Buy property and get residency in Canada

Can You Obtain Permanent Residency in Canada by Buying Real Estate?

Buying property in Canada does not automatically grant you the right to live in the country or obtain permanent residency. Canada does not offer a direct "golden visa" program or residency-by-investment pathway based solely on real estate purchases, unlike some other countries.

However, owning property can still be part of a broader immigration strategy. While real estate investment alone won't qualify you for a visa or permanent residency, it can support your application if you are applying through certain immigration programs, such as:

• Business immigration or entrepreneur streams, where real estate may be used for a commercial venture;
• Student visas, where owning a home can support your settlement plans;
• Work permits, if you're already employed in Canada and want to establish a more permanent presence;
• Start-Up Visa Program, where entrepreneurs may choose to live in a property they own.

In summary, you cannot immigrate to Canada just by buying property, but real estate ownership can complement your plans and support your lifestyle once you qualify through one of Canada’s official immigration pathways.

Who Can Buy Real Estate in Canada?

In general, foreigners are allowed to purchase real estate in Canada, but there are important restrictions and conditions to be aware of—especially for non-residents.

Temporary Ban on Foreign Buyers (2023–2025)

As of January 1, 2023, Canada introduced a temporary ban on the purchase of residential property by non-Canadians, which is currently set to last until January 1, 2025. This measure was introduced to address housing affordability concerns for Canadian residents.

Who Is Affected by the Ban?

• Foreign individuals who are not Canadian citizens or permanent residents

• Corporations controlled by non-Canadians

• Applies to most residential properties, including houses, condos, and some types of multi-unit dwellings

Who Is Exempt from the Ban?

There are several exceptions that allow non-residents to purchase property despite the restrictions. Exempt groups include:

• Temporary residents (such as international students or workers) meeting specific conditions

• Refugees and protected persons

• Diplomats and members of international organizations

• Purchasers of non-residential property (commercial or industrial real estate)

• Certain purchases in less populated areas (subject to local rules)

Can Foreigners Buy Through a Company?

Yes, but only under strict rules. If a Canadian-incorporated company is controlled by non-Canadians, it may still fall under the ban. To legally purchase through a company, it must be majority-controlled by Canadians.

General Requirements for Foreign Buyers (When Allowed):

• Be of legal age (18+)

• Have a valid passport and proof of identity

• Provide documentation showing the source of funds

• Obtain a Canadian tax number (ITN) in some provinces

• Comply with federal and provincial regulations

Step-by-Step Guide: How to Buy Real Estate in Canada

Buying property in Canada as a foreigner involves several stages. While the process is relatively straightforward, it’s important to follow each step carefully and be aware of legal and financial requirements.

Step 1: Determine Your Budget and Financing Options

• Estimate total costs, not just the purchase price. This includes taxes, legal fees, and ongoing expenses.

• Foreigners often need to pay a larger down payment—typically 35% or more of the property’s value.

• Canadian banks may offer mortgages to non-residents, but requirements are strict:

  • Proof of income

  • Strong credit history

  • Larger down payment

• You must also prove the legal source of your funds.

Step 2: Choose the Region and Type of Property

• Property prices vary significantly by province and city.

  • For example: Toronto and Vancouver are expensive; smaller towns are more affordable.

• Decide on the type of property:

  • Detached house

  • Condo or apartment

  • Townhouse

  • Land or commercial property (often not subject to foreign ownership restrictions)

Step 3: Hire a Licensed Real Estate Agent

• It’s highly recommended to work with a local real estate agent who understands:

  • Regional market conditions

  • Legal requirements for foreign buyers

  • How to navigate restrictions and regulations

• Choose an agent who has experience working with international clients.

Step 4: Consult a Real Estate Lawyer

• A Canadian real estate lawyer is essential for:

  • Conducting a title search

  • Reviewing contracts

  • Ensuring the transaction is legal and compliant

  • Registering ownership after purchase

• Legal fees typically range from CAD $1,500 to $3,000.

Step 5: Make an Offer and Pay a Deposit

• Once you’ve found a property, your agent will help you submit an offer.

• If the seller accepts, you’ll need to pay a deposit, usually 5–10% of the purchase price.

• The deposit goes into a trust account and is applied to the final payment.

Step 6: Conduct Inspections and Final Due Diligence

• You may want to:

  • Hire a home inspector to check the property’s condition

  • Request additional documentation (permits, tax history, etc.)

Step 7: Finalize the Transaction (“Closing”)

• Your lawyer will coordinate the closing process, including:

  • Payment of remaining funds

  • Payment of taxes and fees

  • Legal transfer of ownership

• The full process typically takes 30 to 90 days, depending on the province and deal complexity.

Step 8: Register Ownership and Move In (or Rent Out)

• After closing, your name will be registered as the legal owner.

• You can then move into the property, or if it's an investment, rent it out.

Required Documents for Buying Real Estate in Canada

To purchase property in Canada—especially as a foreign buyer—you’ll need to prepare and provide several key documents. These help verify your identity, financial capacity, and legal compliance.

Personal Identification

• Valid passport

• Government-issued photo ID (if different from passport)

• Immigration status documents (e.g., visa, work/study permit, if applicable)

Proof of Funds and Financial Documents

• Bank statements (typically covering the last 3–6 months)

• Proof of income (e.g., employment letter, tax returns)

• Documentation showing the legal source of funds

• If applying for a mortgage:

  • Credit report

  • Employment contract or business registration

  • Asset statements (investments, property ownership, etc.)

Canadian Tax Identification Number (if applicable)

• Some provinces require foreign buyers to obtain an Individual Tax Number (ITN) for property tax purposes.

• You can apply for it through the Canada Revenue Agency (CRA).

Purchase and Legal Documents

• Offer to Purchase (Agreement of Purchase and Sale) — signed contract between buyer and seller

• Property Disclosure Statement — provided by the seller, outlining known issues with the property

• Land Title Documents — handled by your lawyer at closing

• Mortgage pre-approval letter (if financing through a Canadian lender)

Other Possible Documents

• Power of Attorney (if you are buying remotely and need someone to act on your behalf)

• Translation of documents (if any originals are not in English or French)

• Corporate documents, if purchasing through a company

How Much Does It Cost to Buy Real Estate in Canada?

The cost of buying property in Canada depends on the location, property type, and buyer status (e.g., resident or non-resident). In addition to the purchase price, there are several mandatory fees and taxes to consider.

1. Property Prices (Approximate Averages)

• Toronto: CAD $900,000 – $1,200,000 (house), $600,000 – $800,000 (condo)

• Vancouver: CAD $1,000,000+ (house), $700,000 – $900,000 (condo)

• Montreal: CAD $500,000 – $700,000

• Smaller towns/rural areas: CAD $200,000 – $400,000

Prices vary greatly between provinces and cities.

Additional Costs and Fees

Here’s a breakdown of the common expenses beyond the property price:

3. Land Transfer Tax (LTT)

Paid at closing and calculated as a percentage of the property value.

• Ontario: 0.5% – 2.5% (plus additional tax in Toronto)

• British Columbia: 1% – 3% (plus 2% on homes over $3M)

• Quebec: Called “Welcome Tax”, varies by municipality

• Other provinces: May have flat fees or percentage-based taxes

4. Foreign Buyer Taxes (Where Applicable)

Some provinces impose a Non-Resident Speculation Tax (NRST):

• Ontario (Greater Golden Horseshoe region): 25%

• British Columbia (certain regions): 20%

• Nova Scotia: 5%–10% for non-residents

• Not all provinces have such taxes

5. Example: Total Cost Breakdown

Let’s say you're buying a CAD $600,000 condo in Toronto as a non-resident:

• Property Price: $600,000

• Land Transfer Tax: ~$16,475

• Foreign Buyer Tax (25%): $150,000

• Legal Fees: ~$2,000

• Title Insurance: ~$400

• Inspection & Miscellaneous: ~$1,000

• Total Estimated Upfront Cost: ~$770,000

How Can Buying Real Estate Help You Obtain Permanent Residency in Canada?

Buying real estate in Canada does not directly grant you permanent residency (PR). There is no immigration program in Canada that offers PR solely based on the purchase of property. However, owning real estate can indirectly support your immigration journey in several ways.

1. As Part of a Business Immigration Strategy

If you’re applying under a business or entrepreneur stream (usually within a Provincial Nominee Program), you may need to:

• Establish a physical business location

• Invest in commercial property as part of your business plan

• Demonstrate ties to the province and intent to settle
  In such cases, purchasing real estate—especially commercial—can strengthen your application.

2. Support for Temporary Residency (Work or Study Permits)

Owning a home can show:

• Financial stability

• Long-term intention to stay in Canada

This might improve your overall profile when applying for:

• Study permits (e.g., buying property near a school or university)

• Work permits, particularly under employer-driven streams
  While property ownership is not a requirement, it may be viewed positively by immigration officers.

3. Settlement Planning for Express Entry or PNPs

Applicants under Express Entry or Provincial Nominee Programs must demonstrate an intention to settle in Canada. While real estate is not mandatory, owning property can serve as:

• Proof of ties to a region or province

• Settlement plan support in business or self-employed applications

Some provinces may give preference to candidates who have already established economic or community connections.

4. Use in Start-Up Visa Program

Entrepreneurs applying under the Start-Up Visa Program may choose to:

• Purchase or lease property to operate their start-up

• Use residential property for temporary accommodation during the launch phase
  Again, real estate is not required—but it can support your business and settlement activities.

Summary

Immigration Programs in Canada Related to Investment

While Canada does not offer a direct residency-by-real-estate investment program, there are several investment-related immigration pathways that can lead to permanent residency. These typically involve investing in businesses, startups, or contributing to the local economy, rather than simply purchasing property.

1. Start-Up Visa Program (Federal)

Aimed at innovative entrepreneurs who want to build a business in Canada.

Requirements:

• Have a qualifying innovative business idea

• Secure a commitment from a designated organization (venture capital fund, angel investor group, or business incubator)

• Meet language requirements (CLB 5 in English or French)

• Show enough settlement funds to support yourself and dependents

Minimum Investment:

• No minimum personal investment, but you must obtain:

  • At least CAD $200,000 from a venture capital fund, or

  • At least CAD $75,000 from an angel investor, or

  • Acceptance into a recognized business incubator

PR Status:
Successful applicants receive permanent residence directly.

2. Provincial Nominee Programs (PNPs) – Entrepreneur or Investor Streams

Many provinces have their own immigration programs targeting businesspeople who want to invest and settle in a specific region. These do not involve real estate investment alone, but real estate can be part of a business plan.

Examples:

British Columbia – Entrepreneur Immigration Stream

• Minimum personal net worth: CAD $600,000

• Minimum investment: CAD $200,000 in a new or existing business

• Must actively manage the business

• Conditional work permit issued first; PR granted later if business requirements are met

Ontario – Entrepreneur Stream

• Net worth requirement:

  • CAD $800,000 (in Greater Toronto Area)

  • CAD $400,000 (outside GTA)

• Minimum investment:

  • CAD $600,000 (GTA)

  • CAD $200,000 (outside GTA)

• Must create at least 1–2 jobs for Canadians

Quebec – Entrepreneur Program

• Structured in two components:

  • Create/acquire a business in Quebec

  • Net worth requirement: CAD $900,000

  • Deposit and startup costs apply

3. Self-Employed Persons Program (Federal)

For individuals with experience in cultural activities or athletics, or farm management (under older streams).

Requirements:

• Relevant experience in your field

• Intention and ability to create your own employment in Canada

• No set investment amount, but you must demonstrate economic self-sufficiency

4. Inactive: Quebec Immigrant Investor Program (QIIP)

This was once Canada’s only true passive investment immigration program, but it is currently suspended. It allowed PR through a government-guaranteed investment of CAD $1.2 million for 5 years, with no active business management.

As of now, no direct investment-for-residency program exists in Canada.

Summary Table

Processing Times for Obtaining Permanent Residency Through Investment Pathways

The timeline for receiving permanent residency (PR) in Canada through investment-based immigration programs depends on the specific program, the province, and the completeness of your application. In most cases, the process includes two main stages: initial approval (such as a work permit) and PR issuance.

1. Start-Up Visa Program

• Initial processing (including support from a designated organization): 3–6 months

• IRCC application processing: 12–18 months

• Total estimated time to PR: 15–24 months

Note: You may be eligible for a temporary work permit while waiting for PR, allowing you to launch your business in Canada.

2. Provincial Nominee Programs (PNPs) – Entrepreneur Streams

These are two-stage programs:

1. Work permit phase — move to Canada and operate your business

2. Nomination and PR — after meeting performance conditions

Typical timeline:

• Application to province: 3–6 months

• Work permit processing: 3–6 months

• Business operation period: 12–24 months (must meet conditions)

• Nomination and PR application: 6–12 months

Total estimated time to PR: 24–36 months (2–3 years)

Some provinces may take longer due to high demand or stricter performance monitoring.

3. Self-Employed Persons Program

• Application preparation: varies

• IRCC processing: 24–36 months (currently slower than other programs)

• Interview or additional documentation may be requested

Total estimated time to PR: 30–40 months

Note: This is a direct PR program, but it has one of the longest processing times.

4. Quebec Immigrant Investor Program (Suspended)

When active, the typical timeline was:

• Application to Quebec: 6–12 months

• Federal PR processing: 12–24 months

• Total: 18–36 months

Currently not accepting new applications.

Summary Table: Estimated Timelines

Restrictions and Risks When Buying Property or Applying for Residency Through Investment in Canada

While Canada is generally open to foreign investors and property buyers, there are important legal, financial, and immigration-related restrictions and risks that you should be aware of before proceeding.

1. Real Estate Restrictions for Foreign Buyers

Federal Ban (as of 2023–2025):

• Under the Prohibition on the Purchase of Residential Property by Non-Canadians Act, non-residents are banned from buying residential real estate in many parts of Canada until January 2027 (ban extended from 2025).

• Exceptions:

  • International students meeting specific conditions

  • Temporary residents (e.g. workers) with a valid work permit

  • Refugees

  • Certain commercial property purchases

  • Properties in less populated or rural areas

Provincial Restrictions:

• Additional foreign buyer taxes of up to 25% in provinces like Ontario and British Columbia

• Residency requirements may apply to avoid ongoing non-resident property taxes

2. Immigration Program Limitations

• No direct PR through property ownership: Simply buying a home does not lead to immigration status or PR.

• Investment must meet specific criteria: In business programs, your investment must be active, job-generating, and follow a detailed business plan.

• Work permit ≠ guaranteed PR: Entrepreneur streams usually issue a temporary permit first. PR is only granted after performance targets are met (e.g. running a business for 1–2 years).

3. Financial Risks

• Real estate market volatility: Property values in Canada can fluctuate, especially in major cities.

• Foreign exchange risks: If buying in CAD while holding another currency, currency fluctuations can impact total cost.

• Unexpected costs: Legal fees, property taxes, maintenance, and insurance can add up quickly.

• Liquidity issues: Selling property—especially in smaller towns—can take time and may not yield expected returns.

4. Legal and Compliance Risks

• Tax obligations: Non-residents may face higher property taxes and must file Canadian tax returns on rental income or capital gains.

• Incomplete documentation: Missing documents or poor business plans can lead to visa or PR application rejection.

• Fraud risk: Some third-party immigration or real estate “consultants” may offer misleading promises about guaranteed PR through property.

5. Program-Specific Risks