Canadian Commercial Mortgages
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Non resident borrower

I do not live in Canada

People who live outside Canada do buy and finance commercial property in British Columbia. The lender list is shorter, the down payment is larger and the paperwork is heavier than it would be for a resident, but the rules most often quoted at non resident buyers are residential rules, and most of them do not apply to commercial property at all.

The short answer

Buildings with four or more dwelling units and vacant land fall outside the federal foreign buyer prohibition, so most commercial purchases stay open to you, with a larger down payment, a Canadian banking relationship and a longer timeline.

  • The prohibition covers residential property as the Act defines it: a detached house or a building with three or fewer dwelling units, or a semi detached house, rowhouse unit or condominium unit.
  • Outside it: buildings with four or more dwelling units, and vacant land. An apartment building, an industrial bay, a retail plaza or a development site is generally not caught.
  • Lenders want a larger down payment than a resident would need, a Canadian bank account, and a Canadian corporation or a guarantee structure that can be enforced here.
  • They also want documented source of funds and identity verification that satisfies anti money laundering requirements.
  • The exclusions turn on how the property is defined rather than on how it is used, so confirm the specific purchase with a lawyer.
Halftone illustration of a globe beside a simple commercial building.

The foreign buyer ban does not cover most commercial property

The federal Prohibition on the Purchase of Residential Property by Non Canadians Act has been in force since January 2023 and is currently extended to January 1 2027. It applies to residential property, which the Act defines as a detached house or a building with three or fewer dwelling units, or a semi detached house, rowhouse unit or condominium unit.

Buildings with four or more dwelling units fall outside it, and so does vacant land. An apartment building, an industrial bay, a retail plaza or a development site is therefore generally not caught.

The exclusions turn on how the property is defined rather than on how it is used, so the specific purchase needs to be confirmed with a lawyer.

What lenders want from a borrower who lives abroad

A larger down payment than a resident would need. A Canadian bank account and an established banking relationship. A Canadian corporation or a guarantee structure that can actually be enforced here.

Documented source of funds, and identity verification that satisfies anti money laundering requirements. The leverage available is materially lower than for a resident borrower and varies by lender and asset class. The commercial mortgage requirements page covers what every file needs on top of that.

The taxes that surprise people at closing

British Columbia property transfer tax, which has an additional component on residential property in specified areas. The speculation and vacancy tax, which again is residential. Goods and services tax on commercial purchases. And withholding obligations on Canadian rental income earned by a non resident.

These are questions for a Canadian accountant and a lawyer, not for a mortgage broker. Getting advice before the offer is cheaper than after. Our commercial mortgages overview sets out how the financing side fits around them.

What makes these files go smoothly

Open the Canadian banking relationship before you need it, and have documents translated and notarised in advance.

Expect detailed source of funds questions and do not take them personally, and allow a longer timeline than a resident purchase would need.

FAQ

Non resident borrower questions we hear most.

Generally no. The federal prohibition applies to residential property as the Act defines it, which covers buildings with three or fewer dwelling units and individual condominium, rowhouse and semi detached units. Buildings with four or more dwelling units and vacant land are outside it. Confirm your specific property with a lawyer before you rely on this.

More than a resident borrower, and how much more depends on the lender, the asset class and the strength of the file. This is one of the first things worth establishing, because it determines whether the purchase you are contemplating is realistic at all.

Not always, but many lenders prefer it, and some require it. What lenders really want is a borrower and a guarantee they can enforce in Canada, and a Canadian company with a Canadian bank account is the simplest way to give them that.

It can, but it has to be documented in a way a Canadian lender can verify, which often means translated, notarised and accompanied by tax filings from your home country. Verifiable income from abroad is usable. Income you cannot evidence is not.

Longer, mainly because of document gathering, verification and time zones rather than because of the credit decision itself. Starting the banking and documentation side early is the single biggest thing that shortens it.
Keep reading

Related situations

Commercial mortgages in British ColumbiaThe full overview of how these loans are sized and priced.Commercial mortgage requirementsWhat lenders ask for on every file.How long this takesA stage by stage timeline and the usual bottlenecks.Have a broker read your dealSend the property and the numbers and get a straight answer. No fee, no credit check.

Tell us where you are and what you are buying.

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