Securing a mortgage in Canada as a non-resident or foreign national can be complex. This guide explains how residency status, lender requirements and provincial rules affect your ability to buy, what documentation to prepare and when professional advice will help you secure your mortgage.
If you’re buying property in Canada, the chances are that you’ll be looking to secure a mortgage for that property.
Whether you are an expat looking to invest, planning a move or hoping to secure a future home, understanding how Canadian mortgage rules apply to you is essential before you make any commitments.
While the process can be straightforward for Canadian citizens and permanent residents, financing a property as a foreign national or temporary resident is more complex. Each province has its own regulations, taxes and restrictions, and federal rules can also influence where and how non-residents can buy.
This guide explains how mortgages work in Canada for expats, foreign nationals and non-residents, what lenders look for and how to prepare for the application process.
It does not provide financial advice but offers a framework to help you start your research and approach professionals confidently.
This article is for general information purposes only and does not constitute financial, legal or tax advice. Property and mortgage regulations in Canada change frequently and vary by province. Always verify the latest requirements and seek professional advice before buying property or arranging financing.
Before exploring mortgage options, it’s important to clarify your status. In Canada, how lenders treat your application depends on your residency and connection to Canada.
Canadians who live and work overseas are often treated as domestic borrowers, provided they can show stable income, strong credit and maintain ties to Canada. However, their overseas income may still be subject to additional checks, especially if earned in a foreign currency.
Permanent Canadian residents generally have access to the same mortgage products as citizens. They may face additional documentation requirements if their income or assets are held abroad, but overall the lending criteria are similar.
People living in Canada on a work or study permit can usually apply for a mortgage, though their options depend on the length of their visa and employment contract. Some lenders require the permit to have a minimum remaining duration to qualify.
Foreign nationals who do not live or work in Canada face the strictest criteria. Their ability to buy property may be limited by federal or provincial regulations and when mortgages are available, the required deposit is often significantly higher. Proof of income, banking history and assets must be verified through additional scrutiny.
Canada occasionally introduces restrictions on property purchases by non-Canadians to reduce housing market pressures in certain cities and regions.
These restrictions usually apply to specific types of residential property within designated areas, such as large urban centres, and can limit the ability of foreign nationals to buy directly.
In addition to federal measures, some provinces and municipalities apply their own taxes on property purchased by non-residents. These are often known as foreign buyer taxes or non-resident speculation taxes. The rates and exemptions vary by province, and in some cases, rebates are available if the buyer later becomes a resident or meets other conditions.
Before making an offer on a property, check the most up-to-date rules in the province and city where you plan to buy. A local mortgage broker or real estate lawyer can confirm whether restrictions apply and explain any additional costs involved.
The Canadian mortgage system is structured differently from many other countries, so understanding the basics can help you prepare and increase your chances of securing a mortgage.
Most Canadian mortgages are amortised over 25 to 30 years, but the loan is divided into shorter terms, usually between one and five years. At the end of each term, the mortgage must be renewed or refinanced.
This means interest rates can change throughout the life of the loan.
Borrowers typically choose between a fixed rate, which provides payment stability and a variable rate, which fluctuates with the Bank of Canada’s benchmark rate. Many homeowners choose a fixed rate for their first term to maintain predictable payments.
All borrowers must prove they can afford repayments even if interest rates rise. As with most countries, lenders apply a “stress test” using a higher qualifying rate than the actual rate offered.
For non-residents, this test can be stricter due to currency and income risks.
Lenders generally prefer applicants with income paid in Canadian dollars, a Canadian credit history and assets held in Canada. When income is earned abroad, lenders will account for exchange rate volatility and may request additional documentation.
Lenders in Canada do offer mortgages to non-residents, but terms and eligibility vary widely. A few key differences apply compared to resident buyers:
For Canadian expats earning abroad but maintaining ties to Canada, these requirements can still be manageable. For true foreign nationals, specialist lenders or international mortgage brokers are often the most practical route.
As a general rule, the stronger your financial documentation and the more transparent your income and assets, the better your chances of approval.
Applying for a Canadian mortgage from overseas takes preparation. Lenders will expect clear documentation, a transparent financial trail and the ability to meet Canadian compliance standards. Before applying:
If you intend to rent the property, remember that non-resident landlords have specific tax reporting and withholding obligations in Canada. These should be considered early to avoid penalties. It is highly unlikely that rental income will be considered as part of your income when it comes to calculating the affordability.
For most non-residents and expats, an experienced mortgage broker is the most efficient way to navigate the system. Canadian brokers have access to a range of lenders and can match your circumstances to those most likely to approve your application.
They also understand the interplay between residency, currency and credit and can help coordinate with a real estate lawyer or tax adviser where needed. Brokers specialising in non-resident mortgages can often identify lenders who accept foreign income or have specific programmes for overseas buyers.
Choosing a broker who regularly assists international clients can save time, reduce stress and ensure compliance with both lender and government requirements.
If you are not eligible for a traditional mortgage, there are alternative ways to invest in or finance property in Canada. Some buyers choose to:
These routes can help bridge the gap, but each carries its own risks and costs. Professional guidance is strongly recommended before committing to any alternative financing method.
Owning Canadian property can create Canadian tax obligations, even if you live abroad. Non-residents who rent out their property must withhold and remit taxes on rental income, while any sale may trigger capital gains tax.
Your home country may also tax the same income, though tax treaties can help prevent double taxation. Because rules differ by jurisdiction, it’s best to seek advice from a cross-border tax specialist before buying or renting out a property.
Getting expert support is essential when buying property across borders, whether you are a Canadian living overseas or a foreign national trying to buy property in Canada.
The rules, terminology and lender expectations can look similar on paper, but the practical challenges differ.
If you live abroad and are not a Canadian citizen or permanent resident, you should seek professional advice before you begin the buying process. A specialist mortgage broker can confirm whether you are eligible to purchase under current restrictions, explain how much you may be able to borrow, and help you find a lender that accepts foreign income or overseas credit records.
You may also need help understanding which taxes or local regulations apply to you, especially if you plan to rent out the property or spend extended time in Canada. A cross-border tax adviser can ensure you comply with Canadian reporting rules and avoid unexpected liabilities in your home country.
Canadians living overseas have options for borrowing but will face challenges when arranging a mortgage from abroad. Lenders often require additional documentation to confirm overseas income and may be cautious if you are paid in a foreign currency.
A mortgage broker familiar with lending to Canadian expats can help navigate these requirements and match you to lenders that recognise Canadian ties. They can also coordinate with a lawyer or tax specialist to ensure your purchase fits within your residency and tax position.
Professional help is most useful if:
Having early conversations with experienced brokers can save significant time, reduce risk and ensure that the financing process runs smoothly from the first application to completion.
Whether you are a Canadian living overseas or a foreign national buying property in Canada for the first time, lenders will expect clear documentation and evidence of financial stability. Use this checklist to make sure your application is as strong as possible.
Preparing these items before you apply will make the mortgage process smoother and reduce the likelihood of delays or rejections once the lender begins assessing your application.
Buying property in Canada is a significant commitment and mortgage rules can change without much notice. Working with a specialist who understands both Canadian and international finance can make the difference between a smooth purchase and a costly setback.
Whether you’re a foreign national in Canada or a non-resident, if you’re unsure where to begin, Experts for Expats can introduce you to a trusted mortgage or tax professional who regularly helps expats and non-residents secure property in Canada.
They will explain your options, clarify eligibility, and ensure your plans fit with both Canadian and home-country requirements.
