Can NRIs Buy Property in Canada? Mortgage Rules Explained

Yes, NRIs Can Buy Homes in Canada — But There’s a Catch

If you’re an Indian citizen living abroad and wondering whether you can buy property in Canada — the short answer is yes.

But the real question is: can you get a mortgage in Canada as a Non-Resident Indian?

That’s where it gets a little tricky.

Canadian lenders do allow NRIs to buy property, but they divide applicants into three categories — and which group you fall into decides how easy (or hard) your mortgage process will be.

1. Permanent Residents (PRs)

If you’ve already obtained Canadian Permanent Residency, congratulations — you’re treated like a local borrower.

You can qualify for a CMHC-insured mortgage with as little as 5% down on homes under $500,000.

Just like any Canadian citizen, your mortgage will depend on:

• Your employment history in Canada
• Your credit score
• Income and debt ratios

If you’re new to PR status, make sure you start building Canadian credit early — it matters more than you think.

2. New Immigrants (Less Than 1 Year in Canada)

If you’ve just arrived in Canada and haven’t completed one full year, lenders place you under the “New to Canada” category.

Here’s how this works:

• You may still qualify for a mortgage
• But you’ll likely need 10% to 35% down
• The source of your funds must be clearly documented
• Some lenders will require international credit reports or proof of rental payments

Programs under Scotiabank, RBC, and TD often offer Newcomer-specific options — but approvals depend on your employment status and how long you’ve been in the country.

3. Non-Residents (NRIs Living Outside Canada)

This is the most complex category — and where most NRI buyers fall.

If you’re an Indian citizen working in Dubai, Singapore, London, or anywhere outside Canada without PR or a work permit, you’re considered a non-resident buyer.

Yes, you can still buy property. But mortgage rules are tighter.

Expect the following:

• Minimum 35% down payment (must come from your own savings)
• No gifted funds allowed
• Proof of stable foreign income
• Foreign tax returns or bank statements
• Canadian bank account
• Passport and visa documentation

You won’t get access to mainstream mortgage insurance or incentives.

Which Lenders Work With NRIs?

Not every bank in Canada offers mortgages to non-residents.

Instead, NRIs often qualify through alternative lenders that specialize in cross-border deals.

Some of the best-known names include:

• Home Trust
• Equitable Bank
• DUCA Credit Union

These lenders are more flexible with documentation but will require clean, provable income and full transparency.

Interest rates may be slightly higher than traditional lenders, and approval timelines can be longer.

No Tax Breaks — And Watch Out for Extra Costs

As an NRI, you’re not eligible for Canada’s first-time home buyer rebates or land transfer tax discounts.

In fact, depending on the province you buy in, you may owe foreign buyer taxes of up to 25% on the purchase price. This is common in Ontario and British Columbia.

Some cities also have vacancy taxes if your home sits empty.

So before you commit, speak to a mortgage broker who understands both Canadian finance and global residency structures — especially if you plan to rent out or eventually move in.

What You’ll Need to Prepare

To get serious mortgage consideration as an NRI buyer, you’ll typically be asked for:

• Employment contract or payslips from your overseas job
• Foreign income tax documents (where applicable)
• Minimum 35% down payment, from your own funds
• Canadian bank account
• Valid passport and visa
• Proof that funds aren’t gifts or borrowed

Every lender has its own checklist, but these basics apply across the board.

One Mistake Can Delay or Kill Your Deal

Cross-border mortgage files are sensitive.

If a fund source isn’t documented clearly, or your employment is seen as unstable, your application could get stuck — or rejected entirely.

That’s why we always recommend using a broker experienced in NRI financing. They’ll know which lenders accept your income type, how to position your paperwork, and how to speed up approval.

Final Word

Yes, NRIs can buy real estate in Canada — but mortgages aren’t plug-and-play.

The more you prepare in advance, the smoother your path.

Know your category
Understand the down payment rules
Be clear and upfront with your paperwork
Work with a cross-border expert

Buying from abroad? Start with a conversation — not a deposit.