Buying a house in the United States as a Canadian citizen can be a smart investment or a great way to establish a second home. While the process is similar to buying property domestically, there are additional legal, financial, and logistical considerations. This guide will walk you through everything you need to know about purchasing real estate in the U.S. as a Canadian.
1. Understand the Legal and Financial Landscape
As a Canadian, you’re allowed to buy property in the U.S., but it’s important to understand how ownership works. There are no restrictions on foreign buyers, but you may face different tax rules and financing requirements than U.S. residents.
2. Determine Your Budget and Financing Options
Before shopping for a home, figure out how much you can afford. Consider not only the purchase price but also property taxes, insurance, maintenance, and potential rental income if this is an investment property.
If you’re seeking a mortgage, know that U.S. lenders often require higher down payments (typically 30–50%) and charge slightly higher interest rates for non-residents.
3. Work With a Local Real Estate Agent
A knowledgeable real estate agent who has experience working with international buyers can help you navigate the local market, understand zoning laws, and avoid common pitfalls.
They can also help you find properties in desirable areas like Florida, Arizona, California, or near border states like Michigan or New York—popular choices among Canadian buyers.
4. Choose the Right Mortgage or Payment Method
Many Canadian banks offer U.S. mortgages to their clients, which can simplify the process. Alternatively, you can apply directly with a U.S. lender. Some Canadians choose to pay cash to avoid complications with financing.
Be sure to compare exchange rates, fees, and tax implications when transferring large sums across borders.
5. Set Up the Right Legal Structure
When purchasing property in the U.S., consider setting up a Limited Liability Company (LLC) or trust to protect your assets and manage inheritance and tax issues more effectively.
Consult with a cross-border attorney to ensure your ownership structure aligns with both U.S. and Canadian laws.
6. Prepare for Closing and Ongoing Management
Once you’ve found a home and secured financing, the closing process typically takes 30–60 days. You’ll need to provide proof of identity, sign loan documents (if applicable), and pay closing costs.
After purchase, decide whether you’ll manage the property yourself or hire a property manager—especially if you plan to rent it out or live in Canada full-time.
Buying a house in the USA as a Canadian is entirely achievable with proper planning and expert guidance. From securing financing to understanding tax obligations, taking the time to research and prepare will make the process smooth and rewarding.
Join The Discussion