What You Will Learn
- How non-residents can finance Canadian property without local income or residency
- What lenders evaluate when assessing foreign buyers
- How bridging loans help investors act quickly in competitive markets
- Tax considerations for international investors
- How GMG structures global financing strategies for Canadian purchases
Financing Canadian Property as a Non-Resident Buyer
Canada remains one of the most stable real estate markets in the world. Strong immigration-driven demand, limited supply in major cities, and a rule-of-law environment attract global investors every year. But many non-residents assume they cannot finance Canadian property unless they live in the country.
The truth is simple:
Foreign buyers can access property financing in Canada, but they must meet specific non-resident lending requirements.
GMG works with global investors every day who finance homes, condos, and rental properties across Canada through cross-border income, offshore assets, and tailored lending solutions.
For investors exploring opportunities in the U.S. as well, GMG details similar structures in its overview of U.S. mortgage options for international buyers.
Why International Investors Buy in Canada
- Stable long-term price appreciation
- Consistent rental demand in Toronto, Vancouver, Montreal, Calgary
- Strong currency fundamentals over long horizons
- Predictable property laws and transparent legal processes
Canada also benefits from its reputation as a safe haven. During periods of global uncertainty, capital flows back into Canadian real estate, especially from Asia, the Middle East, and Europe.
GMG’s macro research on global investment shifts, such as How International Investors Use Property Financing in 2026, highlights this trend clearly.
How Non-Residents Finance Canadian Property
Canada’s lending ecosystem allows non-residents to borrow even without local income or residency, though underwriting standards differ from resident buyers.
1. Loan-to-Value (LTV) Guidance
Most foreign buyers qualify for:
- 65%–75% LTV for condos and single-family homes
- Lower LTVs for rural or non-standard properties
Foreign nationals must typically provide higher down payments due to risk-based lending guidelines.
2. Income Assessment
Canadian lenders do not require Canadian employment. Instead, they review:
- Global income streams
- International employment contracts
- Corporate or business income (audited or validated)
- Credit reports from country of residence
This aligns with how GMG evaluates borrowers globally across 21 mortgage markets.
3. Documentation Standards
Non-residents should expect to provide:
- Passport + second ID
- International bank statements (3–6 months)
- Global tax documentation or CPA letters
- Credit report from the home country
- Proof of funds for down payment + closing costs
Bridging Loans: A Faster Path for Canadian Purchases
In competitive Canadian cities, especially Toronto and Vancouver, buyers often need funds quickly to secure a unit before arranging a long-term mortgage.
GMG frequently structures a bridge loan + mortgage strategy for global investors:
- Bridge financing provides immediate liquidity
- Useful for bidding wars or pre-construction deposits
- Explained in GMG's guide on private bridging loans vs. bank loans
- Transition to a long-term mortgage once documents and approvals are completed
This approach is widely used among sophisticated investors globally.
Key Tax Considerations for Foreign Buyers
Foreign investors in Canada must be aware of:
1. Withholding Tax on Rental Income
Non-resident investors may face withholding tax on rental revenue unless they file an NR6 and annual Section 216 return.
2. Capital Gains Tax
Any sale of Canadian property by a non-resident triggers a clearance certificate and capital gains calculation. GMG outlines global comparisons in Real Estate Capital Gains Tax: A Global Comparison.
3. Provincial Foreign Buyer Taxes
Some provinces previously imposed foreign buyer taxes. Many of these have been reduced or eliminated in recent policy changes, but may still apply in specific regions.
Always cross-check official guidance via Government of Canada housing and tax resources.
Real Example: How Investors Finance Canadian Property
Scenario:
A Singapore-based investor wants to purchase a CAD 900,000 Toronto condo as a rental property.
GMG Strategy:
- Structured a 70% LTV non-resident mortgage using foreign income
- Used a short-term bridge loan to secure the offer while documents were reviewed
- Integrated Canadian tax filing guidance and cross-border financing advice
This is similar to what many non-resident investors do in the U.S., Japan, Australia, and Europe, as reflected in GMG’s insights from the Top 5 Countries with the Easiest Property Financing Options.
Why Work With GMG for Canadian Property Financing
Financing Canadian property as a non-resident requires cross-border expertise, global income underwriting, and lenders who understand overseas borrowers. GMG streamlines this process by connecting investors to mortgage programs built specifically for international buyers while coordinating short-term and long-term financing strategies across global portfolios.
GMG’s advisory team supports clients from initial assessment to final approval, ensuring every step aligns with broader investment goals. You can learn more about the team on the About Us page and explore broader insights in the Global Property Financing Q&A. For personalised guidance on securing your Canadian mortgage, contact [email protected].
Frequently Asked Questions
Q1. Do I need Canadian credit to finance Canadian property?
A: No. Most lenders accept foreign credit reports and global income documentation. They primarily assess overall financial strength, not local borrowing history.
Q2. Can I get financing even if I don’t live or work in Canada?
A: Yes. Non-resident mortgages are designed specifically for overseas buyers with international income. Lenders structure approvals around verifiable global earnings and assets.
Q3. Can bridging loans be used for Canadian real estate?
A: Absolutely. Many investors use bridging loans for fast deposits or to buy before selling another property abroad. This allows buyers to act quickly in competitive markets before transitioning into long-term financing.
