Canada seems like a great country for buying property as a U.S. citizen. Its multicultural cities, stunning natural landscapes, economic stability, and proximity to the U.S. add to its charm. But can Americans buy property in Canada?
The simple answer is yes. As a U.S. citizen, you can acquire property in the neighboring country. But, it’s not as straightforward because of a recent act passed in 2022. This guide provides the A to Z of buying property in Canada as an American.
Keep reading to learn more about acquiring property as a U.S. citizen.
Table of Contents
What Is the Real Estate Market Like in Canada?
As of May 2025, Canada’s real estate market is sending mixed signals. According to PwC, the condo sector will eventually recover due to the country’s population growth.
However, due to the federal government’s stance to reduce immigration, there is uncertainty in consumer demand for these property types.
Demand for student housing, cold-storage facilities, data centers, industrial real estate, and rental housing will help this industry.
Government regulations, climate change, demographics, disruptive technology trends, housing market affordability, and sustainability will also influence the real estate industry.
What Types of Property Are Available in Canada?
The following types of property are available in Canada:
- Condominiums: Condos or condominiums are apartments, i.e., large buildings with multiple houses inside, and each unit has an owner. There may be common areas like swimming pools, gyms, and event spaces, which the condo corporation maintains.
- Detached houses: Detached houses are properties that don’t share common walls with other houses in the locality. The owner owns the unit and the land the house is.
- Duplex, Triplex, and Fourplex: A Duplex contains two units, a triplex has three units, and a fourplex encompasses four units within a detached property. Each unit has a separate entrance. These properties may have single or multiple owners.
- Moveable homes: Properties you can move quickly, like floating houses and caravans, are under movable homes.
- Semi-detached houses: These properties share a common wall with other units. The owners will have to share spaces like fences and driveways.
- Townhouses: Townhouses are units where you share walls with your neighbors on both sides.
Due to the Prohibition on the Purchase of Residential Property by Non-Canadians Act, several restrictions are in place. Can an American buy property in Canada? Fortunately, you can still invest as long as you meet one of the following exemptions:
- The properties aren’t within Census Agglomerations (CA) and Census Metropolitan Areas (CMA). CAs are areas with a minimum population of 10,000. For CMAs, the population must be at least 100,000, and 50,000 people live in the core area.
- You are buying with your Canadian spouse, partner, or citizen.
- You want to invest in recreational lands, vacation homes, ranch properties, or cottages.
- You have plans to study or work in Canada within the next two years.
- You are studying or working in Canada, and the property’s value is under CA$ 500,000.
How Much Does It Cost To Buy Property in Canada?
According to wowa.ca, the average cost to buy property in Canada is CA$ 679,866. However, the price fluctuates depending on the location, neighborhood, and property type.
For instance, in British Columbia, the average property price is CA$ 942,884. However, in Newfoundland and Labrador, it’s CA$ 326,741.
Property Purchase in Canada: Taxes, Fees, and Other Costs
The total cost will change because of taxes, fees, and other related expenses. U.S. taxes aren’t applicable if you have a Canadian job and your income is under $120,000. However, if you have an American job and make more than $120,000, you must pay Canadian and U.S. taxes.
Here are some of the taxes and fees you must consider when owning property in Canada as an American:
- Mortgage default insurance
- Property transfer tax
- Provincial sales tax
- Real estate commission fees
- Land transfer tax
In addition, account for the currency exchange value, i.e., when you convert your USD to CAD.
Step-by-Step Guide to Buying Property in Canada as an American
Here’s how to buy property in Canada as a U.S. citizen:
- List your requirements: The first step is understanding what you’re looking for in your new property. Do you want to live in a rural town and live a laid-back life? Or, are you looking for a house you’ll call your summer home?
- Find eligible properties: As highlighted earlier, there are restrictions on what properties you can purchase as a non-Canadian. So, make sure you look for eligible properties based on your requirements. Hire a real estate agent for help, or search online.
- Get your funds ready: Once you have a list of properties, the next step is ensuring you have the necessary funds. Try to get pre-approval for your mortgage loan to know how much you must pay out of pocket. You may need to use our document translation services if your files are in a foreign language.
- Submit your offer for your dream property: Your real estate agent will help make an offer on the property you want to buy.
- Inspect the property: You must do your due diligence and inspect the property. Check the plumbing, insulation, wiring, flooring, and other parts of the property. Make sure everything is up to code and working properly. If you find any issues, you can use it to reduce the final price.
- Close the deal: Finalize the sale once you’re happy with the property and its condition. Get the funds from your lender and pay the remaining amount. After you transfer the money, you’ll receive the keys to the property.
- Pay taxes and fees: Ask your real estate agent about the various taxes and fees you must pay.
Documents for U.S. Citizens To Buy Property in Canada
Here are some of the documents you will need to buy property in Canada as an American citizen:
- Identification documents like a passport, a driver’s license, or a green card. Use a driver’s license translation service if this document isn’t in English or French.
- Financial documents like credit reports, tax returns, bank statements, and pay stubs
- Work or study permit
- Power of attorney in case you want someone else to represent you and sign various forms
Your real estate agent or lawyer will know all the documents you must submit. If your documents aren’t in English or French, you need to translate them. We offer passport translation services and can translate documents in more than 60 languages.
How To Search for Real Estate in Canada?
Where can Americans buy property in Canada? Here are the different ways to search for real estate in Canada:
- Work with a real estate agent because they can quickly find properties based on your requirements.
- Use online real estate websites to look for Canadian properties virtually.
- Ask your Canadian friends or people you know if properties are on sale in their localities.
- Visit Canada and look for properties on sale in places you want to live. You can also go to areas where builders are building new houses.
Which Is the Best City To Buy Property in Canada?
The best city in Canada to buy property in varies depending on your requirements and budget. For example, cities and tourist destinations will have higher property prices. However, you can charge higher rent in these areas. But, you must consider the new act, which restricts what properties you can buy.
On the other hand, rural areas will be cheaper but have lower rent due to the location. Here are some areas that are popular among U.S. citizens to buy property in Canada:
- Calgary
- Edmonton
- Fredericton
- Montreal
- Ottawa
- St John’s
- Toronto
- Vancouver
FAQ
We’re sure you’ll have more questions about the topic, ‘Can U.S. citizens buy property in Canada?’ Just go through this section because it answers various questions on this topic.
Can you get a mortgage loan in Canada as a U.S. citizen?
Yes, U.S. citizens can apply for a mortgage loan in Canada. The process is similar to what you must do in the U.S. to get financial assistance. Show your income, credit history, and government ID.
You may also have to make a down payment. The percentage you need to pay depends on the bank. Use Rapid Translate’s online translation service to ensure your documents are in the right language. This way, you won’t face any delays after submitting your mortgage application with a Canadian bank.
Will you become a Canadian citizen if you buy property in Canada?
No, you won’t become a Canadian citizen if you buy property in Canada. First, you need to become a permanent resident, live in the country for three years, and file your taxes. You must also show your language skills, pass the citizenship test, and take an oath to become a citizen.
There are investment opportunities in which you can invest in Canada, receive a start-up visa, and become a permanent resident. Remember to use IRCC certified translation services if your documents aren’t in Canada’s official languages.
Can you own land as a U.S. citizen in Canada?
Yes, you can own land as a U.S. citizen in Canada. However, you don’t have many options because of the 2022 Prohibition on the Purchase of Residential Property by Non-Canadians Act. You can still buy rural land as an American citizen. We recommend contacting a lawyer or real estate agent if you have questions about purchasing land in Canada.
