Can International Students Buy a House in Canada? (The Honest Answer)

Yes, you can legally buy a house in Canada as an international student, but only if you hold a valid study permit, maintain full-time enrollment at a designated institution, prove 244+ days of annual physical presence, file Canadian taxes for five years, find a property under $500,000, and somehow secure mortgage approval with a 35–50% down payment despite lacking permanent residency, credit history, or stable income—which means legal permission and practical feasibility are entirely separate problems, and most students discover the bureaucratic and financial barriers only after assuming the law’s exemptions actually make ownership accessible in practice.

Educational disclaimer (not financial, legal, or tax advice)

Before you scroll another millimeter hoping to find a simple “yes” or “no” answer about buying Canadian property as an international student, understand that while this article provides factual information about legal rights, mortgage requirements, and practical barriers based on official government sources and regulatory guidelines, it’s not—and can’t be—legal, financial, or tax advice tailored to your specific situation.

Regulations surrounding international student property ownership shift by province, and whether you can student buy house toronto differs substantially from Vancouver or Montreal due to evolving foreign buyer restrictions, tax implications, and lender-specific requirements for student mortgage canada options.

Some Canadian lenders like BMO offer specialized homebuyer programs that may have specific eligibility criteria worth exploring with a qualified mortgage professional. Additionally, international students with less than a 20% down payment would need to understand CMHC mortgage insurance requirements, which have their own qualification criteria that may affect purchasing options.

Relying exclusively on generalized content without consulting qualified real estate lawyers, mortgage brokers, and tax professionals before committing hundreds of thousands of dollars would be, to put it mildly, spectacularly unwise.

Short answer: yes, but eligibility depends on legal status, exemptions, and lender policy

Yes, international students can buy property in Canada, but this straightforward legal right comes wrapped in a tangle of regulatory exemptions, lender-specific underwriting standards, and provincial variations that transform theoretical eligibility into a practical obstacle course most students can’t complete.

When searching “can international student buy house canada,” you’ll find technically accurate but misleadingly optimistic answers that ignore the 35% down payment requirements, Canadian credit history demands, and income verification hurdles that constitute the actual gatekeeping mechanisms. International students who transition to permanent residency may eventually access the Home Buyers’ Plan, which allows first-time buyers to withdraw up to $60,000 from their RRSP tax-free for a down payment.

Your study permit exempts you from the 2023 foreign buyer ban only if you’ve maintained full-time enrollment at recognized institutions, resided in Canada for at least 244 days annually over five years, filed Canadian tax returns throughout this period, and target properties under $500,000—conditions that eliminate most students immediately, making student mortgage Canada approvals statistically rare despite theoretical legal permission. International students purchasing in Ontario should also note that first-time buyer refunds on land transfer tax may be available if they qualify, potentially offsetting some closing costs.

Who this applies to (international students, co-buyers, guarantors)

The ban’s exemption structure operates on three distinct identity categories—primary buyers, co-buyers, and guarantors—each governed by separate regulatory structures that most students misunderstand until they’re already deep into failed mortgage applications.

Here’s who actually qualifies under each category:

• Primary buyers must hold valid study permits, maintain full-time enrollment at recognized institutions, and demonstrate 244 days annual Canadian residency over five consecutive years.
• Co-buyers sharing title ownership must independently satisfy all exemption criteria—your Canadian friend can’t magically transfer their eligibility to you through joint ownership.
• Guarantors providing income or credit support don’t require exemption status themselves, but lenders still impose their own citizenship or permanent residency requirements regardless of federal law.
• Spousal co-buyers on work permits may qualify separately, creating dual-exemption pathways that astute buyers exploit tactically.
• Parent guarantors living abroad face automatic rejection from most institutional lenders despite technically legal arrangements. Consulting a real estate lawyer in Ontario can help international families structure these arrangements to meet both federal exemption requirements and lender expectations.

Once you’ve determined your eligibility category, you’ll need to access home improvement resources to understand the full scope of renovations and maintenance costs that factor into your overall purchasing budget.

Federal foreign-buyer rules: what they say and who is exempt

Since January 1, 2023, Canada’s Prohibition on Purchase of Residential Property by Non-Canadians Act has operated as a blanket ban with narrow exemptions rather than a permissive structure with occasional restrictions—a distinction that fundamentally changes how you should approach property purchases as an international student.

The law assumes you’re prohibited unless you prove otherwise, and the exemption criteria aren’t casual:

Requirement	Specifics
Physical presence	244+ days annually for five consecutive years
Tax filing	Filed Canadian returns for all five years
Study status	Full-time enrollment at designated learning institution
Property value	Purchase price under $500,000 CAD

These aren’t guidelines—they’re statutory thresholds. Miss one criterion, and you’re legally barred from purchase until January 2027, regardless of your down payment capacity or lender approval. Even if you meet all exemption requirements, Bank of Canada policy decisions will significantly influence the mortgage rates available to you, affecting your overall affordability calculations. For international students who do qualify, exploring first-time buyer resources from major lenders like Scotiabank can help identify programs specifically designed to ease entry into the Canadian housing market.

Mortgage reality for international students (down payment, income, co-signer options)

Meeting the federal exemption criteria doesn’t grant you access to affordable financing—it merely removes one legal barrier while leaving a far more punishing obstacle in place: lenders treat international students as high-risk borrowers, and they price that risk accordingly through down payment requirements that start at 35% and climb rapidly from there depending on your individual profile.

Requirement	Standard Canadian Buyer	International Student
Minimum down payment	5-20% depending on price	35-50% typically required
Credit history needed	Canadian credit score assessed	Often none; alternative docs or guarantor required
Income verification	Employment letter, pay stubs	Scholarships, family funds, part-time work evidence
Co-signer/guarantor	Optional, rarely needed	Frequently required with strong Canadian credit
Approval difficulty	Straightforward with good credit	Significantly harder, fewer lender options

Without Canadian credit history, you’ll need either substantial liquid assets or a guarantor with established domestic creditworthiness. Working with a mortgage broker who follows industry standards established by MBAC can help you navigate lender requirements and identify institutions willing to work with non-resident borrowers. One advantage worth noting: if this is your first home purchase in Ontario, you may qualify for a land transfer tax refund of up to $4,000, which can help offset some of your closing costs.

Documents lenders typically require (status, study permit, income/funds, credit)

When you finally approach a lender—having navigated the exemption requirements and absorbed the down payment reality—you’ll confront a documentation gauntlet designed to extract every provable detail of your financial existence, legal status, and capacity to repay, because lenders aren’t betting on your potential, they’re pricing your risk based on verifiable facts.

Expect to produce:

Lenders demand extensive documentation proving your financial capacity, legal status, and repayment ability through verifiable facts, not promises.

• Valid study permit proving your legal authorization to remain in Canada throughout the mortgage term, not just tomorrow
• Proof of sufficient funds or income—bank statements spanning months, scholarship letters, parental support documentation, anything demonstrating you can actually pay
• Canadian credit history, or if nonexistent, international credit reports that most lenders will scrutinize skeptically or dismiss outright
• Employment documentation including part-time work contracts, stipends, or teaching assistantships to verify income sources
• Identification, tax filings, and proof of international fund transfers satisfying both regulatory requirements and the lender’s paranoia about money laundering

Down payment and closing cost planning in Ontario

You’ve assembled the documentation fortress, proven your legal status, and braced yourself for astronomical down payment requirements—now brace yourself harder, because Ontario’s upfront cost structure will demand not just 35% down but an additional 1.5% to 4% of the purchase price in closing costs, meaning a $500,000 property requires roughly $175,000 to $195,000 in liquid capital before you sign a single document, and if you miscalculate by even $5,000, your purchase collapses at the lawyer’s table.

Cost Component	Calculation	Amount ($500K Property)
Down Payment (35%)	Purchase Price × 0.35	$175,000
Closing Costs (1.5-4%)	Purchase Price × 0.015-0.04	$7,500–$20,000
Total Upfront	Combined	$182,500–$195,000

These closing costs cover legal fees, land transfer taxes, title insurance, and property registration—non-negotiable expenses that devour your remaining savings.

Step-by-step path to buying as a student (lowest-risk sequence)

Before you draft a single offer or contact a real estate agent, you must complete the legal and financial groundwork in the exact sequence that minimizes rejection risk and boosts your credibility with lenders and sellers, because attempting to house-hunt before securing mortgage pre-approval wastes everyone’s time and exposes you to crushing disappointment when you discover—after falling in love with a property—that no lender will finance your purchase at acceptable terms.

Follow this sequence:

• Verify your eligibility by confirming enrollment at a designated learning institution and documenting five years of Canadian tax filings with 244+ days annual presence.
• Obtain mortgage pre-approval by presenting financial documents to determine your actual borrowing capacity, not your wishful thinking.
• Involve a real estate agent experienced with international buyers who understands regulatory requirements.
• Make an offer only after legal review confirms compliance.
• Prepare for 35%+ down payment plus closing costs.

Common pitfalls (status expiry, gift funds, proof of funds, property type)

Although you’ve followed the recommended sequence and secured mortgage pre-approval, your purchase can still collapse—spectacularly and expensively—if you overlook four critical vulnerabilities that derail international student home purchases even after offers are accepted:

Pre-approval guarantees nothing—study permits expiring mid-closing and improperly documented gift funds obliterate international student home purchases after acceptance.

• study permit expiration during the closing period,
• improperly documented gift funds that lenders reject at the eleventh hour,
• proof-of-funds statements that age beyond lender-acceptable windows (typically 30-90 days),
• and property types that fall outside permissible categories for foreign buyers despite your student exemption.

These aren’t theoretical risks—they’re documented deal-killers:

• Status expiry: Your study permit must remain valid through closing, not just offer acceptance.
• Gift funds: Requires statutory declarations proving non-repayable status and legal source documentation.
• Proof of funds: Bank statements older than 30-90 days become worthless, requiring fresh documentation.
• Property restrictions: Agricultural land and certain rural properties remain prohibited regardless of student status.
• Regional limitations: Some municipalities impose additional foreign buyer restrictions beyond federal exemptions.

Printable student buyer document checklist

Gathering your documents reactively—scrambling when your lender requests them reactively days before closing—transforms what should be a systematic verification process into a desperate scavenger hunt that frequently exposes fatal gaps too late to remedy.

Your printable checklist must include proof of enrollment at a recognized Canadian institution, five years of tax filings, bank statements demonstrating fund accumulation patterns, verifiable down payment sources, passport, study permit, employment or scholarship verification letters, and any prior property ownership records.

Prepare your mortgage pre-approval letter and signed purchase agreement alongside these foundational documents.

This isn’t bureaucratic excess—each item addresses specific underwriting criteria that lenders evaluate when determining whether you’re exempt from foreign buyer restrictions, possess legitimate funds, and represent acceptable risk despite your temporary resident status and limited Canadian credit history.

FAQ

Why do international students persistently ask whether they’re “allowed” to buy Canadian property when the real question—whether they can actually secure financing to complete such a purchase—remains fundamentally different and infinitely more consequential?

Common questions students ask:

• Can I buy property without permanent residency? Yes, legally, but financing remains nearly impossible without 35%+ down payment.
• Will buying property help my immigration application? No direct connection exists between homeownership and PR status.
• Do I need Canadian credit history? Absolutely—lenders won’t touch applications without established credit profiles.
• Can my parents co-sign from abroad? Most lenders reject foreign co-signers entirely.
• What happens if I leave Canada? You’ll face rental management complexities, tax complications, and potential capital gains implications.

Legal permission and practical feasibility occupy completely separate universes.

Final thoughts

The uncomfortable truth about international students buying Canadian property crystallizes into this: you’re steering a system designed primarily for permanent residents and citizens, where your legal right to purchase functions more like a technicality than a genuine invitation.

Lenders will scrutinize your 35% down payment, dissect your proof of income with skepticism reserved for outsiders, and layer enough bureaucratic obstacles that most students abandon the pursuit entirely.

Regional taxes—foreign buyers’ levies, property transfer fees—compound the financial burden beyond what’s already steep.

If you’re genuinely committed, secure comprehensive legal guidance, verify exemption criteria meticulously, and acknowledge that your study permit grants eligibility, not feasibility.

The distinction matters considerably, because navigating this landscape demands precision, substantial capital, and realistic expectations about barriers most publications conveniently omit.