Your guide to mortgages for buying property abroad as a Canadian

If you're a Canadian buying property abroad, you may be wondering about the mortgage process: your options, how it works, and how to use CAD to buy in another currency.

This guide covers how to get a mortgage in another country. It also introduces Wise, which can help with currency conversion, saving you money, time, and effort during the purchase.

Can you get a Canadian mortgage for foreign property?

Canadians can get a mortgage for foreign property from a Canadian bank or from a bank in the country where the property is located. Several Canadian banks offer dedicated programs for foreign property purchases, letting you use your Canadian credit history, especially for homes in the US.

Each bank sets its own eligibility criteria, usually based on credit history and income. If you apply with a foreign bank, consider whether you have a local credit history. Requirements vary by country, which can make approval easier or harder.

How Canadian banks approach foreign property mortgages

The RBC US Home Plus Advantage Program¹, and the TD cross border mortgage² are two examples of Canadian banks programs for buying property abroad. These programs focus on Canadian buyers of US property, so support is tailored to the US home-buying process. Banks can guide you through required documents for a US purchase, which may differ from those needed in Canada.

Requirements for Canadians seeking a foreign mortgage

Lenders typically assess your credit history. In general, stronger credit increases approval chances. Some Canadian banks can use your Canadian credit history, which may be stronger than your history in the country of purchase to assess your application. For example, RBC may review both your US and Canadian credit profiles and use the stronger profile.³ This can help if you have limited or no US credit history.

You'll also need a down payment. While this varies by bank, TD and RBC typically require 20% for primary, secondary, and vacation homes, and 25% for investment properties.⁴

Local mortgages abroad vs Canadian mortgages for foreign property

Consider these factors when choosing between a Canadian or local mortgage. Interest rates differ by country and can change your overall cost significantly. A Canadian lender may offer a better rate if they can fully assess your Canadian credit history.

Specialist programs for Canadians buying abroad can advise on accepted Canadian documents, which is support a foreign bank may not offer.

When does it make sense to borrow locally?

Canadian bank international programs generally focus on US property. You may struggle to find Canadian lenders for other countries.

If you're buying outside the US, a local mortgage may be your best option. Brokers that specialise in expat buyers can help you navigate local lenders.

Costs and fees to budget for when buying abroad

When choosing a property, factor in all costs associated with the purchase. For example, you may have to pay the following upfront⁵:

• Interest at closing for the period between closing and your first scheduled payment.
• Mortgage insurance, depending on your down payment.
• Homeowners insurance

Also consider taxes, lender fees, and third-party fees. These vary by lender program and country. Review local laws and regulations to avoid surprises versus Canada.

Another often overlooked cost is currency conversion. Many banks handle FX but add an exchange-rate markup, giving you less foreign currency for your CAD. This can add up quickly—potentially thousands of dollars.

Common costs of international property purchase

How to decide between Canadian and local mortgage options

Consider these factors when choosing between a Canadian and a local mortgage. Canadian mortgages may be more convenient, with advisors who understand Canadian and cross-border requirements. However, options may be limited, especially outside the US.

Interest rates differ by country; you may get a better rate abroad if you have a strong local credit profile or a lender accepts your Canadian credit history. Some countries offer mortgage programs for foreign buyers that may suit your needs.

Challenges with a Canadian mortgage for foreign property

While Canadian banks often offer US mortgages, it may be harder to borrow for property in other countries. In that case, consider a local bank or a specialist broker.

Even with a Canadian lender, requirements may be stricter than for a domestic mortgage. This may mean a higher down payment or a less favourable interest rate compared with buying locally.

Managing repayments and transfers efficiently

When sending monthly payments abroad, you'll likely pay for currency conversion. Most financial institutions, including Canadian banks, charge a conversion fee and an FX markup. The fee is upfront, usually a percentage of the amount converted. The FX markup is embedded in an unfavourable exchange rate. These costs add up, especially on large, regular payments—potentially thousands of CAD.

Consider a provider like Wise, which specialises in international payments, to help reduce these costs.

Why Wise is a smart option for Canadians with a foreign mortgage

Wise uses the mid-market rate, with no exchange-rate markup. Instead, Wise charges a low, upfront fee with transparent pricing, so you know the total cost before you send. Wise offers a bulk transfer discount when you send more than 35,000 CAD in a month. Large transfers, like a down payment may qualify for additional discounts.

Wise's Large Amount Transfer service supports high-value payments, such as a downpayment. A dedicated support team guides you through the process and keeps you updated.

If you're unsure, use the Wise online conversion calculator. It shows the exchange rate, fees, and total cost. Compare it with other providers to ensure good value.

Conclusion

Canadians have several options for mortgages on foreign property. The right choice depends on your credit profile and where you plan to buy.

When choosing a mortgage, consider currency-conversion costs, especially hidden markups in the exchange rate. Compare bank and provider fees and exchange rates—including Wise—to get the best overall price.

Sources verified on 30 December 2025