Non-Resident Mortgages

Living abroad, but want to buy a house in Canada?

Recent federal restrictions now combine with tighter eligibility requirements for a foreign buyer — but you may have options.

Foreign Buyers Ban amended, and now extended to 2027

Those with permission to work in Canada and a valid work permit can buy a primary residence (other details apply).
Ban exceptions include permanent residents, refugees, and temporary workers (though with eligibility requirements that apply to home buying).
Read more here. Have questions? Give us a call today.

Looking to own a home in the land of the North?

If you're a Canadian living abroad or considered a non-resident for tax purposes, buying a home here comes with a different set of mortgage rules. Lenders weigh foreign income and credit differently, and recent restrictions on foreign buyers can make the process feel even more complex.

We can walk you through your details and identify the options that could work for you. Our brokers understand the ins and outs of non-resident mortgage requirements and can show you what's available — and help guide you through a straightforward and stress-free process.

Here's what's involved if you want to buy a home in Canada as a non-resident.

Key Points:

Foreign (non-resident) home buyers face federal restrictions in Canada, depending on location.
Lenders have separate non-resident mortgage requirements; not all lenders offer this product.
Qualification uses foreign income and credit
Higher down payments typically apply (20% for the U.S. and 35% for other countries)
Gifted funds aren’t allowed; proof of own resources required
Mortgage rates for non-resident mortgages are often higher, depending on the lender.

How is a non-resident defined?

A non-resident is not the same as a non-permanent resident or a temporary worker, both of whom live and may work legally in Canada but are not permanent residents.

A non-resident, by contrast:

Does not live in Canada, or does not live in Canada most of the year (often under 183 days)
Does not file taxes as a Canadian resident.
Does not hold a work permit.
Typically buys property from abroad.
Falls under foreign-income and foreign-credit rules with lenders.

Non-resident vs non-permanent resident mortgage treatment.

	Non-Resident	Non-Permanent Resident
Residence	Does not live in Canada, or lives in Canada under 183 days; considered a non-resident for tax and mortgage purposes	Lives in Canada on a valid temporary status such as a work permit, study permit, or other authorized stay
Purchase a home?	Yes, but limited to specific areas and subject to lender approval criteria.	Yes, depending on residency status and home purchase and financial details.
Income and credit	Uses foreign income and foreign credit history	May have Canadian income and Canadian credit history, depending on their permit and length of stay
Mortgage rules	Stricter qualification; separate lender policies; additional documentation	Often qualifies under more standard lending rules if income, credit, and down payment meet guidelines
Minimum down payment	Typically higher (often around 35%+, lender dependent)	May access lower down payments, especially with insured mortgage options, depending on eligibility
Mortgage insurance eligibility	Not eligible for insured mortgages	May qualify for insured mortgages depending on details and program rules
Mortgage rates	May face higher rates or rate premiums, depending on lender policies and file details	Can often access lower insured rates if income, credit, and down payment meet guidelines

How does being a non-resident affect getting a mortgage?

Federal restrictions outlined in the Foreign Home Buyer's Ban, now extended to 2027, mean non-resident buyers may not be eligible to purchase homes in many Canadian centres, though some areas remain excluded. On top of that, lenders have their own rules for non-resident mortgages — and not all lenders offer this type of financing.

But it doesn't mean a mortgage is entirely out of reach. Every situation is unique, and if possible, we'll help you understand your options and find the best fit or timing for your purchase.

What can you expect for non-resident mortgage rates?

Non-resident mortgage rates are often higher than those offered to Canadian residents, depending on the lender.

Lenders typically add a rate premium to account for foreign income, foreign credit, and higher verification requirements, while others may not offer this type of lending at all. Rates can vary by lender, the strength of the mortgage application, and the down payment.

As a non-resident, do you need to pay a foreign buyer's tax?

Yes, there are provincial foreign buyers' taxes (Non-Resident Speculation Tax, or NRST) that typically apply to most non-resident buyers of residential property in provinces that impose them, unless they qualify for an exemption.

Some provinces that apply this tax are (subject to change):

Ontario – 25% of the purchase price (province-wide)
British Columbia –20% in specified regions
Nova Scotia – 5% in some areas

You may be exempt if you’re a permanent resident, Canadian citizen, or non-permanent resident (i.e. work permit holder) who meets the province’s conditions (such as living and working there within a set timeframe).

As an eligible non-resident, your loan may require:

Larger Down Payment:

U.S. residents typically require a minimum 20% down payment from one's own resources.
If you're living anywhere outside Canada or the U.S., you're typically required to provide a minimum 35% down payment from your own resources.
The intended down payment must be available in a Canadian Bank account before the mortgage funding date.
Your down payment cannot be a gift, and proof of funds for the 90 days before financing is also required.
If you already own property in Canada, you're typically required to provide a minimum 35% down payment for your next property.

Proof of Income: A recent paystub, along with a letter of employment from your current employer confirming the length of time at the company, your annual salary (including bonuses), and confirmation that you are not on probation.

Proof of Credit: If a Canadian Credit bureau is not available to you, then an international credit bureau or a letter of reference from your current bank is required.

Availability of Funds: Some lenders may require you to retain a year's worth of mortgage payments in a Canadian bank account before approval.

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