Can Americans Still Buy Homes in Canada? These Exemptions Say Yes

Buying property across the border has long been an attractive option for U.S. citizens, but recent legislation has left many wondering if it’s still possible to buy homes in Canada. The short answer is yes—with the right circumstances, Americans can still legally purchase residential real estate. Understanding how the restrictions work and which exemptions apply is essential info for homebuyers before making any cross-border moves. Let’s break it down clearly, so you know what to expect.

Understanding Canada’s Foreign Buyer Ban

In January 2023, the Canadian federal government introduced a two-year ban on foreign homebuyers. The goal was to cool rising housing prices and prioritize Canadian residents. This restriction applies to non-citizens and non-permanent residents trying to purchase residential properties in many urban areas. It mostly targets investment purchases, not personal or family relocations.

However, the law includes several important exemptions. U.S. citizens who fall under certain categories or meet specific legal conditions are still eligible to buy. Knowing where you fit can help you avoid legal issues and streamline your buying process. This clarity is crucial, especially if you are already making preparations for a move.

Who Is Exempt from the Ban?

The ban is broad, but it’s not absolute. Several key groups of non-Canadians are allowed to continue purchasing real estate. These include:

• Temporary residents with valid work or study permits who meet specific criteria
• Refugees or those protected under the Immigration and Refugee Protection Act
• Diplomats, consular staff, or members of international organizations living in Canada
• Non-Canadian spouses or common-law partners of Canadian citizens or permanent residents
• Foreign nationals buying in less-populated areas with fewer than 10,000 residents

If you’re an American citizen planning a permanent move or who already lives and works in Canada legally, these exemptions likely apply. This means your ability to buy homes in Canada is protected under current law. It’s also important to note that these rules could shift over time depending on political and economic developments.

Provincial and Local Differences Matter

It’s important to understand that while the federal law sets a baseline, provinces and municipalities also have their own real estate regulations. Quebec, for example, has not imposed any additional restrictions on foreign buyers beyond the federal policy. This makes Montreal and other parts of the province more accessible to U.S. citizens who qualify under the federal exemptions.

Some provinces, like British Columbia and Ontario, have additional taxes for foreign buyers. These include the Non-Resident Speculation Tax (NRST), which can add up to 25% to the purchase price. Quebec currently does not apply such a tax, which makes it financially more appealing for Americans looking to invest or relocate. Being aware of local differences will help you choose the most favourable region to buy in.

Getting a Mortgage as an American

If you’re planning to buy with financing rather than cash, getting a Canadian mortgage as a U.S. citizen is possible, but it comes with extra requirements. Canadian banks often work with foreign buyers, especially those with strong credit and documented income. Your financial profile will be reviewed carefully, so be ready with the right documentation.

Be prepared to:

• Provide a larger down payment—typically at least 35%
• Show proof of income, employment, and credit history
• Open a Canadian bank account
• Work with a Canadian mortgage broker familiar with international clients

Even if you’re not moving to Canada full-time, the lending process must comply with both federal laws and individual lender policies. A good broker can walk you through the application, helping you meet all conditions and avoid unexpected delays.

Steps for a Legal and Smooth Purchase

To successfully purchase a home in Canada as an American, follow these key steps:

1. Confirm Your Exemption: Work with a legal expert or immigration consultant to verify you qualify under the rules.
2. Choose a Location: Some areas have more favourable rules or fewer taxes. Quebec is a top option for many.
3. Hire a Real Estate Agent: Find someone familiar with international buyers and local laws.
4. Secure Financing: Apply early and get pre-approval if needed.
5. Work with a Notary or Real Estate Lawyer: Legal assistance is essential to finalize the deal.
6. Close the Transaction: Complete the payment and receive your property title.

These steps are essential even if you’re paying in cash. Canada’s real estate process includes legal and financial checks that are unfamiliar to many Americans. Getting professional help along the way can simplify everything and reduce your risk.

Planning a Move? Logistics Matter

Many Americans don’t just want to buy—they want to move. That’s where timing and coordination become critical. Buying property is only one part of the process. You’ll also need to plan your relocation carefully, especially when crossing borders with household goods, vehicles, and possibly pets. Moving internationally is very different from a domestic relocation.

If you’re considering moving north, it’s wise to schedule an international move early in the process. Experienced movers can help navigate customs, reduce delays, and ensure your belongings arrive safely. They’ll also understand how timing the move with your closing date makes everything smoother. Planning this well can reduce stress and avoid last-minute surprises that complicate your transition.

The Montreal Advantage for American Buyers

Montreal stands out as a great place for Americans to consider, especially luxury homeowners. It’s culturally vibrant, financially accessible, and, importantly, located in a province that hasn’t added extra hurdles for foreign buyers. With no speculation tax and more open policies, Quebec offers more breathing room for U.S. buyers trying to comply with Canada’s housing laws.

In addition, Montreal’s bilingual culture, diverse neighbourhoods, and relative affordability compared to Toronto or Vancouver make it especially attractive. Whether you’re buying for personal use, future retirement, or even a student attending university in the province, the city offers flexibility without the sticker shock of other large cities. Its stable housing market and infrastructure also add peace of mind for first-time international buyers.

Yes, You Can Still Buy

Despite the federal ban, U.S. citizens can still buy homes in Canada—if they fall under one of the approved exemptions. The key is understanding which laws apply, where you’re buying, and what documentation you’ll need. From confirming eligibility to securing financing and arranging a move, each step plays a role in making your international home purchase legal and stress-free.