Research shows Americans’ desire to move to Canada is increasing – Getting a mortgage is not so easy
An American may have enough income and savings to purchase a Canadian home—but that does not automatically mean they can move to Canada and qualify for a Canadian mortgage.
As I am not an immigration lawyer, I cannot provide advice on how to immigrate to Canada. I can, however, discuss the implications of a borrower’s immigration status on a Canadian mortgage application.
Why More Americans May Be Considering Canada
Americans’ interest in leaving the United States appears to have increased. A 2025 Gallup poll found that approximately one in five Americans would move permanently to another country if given the opportunity—the highest level Gallup had recorded in approximately two decades. Gallup cautioned that this measures aspirations, not definite moving plans.
Immigration, Refugees and Citizenship Canada data also showed a sharp increase in approvals beginning in December 2025 and continuing into March 2026. According to Reuters, approximately 48% of the additional approvals through February originated from the United States.
Permanent Residency vs. Work Permit
A borrower with permanent resident status will generally have access to a wider range of mortgage options than someone with a work permit. Not all lenders offer mortgages to work-permit holders, and lender requirements can vary considerably.
Depending on the lender and mortgage program, a work-permit borrower may encounter restrictions involving:
- Owning another property, including a home in the United States.
- Using gifted funds from family toward the down payment.
- Using alternative income-verification programs, particularly for self-employed borrowers.
- The remaining length of the borrower’s work permit.
- Maximum mortgage amounts or other lender-specific requirements.
Marriage to a Canadian citizen does not automatically solve these issues. It may strengthen an application if the Canadian spouse is also a borrower and contributes sufficient income, credit or assets.
This list is not exhaustive. Borrowers should seek advice from a licensed mortgage professional.
Source: CMHC – Mortgage Loan Insurance
Canada’s Restrictions on Foreign Buyers
Canada’s federal prohibition on certain purchases of residential property by non-Canadians has been extended until January 1, 2027.
There are exceptions. For example, certain people authorized to work in Canada may qualify if they satisfy the applicable requirements, including rules concerning the amount of time remaining on their authorization.
Americans purchasing in Ontario may also face Ontario’s 25% Non-Resident Speculation Tax. A purchase in Toronto could potentially involve an additional 10% Municipal Non-Resident Speculation Tax.
Sources: Department of Finance Canada | Justice Laws Website | Government of Ontario | City of Toronto
Qualifying U.S. Income
Canadian lenders do not all treat U.S. income the same way. Each lender determines whether income is sufficiently stable, continuing and verifiable.
A borrower may be asked for an employment letter, pay statements, bank statements, tax documents and evidence that employment will continue after the move. If a lender converts U.S. income into Canadian dollars for qualification purposes, the conversion method could affect how much income is recognized.
Some lenders may also require evidence concerning how U.S. income has been reported for Canadian tax purposes. If conventional pay statements are unavailable, additional documentation may be required to establish year-to-date earnings.
Employer Location
Consider a borrower who lives in Canada but regularly travels to the United States for work. Some lenders may require proof that the employer pays the borrower’s travel and accommodation expenses.
If the employer cannot confirm this, a lender may add an estimated travel expense to the mortgage application. This could increase the borrower’s debt-service ratios and potentially affect qualification under the mortgage stress test.
This is a lender-specific underwriting practice, and the treatment of travel expenses can vary significantly between lenders.
Credit Reports
Some lenders will require an international credit report when a borrower has limited Canadian credit history. An American credit report can therefore help establish creditworthiness, but it does not guarantee mortgage approval.
Lenders may request both Canadian and foreign credit information to identify existing debts and payment history.
Limited Canadian credit can sometimes be supplemented with evidence such as utility, internet or cellphone bills demonstrating a consistent history of on-time payments.
Down Payments
The down payment can be one of the most heavily scrutinized parts of a mortgage application. Lenders must be satisfied that the funds come from legitimate and verifiable sources.
Family members may be able to provide gifted funds, but lenders have rules concerning who can provide the gift and how it must be documented. Work-permit holders may encounter additional restrictions regarding how much of their down payment can come from gifted funds.
Some lenders may also impose maximum mortgage amounts or other restrictions on applications involving work-permit holders.
For borrowers making a down payment of less than 20%, see CMHC’s explanation of mortgage loan insurance and its general qualification requirements.
For an American considering a move to Canada, speaking with a licensed mortgage professional before purchasing a property can be important. A mortgage professional can identify potential challenges involving immigration status, foreign income, credit history, down-payment verification and lender-specific requirements before a buyer commits to a property.
