The “best” provinces vary depending on your investment goals, but several stand out in 2025:

• For Appreciation: British Columbia and Ontario continue to lead in price growth, particularly in major urban centers, despite higher entry costs
• For Cash Flow: Alberta, Saskatchewan and Manitoba offer stronger rental yields relative to property values
• For Balanced Returns: Atlantic provinces like Nova Scotia and New Brunswick provide moderate appreciation with good cash flow potential
• For Affordability: Saskatchewan, Manitoba, New Brunswick, and Newfoundland offer the lowest entry prices for investors
• For Landlord Protections: Alberta, Saskatchewan, and Newfoundland have more favorable laws for property owners

Consider your specific strategy, risk tolerance, and whether you’ll manage properties remotely when selecting markets. Our province-specific guides provide detailed analysis to help you identify the best match for your personal investment criteria.

Property tax rates vary significantly across Canadian provinces and can greatly impact investment returns:

• Highest Property Tax Provinces: New Brunswick (1.4%), Manitoba (1.2%), Saskatchewan (1.3%), Quebec in some municipalities (up to 1.0%)
• Lowest Property Tax Provinces: British Columbia (0.5%), Alberta (0.7%), Newfoundland and Labrador (0.9%), Ontario varies widely by municipality

However, effective tax burden depends on multiple factors:

• Assessment Values: Property taxes are calculated on assessed values, which may not match market values
• Municipal Variations: Tax rates can vary dramatically between cities within the same province
• Tax Rebates: Some provinces offer property tax rebates for primary residences
• Reassessment Cycles: Provinces reassess property values on different schedules

When evaluating investments, consider the full property tax burden including both provincial and municipal rates, as well as any special levies or taxes that may apply to investment properties specifically.

Landlord-tenant laws vary significantly across Canadian provinces, with some being more landlord-friendly than others:

• Most Landlord-Friendly Provinces:
  • Alberta: No rent control, efficient eviction processes, reasonable security deposit rules (up to one month)
  • Saskatchewan: Streamlined eviction procedures for non-payment, limited rent control, balanced regulations
  • Newfoundland: No rent control, reasonable notice periods, straightforward eviction process
• Most Tenant-Friendly Provinces:
  • Ontario: Complex Landlord and Tenant Board process, strict rent increase guidelines, lengthy eviction timelines
  • Quebec: Unique civil law system with the Régie du logement, strong tenant protections, complex eviction procedures
  • British Columbia: Rent increase caps, significant tenant protections, longer notice periods

Key factors to compare include eviction procedures, rent control regulations, security deposit rules, notice periods for tenancy changes, and habitation standards. Our province-specific guides detail these regulations for each market.

Non-residents can purchase Canadian real estate, but must navigate several additional considerations:

• Foreign Buyer Restrictions:
  • Canada’s Foreign Buyer Ban (2023-2027) prohibits non-residents from purchasing residential properties in Census Metropolitan Areas
  • Exemptions exist for permanent residents, foreign nationals with work permits, and international students meeting certain criteria
  • Commercial properties and residential properties in rural areas are generally exempt from the ban
• Provincial Foreign Buyer Taxes:
  • British Columbia: 20% foreign buyer tax in major urban areas
  • Ontario: 25% Non-Resident Speculation Tax in the Greater Golden Horseshoe Region
  • Nova Scotia: 5% Non-Resident Deed Transfer Tax
  • Prince Edward Island: 5% Non-Resident Land Transfer Tax
• Financing Challenges:
  • Higher down payment requirements (typically 35-50% vs. 20% for residents)
  • Higher interest rates on mortgage products (usually +1-2%)
  • Fewer lenders willing to work with non-residents
• Tax Considerations:
  • 25% withholding tax on rental income (can file Canadian tax return to reduce)
  • 25% withholding tax on property sale proceeds unless obtaining a Clearance Certificate
  • Potential for double taxation without proper tax planning

Non-residents should work with a team of professionals experienced in cross-border real estate transactions, including a real estate lawyer, accountant with cross-border tax expertise, mortgage broker experienced with non-resident lending, and a realtor familiar with foreign buyer transactions.

The Canadian mortgage stress test is a federally mandated program designed to ensure borrowers can afford their mortgage payments even if interest rates rise:

• How it Works:
  • Borrowers must qualify at their contract rate plus 2% OR the Bank of Canada benchmark rate (whichever is higher)
  • This applies to all federally regulated financial institutions
  • Applies to both insured mortgages (less than 20% down) and uninsured mortgages (20%+ down)
• Impact on Investors:
  • Reduces maximum borrowing amount by approximately 20%
  • May limit ability to grow portfolio through leverage
  • Creates additional buffer against rising interest rates
  • Applies to refinances as well as purchases
• Potential Workarounds:
  • Credit unions (provincially regulated) may have different qualification criteria
  • Private lenders not subject to federal regulations (but with higher interest rates)
  • Utilizing joint borrowers to increase qualifying income
  • Extending amortization periods to reduce qualification payment amounts

Investors should work with mortgage brokers specializing in investment properties to navigate stress test requirements and explore the full range of financing options available for their specific situation.

Short-term rental (STR) regulations vary dramatically across Canadian provinces and municipalities, creating a complex regulatory landscape for investors:

• Major City Regulations:
  • Toronto: Principal residence only, mandatory registration, 180-day annual cap for entire home rentals
  • Vancouver: Principal residence only, business license required, banned in most secondary properties
  • Montreal: Principal residence only in many areas, provincial certification required, zoning restrictions
  • Calgary: Both primary and secondary properties allowed, business license and tier-based fees
• Provincial Frameworks:
  • Quebec: Provincial registration system with classification certificate and specific tax regime
  • British Columbia: Provincial enabling legislation with municipal implementation
  • Prince Edward Island: Tourism PEI licenses required with property-specific regulations
  • Ontario: Municipal authority to regulate, provincial framework under development
• Common Regulatory Elements:
  • Principal residence requirements (limiting investment properties)
  • Registration or licensing systems with associated fees
  • Health and safety standards and inspections
  • Maximum annual rental day caps
  • Specialized insurance requirements
  • Zoning restrictions in specific neighborhoods

Due to the hyper-local nature of STR regulations and their frequent changes, investors should thoroughly research current municipal bylaws before purchasing properties intended for short-term rental use. Our province guides include sections on STR regulations with links to updated resources.