Buying property in the US as a Canadian – Is it hard?

There are no legal restrictions preventing Canadian citizens from buying or owning property in the US, and the process is generally straightforward. US mortgages are available to Canadians and other foreign buyers, although overseas purchasers may need to make larger down payments and meet stricter lending requirements than US citizens.

It is also important to remember that owning property in the US does not automatically give you the right to live there or obtain US residency.

Can Canadians buy property in the US? 🤔

In short, yes. ✅ Canadian citizens can buy and own property in the US without legal restrictions. However, the process can be more complicated for foreign buyers than for US citizens.

💡 Some important things to consider include:

• State-specific property laws: Property laws and buying procedures vary by state, so it’s important to research the rules in the area where you plan to buy.
• Financial requirements: Non-residents may face stricter mortgage requirements, including larger down payments and potentially higher interest rates, particularly if they have little or no US credit history.
• Taxes: Buying property in the US can have tax implications in both the US and Canada. It’s important to understand your tax obligations before purchasing.

If you are purchasing US 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 Canada to the US 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 in the US gets you 🔍

💡 Buying a property in the US as a Canadian can provide:

• A home in the US: This could be a vacation home for short visits, or a permanent home if you have legal permission to live in the US.
• Investment opportunities: You may be able to earn rental income or benefit from increases in property value over time, although returns are not guaranteed.
• Access to financing: As you build equity in the property, you may be able to borrow against it in the future, subject to lender requirements and your financial circumstances.

What buying property does not get you ❌

Although purchasing US property as a foreign buyer has its advantages, it’s important to understand that property ownership does not automatically give you:

• A US visa, residency, or citizenship
• The right to work in the US – you will need a work visa or other legal authorization to work in the country
• The right to stay in the US indefinitely – Canadians can visit the US for limited periods without a visa, but property ownership does not change US immigration rules or entry requirements

How difficult is the process?

The process for buying US property as a foreigner is fairly straightforward, although it can sometimes take longer than it does for US citizens, particularly if financing is involved. In many cases, the process takes anywhere from a few weeks to a few months, depending on the state, the type of property, and whether you are paying cash or applying for a mortgage.

Documents you may need to provide include:

• Valid photo ID, such as a passport
• US tax number, either a SSN for residents or ITIN for non-residents
• Proof of funds or financing, such as proof of income, bank statements, assets, or mortgage pre-approval
• Proof of your Canadian address, such as a utility bill or official correspondence
• A Canadian or US credit report if you are applying for a mortgage

You do not necessarily need a US bank account to buy property in the US, but having one can make it easier to manage mortgage payments, utility bills, taxes, and other ongoing property expenses.

Forms you may need to complete as part of the purchase process include:

• Purchase agreement: Legal contract between the buyer and seller that sets out the terms of the sale.
• Tax forms: Foreign buyers may need to complete tax-related paperwork, including forms connected to the Foreign Investment in Real Property Tax Act (FIRPTA).
• Title and closing documents: These confirm the legal transfer of ownership.
• State or local disclosure forms: Some states require additional disclosures about the property and its condition.

Typical timelines 🗓️

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

Process	Typical timeline
Finding a property	One week to two months
Offer acceptance	One week
Mortgage approval (if needed)	Up to 8 weeks
Property inspection and valuation	1–3 weeks
Legal checks	1–3 weeks
Closing process	Up to 2 weeks

Transferring money to the US for the purchase 🇨🇦 > 🇺🇲

If you are buying US 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. This can save substantial amounts on large foreign purchases.

For real estate purchases, you can use Wise to transfer money between your Canadian and US bank accounts at low rates.

You can also benefit from additional discounts on large transfers. Alternatively, you could use a Wise Multi-Currency Account to pay the seller directly. With this account, you can hold and convert 40+ currencies and convert at the mid-market rate.

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

What are the tax implications?

It is important to understand the tax implications of buying US property as a Canadian citizen. This is especially true if you remain a Canadian tax resident, as Canada taxes residents on their worldwide income and capital gains, including income earned from overseas property.

Fortunately, the US and Canada have tax treaties designed to help prevent double taxation on the same income.

In the US 🇺🇸

Taxes connected to buying, owning, renting out, or selling US property may include:

• Transfer tax and recording fees: These are charges linked to the purchase or sale of property and vary by state and local government.
• Property tax: Annual property taxes are charged by local governments. They are usually up to 2% of the property value.
• Income tax: If you rent out the property, you will generally need to pay US tax on the rental income. State income taxes may also apply.
• Capital Gains Tax: You may owe tax when selling the property if it has increased in value. Long-term capital gains tax rates can be up to 20% at the federal level, while gains on properties owned for one year or less are generally taxed as ordinary income.
• FIRPTA: A withholding tax of 15% of the gross sale price usually withheld by buyers when purchasing from a foreign owner. This is a withholding mechanism rather than the final tax liability, and excess amounts may be reclaimed by filing a US tax return.
• Inheritance/estate tax: Inheritance tax in the US only applies in five states, while federal estate tax can apply to US property owned by non-US citizens. Although tax treaties may provide relief, the standard exemption for non-US residents is much lower than the exemption available to US citizens and residents.

In Canada 🇨🇦

If you remain a Canadian tax resident, you may also need to report:

• Rental income earned from the US property
• Capital gains made when selling the property (usually included on your income tax return)

You may be able to claim foreign tax credits in Canada for certain taxes already paid in the US, helping to reduce double taxation.

Because cross-border tax rules can be complex, it is a good idea to seek advice from a qualified tax professional before buying property overseas.

Local laws and regional variations

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

💡 Many states have introduced restrictions affecting foreign ownership. Since 2021, a total of 44 states have proposed or enacted laws limiting property ownership by certain foreign individuals, governments, or companies, and 28 states are considering legislation related to foreign property ownership.

Most of these measures target buyers connected to “foreign adversary” nations – typically China, Iran, North Korea, and Russia – or foreign-controlled companies. In many cases, the restrictions focus on agricultural land, land near military bases or critical infrastructure, or large rural properties rather than ordinary residential homes.

Because the rules vary significantly by state, it is a good idea to check local requirements before purchasing. A local real-estate attorney, title company, or realtor can usually provide guidance. You can also use the Committee of 100 state legislation tracker to review current restrictions by state.

Renting out your property: is it allowed? 🤔

Yes. Canadians can legally rent out property they own in the US. There are no US citizenship or residency requirements for becoming a landlord.

However, things are a few important things to consider:

• Landlord licensing and registration: Some states, cities, or counties require landlords to register their property or obtain a licence before renting it out.
• Insurance: Landlord insurance is advisable and may be a requirement if you have a mortgage on the property.
• Tax: Rental income from US property is generally subject to US income tax, and you may also need to report it on your Canadian tax return.

In many parts of the US, foreign owners can also use their property as a short-term vacation rental. However, some cities and local governments have strict rules or licensing requirements for short-term rentals through platforms such as Airbnb. Regulations vary widely by location, including in cities such as New York City and Los Angeles.

Buying land in the US

The rules for buying land in the US are similar to those for buying residential property. There are no federal restrictions preventing Canadian citizens from purchasing land in the US.

However, some states have introduced laws restricting foreign ownership of certain types of land, particularly agricultural land or land near military bases/critical infrastructure.

You can find more information on the Committee of 100 state legislation tracker.

Getting a mortgage: Should I get one in the US or Canada?

You can look into getting a mortgage in either the US or Canada. The best option depends on your finances, where your income is earned, and how you plan to use the property.

Many US banks and mortgage lenders offer mortgages to non-residents, although foreign buyers usually face stricter requirements, such as larger down payments.

Some Canadian banks also provide financing for US property purchases. Banks with US operations, such as RBC, offer cross-border mortgage products designed for Canadians buying property in the US. Using a Canadian lender may be simpler if you already have banking relationships, property, or borrowing history in Canada, although there are still risks to consider.

Factors to think about include:

• Currency risk: A USD mortgage can reduce exchange-rate risk if the property expenses and any rental income are also in US dollars. Borrowing in Canadian dollars for a US property may become more expensive if the CAD weakens against the USD.
• 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 mortgage terms differ. In the US, long-term fixed-rate mortgages, such as 15- or 30-year fixed terms, are more common.
• Down payment/deposit: Non-residents applying for US mortgages often need down payments of around 25–40%, although requirements vary by lender and borrower profile. Canadian financing may allow you to borrow against equity in an existing Canadian property instead.
• Other lending requirements: US lenders may ask for proof of income, cash reserves, and US credit history, which can make approval more difficult for some non-residents.

Before choosing a mortgage, it is important to compare lenders carefully and consider the long-term costs, including exchange-rate movements, taxes, fees, and refinancing options.

The verdict: Should you buy a house in the US as a Canadian?

Pros	Cons
✅ Large and diverse property market ✅ Chance to live in the US if you have a visa/residency ✅ Can use as a vocational or seasonal home ✅ Established Canadian and international communities in many parts of the US ✅ Potential rental income and long-term property appreciation ✅ Can buy and get a mortgage as a non-resident	❌ High upfront costs, with foreign buyers needing to make higher down payments ❌ Tax complexity, with both federal and state taxes applying, plus dealing with cross-border tax issues ❌ Exposure to US inheritance/estate tax rules ❌ Exchange rate fluctuations can increase mortgage repayments ❌ Difficulties of remote property management if you live abroad

Useful resources

(Information last checked on 27th May 2026)

Real estate agents

• Compass – expat-friendly brokerage service with good digital experience for remote buyers
• eXp Realty International – nationwide brokerage specializing in international and remote buyers
• RBC Bank Cross-Border Services – Canadian bank that can connect citizens with trusted US agents and mortgage advisors

Main expat areas in the US

• Florida – popular for the warm climate and holiday-home culture, especially in cities like Miami and Orlando
• Arizona – areas such as Scottsdale and Phoenix are very popular with retirement-age Canadians and those looking for affordable properties
• California – global tech hub with a strong international presence and a thriving startup culture
• New York – large international community and home to many Canadian professionals who have relocated just across the border