Canada real estate: Complete guide to buying property in Canada

If you’re planning to purchase a property in Canada as a local resident, expat, or foreign investor, you’re in for an exciting – but sometimes daunting – time. 

This guide covers the end to end process of buying a property in Canada, from the steps to take, the costs you’ll likely need to budget for, and some top tips. Plus, we’ll look at how services like Wise can help optimize currency exchange, reduce transfer fees, and simplify the financial aspects of property purchases.

Key takeaways

• Buying a property in Canada is possible for citizens, permanent residents, and certain newcomers, but restrictions currently apply to most foreign non-residents. 
• Getting professional help from a local real estate agent or solicitor can help the process go smoothly
• Canadian property costs vary enormously depending on where you’re looking, the type of property, size and many other factors
• When buying a property in Canada you’ll need to budget for the purchase costs but also additional legal fees, real estate agent costs and transfer taxes
• Once you’re ready to close on your purchase you’ll need to settle all outstanding debts before you get your keys – if you’re sending your payment to Canada from overseas, a provider like Wise can help you cut the overall costs of your transfer

Can foreigners buy property in Canada?

The answer to this is both yes and no. While foreigners who are permanent residents or have a spouse who is a Canadian citizen can purchase Canadian property, foreigners are generally prohibited from buying residential property under the Prohibtion on the Purchase of Residential Poperty by Non-Canadians Act. 

This law has been extended to 1st January, 2027 and is in place to help make housing more affordable for Canadians. However, non-resident foreigners can still purchase some vacation homes and commercial real estate. 

The good news is that if you’re a foreigner with a permanent Canadian residency, you’re all set to go to purchase a property and get a preapproved Canadian mortage if that’s how you’d like to finance your purchase.

This guide walks through the process to buy property in Canada as a resident or Canadian citizen. As the process can be unfamiliar, it’s also important to get personal support from real estate agents and professionals with local knowledge in the local area you want to buy in, who can guide you through the process.

Requirements to buy property in Canada

The requirements to buy property in Canada are broadly similar whether you’re a Canadian citizen or a permanent resident. Foreign buyers who aren’t permanent residents are prohibited from purchasing residential property until at least January 1, 2027, under the Prohibition on the Purchase of Residential Property by Non-Canadians Act.

If you’re eligible to buy property in Canada, you’ll need to provide some important documents such as:

• Proof of ID – typically two pieces of valid government-issued ID, such as a passport, driver’s licence, or permanent resident card.
• A social Insurance Number (SIN) for mortgage applications and tax purposes.
• Proof of assets, earnings or income, depending on how you will finance the purchase

If you want to buy a home with a mortgage, the process to get approved will mean assembling a set of supporting documents which might include the above, alongside:

• A recent credit report – Canadian lenders will usually check your credit history to confirm your eligibility for a mortgage.
• Proof of income, such as recent pay stubs, T4 slips, or tax returns. If you’re self-employed, lenders may request financial statements and Notices of Assessment.
• Proof of assets, including bank statements showing you have the funds to cover your down payment and closing costs. Depending on the property value and mortgage type, the minimum down payment in Canada is usually between 5% and 20%.
• Property-related documents, such as the purchase agreement, deposit receipt, and any required appraisal or inspection reports.

Step-by-step guide

A property is likely to be one of the most expensive purchases you’ll ever make – so having a handle on the process to follow can offer peace of mind and make everything move more smoothly.

Here’s an outline of the process you’ll follow when you buy a property in Canada:

Step 1 – Set a budget and get professional help 

Before you begin your property search you’ll need to set a realistic budget which may mean you need to get preapproved for a mortgage if you’d like to buy with a loan. Don’t forget to also budget for associated costs like land transfer taxes, legal fees and closing costs – plus the ongoing costs of running your new property once you get it.

At this early stage it’s a good idea to assemble professional support – including a real estate agent and lawyer who can help you navigate the process of buying a new home. Finding experts with experience in your preferred area can make the process run far smoother.

Step 2 – Search and view properties

You can start your property search using online real estate portals, which offer simple search tools to find properties in your budget and preferred area to build a picture of the market. Some to look at include:

• Realtor.ca
• Zolo
• Zoocasa

Your agent can also support this stage – and set up viewings once you’ve shortlisted some places you’re interested in.

Step 3 – Make an offer

Once you’ve found the right property, your real estate agent will help you draft an offer. This document will include the proposed purchase price, inclusions (such as appliances), conditions (like financing or inspection), and an expiry date for the offer. 

You’ll likely also need to provide a deposit at this stage, usually around 5% of the purchase price, which is held in trust and applied to your down payment at closing.

To protect your interests, the agent may advise you to make your offer contingent on factors like receiving a satisfactory home inspection and appraisal, and getting your mortgage approved if you’ve not already done so.

Step 4 – Complete due diligence and legal requirements

Your advisor and legal team can now advise you on the due diligence checks you should complete. Usually this will include a home inspection and a lender-required appraisal, and for some homes, you may also need a survey or certificate of location to confirm the property’s boundaries and zoning compliance.

Your lawyer will also complete title searches and other legal checks in the background to ensure the property can legally be bought and sold.

Step 5 – Close and complete the purchase 

Once your closing date is confirmed, your real estate lawyer will handle the legal side of the transaction. You’ll sign the necessary paperwork a few days before closing, and arrange to transfer the remaining balance of your down payment and closing costs into your lawyer’s trust account.

On closing day, your lawyer will combine your funds with the mortgage money from your lender, pay the seller’s lawyer, register the property in your name, and release the keys to you.

If you’re sending money to Canada from overseas, consider using a provider like Wise. With a dedicated large transfer service, low fees, and mid-market exchange rates, Wise is a cost-effective way to get your money where it needs to be quickly.

Property prices in Canada

Property prices in Canada vary enormously depending on the type of property, the location, the condition it’s in and many other market factors. The average property cost in Canada is 693,300 CAD in July 2025 – but as you’d expect this covers many regional variations.

Ultimately you’ll need to shop around to get a feel for the prices of the property type you are interested in, in the location you’re targeting. Using online real estate portals is a good bet, to build a picture of your options.

Data from a service like Numbeo can also give an idea as this offers prices per square meter, which you can use to build an idea of the costs for the size property you’d like. Here are some examples for major Canadian cities:

Location	Price per square meter to buy an apartment in the city center	Price per square meter to buy an apartment outside of the city center
Toronto	11,857.87 CAD	10,257.39 CAD
Montreal	9,232.42 CAD	6,491.88 CAD
Vancouver	13,639.44 CAD	9,826.75 CAD

Property prices can be extremely sensitive to changes in external markets – and can change and evolve rapidly, so getting local support and advice from experts on the ground is essential.

Cheapest places to buy property in Canada

If you’re price sensitive, then looking for the cheapest options for Canadian property makes sense. However, bear in mind that shifts in supply and demand cause frequent changes to housing prices, so getting up to the minute advice from local agents is advisable.

Recent market reports in 2025 show that some of the most affordable areas are found in Atlantic Canada and the Prairie provinces. Cities like Greater Moncton, and Fredericton in New Brunswick, or St. John’s in Newfoundland and Labrador, continue to record average prices well below the national benchmark. Regina in Saskatchewan and Manitoba in Winnipeg also stand out for both lower prices and affordability, alongside Quebec City, which is recognized as one of the cheapest places to live in Canada, while still enjoying a relatively high average household income and quality of life.

Other mid-sized cities also make the list, such as Edmonton in Alberta, or northern Ontario communities like Thunder Bay. Naturally, the actual costs of housing vary by neighbourhood and property type, so it’s worth shopping around to find the right deal for your needs.

Factors affecting house prices

There are many factors affecting house prices including the location, market conditions, property type and age, and supply in the specific area. 

In fact, supply and demand is key to understanding the house price in many locations. If there are many properties being marketed to buyers, the prices may fall as each seller tries to capture interest – but where there aren’t many homes in a specific location, sellers may put prices up as buyers are willing to spend more for access to the limited supply.

Other important factors include infrastructure development – new highways or facilities can open up interest in an area and push up demand, for example. Broader factors like macro economic conditions, interest rates and global stability can also make a difference in the cost of housing.

Financing a property purchase in Canada as an expat

If you’re a new to Canada or a permanent resident, your options for financing a property purchase usually include taking out a mortgage from a Canadian lender or paying in cash. Most major banks offer dedicated newcomer mortgage programs that don’t require extensive Canadian credit history, making it easier to get started.

Lenders generally require a minimum down payment of 5%–20%, depending on the value of the property and type of mortgage. You’ll also need to provide proof of income, recent tax documents, and bank statements to show you can cover both the down payment and closing costs. 

Working with a mortgage broker can be helpful if you’re new to the Canadian system. Brokers can compare options across multiple banks, explain documentation requirements, and help you secure the most competitive rates available for your situation.

How much does it cost to transfer money internationally to buy a house in Canada?

If you need to send money from the US, Europe, the UK, Australia, or anywhere else in the world for that matter you’ll need to find a reliable and low cost provider to help. Getting stuck with a bad service can mean you end up with poor exchange rates, hidden fees, and a slower than necessary transfer.

Because some providers and banks charge hidden fees, it is important to take a look at the total amount received, instead of the total cost of the transfer when you compare different services to decide which is best for you. To give an example of how this works, let’s imagine you’re sending a payment from the US to Canada to pay for the down payment on your new property.

Here’s how the payment may work with Wise compared to an American bank:

Sending 50,000 USD to CAD	Sending money with Wise	Sending money with Chase
Send money fees	122.09 USD	No fee
Exchange rate	1.37505 (Mid-market rate)	1.35782
Total received in CAD	68,584.62 CAD	67,891.08 CAD

In this example, you can see that you get more in CAD in the end with Wise. This is despite the fact that Wise’s transfer fees look to be higher compared to the fee used by Chase.

The key difference here is that Wise uses the mid-market rate, while the bank adds a percentage fee to the rate used. This is a common practice, but it can mean you’re paying more in fees than you expect. On high value payments in particular, this cost can add up significantly until the conversion cost is far higher than the upfront fee you’re paying for the transfer. 

Wise transfers use mid-market rates and transparent fees, which include a discount for sending large amounts abroad. Plus if you want, you can get a Wise account to manage your recurring payments in CAD, such as mortgage payments or utilities bills, and use your Wise account to manage your money across 40+ currencies conveniently and with low overall costs.

How much does it cost to buy a property in Canada? Cost breakdown

When you buy a property in Canada, the additional fees beyond the agreed property price are significant. You’ll need to build these into your budget to make sure your purchase can proceed. 

Here are some to consider – bear in mind that costs can vary by region, property type and many other factors, so getting personal advice is essential when building your property purchase budget.

• Land transfer tax: This is charged in most provinces and varies by purchase price and location. For example, in Ontario it ranges from 0.5% to 2.5%, and Toronto adds an additional municipal land transfer tax. Some provinces, such as Alberta and Saskatchewan, don’t levy land transfer tax and first-time buyers may qualify for rebates.
• Appraisal fees: Usually required by lenders to confirm property value, averaging 300 CAD or more. 
• Inspection fees: A home inspection is highly recommended and often costs 300 CDA – 600 CAD, but can be higher depending on the property size and scope of the inspection.
• Closing costs: Typically 1.5% -4% of the purchase price, covering legal fees, title searches, registration, and adjustments for prepaid taxes or utilities.
  • Downpayment: In Canada, the minimum downpayment is 5% for homes up to 500,000 CAD, 10% on the portion between 500,000 CAD and 999,999 CAD, and 20% or more for homes over 1 million CAD or to avoid mortgage default insurance.
• Ongoing costs: Annual property taxes vary by municipality, typically ranging from 0.5%-2% of the assessed value. You’ll also need to budget for utilities, insurance, maintenance, and, if applicable, condo fees or homeowner association (HOA) fees.

Government assistance schemes

While there are various government assistance schemes for home buyers in Canada, these are usually aimed at first-time buyers, newcomers, and households making energy-efficient upgrades. Non-residents generally can’t apply for these programs, and eligibility rules can vary by province.

Here are a few to investigate if you’re interested:

• Home Buyers’ Plan (HBP): Lets first-time buyers withdraw up to 60,000 CAD from an RRSP tax-free to put toward a home purchase, with repayment required over 15 years. 
• First Home Savings Account (FHSA): A new tax-advantaged account allowing savings of up to 40,000 CAD.
• Home Buyers’ Tax Credit & GST/HST Rebate: Eligible first-time buyers can claim a non-refundable tax credit worth up to 1,500 CAD. Buyers may also qualify for a partial rebate of GST or HST paid. 
• Canada Greener Homes Initiative: Provides grants of 125 CAD-5,000 CAD and interest-free loans up to 40,000 CAD for energy-saving retrofits.

Moving into the new property

Already closed on your new Canadian property? There are still a few things to do:

Insurance: ​​Most lenders require you to have home insurance as a condition of your mortgage, although it’s not mandatory if you own the home outright. Premiums vary by province, property type, and risk factors such as flooding or wildfire exposure. On average, Canadian homeowners can expect to pay around 1,182 CAD per year, but costs can be higher in regions with greater climate risks. Check out options from popular providers like TD Insurance, Intact, and Aviva Canada.

Utility transfer: Ask the seller to provide details of utility providers before you close on the property, and contact them in advance of your move to start the transfer. On move in day, take any required meter readings and work with the providers to transfer the accounts into your name to avoid billing issues.

Setup services: You might want to bring over your old providers for internet, cable TV, phone services and so on – or it might be time to try for a new deal. Look into the options and costs depending on the services you value, so you know what you’ll need to do to keep continuous access when you move. Major Canadian providers include Bell, Rogers, and Telus, but smaller regional ISPs can sometimes offer more competitive rates.

Manage ongoing expenses: Property taxes will apply which are usually managed at a local and state level, as well as other expenses such as your mortgage and HOA costs. Plan for all ongoing expenses when you set up your Canadian property budget so everything is covered.

If you’re paying your Canadian property costs from abroad, Wise’s recurring transfers can be set up for regular bills like mortgage payments, and utility costs, which can be especially beneficial for those earning in different currencies. Simply arrange a recurring payment so you can set it and forget it, knowing your bills will be paid on time every time, with the best available exchange rates and low fees.

Is Canada a good place to invest in property as an expat?

If you’re buying property for investment purposes in Canada you’ll need to get professional advice to make sure you’re making the best decisions based on your investment timeline and risk tolerance.

As with any investment, market volatility and economic factors can mean that buying Canadian property is a good idea for some investors, but less attractive for others. Don’t rush into any decisions, and take time to thoroughly research the opportunities and risks.

If you do decide to buy property in Canada as an investment, look out for low cost providers for large amount transfers, such as Wise, which can mean you pay less in fees overall. 

Pros and cons of buying property in the Canada as a foreigner

Pros	Cons
✅ Very broad range of property types for all budgets and needs ✅ Access to government programs and incentives for eligible buyers who are permanent residents or newcomers  ✅ Well regulated property market with no language barrier to worry about ✅ Attractive destination to work, live, study or retire	❌ Foreign non-residents are currently prohibited from buying most residential property until January 1, 2027 (with limited exceptions) ❌ Costs of home ownership in Canada can be high with property taxes, insurance and other ongoing costs ❌ Market volatility may mean your investment does not perform as well as you might hope

Is it better to buy or rent property in Canada?

Buying vs renting in Canada is likely to come down to your personal preferences and needs.

In many Canadian cities in 2025, the monthly out-of-pocket costs of renting remain cheaper. However, if you choose to buy you do also have the prospect that the value of the home could increase over time – although there are no guarantees here.

If you’re a foreigner moving to Canada for a short while, renting is likely to be a more attractive option, especially due to the Prohibition on the Purchase of Residential Poperty by Non-Canadians Act that’s been extended until 2027. 

Even if you plan to stay for longer, it gives you flexibility to move, and change homes while you find the place and set up that suits you and your family. On the other hand if you’re immigrating to Canada for good and becoming a permanent residence or citizen, putting down roots with a property of your own may appeal.

Weigh up the pros and cons of each to help you decide on the best route in your specific situation.

Understanding the Canadian property market and homeownership

The latest available data from 2021 shows that home ownership in Canada was around 67%, down from the 2011 peak of 69.0%.

Owning a home is still a big goal for many households, but higher mortgage rates in 2025 have been making it harder for buyers, which means demand has cooled in some areas. July 2025 sales were up compared to last year, but benchmark prices were still around 3% lower. However, new listings were up by 10.1% in July 2025 from the previous year, meaning buyers are starting to see a bit more choice compared to earlier in the year.

Expert tips for successful property purchase

Buying a property is a huge life event. To help make sure everything goes smoothly, here are some things to think about:

Know your budget: Before you explore property options, set a realistic budget which includes all the extras like legal fees and closing costs. Be prepared for ongoing costs of running a Canadian property to be significant as well – build a long term budget to make sure you have everything covered.

Get professional advice: Buying a property in Canada will require local knowledge and professional support from a real estate agent and legal professional. While you can go it alone, working with a professional team can make the process easier to navigate and less stressful on all involved.

Focus on structural details over superficial features: Once you own your property you can change most superficial and cosmetic details, but structural features are trickier. Look at the potential of a property including considering renovations and changes, if you see a fixer-upper and have the time, energy and budget to take it on.

Learn key local property terms and concepts: While the Canadian property market is similar to that in many other countries, it’s not likely to be exactly the same as in your home country. Take a little time to research the purchase process, including the acronyms and terms that a real estate agent may use.

Understand local market cycles and timing: Before you buy, get to know the location you’re searching in, including looking at trends in property costs and closure speeds. Different factors can influence both supply and demand in any given area, so undestanding the usual flow can give you a competitive edge.

Managing finances for international property ownership

If you intend to buy a property in Canada from abroad, it’s important to find cost-effective methods of currency exchange management. From sending your downpayment and closing costs, through to managing your ongoing expenses in CAD, you could end up paying large amounts in fees and exchange rate markups if you rely on your bank.

Looking for a dedicated provider for currency exchange and international transfers can make managing your finances across multiple countries far easier and cheaper.

Wise offers a complete solution for international property buyers, including international transfers with mid-market rates and low fees, with automatic discounts when sending large amounts abroad. You can use the Wise rate lock features to protect against currency fluctuations, and set up recurring transfers for regular payments like mortgages and utility bills.

Because Wise fees are transparent – and you get the mid-market exchange rate to convert to or from CAD – you’ll always be able to see exactly what your international property is costing you in your home currency.

Conclusion

While buying property in Canada can be complex, it’s achievable for permanent residence holders with proper preparation and a local team of professionals in support.

Before you buy your Canadian property you’ll need to make sure you understand local Canadian laws, market conditions, and financial requirements, so everything goes smoothly.

If you’re buying your property in Canada from overseas, take a look at Wise as an excellent way to send money internationally, with mid-market rates, low fees – and discounts on high value transfers.

Frequently asked questions (FAQ)

How much deposit do I need to buy property in Canada?

In Canada, the amount you’ll need for a down payment depends on the price of the home. For properties priced up to 500,000 CAD, the minimum down payment is 5%. If the home costs between 500,000 CAD and 999,999 CAD, you’ll need to put down 5% on the first 500,000 CAD and 10% on the portion above that. For homes priced at 1 million CAD or more, a down payment of at least 20% is required.

How can I save money on currency exchange when buying property in Canada?

If you want to save money on currency exchange when buying property in Canada, take a look at Wise as an excellent way to send money internationally, with mid-market rates, low fees – and discounts on high value transfers.

Are there limits to how much I can transfer abroad for property purchases?

There may be limits to how much I can transfer abroad for property purchases which are set by the provider you choose to send your money with. For high value international payments check out Wise, which has no transfer limits when receiving money.

How do I ensure security when transferring large sums for property purchases?

When transferring large sums for property purchases it’s important to use a reputable provider or bank which has high level digital security features. Providers like Wise use a secure platform, and have industry level safety measures. 

You are likely to need to complete verification checks which help keep your transfer safe, but it’s still crucial that you’re aware of property purchase scams, and take steps to protect yourself. 

Can I buy a house in Canada if I live abroad?

If you’re a Canadian citizen or permanent resident, you can buy property in Canada even while living abroad. Foreign non-residents, however, are prohibited from purchasing most residential property until January 1, 2027.

Useful resources

• Government of Canada – Prohibition on the Purchase of Residential Property by Non-Canadians Act.
• CMHC – Official guidance for homebuyers in Canada.
• Realtor.ca – Canadian property listings.
• RBC – Mortgages for Newcomers; information for permanent residents, work permit holders, and students buying a home in Canada.
• Natural Resources Canada – details of the Greener Homes Initiative.
• Canada ca – Home Buyers’ Plan (HBP) withdraw up to 60,000 CAD from an RRSP tax-free to put toward a home purchase.
• Numbeo – Cost of Living in Canada housing and property price data
• Wise – Wise Canada for low cost international payments to Canada and multi-currenct account services. 

Sources were last checked 29th August 2025