Definition
A non-resident buyer (person who is not a Canadian citizen, permanent resident, or does not pay Canadian income tax) faces more restrictive mortgage financing access conditions.
Typical conditions: - Down payment of 35-50% depending on the lender (some require 35%, others 50% for non-residents) - Not CMHC insurable (mortgage insurers refuse non-residents) - Higher rates (risk and liquidity premium) - Additional documentation: current visa, passport, verifiable foreign income
Recent regulatory measures: - **Foreign buyer tax (FBT)**: Ontario 25%, BC 20% on purchase price for non-resident buyers in certain areas. - **Federal law prohibiting foreigners from acquiring residential property** (2023-2027): temporarily, non-residents cannot purchase residential properties in Canada (with numerous exceptions: refugees, temporary residents with certain permits, etc.).
Financing remains available for Canadian corporations owned by non-residents.