it as a vacation home, rental property, or future residence. However, if you decide to move to Canada permanently, owning property does not by itself grant you immigration status—you must qualify through a program like Express Entry, Provincial Nominee Program, or other streams.

According to Immigration, Refugees and Citizenship Canada (IRCC), owning property does not give you priority or special treatment in the immigration process, but it can demonstrate ties to Canada, which may be beneficial in some contexts.

Key considerations:

• Property ownership ≠ right to live in Canada.
• You must still apply for a visa or status to reside in Canada long-term.
• Rental income from your Canadian property is taxable in Canada and must be reported in the US.
• Consider consulting an immigration lawyer to align property purchase with residency goals.

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Buying a house in Canada as an American is absolutely possible and can be a rewarding investment—whether for personal use, rental income, or as part of a long-term plan to relocate. By understanding the taxes, financing, and legal steps involved, you can navigate the process confidently and avoid surprises. Remember, while owning property doesn’t guarantee immigration status, it can be a valuable piece of your Canadian dream.

Ready to explore your options further? Get started with Evola AI for personalized guidance, real-time policy updates, and AI-powered tools to help you make informed decisions about property and immigration.