Guide for Canadians Buying Property in Hawaii


The Big Island

Last Updated: 28 Mar 2024

Imagine waking up to the gentle sounds of the Pacific Ocean, surrounded by lush landscapes and the warm, welcoming aloha spirit. For many Canadians, owning a piece of paradise in Hawaii isn't just a dream—it's becoming a sought-after reality. As the world becomes more connected, the allure of tropical climates, breathtaking scenery, and the promise of a laid-back lifestyle is drawing a growing number of Canadians to consider Hawaii as their ideal destination for buying property.

However, heading into the Hawaiian real estate market from abroad comes with its unique set of challenges. Among these, handling the intricacies of international payments and foreign exchange risks are particularly daunting. These financial aspects are crucial to understand, as they can significantly impact the overall cost of your investment.

In this guide, we'll talk about the complexities of buying property in Hawaii as a Canadian. From the vibrant real estate market to the critical financial considerations of international transactions, we're here to provide you with the insights and advice you need to make your Hawaiian dream home a reality, without getting lost in the tide of currency conversions and international payments.

Can a Canadian buy property in Hawaii?

The short answer is yes, Canadians can buy property in Hawaii. The United States, including Hawaii, does not place significant restrictions on foreign ownership of real estate. This openness makes it relatively straightforward for Canadians to invest in Hawaiian properties, whether it's a condo, a single-family home, or even land.

However, there are several important considerations and steps that Canadian buyers should be aware of when navigating the process including financing the purchase, tax considerations, and real estate management.

Why buy a vacation home in Hawaii?

The allure of Hawaii for Canadians goes far beyond its postcard-perfect beaches and stunning sunsets. This tropical paradise offers a unique blend of natural beauty, cultural richness, and a lifestyle that's hard to find anywhere else. But what exactly draws Canadians to the Hawaiian Islands, and why do they choose to invest in property here? Let's take a look at the key reasons.

Unmatched natural beauty: Hawaii's diverse landscapes range from lush rainforests and waterfalls to volcanic craters and miles of pristine beaches. This natural beauty offers not just a backdrop for relaxation and adventure but also contributes to a higher quality of life that many Canadians seek.

Year-round warm climate: Escaping the harsh Canadian winters is a common desire. Hawaii's warm tropical climate, with average temperatures ranging from 75°F to 88°F (24°C to 31°C) year-round, provides an ideal escape from the cold, offering a perpetual summer that many find irresistible.

Lifestyle and culture: Hawaii is renowned for its "Aloha Spirit," a unique blend of warmth, friendliness, and a deep respect for the land and each other. This laid-back lifestyle, coupled with rich cultural traditions and a strong sense of community, resonates with Canadians looking for a more relaxed and meaningful way of life.

Investment potential: The Hawaiian real estate market has historically shown resilience and long-term growth. For Canadians, buying property in Hawaii is not just about securing a vacation home; it's also seen as a sound investment that can appreciate over time.

Safe and stable environment: The United States, including Hawaii, is known for its political stability and strong legal system. This provides a sense of security for international investors, including Canadians, who are assured that their property rights are protected.

Proximity to Canada: While Hawaii offers an exotic tropical setting, it's relatively accessible from Canada, with direct flights from major cities making it an easy getaway for property owners wanting to escape the Canadian winter or simply enjoy a holiday.

Rental income opportunities: With Hawaii being a top tourist destination, there's a potential for property owners to generate rental income when they're not using their homes. This can help offset the costs of ownership and, in some cases, turn a profit.

Best places to buy a vacation home in Hawaii

Hawaii's islands offer a diverse range of locales, each with its unique charm and appeal, making the decision of where to buy a vacation home a matter of personal preference, lifestyle, and investment goals. Here's a look at some of the best places to consider when purchasing a vacation home in Hawaii:


Known as the "Valley Isle," Maui boasts some of the most picturesque beaches, world-class golf courses, and the historic town of Lahaina. Areas like Wailea are renowned for their luxury resorts and upscale properties, making it a prime location for those seeking a high-end vacation home. Kihei is another popular area, offering more affordable options and a vibrant community feel.


As the most populous island, Oahu is home to Honolulu and the famous Waikiki Beach. It offers a blend of urban convenience and natural beauty. The North Shore is a haven for surfers and those looking for a more laid-back lifestyle, while areas like Kailua and Kahala are known for their stunning beaches and upscale neighborhoods.


Dubbed the "Garden Isle," Kauai is known for its lush landscapes, dramatic cliffs, and serene beaches. Princeville and Hanalei in the North Shore offer luxury properties with breathtaking views, ideal for those seeking tranquility. Poipu, on the South Shore, is popular for its sunny weather and excellent beachfront properties.

The Big Island

Hawaii Island, or the Big Island, offers diverse climates and landscapes, from the snow-capped peaks of Mauna Kea to the lush rainforests of Hilo. The Kohala Coast, with its world-class resorts and golf courses, is particularly appealing for vacation home buyers. Kailua-Kona is another popular area, known for its vibrant culture, coffee farms, and waterfront properties.


For those seeking utmost privacy and exclusivity, Lanai offers a secluded retreat. With only a few thousand residents and limited development, it's a place where one can truly escape. The luxury resorts and pristine nature make it an ideal location for a high-end vacation home for Canadian snowbirds.


Known as the "Friendly Isle," Molokai is where you can experience old Hawaii. It's perfect for those looking to immerse themselves in the local culture and untouched natural beauty. Property options here are more limited but offer a unique opportunity to be part of a close-knit community.

International payments and foreign exchange challenges

Keep in mind that international transactions are not just about transferring funds from one country to another; they involve changing currencies, which introduces a layer of complexity and potential cost. Understanding these challenges is key to ensuring a smooth transaction and optimizing the financial aspects of buying a vacation home abroad.

Currency exchange volatility: The exchange rate between the Canadian dollar (CAD) and the US dollar (USD) fluctuates due to various economic factors. Even small changes in the exchange rate can significantly impact the total cost of purchasing a property in Hawaii.

High transfer fees: International money transfers typically involve fees, which can vary widely depending on the institution or service used. These fees can be a flat rate or a percentage of the transfer amount.

Timing of payments: The timing of currency conversion and fund transfers can be crucial due to fluctuating exchange rates. Buyers might prefer to convert money and transfer it when the exchange rate is favorable, but this requires careful timing and sometimes a bit of luck.

Tax implications: Currency exchange gains or losses might have tax implications in Canada. It's important for buyers to consult with a tax professional to understand how these transactions could affect their tax situation. 


Ensure cost-effective, fast, and secure cross-border payments with MTFX

When purchasing property in Hawaii, Canadians face the challenge of making large international payments, which can be costly and complex due to fluctuating exchange rates and high transfer fees. MTFX can play a pivotal role in streamlining this process. Here's how MTFX can assist in ensuring your cross-border payments are cost-effective, fast, and secure:

Better-than-bank exchange rates

MTFX offers highly competitive exchange rates, which can result in significant savings, especially on large transactions like real estate purchases. By providing rates closer to the mid-market level than many traditional banks, we help you in reducing the overall cost of buying property abroad.

Low transfer fees

One of the advantages of using MTFX for international payments is the low transfer fees, in contrast to the high fees often charged by banks. This feature can make a substantial difference in the total cost of transactions, making the process of buying a vacation home in Hawaii more affordable.

Fast and efficient transfers

Time is of the essence in real estate transactions, and MTFX understands this. We offer fast and efficient processing of international payments, ensuring that funds arrive on time for closing dates or deposit requirements, which is crucial in a competitive real estate market like Hawaii's.

Secure transactions

Security is a top priority for MTFX. We employ advanced security measures to protect your funds and personal information, giving you the peace of mind that your transactions are safe from fraud and cyber threats.

Personalized service

MTFX provides personalized service with dedicated account managers who understand the nuances of international real estate transactions. We can offer tailored advice on the best times to exchange funds and transfer them, based on current market conditions and your specific needs.

Range of tools for managing FX risk

MTFX offers various tools and products to manage foreign exchange risk, such as forward contracts, which allow you to lock in an exchange rate for a future transfer. This can be particularly beneficial in the volatile forex market, helping to ensure that exchange rate fluctuations do not adversely affect your property purchase costs.

Make your dream of owning a vacation home in Hawaii a reality

Purchasing a vacation home in Hawaii is a dream for many Canadians, offering not just a serene escape but also a valuable investment opportunity. However, the journey to owning property in this tropical paradise involves navigating through a maze of considerations, from understanding the local real estate market to managing the complexities of international payments and foreign exchange.

By arming yourself with the right information and partnering with a FINTRAC-regulated expert like MTFX for cost-effective, secure, and efficient cross-border transactions, you can overcome these challenges. Remember, the key to a successful international property purchase lies in thorough research, careful planning, and strategic financial management. Embrace the opportunity to invest in your slice of Hawaiian paradise with confidence, knowing you're well-prepared to make informed decisions every step of the way.

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