Buying property in Canada as an Australian – Is it hard?

Furthermore, Australian and other foreign buyers often face stricter financial requirements than Canadian citizens. For example, non-residents or buyers without a Canadian credit history may need to make a larger down payment to qualify for a mortgage.

It’s also important to understand that owning property in Canada does not automatically give you the right to live there.

Can Australians buy property in Canada? 🤔

Yes, Australian citizens can buy property in Canada, but there are current restrictions due to the Prohibition on the Purchase of Residential Property by Non-Canadians Act. Originally introduced in 2023 and later extended, these rules generally restrict non-Canadians from purchasing certain residential properties in many urban and suburban areas until at least January 2027, although a number of exemptions and exceptions apply.

Here are some of the things to consider before making a purchase:

• Regional property laws: The property-buying process can vary across Canadian provinces and territories, so spend some time researching local laws and any implications.
• Financial requirements: Non-residents may face stricter mortgage requirements, including larger down payments and higher interest rates, especially if they have limited Canadian credit history.
• Taxes: There are both federal and provincial property-related taxes in Canada, and things are more complicated for foreign nationals with cross-border tax obligations.

If you are purchasing Canadian property from abroad, Wise provides an easy-to-use and low-cost way to move money abroad for a property purchase.

You can transfer money from the UK to Canada at the mid-market exchange rate, with low transparent fees.

Wise also offers discounts on transfer fees when you transfer large amounts (over 20k GBP or equivalent), which can help you keep the costs low when you’re purchasing your property or making mortgage payments.

What buying property gets you 🔍

Here’s what you will get if you buy a Canadian property as an Australian citizen:

• A home in Canada: This could be as a holiday home for visits, or a permanent home if you have the right to live in Canada.
• Investment opportunities: You could earn rental income from the property or benefit from increases in real estate value over time.
• Access to financing: As the property builds equity, you may be able to use it as collateral for loans in the future, depending on your financial situation and lender requirements.

What buying property does not get you ❌

The most important thing to remember is that buying Canadian property does not grant you a Canadian visa, residency, citizenship, or the right to work in the country.

Owning a home in Canada may strengthen your application for a visa, permanent residence, or citizenship, for example by demonstrating financial stability or ties to Canada. However, you will need to make a separate application for any of these through the relevant authorities.

How difficult is the process?

The process for buying Canadian property as a foreigner is fairly straightforward, although it can take longer than it does for a Canadian citizen – especially if financing is involved. In general, expect the whole process to take up to a few months, and around 30–90 days after an offer is accepted.

Documents you usually need to provide include:

• Valid photo ID, such as a passport
• Canadian tax number, either a Social Insurance Number (SIN) for residents or an Individual Tax Number (ITN) for non-residents
• Proof of funds for the purchase, such as bank statements, asset documentation, or a mortgage pre-approval letter
• Proof of your current Australian address, e.g., utility bill or official correspondence
• Proof of creditworthiness (if applying for a mortgage)

You won’t necessarily need a Canadian bank account to buy property in Canada, although it will make things easier to pay deposits, closing costs, mortgage repayments, taxes, insurance, and ongoing property expenses.

Forms and documents commonly involved in the purchase process include:

• Purchase agreement: Legal contract between the buyer and seller, required for all property sales.
• Provincial/territorial tax forms: These vary across regions but may relate to land transfer tax, property transfer tax, or foreign buyer taxes where applicable
• FINTRAC Forms: These verify your identity under Canadian anti-money laundering laws.
• Transfer and title registration documents: These confirm the legal transfer of ownership of the property.

Typical timelines 🗓️

Here is a typical timeline for buying Canadian property as an Australian citizen, from finding a property to closing the process:

Process	Typical timeline
Finding a property	One week to a few months
Negotiations and offer acceptance	Up to two weeks
Mortgage approval (if needed)	Up to 6 weeks
Property inspection and valuation	1–3 weeks
Legal checks	1–4 weeks

Transferring money to Canada for the purchase 🇦🇺 > 🇨🇦

If you are buying Canadian property from overseas, you can use Wise to move money abroad for the property purchase.

Wise money transfers and currency conversions use the mid-market exchange rate with transparent upfront fees and no hidden costs.

You can also benefit from additional discounts on large transfers. This can save substantial amounts on large foreign purchases.

Alternatively, you can also open a Wise Multi-Currency Account to hold and manage money in 40+ currencies including CAD and GBP, spend with the linked debit card and convert currencies with mid-market exchange rate.

What are the tax implications?

You will need to consider the tax implications of buying Canadian property as an Australian. Tax residency is important, as Australia taxes residents on worldwide income, such as rental income and capital gains in other countries. Meanwhile, you will have tax obligations in Canada regarding property-related income there.

Fortunately, Canada and Australia have double tax treaties to help prevent payment of tax twice on the same income.

In Canada 🇨🇦

One-off and ongoing property-related taxes in Canada may include:

• Land transfer tax: Taxes payable on purchase of property, varying by province or territory. Typically between 0.5% and 5%. Toronto has an additional municipal land transfer tax.
• Property tax: An annual tax levied by municipal governments, usually between 0–3% of the property value.
• Foreign buyer taxes: An additional property transfer tax for non-residents levied by some provinces and municipalities. Currently it applies in Nova Scotia (10%), Ontario (25%) and certain parts of British Columbia (20%).
• Income tax in Canada: You will usually have to pay this on any rental income on the property at the standard progressive rates. Provincial income taxes may also apply.
• Underused Housing Tax (UHT): Federal 1% annual tax on the value of vacant or underused housing owned by non-Canadians.

In Australia 🇦🇺

If you remain a tax resident in Australia, you will be liable for tax on your worldwide income. This could include:

• Income tax in Australia: On rental income at the progressive rates.
• Capital Gains Tax: If you sell the property you may be liable for tax on the financial gains made.

As tax can be complicated, particularly when dealing with cross-border obligations, it’s a good idea to seek advice from a qualified professional before making any overseas purchase.

Local laws and regional variations

Aside from differences in local taxes and property markets, each Canadian province and territory has its own property laws. These laws cover everything from the property-buying process to restrictions on buying certain types of property or land.

One area where there can be significant variation between provinces is in the ownership of land. For example, ownership of agricultural land by foreign nationals is treated differently across Canada:

• British Columbia, Nova Scotia: No general restrictions
• Ontario: No restrictions but reforms have been proposed
• New Brunswick, Newfoundland and Labrador, Yukon, Northwest Territories: Few restrictions
• Quebec: Non-residents often require authorization before purchasing
• Prince Edward Island: Strong land-holding limits and pre-approval required
• Manitoba: Foreign owners limited to 40 acres
• Alberta: Foreign owners limited to 20 acres
• Saskatchewan: Foreign owners limited to 10 acres
• Nunavut: Operates a different land tenure system

Because the rules vary significantly by province and territory, it is a good idea to check local requirements before purchasing. A local real-estate lawyer (or notary in Quebec), real-estate professional, or other qualified advisor can usually provide guidance.

Renting out your property: is it allowed?

If you buy property in Canada as an Australian or other foreign national, you can usually rent it out without any restrictions. There are no Canadian citizenship or residency requirements for renting out Canadian property.

However, you will need to consider:

• Withholding tax: The Canada Revenue Agency (CRA) generally requires the tenant or a Canadian agent/property manager to withhold and remit 25% of the gross rental income paid to a non-resident owner.
• Section 216 Election: Non-resident landlords can elect under Section 216 of the Income Tax Act to be taxed on their net rental income (rental income less eligible expenses) rather than gross rental income. To reduce monthly withholding to 25% of estimated net income instead of gross income, you should complete Form NR6 and then file a Canadian tax return annually.
• Insurance: Landlord insurance is advisable and may be a requirement if you take out a mortgage.

In many parts of the Canada, foreign owners can turn their property into a short-term holiday rental. However, some provinces and cities have restrictions on short-term lets. These include Vancouver, Toronto, and Montreal.

Buying land in Canada

The Prohibition on the Purchase of Residential Property by Non-Canadians Act does not currently apply to vacant land in Canada. Since March 27, 2023, non-Canadians have been permitted to purchase vacant land in Canada, including land zoned for residential or mixed use.

However, each province and territory has its own rules regarding the purchase of agricultural land, and some jurisdictions restrict foreign ownership of farmland. Before purchasing land, it is advisable to consult a real-estate lawyer in the province or territory where you intend to buy.

Getting a mortgage: should I get one in Canada or Australia?

If you need to finance your property purchase, you will need to decide whether you want to take out a mortgage in Canada or Australia. The best option will depend on your individual circumstances and preferences. There are a number of Canadian banks and mortgage brokers that offer mortgage products to non-residents, although the requirements are normally stricter (e.g., larger down payments). You may also have to pay higher interest rates.

Australian lenders may also provide financing for overseas property purchases. They typically require you to use your Australian home as equity and borrow against the property. Getting an Australian mortgage is often easier and quicker to arrange, but it comes with its own risks and may not be possible if you don’t already have Australian property or a mortgage.

Factors to take into account include:

• 💱 Currency risk: A Canadian mortgage generally reduces currency-mismatch risk because the property, debt, and any rental income are all in CAD. Borrowing in AUD for a Canadian property could significantly increase your costs if the AUD weakens against the CAD.
• 💼 Tax/accounting: Managing tax and accounting is often simpler when both the property and mortgage are in the same country and currency.
• 🏠 Mortgage structure: Both countries offer fixed- and variable-rate mortgages, but terms can differ significantly.
• 📥 Down payment/deposit: Non-residents obtaining Canadian mortgages typically need a down payment of around 25–35%, although this can be higher in some cases. Australian financing usually means against existing property equity instead.
• 💰 Other financial requirements: Canadian lenders may require proof of income, cash reserves, and local credit history, which can be more difficult for non-residents or new arrivals.

Another option is a “hybrid” approach where you use equity from your Australian property for the deposit and then get a Canadian mortgage to cover the remaining amount. This reduces the Canadian borrowing obstacle while keeping most of the debt in CAD.

Before taking out a mortgage in either country, it’s important to compare lenders carefully and consider the long-term financial implications, including exchange-rate exposure, taxes, and refinancing flexibility.

The verdict: should you buy a house in Canada as an Australian?

Pros	Cons
✅ Stable and varied property market ✅ Chance to live in Canada if you have a visa/residency ✅ Nice holiday home if you live abroad ✅ Established English-speaking expat communities in many cities ✅ Possibilty of rental income with high yields ✅ Can buy and get a mortgage as a non-resident	❌ Current foreign buyer restrictions in place making it more difficult to purchase property until 2027 ❌ High upfront costs, with down payments sometimes 40% or higher ❌ Tax complexity, with both federal and state taxes applying, plus dealing with cross-border tax issues ❌ Currency fluctuations can increase mortgage repayments ❌ Difficulties of remote property management if you live abroad

Useful resources

• Property tax calculator for Canada

Expat-friendly real estate agents

• ICIWorld Global Association – Canadian-based global real estate networking platform that has operated since 1994 and connects brokers, agents, buyers, sellers, and investors internationally
• Feras Riyal Real Estate Team (eXp Realty) – Ontario-based realtor that works with a diverse client base and has experience assisting buyers relocating to Canada.

Main expat areas in Canada

• Vancouver, British Columbia – Canada’s main Pacific gateway city, popular due to outdoor lifestyle opportunities and good job opportunities.
• Toronto, Ontario – Canada’s largest city and financial center, one of the most popular cities with Australian immigrants.
• Calgary, Alberta – often compared to Perth because of its energy-sector economy and proximity to outdoor recreation. Many relocation guides identify Calgary as a major destination for Australian newcomers.
• Whistler, British Columbia – Famous for its ski industry and working-holiday crowd. It’s often jokingly referred to as “Little Australia” because of the large number of Australians who work and live there seasonally.