Canada (CA)
Canada is the world's second-largest country by land area and one of the most immigration-friendly nations on earth.
Buying Property in Canada
The full buying process, transaction costs, mortgage, and legal requirements.
Canada has one of the world's most expensive real estate markets, with average home prices exceeding $700,000 nationally and $1.1M+ in Toronto and Vancouver (2026). Homeownership rates are approximately 66%, though affordability has eroded significantly since 2020. The federal government implemented a ban on foreign buyers of residential property (Prohibition on the Purchase of Residential Property by Non-Canadians Act) from January 2023 — extended to December 31, 2026 — with limited exceptions. Permanent residents are fully exempt from the ban and may purchase without restriction. Canadian property law is provincial: each province has its own land transfer tax, real estate legislation, and closing procedures. Outside Quebec, a real estate lawyer manages the transaction; in Quebec, a civil law notary (notaire) handles all property purchases.
Rent vs. Buy
The rent-vs-buy decision in Canada is heavily weighted by location and timing. In Toronto and Vancouver, monthly carrying costs (mortgage + property tax + maintenance + condo fees) typically exceed rent for an equivalent unit by 30–60% at 2026 prices and rates — making renting financially superior for horizons under 7–10 years. In Calgary, Edmonton, and most mid-size cities, the gap is smaller and buying can make sense after 3–5 years. Key factors: the federal stress test (qualifying rate = contract rate + 2%, or 5.25%, whichever is higher) reduces borrowing capacity; property transfer taxes and legal fees add 1.5–4% upfront; condo maintenance fees in Toronto ($400–800/month) are not recoverable. For newcomers: most mortgage lenders require 2+ years of Canadian income history and a Canadian credit score — a renting period to build financial history often precedes a first purchase.
Buying Process — Step by Step
Check eligibility and foreign buyer rules
Before starting searchPermanent residents: fully eligible to purchase with no restrictions. Temporary residents (work permit holders with 183+ days remaining): may purchase one residential property under an exemption — confirm with a real estate lawyer. Non-residents: banned from purchasing residential property until December 31, 2026 (with exceptions for recreational properties, commercial real estate, and properties with 4+ units). Verify current rules at canada.ca/foreign-buyer-ban.
Build Canadian credit and save for deposit
6–24 months before purchasingMost Canadian mortgage lenders require 2+ years of Canadian income tax returns (T1) and a credit score of 680+ (700+ preferred). Start building credit immediately: get a secured credit card, make on-time payments, and avoid carrying a balance. Minimum deposit: 5% for properties under $500,000; 10% on the portion from $500,000–$999,999; 20% for properties over $1,000,000. Deposits below 20% require CMHC mortgage insurance (premium 2.8–4% of loan added to mortgage). First Home Savings Account (FHSA): contribute up to $8,000/year (lifetime $40,000) — tax deductible going in, tax-free coming out if used for a first home purchase.
Get mortgage pre-approval
2–4 weeksContact a bank, credit union, or mortgage broker for a pre-approval. The lender applies the federal stress test: your mortgage qualifies at the higher of your contract rate + 2% OR 5.25%. A pre-approval letter is essential before making offers. Mortgage brokers (Dominion Lending, Mortgage Alliance, True North) have access to 50+ lenders and often find better rates than going directly to a bank. CMHC maximum amortisation: 25 years (insured); 30 years for uninsured (20%+ deposit) since August 2024 for first-time buyers on new builds.
Find a buyer's agent (Realtor)
OngoingA licensed Realtor representing the buyer is paid by the seller (via the listing agent split — though buyer-agent commission rules are evolving post-TREB changes). Use CREA's MLS at realtor.ca to search properties. Find a buyer's agent through referrals or CREA. In competitive markets (Toronto, Vancouver), your agent will advise on offer strategies — unconditional offers (no home inspection condition) are common in hot markets but carry risk.
Make an offer (Agreement of Purchase and Sale)
1–3 weeks of searchingOffers are made on a standard provincial form (Agreement of Purchase and Sale in Ontario; Contract of Purchase and Sale in BC). A deposit (typically $10,000–50,000 or 5% of purchase price) is submitted with the offer by certified cheque or bank draft — held in trust by the listing brokerage. Conditions (financing, home inspection) provide an escape period (typically 5 business days). Unconditional offers are stronger but eliminate protection. Quebec: offers are made via a Promesse d'achat — a binding preliminary agreement.
Home inspection
3–7 days (within conditions period)A licensed home inspector (OAHI in Ontario, ASTTBC in BC) examines the property for structural, electrical, plumbing, and roofing defects. Cost: $400–700. Not mandatory but strongly recommended — waiving inspection is common in hot markets and can lead to costly surprises. In condos: also review the Status Certificate (Ontario) or Form B (BC) — a package of condo corporation financials, reserve fund study, bylaws, and any special assessments. Cost: $100.
Engage a real estate lawyer (or Quebec notary)
As soon as offer is acceptedYour real estate lawyer reviews the purchase agreement, conducts a title search, reviews the mortgage commitment, handles the land transfer, and manages closing funds. Engage early — most lawyers charge $1,500–2,500 for a residential purchase. In Quebec, the notaire drafts the acte de vente (deed of sale) and registers the property — no separate real estate lawyer needed.
Finalise mortgage and arrange closing funds
2–6 weeks after conditional acceptanceAfter the offer is accepted and conditions are met, submit a full mortgage application (lender orders an appraisal: $300–500). Your lawyer provides a Statement of Adjustments detailing the exact closing funds needed. Budget for: land transfer tax (provincial + municipal), legal fees, title insurance, home inspection, and the balance of your deposit. Arrange a bank draft or wire transfer for closing day.
Closing and key handover
Closing day (pre-agreed date)On closing day, your lawyer registers the title transfer with the provincial land registry, the mortgage is funded, and the purchase price is transferred to the seller. The real estate agents hand over the keys. You receive a title registration confirming ownership. Ontario: Teranet electronic land registry. BC: Land Title and Survey Authority. Closing day is typically 30–90 days after the offer is accepted.
Post-purchase registrations
1–4 weeks after closingUpdate your address with Canada Post, CRA (My Account), IRCC, your bank, and all provincial services. Set up hydro/electricity, gas, and internet in your name. Arrange homeowners' insurance (mandatory requirement of your mortgage lender) — shop via Kanetix.ca or InsuranceHotline.com before closing. Register the property with your municipality for tax billing. Toronto residents: register for the Municipal Land Transfer Tax rebate for first-time buyers (up to $4,475).
Transaction Costs
| Cost Item | Amount | Notes |
|---|---|---|
| Land Transfer Tax (Ontario) | 0.5%–2.5% of purchase price (sliding scale) | Ontario rates: 0.5% on first $55,000; 1.0% on $55,000–$250,000; 1.5% on $250,000–$400,000; 2.0% on $400,000–$2,000,000; 2.5% above $2,000,000. First-time buyers receive a rebate up to $4,000. Toronto adds a second Municipal Land Transfer Tax (MLTT) of equal amount — Toronto first-time buyers get a rebate up to $4,475 on each. |
| Land Transfer Tax (BC — Property Transfer Tax) | 1%–3% (or 5% for foreign buyers) | BC rates: 1% on first $200,000; 2% on $200,000–$3,000,000; 3% above $3,000,000. First-time buyers (resale): full exemption on first $500,000 for properties up to $835,000 (partial exemption $835,000–$860,000). First-time buyers (new builds): full exemption up to $1,100,000 (partial $1,100,000–$1,150,000). Maximum PTT refund: $8,000. Foreign nationals face an additional 20% Foreign Buyers Tax (Additional Property Transfer Tax). |
| Legal Fees (real estate lawyer / Quebec notary) | $1,500–2,500 (lawyer); $1,200–2,500 (Quebec notary) | Includes title search, title insurance arrangement, mortgage registration, and document preparation. |
| CMHC Mortgage Insurance Premium | 2.8%–4.0% of loan amount (added to mortgage) | Required for deposits under 20%. Premium rates: 2.8% for 15–19.99% deposit; 3.1% for 10–14.99%; 4.0% for 5–9.99%. PST applies in Ontario, Quebec, Saskatchewan. CMHC maximum purchase price: $1,500,000 (2024 change). |
| Title Insurance | $150–400 (one-time) | Required by virtually all mortgage lenders. Protects against title fraud, survey errors, and undisclosed encumbrances. Arranged by your lawyer (FCT, Stewart Title, Chicago Title). |
| Home Inspection | $400–700 | Strongly recommended. Not required but often waived in competitive bidding situations. |
| Mortgage Appraisal | $300–500 | Required by lender to confirm property value. Often covered by lender in promotional periods. |
| Moving Costs | $1,000–5,000 (local); $3,000–10,000+ (inter-provincial) | Varies widely. Obtain 3 quotes; verify moving company is licensed (Canadian Association of Movers — mover.net). |
| Total Closing Costs (typical) | 1.5–4% of purchase price (plus deposit) | Excluding CMHC premium and deposit. In Toronto: add second Municipal LTT (another 1–2.5%). Budget 3–5% of the purchase price for all closing costs combined. |
The Notary — Mandatory for All Purchases
Canada's property transaction model differs by province. In Quebec (civil law province), all property sales are handled by a licensed notaire (civil law notary) who drafts the acte de vente (deed of sale), searches title, registers the transaction at the Registre foncier, and holds closing funds in trust. The notary represents no party but ensures the transaction is legally valid — this role is mandatory and cannot be replaced by a lawyer in Quebec. In all common-law provinces (Ontario, BC, Alberta, Saskatchewan, Manitoba, Nova Scotia, New Brunswick, PEI, Newfoundland), there is NO mandatory notary for property sales. Instead, a licensed real estate lawyer manages the transaction: conducting the title search, reviewing the Agreement of Purchase and Sale, managing closing funds, registering the deed, and arranging title insurance. This is distinct from a notary public (a commissioner who witnesses document signatures) — you need a real estate lawyer, not a notary public, for property purchases outside Quebec.
Mortgage
Canadian mortgages are offered by chartered banks (the Big 6: RBC, TD, BMO, CIBC, Scotiabank, National Bank), credit unions, monoline lenders, and mortgage brokers. Fixed-rate mortgages (1–5 year terms, most commonly 5-year) are the most popular. Variable-rate mortgages (prime rate ± spread) are available and were attractive when rates were low, but the 2022–2024 rate cycle exposed their risk. All Canadian mortgages must pass the federal stress test: you must qualify at the greater of your contract rate + 2%, or 5.25%. Mortgage terms in Canada are not the amortization period — a 5-year fixed term with a 25-year amortization means you renegotiate the rate at year 5.
Minimum 5% for properties under $500,000 (CMHC-insured). 10% on the portion from $500,000–$999,999. 20% minimum for properties at or above $1,000,000 (no CMHC insurance available). For newcomers without 2 years of Canadian income history: most lenders require 20–35% deposit under the "New to Canada" mortgage programs (RBC, TD, Scotiabank all offer newcomer-specific programs). Self-employed without 2 years of Notice of Assessments (NOAs): typically 20–30% required.
Permanent residents: fully eligible for all Canadian mortgage products on the same terms as citizens. Temporary residents (work permit holders): eligible under New to Canada programs if working full-time with 3+ months in Canada and a valid work permit. Non-residents: generally ineligible while the foreign buyer ban is in effect (to December 31, 2026) — exceptions include recreational/vacation properties and commercial real estate. Foreign income can be used for qualification (typically discounted 15–25% by lenders for currency risk). FIRPTA equivalent: no capital gains reporting obligation for non-residents selling property — but 25% withholding tax applies at sale, with clearance certificate required from CRA.
Land Registry
Each province maintains its own land registry. Ontario: Teranet electronic land registry — fully digital since 2004; title searches accessible by lawyers at OnLand.ca. BC: Land Title and Survey Authority (LTSA) at ltsa.ca — all BC titles searchable online. Alberta: Alberta Land Titles managed by the province. Quebec: Registre foncier accessible at registrefoncier.gouv.qc.ca. All provinces use a Torrens-style title registration system (guaranteed state title) — once registered, title is indefeasible unless fraud. Title insurance ($150–400, one-time premium) protects against undiscovered liens, survey errors, and title fraud — required by all mortgage lenders and strongly recommended for cash purchases.
Taxes
Land Transfer Tax (provincial) is the primary transaction tax paid by the buyer at closing (rates above). No federal transaction tax on residential resales (GST/HST applies to new builds: 5% federal GST + provincial HST; Ontario new builds: HST at 13%, partially rebatable). Property taxes (municipal/school): annual, calculated on assessed value — Toronto average: $3,500–6,000/year for a detached house; condo: $2,000–4,000/year. Capital gains on principal residence sale: tax-exempt if the property was your principal residence for all years of ownership. Capital gains on investment properties (rentals): 50% of the gain is included in income (effective 25% tax rate for middle-income earners; higher at upper brackets). Non-residents selling Canadian property: 25% withholding tax applies at sale; file a non-resident disposition return (T2062) and obtain a clearance certificate from CRA. Underused Housing Tax (UHT): 1% annual tax on vacant or underused residential property owned by certain non-resident non-citizens — file UHT-2900 annually even if exempt.
New Build vs. Existing Property
New builds (condos pre-construction or detached new builds): subject to HST (Ontario 13%, Nova Scotia 15%, etc.) — partially rebatable for principal residences; builder usually advertises HST-included prices for homes under $450,000. Tarion warranty (Ontario): all new homes come with a mandatory 7-year warranty through Tarion — 1 year on workmanship and materials, 2 years on mechanical systems, 7 years on structural defects. Pre-construction condo risks: builder insolvency, delayed closing (assignment clauses), material substitutions, and occupancy charges (paid to builder before final closing) — get an independent lawyer to review the purchase agreement. Existing homes (resale): cheaper per square foot than new builds in most markets; older homes in Toronto and Vancouver built pre-1980 may have knob-and-wire electrical, asbestos insulation, or lead pipes — a thorough inspection is essential. Energy efficiency: homes built before 2006 may not meet current building code and will have higher utility costs — factor into the long-term cost comparison.
Selling Property
Selling requires a real estate agent (Realtor) who lists on MLS/realtor.ca. Seller costs: agent commission (typically 3.5–5% total, split between buyer and seller agents — negotiable since CREA rule changes 2024); legal fees ($1,000–2,000); home staging ($500–3,000); any outstanding mortgage penalties (break fees can be substantial on fixed-rate mortgages broken mid-term). An up-to-date home inspection and energy audit may support a higher asking price. Capital gains tax (investment properties): 50% inclusion rate on the gain (100% inclusion above $250,000 proposed but not yet law in 2026 — verify current rules). Selling a principal residence: file Schedule 3 of the T1 to designate the principal residence exemption — even if no tax is owing, failure to report the sale is a $8,000 penalty.
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