A non-resident can get a Canadian mortgage, but on stricter terms than a resident: a much larger down payment, no mortgage insurance, more scrutiny of where the money comes from, and fewer lenders. Most foreign nationals also have to clear the federal foreign buyer ban before they can buy at all. This guide covers how lenders treat non-resident borrowers and what the process looks like; it is part of our guides to mortgages outside the standard bank route.
How lenders classify you
Your immigration and residency status, not your citizenship alone, decides the terms a lender offers:
| Status | Who it covers | How lenders treat the mortgage |
|---|---|---|
| Canadian citizen or permanent resident living in Canada | Residents | Standard terms |
| Canadian citizen living abroad | Expatriate Canadians | Close to standard, often with 20% down |
| Temporary resident | Work or study permit holders living in Canada | Varies; some qualify for standard or insured mortgages |
| Foreign national living abroad | No Canadian status | The strictest terms; the main subject of this page |
Canadian citizens abroad are treated far more favourably than foreign nationals, and aren’t covered by the foreign buyer ban.
The foreign buyer ban
The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act has barred most non-Canadians from buying residential property in Canada since January 1, 2023, and the ban is set to run until January 1, 2027, with exceptions for some temporary residents, refugees and other groups. Who is exempt, which properties are covered and the penalties are set out in our guide to the foreign buyer ban and its current status.
What lenders require
Down payment and insurance
| Lender type | Down payment commonly required |
|---|---|
| Major banks | 35% or more |
| Credit unions | 35% to 50% |
| B-lenders | 35% to 50% |
| Private lenders | 25% to 50%, at the highest rates |
Mortgage insurance isn’t available to non-residents, so every non-resident mortgage is conventional (uninsured); the CMHC insurance rules set out who qualifies for insurance.
Where the down payment comes from
Lenders, and the buyer’s lawyer, trace the down payment to its source:
| Source | Usually accepted? | What to show |
|---|---|---|
| Savings in your home country | Yes | Several months of bank statements showing the money building up |
| Gift from family | Usually | A gift letter and the donor’s bank statements |
| Sale of property abroad | Yes | The sale agreement, closing documents and wire records |
| Sale of investments | Yes | Brokerage statements showing the sale |
| Borrowed money | Generally not | Most lenders won’t accept a borrowed down payment |
| Cryptocurrency | Rarely | Converted to currency, with a full record of how it was acquired |
Under Canada’s anti-money-laundering rules, banks and other reporting entities report international transfers of $10,000 or more to FINTRAC, and both the lender and the lawyer will ask for a complete paper trail.
Rates
Non-resident mortgages usually carry a rate premium. It tends to be small for Canadian citizens abroad and with a strong application, larger for foreign nationals, and largest at B-lenders and private lenders. Today’s mortgage rates show the resident benchmark that non-resident quotes start from.
Documents
| Document | Why |
|---|---|
| Passport | Identity |
| Proof of income from your home country | Employment letter, tax returns, pay stubs; translated and notarized where required |
| Credit report from your home country | Lenders can’t rely on a Canadian credit file you don’t have |
| Canadian bank account | For the mortgage payments |
| Proof of the down payment source | Bank and sale records, as above |
| Purchase agreement | The signed offer |
| Your Canadian lawyer’s details | For the closing |
| Reference letters | Some lenders ask for banking or professional references |
Which lenders lend to non-residents
| Lender type | What to expect |
|---|---|
| Major banks | Most have international or non-resident programs, sometimes requiring a branch visit or an existing relationship |
| Credit unions | Some lend to non-residents, often with more flexibility on the property and less experience with foreign documents |
| B-lenders | Consider files the banks decline, at higher rates and often with a lender fee |
| Private lenders | The last resort, lending mostly on equity for short terms; see private mortgage lenders in Canada |
A mortgage broker who handles non-resident files can reach lenders that specialise in them and knows which foreign documents each will accept.
Taxes for non-resident owners
Several taxes apply only, or differently, to non-residents:
- When you buy: provincial land transfer tax as for any buyer, plus, for foreign buyers, Ontario’s Non-Resident Speculation Tax (25% anywhere in Ontario) or BC’s additional property transfer tax (20% in specified regions), and GST/HST if the home is newly built.
- While you own it: property tax as for residents, plus provincial or city vacancy taxes where they apply. Rent paid to a non-resident has tax withheld on the gross amount unless you elect to file a return on the net rental income.
- When you sell: a non-resident needs a clearance certificate from the CRA, or the buyer has to withhold part of the price.
The withholding rates, the elections and forms that reduce them, and the clearance certificate process are covered in our guide to tax for non-resident property owners in Canada.
Example: a foreign buyer of an $800,000 home in Ontario, putting 35% down, needs $280,000 for the down payment and $200,000 for the Non-Resident Speculation Tax (25% of the price), before land transfer tax, legal fees, an appraisal and title insurance. That assumes the buyer is exempt from the federal ban or buying when it no longer applies.
Step by step
- Check the foreign buyer ban. Confirm whether you are exempt, or whether the property is outside the ban’s scope.
- Open a Canadian bank account. Major banks’ international banking units can usually do this for non-residents.
- Gather documents. Income proof, a credit report and down payment records from your home country, translated into English or French and notarized where required.
- Talk to a broker or lender that handles non-resident mortgages.
- Get pre-approved. A pre-approval shows how much you can borrow and on what terms.
- Make an offer through a local agent, with a financing condition.
- Complete the mortgage application once the offer is accepted; the lender orders an appraisal.
- Hire a Canadian real estate lawyer (a notary in Quebec) to handle the title, the land transfer and any non-resident taxes.
- Transfer the funds to your Canadian account or your lawyer’s trust account, with full documentation.
- Close.
Canadians buying in the other direction have a separate guide: buying property in the US as a Canadian.
Sources
The figures and rules on this page come from these sources, last checked against them on September 25, 2026. How we check facts.
- CMHC: Prohibition on the Purchase of Residential Property by Non-Canadians Act
- Department of Finance Canada: Government announces two-year extension to ban on foreign ownership of Canadian housing
- Government of British Columbia: Additional property transfer tax for foreign entities and taxable trustees
- Government of Ontario: Non-Resident Speculation Tax
- Justice Laws (Canada): Prohibition on the Purchase of Residential Property by Non-Canadians Act
- Justice Laws (Canada): Prohibition on the Purchase of Residential Property by Non-Canadians Regulations