Yes, it is possible to buy a house as a temporary resident in Quebec, but under specific conditions. Since the Prohibition on the Purchase of Residential Property by Non-Canadians Act came into force on January 1, 2023, the rules have become stricter. However, exceptions exist for holders of a valid work permit or study permit who meet the established criteria.
Before starting a real estate project, it is essential to clearly understand your eligibility, the legal requirements, and the financing options available.
A temporary resident is a person authorized to stay in Canada for a limited period.
This includes:
- Work permit holders
- Study permit holders
- Certain refugees or protected persons
Unlike a permanent resident or Canadian citizen, a temporary resident does not hold permanent status. Their right to remain in Canada depends on the validity of their permit.
What the Law Says About Purchasing Property by Non-Canadians
Since January 1, 2023, the federal Prohibition on the Purchase of Residential Property by Non-Canadians Act limits the acquisition of residential properties by individuals who are neither Canadian citizens nor permanent residents. This measure has a significant impact on anyone looking to buy a house in Quebec as a foreigner.
The law, in effect until January 1, 2027, aims to protect access to the housing market for Canadians. In principle, it prohibits the purchase of residential property in certain census metropolitan areas, except for specific exemptions.
Learn More About Our Loan SolutionsWhat Exceptions Does the Law Provide for Temporary Residents?
A temporary resident may be eligible if they meet several conditions, including:
- Holding a valid work permit
- Having at least 183 days remaining on the permit at the time of purchase
- Purchasing only one property
- Occupying the property as their primary residence
In some cases, proof of having worked in Canada and filed income tax returns may be required.
Study Permit or Work Permit: What Differences for Real Estate Purchases?
Work permit holders generally have more flexibility than students. A temporary worker with a valid permit and stable employment may be eligible if they meet the presence and status requirements.
Students often need to comply with additional conditions, such as a purchase price cap and proof of extended physical presence in Canada.
The type of permit therefore directly affects your eligibility and your mortgage financing options.
Conditions to Meet to Buy a House as a Temporary Resident
To purchase real estate in Quebec, a temporary resident must generally:
- Have valid legal status
- Purchase the property to personally occupy it
- Respect the rules regarding the number of properties allowed
- Demonstrate sufficient financial capacity
What Down Payment Is Required for Non-Canadians?
The required down payment depends on the purchase price. For properties under $500,000, a minimum down payment of 5 percent is often required. For the portion exceeding $500,000, 10 percent may apply.
However, for temporary residents, financial institutions may require a higher down payment, particularly in the absence of Canadian credit history.
Credit History: What Impact on Your Mortgage as a Temporary Resident?
The absence of Canadian credit history can complicate obtaining a mortgage from a traditional bank.
Newcomers often do not yet have a file with Equifax or TransUnion, which limits the risk assessment conducted by financial institutions.
This is where alternative solutions may apply, including a private mortgage loan for newcomers. This type of financing relies more heavily on:
- The value of the property
- The down payment
- The borrower’s real repayment capacity
At Lauréat Finance, private mortgage loans range from $10,000 to $1,000,000 and help support newcomers in their real estate projects.
Learn More About Our Loan SolutionsPrimary Residence Only: Can You Buy a Duplex or Income Property?
The law mainly targets residential properties. In many cases, the purchase must be made to occupy the property as a primary residence. A duplex may be permitted if the buyer occupies one of the units.
Purely speculative purchases or those intended strictly for rental investment are generally restricted for non-Canadians.
The Role of a Common Law Partner or Spouse in a Purchase Application
If a spouse is a Canadian citizen or permanent resident, this may facilitate the transaction. An eligible spouse may allow certain restrictions under the law to be bypassed. The partner’s status therefore directly influences the file assessment.
It is recommended to consult a notary or specialized mortgage broker to properly structure the transaction.
Can a Refugee Buy Property?
A recognized refugee or protected person may, depending on their status, be eligible to purchase real estate. The specific legal status is decisive. It is therefore important to validate your situation with an immigration or real estate professional.
Buying in Montreal: Is There a Difference for Temporary Residents?
Montreal is located within a census metropolitan area covered by the federal law. The rules therefore fully apply in this region. Buyers must ensure that the property is eligible and that their status falls under one of the available exemptions.
Since the Montreal real estate market is competitive, having preapproved financing before making an offer is essential.
Practical Steps to Buy a House as a Temporary Resident
Here are the steps to purchase a home as a temporary resident:
- Verify your status and eligibility
- Consult a mortgage broker or specialized lawyer
- Obtain financial prequalification
- Find the property
- Make an offer
- Finalize the transaction with a notary
Professional guidance helps avoid administrative and legal mistakes.
Common Pitfalls and Practical Advice for a Successful Purchase
Several misconceptions circulate, including the belief that temporary residents cannot buy property at all. This is not accurate.
The main pitfalls to avoid include:
- Neglecting legal analysis
- Underestimating the required down payment
- Waiting too long before consulting a specialist
Tax Implications and Income Reporting
Purchasing property may have tax implications, particularly regarding tax residency and income reporting.
The number of days physically present in Canada, tax status, and declared income can influence certain obligations. An accountant or tax advisor can help clarify your situation.
Contact a Private Lender Today!Key Takeaways Before Starting a Real Estate Project in Quebec
Buying a house as a temporary resident is possible in Quebec, but under strict conditions. Your eligibility depends on your permit, length of stay, down payment, and financial capacity.
If traditional banks refuse your application due to limited credit history or a particular status, solutions exist. Private mortgage loans for newcomers offered by Lauréat Finance provide flexible financing tailored to the realities of temporary residents.
Before making a decision, validate your situation with a professional and ensure that your project complies with current regulations. A successful real estate project begins with a clear and structured analysis of your eligibility.
About the author
Co-President
A former mortgage broker, Mr. Nelson has long been passionate about alternative mortgage financing. He specializes in crafting detailed, strategic plans to help clients quickly return to traditional financial institutions. With over $300 million in alternative mortgage financing completed, he joins forces with his partner to ensure every client receives the most fitting solution. Frequently on the move, he always makes time to meet with clients in person—clearly explaining the proposed mortgage product, tailored to each unique situation.
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