Guide for Canadians Buying Property in the United States

For Canadians buying US property, the idea of owning a home south of the border is both exciting and practical. Many Canadians are drawn to buying property in the United States for the warmer climate, attractive real estate prices, and strong investment potential. From Florida’s sunny beaches to Arizona’s golf communities and California’s coastal towns, there’s something for every lifestyle and budget. Lower property taxes in some states, rental income opportunities, and the chance to escape harsh winters make US real estate a smart choice for Canadians seeking more than just a vacation spot. Whether you’re investing for the future or creating a seasonal retreat, purchasing property in the US opens the door to new possibilities across the border.

Can a Canadian citizen buy a house in the USA?

Yes, Canadian citizens can buy real estate property in the USA. There are no restrictions for Canadians on purchasing property in the United States. US real estate for Canadians offers a range of choices, from vacation condos and family homes to high-return investment opportunities. If you’re a Canadian buying property in the US, your citizenship won’t stand in the way of ownership. The real challenge is understanding the cross-border landscape, including taxes, financing, and legal requirements, to make sure your investment is compliant and profitable.

Are there any restrictions for foreigners buying a house in the US?

Foreigners who have an eye on the US housing market often have many questions regarding the possibility of non-citizens buying a house in the US. Canadian buying property in the US has become increasingly common, as US real estate for Canadians remains accessible and offers strong investment potential.

• Can foreigners and Green Card holders buy property in the USA to live in? – Yes
• Are non-citizens allowed to buy property in the USA? – Yes
• Are there any legal barriers to foreigners buying a property? – No
• What type of US home you can buy as a foreigner? – You can purchase anything from single-family homes and co-op properties to commercial and investment properties.
• Does buying a property in the USA give you residency? – No
• Are there tax implications for Canadian owning US property? – Yes

While foreigners can freely invest in the country, buying a property in the USA gives you residency only if you qualify under a specific visa category. Overall, US real estate for Canadians continues to offer appealing lifestyle and investment opportunities without ownership restrictions.

Canadian buying property in the US: Pros and cons

Pros

Diverse property options

The United States offers an incredible variety of real estate opportunities. From modern urban condos in major cities to suburban homes and vacation properties in scenic regions, Canadians can explore some of the cheapest real estate in the US as well as high-end investment markets. This diversity makes it easy for Canadians to buy US property that aligns with their lifestyle, financial goals, or long-term plans.

Proximity

For Canadians, one of the greatest advantages of owning a home in the US is proximity. Travel between Canada and the United States is quick and convenient, reducing both cost and time. Whether you plan to manage your investment personally, visit seasonally, or relocate for work or retirement, the short distance makes owning property in the US both practical and appealing.

Potential for high returns

When searching for houses for sale in America, investors will notice that the US real estate market has strong potential for appreciation and rental income. Demand in growing regions such as Florida, Texas, and Arizona can deliver attractive returns. If we consider the US real estate for Canadians, both short-term rentals and long-term investments can offer reliable profit potential.

Ease of financing

You can buy a US home as a Canadian without paying in full upfront. Several US banks and financial institutions provide cross-border mortgage options for Canadian buyers. These programs often consider Canadian income and credit history, making financing more accessible for non-residents interested in US property ownership.

Favourable tax treaties

Canada and the United States have an existing tax treaty designed to prevent double taxation on income, including earnings from rental properties. This agreement makes investing in US real estate for Canadians more efficient and financially sound, especially for those planning to generate rental income.

Currency exchange advantage

Exchange rates play a major role when purchasing property across borders. Monitoring CAD to USD rates for property purchase can help Canadians save thousands on their overall investment. Using a trusted foreign exchange partner instead of a bank can ensure you secure the best possible rate and avoid hidden fees. Locking in favourable rates before transferring funds gives Canadians more control over costs when buying US property. Check the real-time CAD to USD rates below and know how much money you need to invest for your US property purchase.

Cons

Tax implications

Canadians buying US property need to face complex tax situations, including potential capital gains and estate taxes. You must manage Canadian and US tax systems, which can require expert advice and increase costs.

Property management challenges

Managing a property from another country can be challenging, especially if the property is intended as a rental or vacation home. Issues such as maintenance, finding tenants, or handling emergencies can be more difficult to manage from afar.

Legal and regulatory differences

Real estate laws and regulations vary significantly between Canada and the USA. Canadians may face unfamiliar legal processes, additional fees, or different property rights, which can complicate buying.

Insurance costs

Depending on the location, insurance costs can be high, particularly in areas prone to natural disasters like hurricanes or floods. These additional costs can increase the overall expense of property ownership.

Best places to buy property in the US

When it comes to buying property abroad, Canadians buy US property for many reasons, affordability, variety, lifestyle, and long-term investment potential. Several states stand out for their attractive real estate markets, tax benefits, and diverse living environments. Whether you’re looking for a vacation home, a rental property, or a future retirement retreat, US real estate for Canadians offers plenty of opportunities.

1. Texas

Known for its strong economy, affordable property prices, and absence of state income tax, Texas remains a top destination for Canadians purchasing homes in the US. Cities like Austin, Dallas, and Houston combine business growth with lifestyle appeal, offering some of the cheapest real estate in the US without compromising quality of life.

2. Florida

Florida is one of the most popular choices for a Canadian buying property in Florida. The Sunshine State offers warm weather, stunning beaches, and a booming tourism market, ideal for both vacation and investment properties. It’s also a preferred spot for seniors moving to US after retirement or snowbirds who want to enjoy the beauty of Florida. However, understanding the tax implications for Canadian owning US property is key, especially when renting or selling in Florida.

3. California

California draws Canadians with its dynamic mix of culture, innovation, and scenic coastlines. From Los Angeles to San Francisco, the state offers high-value investment opportunities. Though property prices can be steep, strong appreciation and global demand make it an important market for US real estate for Canadians seeking long-term gains.

4. Georgia

Georgia combines affordability, southern charm, and economic expansion, especially in Atlanta. With moderate property prices and growing rental demand, it appeals to Canadians seeking both residential and income-generating options.

5. New York

New York remains an iconic choice for urban investors. Whether it’s Manhattan condos or suburban homes upstate, the region offers stability and global recognition. Buyers should be aware of potential tax implications for Canadian owning the US property when earning rental income in this market.

6. Arizona

Arizona continues to attract Canadians with its warm climate, golf communities, and lower cost of living. It’s particularly appealing to retirees and investors looking for vacation homes that also offer rental potential during peak seasons.

7. North Carolina

With its growing economy, beautiful coastlines, and vibrant cultural scene, North Carolina offers balance and value for money. Cities like Raleigh and Charlotte have become hotspots for cross-border buyers seeking affordable housing and stable returns.

8. Tennessee

Tennessee’s music culture, low cost of living, and absence of state income tax make it a strong option for Canadians wanting to diversify their real estate portfolio in the US

9. New Jersey

Offering proximity to major metropolitan centres like New York and Philadelphia, New Jersey features strong job growth and diverse communities. Its suburban housing options are ideal for families seeking convenient access to major cities.

10. Virginia

Virginia blends history, opportunity, and convenience with access to Washington, D.C. A solid job market in government and technology sectors makes it attractive for long-term property ownership.

11. Hawaii

For Canadians craving a tropical escape, Hawaii stands out. The islands combine natural beauty, stability, and a mature property market, making them ideal for lifestyle-driven investments. Canadians should still consider tax implications for Canadian owning US property if generating rental income or selling at a profit.

12. Washington

With a tech-driven economy, outstanding scenery, and cities like Seattle, Washington offers a balanced lifestyle. It’s an excellent option for investors and families seeking long-term growth in property value.

What do I need when buying property in the US as a Canadian?

When Canadian buying US property, they will typically need to submit the following paperwork and documents;

Proof of identity: Provide your passport, driver's license or other valid government-issued ID.

Proof of address: This is part of your contact details. If you intend to live in the US, you must also submit proof of your legal residence status.

Financial information: If you're applying for a mortgage, the lender will want tax documents for the past two years, proof of income (past 30 days), proof of down payment, a contract of sale and insurance, they may ask for details of your monthly expenses and liabilities. This information helps them determine whether you can afford the loan.

Getting into US real estate is not challenging for Canadians, comparatively to other foreigners. This is because many steps of the process of buying property in the US is same as Canada. Not to mention, many Canadians are also accustomed to the culture, norms, people, and places of America that allows them to indulge in the process without worrying about anything.

How to buy US property: 5 steps for Canadians

Wondering how Canadians buying US property? Follow these simple steps to streamline your process and make your cross-border purchase smooth and stress-free.

1. Shop around for lenders

You can skip this step if you're paying cash for your home. On the other hand, you can secure a loan with a Canadian or US-based lender if you’re financing the purchase. The important thing is to shop around and compare various offers before settling.

The most significant advantage of arranging to finance first is knowing how much you can afford once pre-approved. It becomes easier to narrow your options when shopping for the perfect home.

2. Hire a US real estate agent

When you begin hunting for the cheapest real estate property in the US, you can streamline your search by working with a US-based real estate agent who knows the territory. Communicate clearly with your agent so they know the exact type of property you want and other details, such as preferred amenities and location.

3. Make an offer

Sooner or later, you will find a property that suits your needs. You must submit a fair offer based on market measurements when that happens. Your agent can help secure a better price by negotiating on your behalf.

The seller will review your offer, accept it, decline it, or counteroffer. If your offer is accepted, you have taken the first significant step in securing your desired property.

4. Schedule a home inspection and appraisal

The importance of doing your due diligence checks can't be overstated. Before finalizing the deal, hiring a home inspector and appraising the property is crucial so you know exactly what you're getting into. The last thing you want is to buy a fixer-upper disguised as a fully functional home.

5. Close the deal

Once everything is in order, it’s time to begin the real estate closing process. Check the CAD to USD rates for property purchase in the US and make your transfer at the most favourable rate available. After securing the funds, proceed to finalize the deal by signing on the dotted line.

How to plan the closing of the property in the US?

■ Hire a real estate agent to assist Canadians buying US property and get expert advice. 
■ Obtain pre-approval for a mortgage to determine your budget and strengthen your offer. 
■ Make an offer on the property and negotiate to reach a mutually agreeable price. 
■ Sign a purchase agreement outlining the sale terms, including price, closing date, and contingencies. 
■ Schedule and conduct a home inspection to identify issues and an appraisal to assess the property's value. 
■ Secure title insurance to protect against future claims and ensure the property title is clear of liens or disputes. 
■ Finalize your mortgage by submitting all required documents and fulfilling lender conditions. 
■ Carefully review the Closing Disclosure form for final costs and loan terms before closing. 
■ Conduct a final walkthrough of the property to ensure it's in the agreed condition and all terms are met. 
■ Complete the closing process by signing all paperwork, paying closing costs and the down payment. 
■ Ensure formal transfer of ownership by recording the deed in the local government records. 
■ Officially take possession of the property post-closing and begin your new chapter.

Get to know the tax and fee details before buying a house in the US as a Canadian

When buying a house or investing in US real estate as a Canadian, remember that you must play by a different set of rules than US citizens. Understanding the real estate tax situation before committing is essential, though the need-to-know details tend to have many twists and turns.

The best recommendation is to enlist professional legal help to get clarification on issues like:

• The cap on the estate tax
• Additional tax obligations
• General tax requirements
• Tax rates and treaties; and
• Any other relevant, tax-related issue

What's the best way to pay for your property in the USA as a Canadian?

The best way to pay for your property in the USA depends on your financial situation and other factors. Generally, you can pay for your property through a mortgage or cash.

1. Getting a mortgage

Canadian citizens who want to own real estate in the US can qualify for loans if they earn taxable income. American lenders will consider income instead of residency or citizenship to determine eligibility. However, while getting approval is possible, the US mortgage process can be complicated for Canadians. 

A simpler alternative would be to apply for a mortgage with a Canadian cross-border lender specializing in cross-border mortgages. Doing so offers the following benefits:

■ Better customer support: Canadian lenders and mortgage bankers that operate in the US offer greater support and understand how to deal with Canadians.

■ Competitive rates: You can leverage your Canadian credit history to get the best rate possible. In contrast, US lenders charge higher interest rates for foreign nationals without a US credit history.

■ Greater flexibility: Cross-border lenders accept Canadian documents and make applying for a US mortgage possible using your Canadian credit history. Additional perks can include prequalification, no prepayment penalties, and the option to choose the term of your mortgage.

■ Faster approval: US mortgages can take up to 45 days to process. On the other hand, a Canadian bank can quickly perform a credit check, which helps streamline your application.

2. Sending cash to the United States from Canada

Paying cash for your US-based home is a significantly easier option than financing. If you're making the payment from Canada, you'll need a convenient and cost-effective method of moving the required funds into the appropriate US bank account.

A specialist transfer service like MTFX can save you thousands of dollars, with exchange rates 3-5% lower than banks.

Register your MTFX account to start sending money and get better value with competitive exchange rates, fast and convenient currency conversion services, and automation technologies that streamline the home-buying process.

If you need to make regular monthly repayments for your mortgage, you can easily set up fast, secure, and automated payments and stick to your loan agreement with minimal hassle.

Why does the exchange rate matter when buying property in the USA?

Whether you need to transfer money one-off or send money abroad regularly from CAD/USD, the exchange rate is worth keeping an eye on. The impact of different exchange rates on your pocket is difficult to ignore. 

Banks generally do not offer favourable rates and fees, so a provider like MTFX is the best solution. You get bank-beating rates (3-5% lower than banks) so you can save up to $4,000 for every $100,000 you send. Use the MTFX live rate calculator to see how to reduce costs when sending money internationally.

Canadians buying US property should create an account today to enjoy simple, secure, cost-effective international payments.

Buying property in the USA as a foreigner – FAQs

1. Where should Canadians invest in US real estate?

Canadians investing in US real estate markets should consider economic growth, rental markets, and potential for appreciation. Popular choices include Florida, known for its vibrant tourism and retirement communities; California, with its diverse economy and high demand; Texas, for its booming economy and affordable property prices; and New York, for its robust property market.

2. Which US states are best for Canadian property buyers?

The best US states for Canadian property buyers often include Florida, with its favourable climate and solid rental market; Arizona, popular among retirees; Texas, for its economic growth and no state income tax; and New York, for those seeking investment in a major global city. California and Georgia are attractive due to their diverse economies and strong housing markets.

3. Can foreigners buy property in the USA?

Yes, foreigners can buy property or a house in the USA. There are no restrictions for foreigners to purchase property in the United States. However, foreigners may face more complex tax laws as property owners.

4. Can I buy property in the USA as a Canadian?

Yes, as a Canadian, you can buy property in the USA. There are no restrictions on foreign real estate ownership in the United States, making it relatively straightforward for Canadians to purchase property.

5. How long does the property purchase process take in the US as a Canadian?

Buying property in the US can take anywhere from 30 to 60 days. This timeline can be affected by several factors, including the type of property being purchased, the location, and the specific sale details.

Using MTFX to send money to pay cash for your home expedites the process since it usually takes 24-48 hours for your money to arrive. This is a convenient way to send money since the MTFX online platform is accessible 24/7.

6. Can Canadians buy property in the USA?

Yes, Canadians can buy property in the USA without any citizenship or residency requirement. Whether it’s a vacation condo, an investment home, or a retirement property, Canadians enjoy the same ownership rights as Americans. You can purchase land, homes, or condos in most states, just be aware of local property taxes, closing fees, and legal documentation.

7. Can Canadian citizen live in the USA?

Owning property in the United States does not automatically grant residency. A Canadian citizen can visit the US for up to six months a year under standard travel rules, but living there full-time requires a valid visa, such as an investor visa (E-2), work visa, or green card. So, while you can own a home, you’ll still need to manage your stay according to US immigration laws.

8. Can Canadian citizen buy house in the USA?

Yes, a Canadian citizen can buy a house in the USA just like an American. You can purchase through cash payments or cross-border mortgage programs offered by select US and Canadian lenders. Many Canadians use trusted currency exchange services to send funds securely in USD and avoid high bank markups during the transaction.

9. How to buy property in the US?

To buy property in the USA as a Canadian:

• Choose your location and property type.
• Work with a licensed US real estate agent.
• Open a US bank account or escrow for your transaction.
• Transfer your funds from CAD to USD using a regulated provider like MTFX for better exchange rates.
• Hire a US lawyer for closing and title verification.

This process ensures your purchase is secure, compliant, and cost-effective.

10. What to consider when buying property in the USA as a Canadian?

Canadians buying US property is making a smart investment or lifestyle move. States like Florida, Arizona, and California remain top choices for Canadian buyers seeking vacation homes or rental properties. Before purchasing, research local tax implications, property management costs, and insurance coverage to make informed decisions.

11. What to buy in the US as a Canadian?

Canadians buying US property have so many choices when it comes to properties. If you’re looking for vacation use, condos or homes in resort areas are ideal. For income generation, investment properties in growing cities such as Dallas or Orlando can offer good rental returns. Canadians can also explore commercial properties, though these often involve additional regulations and higher investment thresholds.

12. Does buying a property in USA give you residency?

No, buying a property in USA gives you residency only if you qualify for a specific visa. Property ownership alone doesn’t grant immigration or residency rights to Canadians.

13. What should snowbirds know about selling or buying property in Florida?

For snowbirds selling property in Florida, it’s important to understand US tax rules, including potential capital gains obligations. Canadians can also reinvest by buying property in Florida, where warm weather, strong rental demand, and affordable housing make it a top destination for seasonal and long-term ownership.

Open an account today to enjoy simple, secure, cost-effective international payments to buy property in the United States with MTFX.