UK Buyer's Guide: Mortgages in Canada

TL;DR: As a UK buyer looking for a mortgage in Canada, you’ll likely need a minimum 35% deposit and may only borrow up to 65% of the property’s value. You also need to pass a “stress test” where you can afford rates up to 5.25% or more. Be aware that most large cities are off-limits for foreign home buyers until 2027.

Imagine finding your dream home in Canada, only to realize that converting your large deposit from British Pounds to Canadian Dollars could cost you thousands in hidden fees and poor exchange rates. For many UK buyers, understanding Canadian mortgages and how to handle international payments is a key challenge. This guide will help you understand how to get a mortgage in Canada as a UK citizen, from checking if you qualify and applying for the loan, to managing the various costs involved.

Can UK citizens get a mortgage in Canada if they are not residents?

Yes, many Canadian banks and other lenders do offer mortgages to people who are not Canadian citizens or residents. However, to get a mortgage in Canada as a non-resident, you will need to meet tough rules about who can borrow and whether you can afford the payments. Lenders will generally look for strong borrowers.

It can be harder for non-residents because banks cannot easily check your credit history in Canada. Also, people who don’t live in Canada might only be able to borrow around 65% of the property’s value. This means you will need to have a much larger deposit ready.

You might find it helpful to work with a special mortgage broker. They can help you find the right mortgage for your needs. Just remember that these services usually come with a fee.

Even though it’s not directly about mortgages, you should know about Canada’s ban on foreign ownership of homes. This ban is set to last until 2027 Government of Canada. Non-residents can still buy homes in smaller towns and countryside areas. However, you cannot buy property in large cities or “Census Metropolitan Areas” (CMAs). This rule might come up when you start looking for both mortgages and properties to buy in Canada.

Has Brexit changed how UK citizens get mortgages in Canada?

No, the UK leaving the European Union (EU) has not changed how British citizens get a Canadian mortgage. The rules and what you need to do are the same as for any other foreign person applying for a home loan. You will be treated just like other international buyers.

What are the rules for Canadian mortgage eligibility for UK citizens?

The most important rule for getting a Canadian mortgage is to pass the “stress test.” This test checks if you can afford your mortgage payments even if interest rates go up. You must show you can pay at a qualifying interest rate. This rate is either 5.25% or the rate your lender offers you plus an extra 2%, whichever is higher Government of Canada.

You will also need to meet other requirements, which can vary depending on the lender. Here are some common ones:

• Good Credit Score: You need to show that you have a good history of paying back money you have borrowed.
• Proof of Affordability: You must prove you can make your monthly payments. Lenders will look at your income, your regular spending, and any debts you have.
• Housing Costs Limit: Your total monthly costs for housing (like your mortgage payment and property taxes) must be less than 39% of your total monthly income before tax.
• Total Debt Limit: Your total debt, including your mortgage and other loans, should be less than 44% of your total monthly income before tax.
• Large Deposit: You must have a deposit of at least 35% of the property’s value.

Is it hard to get a mortgage in Canada?

If you meet all the requirements and have all your papers ready, getting a mortgage in Canada can be fairly simple, especially if you live there already. But you still need to pass the crucial “stress test” and many other conditions. The whole process can seem complicated and strict, which might feel overwhelming.

For people who don’t live in Canada, the process can be even more complex. You might need more documents or extra information. This can make the whole process take longer.

What is the step-by-step guide on how to apply for a Canada mortgage as a foreigner?

To give you a clear idea of what to expect, here’s a step-by-step guide to applying for a Canadian mortgage as a foreign national:

1: Work out how much you can afford to borrow

Before you start looking, figure out how much money you can realistically borrow. You can talk directly to a lender or use a broker for this. There are also helpful online calculators, like this one from CIBC bank, that can give you an estimate.

2: Check your eligibility

Next, make sure you meet all the rules to get a mortgage. This includes passing that all-important “stress test.” At this stage, it’s a good idea to start gathering all the documents you will need.

3: Apply for mortgage pre-approval

Getting an “Approval-in-Principle” (AIP) document from a lender is very useful when you want to make offers on properties. It shows sellers that you have your finances sorted and can afford to buy. You’ll need to look at different mortgages to find one that suits you, then apply for pre-approval from your chosen lender. For this, you will usually need to provide details and documents about your income, job, and financial history.

4: Find a property to buy

Look for a property that fits within your budget. Once you find one you like, agree on a price with the seller. Then, let your mortgage provider know so they can help you with the next steps.

5: Apply for your mortgage

Now is the time to officially apply for your mortgage. You’ll need to give all the necessary details and documents (we’ll list what you need soon) and send in your full application. The lender will usually arrange for someone to check the value of the property. This valuation is vital for securing the mortgage. You might have to pay a fee for this appraisal.

6: Wait for approval

If your application is approved, you will get an official mortgage offer. This is called a “Letter of Commitment” or “Mortgage Approval Letter.” It will clearly state all the details, terms, and conditions of your mortgage. You usually have a short time to read everything, accept the offer, and sign the official mortgage agreement. Your solicitor will then take care of all the other legal steps to complete the property purchase. This includes working with the lender to release the mortgage money and pay the rest of the price to the seller.

Which documents do you need for a mortgage in Canada as a non-resident?

The exact papers you need for a mortgage in Canada will change depending on the lender you choose. However, here is an idea of what you will likely need to provide as a non-resident:

• Proof of Identity: A valid passport or other government-issued ID.
• Proof of Address: Documents that show where you currently live.
• Proof of Income: If your income comes from outside Canada, you will need to show payslips, bank statements, and/or tax returns to prove how much you earn.
• Proof of Employment: A letter from your employer or your employment contract, which clearly states your salary.
• Bank Letter from UK: Sometimes, you might need a letter from your UK bank to confirm you are a good customer and show your account history.
• Canadian Bank Account: You might need to have a Canadian bank account with enough savings to cover several months of mortgage payments.
• Property Transaction Documents: This includes the agreement to purchase the property, proof that you paid the deposit, and eventually, the final sales contract and the legal title deed.

Lenders may also ask for other documents related to your credit history or other assets, debts, and existing mortgages. The better and stronger your financial documents are, the higher your chances of getting approved. So, it is worth being fully prepared with as much proof of your income and a solid credit history as possible. For other financial guides for British citizens, consider reading about your guide to moving from UK to Italy post-Brexit or moving to Australia.

How long does it take to get a mortgage in Canada?

The time it takes to get a mortgage in Canada can differ between lenders. However, it is usually quite fast. Generally, it takes about one month from when you get pre-approval to when the property purchase is complete. You can also explore how long it takes to transfer a mobile number if you’re planning to stay connected overseas.

What are the fees and costs for getting a mortgage in Canada?

Applying for a mortgage in Canada usually involves some fees. But for most people, there is often only a valuation fee to pay upfront.

Valuation fees

In most cases, the property you want to buy will need to be valued. The buyer is responsible for paying this fee. It usually costs around $350 to $450 CAD. It’s important to know that this valuation only checks the property’s value. It will not find any problems with the building’s structure, maintenance, or other issues. For that, you would need to arrange your own building survey.

Mortgage arrangement fees

In some countries, banks charge a fee for setting up a mortgage. In Canada, big banks and other main lenders typically do not charge this. However, you might have to pay a fee if you borrow money from other, smaller or private lenders. These fees can vary.

Other fees and costs

You might also come across some of these other costs when applying for a mortgage in Canada:

• Broker Fees: If you use a mortgage broker, they will charge a fee. These costs vary a lot, so you should ask for quotes from different brokers.
• Mortgage Insurance: This is often required if you have a high loan-to-value (LTV) rate, meaning your deposit is less than 20% of the property price.
• Transfer Fees: If you need to send money between countries to pay your deposit or the fees mentioned above, you might incur transfer fees. Look for smart ways to avoid extra charges when dealing with non-sterling transaction fees or similar payments.

Which Canadian banks offer mortgages to foreigners?

Most major banks in Canada offer mortgages to both Canadian citizens and people applying from other countries. These include:

• RBC
• TD Bank
• Scotiabank
• CIBC

No matter which lender you choose, always check that they are on The Canadian Mortgage and Housing Corporation’s official list of approved lenders. This ensures they are recognized and regulated.

What are the mortgage rates in Canada?

As of February 15th, 2026, here were some of the lowest interest rates for different types of mortgages in Canada:

Mortgage Type	Interest Rate	Notes
5-year Fixed Rate Mortgage	3.69%
3-year Fixed Rate Mortgage	3.59%	(Ontario only)
Variable Rate Mortgage	3.35%

These rates are from ratehub.ca and can change often. Fixed-rate mortgages keep the same interest rate for a set period, offering stable payments. Variable-rate mortgages have interest rates that can go up or down, meaning your payments might change over time.

Can you get a UK mortgage to buy property in Canada?

It might be hard, but not impossible, to get a mortgage in the UK to buy property in Canada. Not many UK banks and lenders offer “overseas mortgages,” so you will need to search carefully. Your best option might be to look for specialist lenders who deal with international or expat mortgages, or lenders based in Canada.

Another option could be to remortgage an existing property you own in the UK. This means borrowing more money against it to fund your purchase in Canada. Crucially, you should only do this if you are sure you can afford the extra repayments. It’s also a good idea to get professional financial advice first. For more details on managing money internationally, you might find guides like moving abroad checklist UK relocation guide useful.

Do banks offer Buy-to-Let (BTL) mortgages in Canada?

Yes, it is possible to get a Buy-to-Let (BTL) mortgage in Canada. These are usually called rental property or investment property mortgages. You might find that the interest rates for these types of mortgages are higher. It could also be more difficult to get one as a non-resident, especially because of the current ban on foreign ownership of rental properties in busy city areas.

Can you refinance a mortgage in Canada?

Yes, you can remortgage a property in Canada. This can be helpful if you want to switch to a different lender to get better interest rates or to change the terms of your loan. Refinancing can also help you borrow more money, for example, to buy another property without having to sell your first one. You just need to make sure you can afford the repayments and are not borrowing too much.

What are the different types of mortgages in Canada?

Here are the main types of mortgages you can choose from in Canada:

Fixed-Rate Mortgage

With a fixed-rate mortgage, the interest rate stays the same for the entire loan term, which might be 3 or 5 years. This means your payments will be predictable and consistent, making it easier to budget.

Variable-Rate Mortgage

With this type of mortgage, the interest rate changes. It goes up or down based on the lender’s main rate, which is influenced by the Bank of Canada. This means your monthly payments could increase or decrease over time.

Closed Mortgage

Closed mortgages usually have strict rules about their term. You cannot pay them back early without facing penalties. However, they often come with lower interest rates compared to some other mortgage types.

Open Mortgage

Open mortgages give you a lot of freedom. You can make large extra payments or even pay off the entire loan early without penalties. Because they are so flexible, they generally have higher interest rates.

What are the final tips for getting a mortgage in Canada as a non-resident?

To have the best chance of getting approved for a Canadian mortgage as a non-resident, keep these tips in mind:

• Build a Credit History: Try to start building a credit history or some financial track record in Canada. This could mean opening a local bank account. Having an international account that handles Canadian dollars (CAD) can also make future payments smoother.
• Have a Large Deposit: Make sure you have a deposit that is big enough. For non-residents, this is usually at least 35% of the property’s value Government of Canada.
• Get an International Credit Report: If possible, get a credit report that covers your history internationally, or a reference letter from your UK bank.
• Seek Specialist Advice: Get personalized advice about mortgage products that are suitable for non-residents and foreign applicants. This might mean using a specialist mortgage broker.
• Organize Your Documents: Make sure you have all your necessary documents in order. This is especially important for papers related to your income, employment, and savings. Being prepared can save you a lot of time and stress.

FAQs

How much money do you need for a mortgage in Canada?

If you are a resident of Canada, you typically only need a down payment of 5% to get a mortgage. However, for non-residents, the minimum deposit needed can be as high as 35%. If your deposit is not very large, you might need to buy mortgage insurance.

Can I get a mortgage in Canada if I am a British citizen?

Yes, British citizens can get a mortgage in Canada, as long as they meet the necessary rules and requirements. This is especially true for showing proof of your income and ability to pay.

What proof of income do I need for a mortgage in Canada?

To prove your income for a Canadian mortgage, you will usually need to provide bank statements, pay slips, and/or tax returns. The more documentation you have to show your stable income, the better your chances of approval.

Related reading

• Keep your UK number abroad
• Moving to Canada from UK: Complete Guide for Brits
• Buying a Summer House in Denmark for UK Citizens Post-Brexit