Thinking of immigrating to Canada? Then you may also be considering buying property. Foreigners are able to buy land and homes in Canada, but there are some conditions to be aware of before making any moves.
How can I immigrate to Canada?
You can learn about the various ways to immigrate to Canada on the Government of Canada website. For example, you can immigrate as a skilled worker, a caregiver, a refugee, by starting a business, or through sponsorship from family members.
Can I buy property as a foreigner?
Yes, non-residents of Canada can purchase property. Non-residents include those who have no residential ties and have been outside of Canada for more than 183 days in a tax year.
In April 2022, Prime Minister Justin Trudeau and the Liberal Party of Canada announced a temporary foreign ownership ban on housing — however, this doesn’t apply to foreign workers or foreign citizens who are permanent residents, or if the property is confirmed to be used for immigration within two years.
Are there extra taxes for foreigners?
If you are a non-resident of Canada, certain taxes may apply to property you purchase depending on where it’s located. Both the provinces of Ontario and British Columbia have non-resident speculation taxes: this tax is 20% on the assessed value of a residential property in Ontario, while British Columbia’s speculation and vacancy tax is 2% for foreign buyers.
Note: If you become a permanent resident of Canada within four years of purchasing your property, you may qualify for a speculation tax rebate in Ontario.
What about getting a mortgage?
Non-residents may have more difficulty qualifying for a mortgage with a Canadian bank. While interest rates may be similar to those of Canadians, non-residents will have to provide a larger down payment of 35%.
Does owning property mean I get to stay in Canada?
You’ll still need to go through the same immigration process in order to live in Canada. Owning a home does not expedite the process.