Tips For Buying An Apartment In Canada With A Partner

Buying an apartment in Canada with a partner means you are both on the hook for the mortgage, the taxes, and the legal paperwork, but the rules around who can buy and how much you need to put down have shifted recently. The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act currently bans most foreign nationals from buying residential properties with up to three units in major urban areas until 1 January 2027. That single restriction changes the entire conversation for couples where one or both partners are not Canadian citizens or permanent residents.

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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.

35%
Minimum down payment often required for foreign buyers without Canadian credit
Exchange Rates UK

25%
Non-Resident Speculation Tax on foreign buyers in Ontario
Exchange Rates UK

1.5–4%
Closing costs as a percentage of the purchase price
Exchange Rates UK

CAD 60,000
Tax-free RRSP withdrawal limit per person under the Home Buyers’ Plan
Exchange Rates UK

If you and your partner are both Canadian citizens or permanent residents, the path is more straightforward. If one of you is a foreign national, you need to check whether the property falls inside a Census Metropolitan Area and whether either of you qualifies for an exemption. The ban does not apply to buildings with four or more units, rural properties, or certain temporary workers and students. Here’s what you actually need to know.

Eligibility comes first
The federal ban on foreign buyers applies until 2027. Check whether you or your partner can buy at all before looking at properties.

Down payment rules differ by status
Canadian residents can put down as little as 5% on the first CAD 500,000. Foreign buyers often need 35% or more.

Provincial taxes vary wildly
Ontario adds a 25% non-resident tax. BC adds up to 20%. Nova Scotia charges 10%. Alberta charges nothing beyond registration fees.

Closing costs are real
Budget 1.5–4% of the purchase price for legal fees, land transfer tax, title insurance, and appraisal fees.

The central concept here is joint tenancy versus tenancy in common.

Joint Tenancy
Both partners own the entire property equally. If one dies, the other automatically inherits the full share. This is the default for most married couples buying together.

Tenancy in common lets each partner own a specific percentage, which matters if one contributes more to the down payment or if you want to leave your share to someone else. What I tend to notice is that couples skip this conversation entirely and only realise the difference when they try to sell or separate. A quick chat with a real estate lawyer before you sign anything saves a lot of confusion later.

What the full cost picture actually looks like for a couple

The purchase price is never the only number that matters. For a couple buying together, the total upfront cost includes the down payment, land transfer tax, legal fees, title insurance, appraisal fees, and property tax adjustments. The mix changes depending on whether one or both of you are Canadian residents.

Take a CAD 600,000 apartment in Toronto. If both partners are Canadian residents, the minimum down payment is 5% on the first CAD 500,000 (CAD 25,000) plus 10% on the remaining CAD 100,000 (CAD 10,000), for a total of CAD 35,000. If one partner is a foreign buyer, that same couple might need 35% down — CAD 210,000 — because the lender sees the foreign partner as higher risk. RBC has stated that foreign buyers and newcomers may qualify with at least 35% down and a reference letter from their home bank.

The CAD 1 threshold trap
In Ontario, the land transfer tax jumps from 1.5% to 2% on the portion of the purchase price above CAD 400,000. Buy a property for CAD 400,001 and the extra CAD 1 costs you CAD 20 in additional tax on that portion alone. The same principle applies in BC where the property transfer tax rate changes at CAD 200,000 and again at CAD 2 million.

Closing costs typically run 1.5–4% of the purchase price. On that CAD 600,000 apartment, you are looking at CAD 9,000 to CAD 24,000 in additional cash before you even move in. That covers legal fees (CAD 800–2,000), a home inspection (CAD 400–700), title insurance (CAD 250–500), and an appraisal fee (CAD 300–500). If your down payment is under 20%, you also pay CMHC mortgage default insurance at 2.8–4% of the loan amount, which gets added to your mortgage rather than paid upfront.

→ Scroll right to see all columns

Source: Exchange Rates UK guide
ProvinceLand Transfer TaxForeign Buyer Tax
British Columbia1% on first CAD 200k, 2% on CAD 200k–2m, 3% over CAD 2m20% on designated areas
Ontario0.5% up to CAD 55k, 1% to CAD 250k, 1.5% to CAD 400k, 2% to CAD 2m, 2.5% above25% Non-Resident Speculation Tax
Nova ScotiaDeed transfer tax10% of purchase price or assessed value
AlbertaNo land transfer tax (small registration fees only)None

Worth weighing against the lower-tax provinces: Manitoba, Saskatchewan, and New Brunswick have land transfer taxes and may charge higher property tax rates, but the base home prices are lower. Alberta has no land transfer tax at all, which can save a couple thousands of dollars on day one.

Common mistakes couples make when buying together in Canada

Assuming both names on the title means equal financial responsibility

Joint tenancy means you both own the property equally, but it does not mean the bank sees you as equal borrowers. If one partner has a lower credit score or no Canadian credit history, the lender may base the mortgage rate on the weaker applicant. That can mean a higher interest rate for the whole loan. The fix is to get pre-approved together early and ask the lender to run scenarios with and without the lower-score partner on the application. Sometimes it makes sense for the stronger borrower to qualify alone and add the partner to the title later, though that may trigger additional legal fees and land transfer tax depending on the province.

Ignoring the foreign buyer ban until after you find a property

The federal ban on foreign buyers applies to residential properties with up to three units in Census Metropolitan Areas and Agglomerations. If you and your partner fall in love with a duplex in downtown Vancouver and one of you is a foreign national, you cannot buy it unless you qualify for an exemption. Students and temporary workers can sometimes get an exemption, but the process requires documentation and time. The smarter move is to check eligibility before you start viewing properties. If the ban applies, look at buildings with four or more units or properties outside the designated urban areas.

Forgetting to budget for the strata or condo fees

Apartments in Canada are almost always strata or condominium properties, which means monthly fees for common areas, maintenance, and reserves. Those fees can run CAD 300–800 per month depending on the building and location. They count toward the lender’s calculation of your total debt obligations. If your combined housing costs (mortgage, strata fees, property tax, heating) exceed 39% of your gross income, the lender may reduce the amount they are willing to lend. A couple earning CAD 120,000 combined can afford roughly CAD 3,900 per month in total housing costs. A CAD 600 strata fee eats into that number fast.

Skipping the home inspection to save money

A home inspection costs CAD 400–700. Skipping it to save that amount can cost you thousands if the building has hidden issues like outdated wiring, plumbing problems, or a leaky roof. In a strata apartment, the inspection should also include a review of the strata’s depreciation report and reserve fund study. If the building has a special levy coming up for major repairs, that cost falls on you as the new owner. A good inspector will flag these issues before you commit.

How the buying process actually works for a couple

Step one: eligibility and pre-approval

Before you look at a single listing, confirm that both of you are legally allowed to buy the type of property you want in the location you have chosen. If one partner is a foreign national, check the federal ban exemptions and any provincial foreign buyer taxes. Then get pre-approved by a mortgage broker or bank. The lender will look at your combined income, credit scores, and debt levels. They want to see housing costs at or below 39% of gross income and total debt payments below 44%. Pre-approval gives you a firm price ceiling and shows sellers you are serious.

Step two: choose your ownership structure

Decide whether you will hold the property as joint tenants or tenants in common. Joint tenants means equal ownership and automatic inheritance. Tenants in common lets you split ownership unevenly, which matters if one partner contributes more to the down payment. This decision goes into the deed and affects what happens if you separate or if one of you dies. A real estate lawyer or notary handles this paperwork. In most provinces, lawyers handle conveyancing and title work, so factor their fees into your closing costs.

Step three: make an offer and negotiate

Your real estate agent will help you draft an offer that includes the purchase price, deposit amount, conditions (financing, inspection, insurance), and the closing date. The seller’s agent presents the offer to the seller. In a competitive market, you may need to waive some conditions to win the bid, but that increases your risk. If you waive the financing condition and then cannot get a mortgage, you lose your deposit. Most couples keep the financing and inspection conditions in place unless they have cash reserves to cover the gap.

Step four: closing and moving in

Once the offer is accepted, your lawyer handles the conveyancing: title search, land transfer tax payment, registration of the deed, and adjustment of property taxes. You will need to provide proof of mortgage approval, down payment funds, and identification. Closing typically takes 30–90 days from the accepted offer. On closing day, your lawyer transfers the funds, the deed is registered, and you get the keys. Budget for moving costs, utility connections, and any immediate repairs or upgrades.

What is changing: leasehold reform and upcoming tax shifts

The federal foreign buyer ban is set to expire on 1 January 2027 unless the government extends it. British Columbia’s speculation and vacancy tax is rising from 2% to 3% in 2026, which affects non-resident owners who do not occupy or rent out their property. Ontario’s Non-Resident Speculation Tax remains at 25% and applies to foreign buyers in the Greater Golden Horseshoe area. If you are buying as a couple with one foreign partner, these taxes can add tens of thousands to your purchase cost. Planning to become a permanent resident before buying can eliminate some of these surcharges, but that takes time and is not an option for every couple.

Frequently asked questions

Can a Canadian citizen and a foreign national buy an apartment together in Canada?
Yes, but the foreign national may be restricted by the federal ban if the property has up to three units and is in a Census Metropolitan Area. Exemptions exist for students and temporary workers.
What happens to the apartment if one partner dies?
Under joint tenancy, the surviving partner automatically inherits the full property. Under tenancy in common, the deceased partner’s share goes to their estate or named beneficiary.
Do we both need to be on the mortgage?
Not necessarily. One partner can qualify alone, but the other may need to be added to the title later. That can trigger additional legal fees and land transfer tax in some provinces.
Can we use the Home Buyers’ Plan if only one of us is a first-time buyer?
Yes. Each partner can withdraw up to CAD 60,000 from their RRSP tax-free if they meet the first-time buyer criteria. The other partner can still contribute their share of the down payment from savings.
What is the difference between strata and freehold for an apartment?
Strata means you own the unit and share ownership of common areas with monthly fees. Freehold means you own the land and building outright, which is rare for apartments in Canada.
Are there any tax breaks for couples buying together?
The Home Buyers’ Plan allows RRSP withdrawals. Some provinces offer first-time buyer rebates on land transfer tax. Check your province’s rules, as eligibility varies.

What the next few years mean for couples buying in Canada

The foreign buyer ban expires in 2027, and provincial taxes are trending upward rather than down. For couples where one partner is a foreign national, the window to buy without the 25% Ontario surcharge or the 20% BC tax may open again after the ban lifts, but nobody can guarantee that. What I would do is focus on what you can control now: get your credit scores in order, save a larger down payment than you think you need, and talk to a lawyer about ownership structure before you make an offer. The couples who do that tend to close faster and with fewer surprises.

Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.

If this was useful, you might also want to read Top Tips for Buying an Apartment in Canada Today.

Sources and Further Reading

Essential Steps in the Deed of Sale Process for Apartment Buyers in Canada — A detailed walkthrough of the legal paperwork and conveyancing steps after your offer is accepted.

Home Affordability Calculator Tips for Buying an Apartment — Practical guidance on how lenders calculate what you can borrow and how to use that number when house hunting with a partner.

Exchange Rates UK (2025). Ultimate Guide to Buying Property in Canada (2025-2026 Edition). 🔗

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Sam Willy

I’m Sam Willy, one of the bright minds behind BritWealth.com, where I share insights, stories, and fun ideas about a wide range of topics—finance included, but not limited to it! My journey into the world of writing began with a simple hobby: sharing the things that fascinated me. From quirky facts to deeper dives into personal development, I’ve always been curious about the world around me and love passing that knowledge on.
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