Buying a Condo in Toronto as a U.S. Citizen | Key Rules, Taxes & Financing

Are you a U.S. citizen looking to buy a condo in Toronto? Learn about foreign buyer restrictions, the 25% Non-Resident Speculation Tax, financing options, and ownership rules in Ontario real estate.

Toronto’s real estate market continues to attract international interest, and U.S. citizens are often among the most active non-resident buyers. However, purchasing property across the border comes with some unique considerations—particularly in light of current Canadian housing policies. If you’re thinking about buying a Toronto condo as an American, here are the key factors to understand.

1. Foreign Buyer Ban & Exemptions

Canada has implemented a temporary ban on foreign nationals purchasing residential property, currently in effect until January 1, 2027. This includes condominiums in Toronto.
That said, there are important exemptions:

• Properties outside of Census Metropolitan Areas (smaller communities) may be eligible.

• Temporary residents, students, and certain work permit holders may also qualify for exemptions.
  If your purchase target is a downtown Toronto condo, it’s important to know that this restriction applies—at least for now.

2. Special Taxes for Non-Residents

On top of standard closing costs, U.S. citizens should budget for the Non-Resident Speculation Tax (NRST). Currently, this tax is 25% of the purchase price in the Greater Toronto Area (GTA).
For example, a $700,000 condo would carry an additional $175,000 in NRST at closing. This is a major factor to consider when calculating affordability.

3. Financing Considerations

Yes, U.S. citizens can secure mortgages in Canada, but lenders will typically require:

• A higher down payment—often 35% or more.

• Proof of U.S. income and assets.

• A Canadian bank account to streamline payments.
  Working with a cross-border mortgage specialist can help simplify the process.

4. Ownership & Use

The good news: U.S. citizens are fully permitted to own, rent out, or resell property in Ontario once purchased. There are no restrictions on personal use, rental income, or resale timelines. This makes Toronto condos a flexible option for both investment and personal enjoyment.

Final Thoughts

Buying a Toronto condo as a U.S. citizen is possible—but it requires careful planning around taxes, financing, and current restrictions. With the right strategy, and professional guidance from real estate and legal experts, you can still make your Toronto condo dreams a reality.

📞 Ready to learn more about your options? Call us at 647.938.8814 or visit anabastas.ca to connect with our team.