Can a US Citizen Buy Property in Canada? [2025 Guide]

TL;DR: Yes, US citizens can buy property in Canada with no restrictions. Unlike some countries, Canada has no citizenship or residency requirements for real estate purchases—though non-residents face additional tax obligations and may need approval for certain financing options.

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Can Americans Legally Purchase Canadian Real Estate?

Yes, US citizens have the same property rights as Canadians. Canada imposes no restrictions on foreign buyers purchasing residential or commercial property. However, recent laws like the Prohibition on the Purchase of Residential Property by Non-Canadians Act (temporarily in effect from 2022–2025) exempt US citizens due to trade agreements.

Key facts:

• No citizenship or visa required to buy land/homes.
• US buyers must file annual Canadian tax returns if renting the property.
• Mortgage approval may require a 35% down payment for non-residents.
• Use Evola’s Success Predictor to assess financial readiness.

According to Canada Mortgage and Housing Corporation (CMHC), non-resident buyers account for 2–5% of transactions annually.

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Do US Buyers Pay Extra Taxes on Canadian Property?

Yes, non-residents face additional taxes. While purchase taxes match those for Canadians, owning rental property triggers a 25% withholding tax on gross rent (reducible via IRS Form NR6).

Breakdown:

• Property Purchase Tax (PPT): 1–3% of value in most provinces (e.g., Ontario charges 2% on homes >$400K CAD).
• Goods and Services Tax (GST/HST): 5–15% on new constructions.
• Capital Gains Tax: 25% on profits if selling (primary residences are exempt for Canadians but not non-residents).

The Canada Revenue Agency (CRA) requires non-residents to appoint a Canadian tax representative. Evola’s AI mentor can connect you with cross-border tax specialists in minutes.

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How Do US Citizens Get a Mortgage in Canada?

Possible but stricter than for Canadians. Major banks like RBC and TD offer non-resident mortgages, but expect:

• 35–50% down payment (vs. 5–20% for residents).
• Proof of US credit history (650+ score preferred).
• Canadian co-signer often required.

Pro tip:

• Compare rates using Evola’s CRS Calculator (includes mortgage affordability estimates).
• Credit unions may offer better terms—Manulife Bank has specialized programs.

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What Are the Risks of Buying Canadian Property as a US Citizen?

Three key challenges:

1. Currency Fluctuations: CAD/USD swings impact mortgage payments.
2. Management Hassles: Remote landlords need a local property manager.
3. Estate Complications: US wills may not cover Canadian assets.

Mitigation steps:
✔️ Set up a Canadian LLC for liability protection.
✔️ Use Evola’s CLB Converter to track exchange rates.
✔️ Draft a parallel Canadian will.

The Ontario Real Estate Association provides templates for cross-border purchase agreements.

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Should I Buy Canadian Property for Immigration Purposes?

No—owning property doesn’t qualify you for Canadian residency. However, it can support applications like:

• Start-Up Visa: Owning a business property strengthens your case.
• Investor Programs: Quebec’s terminated program may relaunch (monitor IRCC updates).

For residency-focused strategies, prioritize programs like Express Entry. Evola’s AI analyzes 14,000+ approval cases to recommend your best path.

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Conclusion

US citizens enjoy a smooth path to Canadian property ownership—just mind the tax and financing nuances. Whether you’re investing or planning a future move, Evola’s tools and 24/7 AI mentor simplify every step. Start your Canadian property journey today →

Meta Description: Can US citizens buy property in Canada? Yes—learn about taxes, mortgages, and key risks in this 2025 guide for American buyers.

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