Can Non-Residents Get a Canadian Mortgage?
Yes — but with restrictions and higher requirements than residents. Some Canadian lenders offer non-resident mortgages, but expect stricter conditions including a larger down payment and more documentation.
Non-Resident Mortgage Requirements
- Down payment: Typically 35% minimum (vs. 5% for residents)
- Foreign income: Must provide documented proof — T4s, tax returns, employer letters
- Canadian bank account: Required to service the mortgage
- SIN: Required for all mortgage applications in Canada
- Foreign buyer ban compliance: Must confirm eligibility to purchase under 2023 federal ban
Lenders That Offer Non-Resident Mortgages
- Big 5 Banks (TD, RBC, BMO, CIBC, Scotiabank) — all offer non-resident programs with 35% down
- Credit unions — Some offer more flexible terms for non-residents with Canadian ties
- Private lenders — Higher rates but more flexible qualification criteria
- Mortgage brokers — Can shop multiple lenders simultaneously for best non-resident terms
The 2023 Foreign Buyer Ban and Mortgages
The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act restricts most non-residents from buying residential property in Canada. However, non-residents who are exempt (e.g., buying commercial property, certain refugee classes) can still apply for mortgages. The ban is scheduled to expire January 1, 2027.
Frequently Asked Questions
How much down payment does a non-resident need for a Canadian mortgage?
Non-residents typically need a minimum 35% down payment for a Canadian mortgage. Some lenders may require 25% for certain borrowers with strong financial profiles and Canadian connections, but 35% is the standard. This is significantly higher than the 5–20% required for Canadian residents.
Can I get a Canadian mortgage with foreign income?
Yes. Canadian lenders can use foreign income for mortgage qualification, but they typically discount it by 15–25% to account for currency and income stability risk. You'll need 2 years of foreign tax returns, employer letters, and recent pay stubs translated into English or French.
Do I need a Canadian credit score for a non-resident mortgage?
Not necessarily. Some lenders accept foreign credit reports (from certain countries) or a reference letter from your foreign bank. A larger down payment can compensate for no Canadian credit history. A mortgage broker specializing in non-resident clients can guide you.
What is the foreign buyer ban's impact on non-resident mortgages?
The 2023 foreign buyer ban means most non-residents cannot legally purchase residential property in Canada until January 2027, regardless of whether they can get financing. Even if a bank approves you for a mortgage, the purchase itself may be illegal. Permanent residents and qualifying temporary residents are exempt.
Can I buy a rental property in Canada as a non-resident?
Residential rental properties (under 4 units) are subject to the foreign buyer ban. Commercial real estate and properties with 4+ residential units are generally not restricted. If you're a non-resident looking to invest in Canadian real estate, commercial properties may be a viable option.