Foreign Buyer’s Ownership

Deposits & Financing


Property Insurance

Putting down an Offer


Living outside of Canada? American Citizen an International buyer from around the world? It doesn’t matter if you are living in China or India, this handbook gives you an introduction on rules applicable as an international buyers.  

Foreign Buyer’s – Ownership

The Canadian government isn’t actually concerned with citizenship status when it comes to when it comes to real estate purchases for non citizens. They are more concerned with non-residences, so even if you are a Canadian citizen that do not resided in Canada. The foreign buyers rule still applies.

For more information on residency, please visit:

Canada will allow real estate buying and selling from anyone around the world. There is no restriction on the quantity or type of real estate you purchase. However, you would need to fill out paperwork to prove that the money that you use for the purchase of the property is legal.


Deposits and Financing

Canadian residences have the privilege of putting down 5%, 10% deposits as a first time homebuyer. However, if this is your second home or investment property as a resident then you will need to pay 25% (the standard deposit).

As a non resident you are required to put down a 35% cash down payment. Lenders might require a larger amount of down payment if you can’t prove the source of your income. You will also need to show your creditworthiness to the lender in addition to order to get a mortgage.

Mortgage interests can also be higher than what a Canadian resident will pay (but rates can still remain competitive).


International buyers will still need to pay the Ontario Land Transfer Tax and the Toronto Land Transfer Tax (if you are purchasing in Toronto).

First time home buyers who plan to purchase the property as their primary residence may be eligible for a land transfer tax rebate. However, they cannot have owned a home from anywhere in the world.

Keep in mind these are only guidelines and you should contact your accountant to get a detailed understanding on tax implications with purchasing as an international buyer.

There are no implications for non-residents when buying a property but there are tax implications for selling.

For full set of rules please visit the following CRA site:

Property Insurance

Quotes for insurance should be obtained prior to making an offer on a property in Toronto, because it is often more difficult and costly for non-residence to obtain insurance on their investment property.

Mortgage lenders also require a proof of home insurance in order to provide loan. Therefore obtaining quotes prior should be necessary.

Putting down an offer

Legal documents can be signed electronically, therefore making an offer on a property can be done remotely.

The other option is to give Power of Attorney to a family member or a friend to sign on your behalf. Price advice and details of the property can be provided to you thru your Realtor via. email.

All the market research, buying process details can also be sent to you electronically, same goes for all mortgage documents and other correspondences.

I have done numerous transactions with oversea/ international buyers. Knowledge, trust, honesty and customer care are my core values in conducting business.

You can also learn more about the buying process in my buyer’s handbook.

If you have any questions in purchasing a property in Ontario you can contact me at 416.903.7032 or by e-mail [email protected].


My goal is to get back to my clients within 24 hours.


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