Canadians Buying Property in Florida- A Complete Guide

Florida remains the top destination for international homebuyers, and Canadians are leading the charge! According to the National Association of Realtors (NAR), 23% of all foreign US home purchases happen in Florida, making it the most sought-after state.       

With warm weather, no state income tax, and home prices often lower than in Canada’s major cities, it’s no surprise Canadians are snapping up properties. Florida’s affordability and strong rental market make it an unbeatable choice for a vacation home, investment, or permanent residence.   

With rising demand and expert mortgage solutions available—even for those without a US credit history or those not living in the country —there’s never been a better time to buy. If you dream of a Florida getaway or a wise investment, now’s the time to make it happen! 

Key Takeaways: 

➡️ Canadians can freely purchase real estate in Florida for vacation, investment, or permanent relocation without any restrictions. 

➡️ Canadians spent approximately $3.2 billion on Florida real estate, making them the largest group of foreign buyers.   

➡️ Thanks to the US-Canada tax treaty, Canadians are not subject to double taxation on rental income. Florida also has no state income tax, making it an attractive destination for real estate investment.

Requirements for Canadians to Buy Property in Florida 

Canadians looking to buy property in Florida follow a process similar to that of U.S. citizens, with no special restrictions. Whether purchasing a vacation home, rental property, or investment real estate, the key requirement is having the necessary funds—cash or a mortgage.  

For those needing financing, mortgage options are available even for Canadians with little or no U.S. credit history. With these mortgages, you can smoothly purchase your Florida property! Now, let’s discuss the process of Buying property in Florida as a Canadian. 

How can a Canadian Buy Property in Florida?  

Buying property in Florida as a Canadian is easier than you might think! With HomeAbroad’s expert guidance, the process becomes seamless. Here’s a step-by-step breakdown:   

1. Pick the Perfect Florida Location  

Research Florida’s real estate hotspots, such as Miami, Orlando, Tampa, or Naples, to match your goals, whether a vacation home, rental property, or investment.     

2. Work with a Specialized Real Estate Agent  

HomeAbroad’s Certified International Property Specialists (CIPS) ensure a hassle-free process, helping Canadians navigate Florida’s housing market efficiently.   

3. Secure a US Mortgage   

Through HomeAbroad’s financing solutions, Canadians can qualify for US mortgages without a US credit history, using their Canadian credit score or rental income potential.   

4. Get Pre-Approved & Start Your Search  

A pre-approval letter strengthens your buying position. Once pre-approved, your HomeAbroad agent will curate listings and arrange virtual or in-person viewings.   

5. Make an Offer & Sign the Purchase Agreement  

Once you find the right property, your agent will negotiate the best deal. Upon accepting the offer, you’ll sign the agreement and deposit 1%- 3% in escrow.   

6. Conduct Due Diligence  

• Title Check: Ensure the property is legally sound and has no liens.   

• Home Inspection: Identify any repair needs before closing.  

7. Finalize Mortgage & Close the Deal  

Your lender will guide you through the mortgage process. Once you receive the clear to close, complete the paperwork, pay closing costs, and officially own your Florida property!   

Want a visual guide? Watch this homebuying video or refer to this guide for the step-by-step process of Canadian Citizens buying a house in the USA. for more insights!   

Financing Options for Canadians Buying Property in Florida  

HomeAbroad offers specialized foreign national mortgage programs for foreign investors and newcomers without a US credit history. Here’s a breakdown of the available loan options and their requirements:   

1. Full Documentation Loan 

It is ideal for foreign investors and US newcomers requiring extensive documentation to verify income, assets, and employment.   

Requirements:  

✔ No US credit history needed  

✔ International Credit Report (ICR) or alternative Proof of creditworthiness  

✔ Proof of foreign income and assets  

✔ Bank reference letter or payment history on two tradelines (credit card, mortgage, etc.)  

2. DSCR (Debt Service Coverage Ratio) Loan  

This is ideal for investors purchasing rental properties, as approval is based on the property’s income rather than personal income. The investment property’s rental income is the qualifying factor for the cash-flow mortgage. 

Requirements:  

✔ DSCR ratio of 0.75+  

✔ Minimum 25% down payment  

✔ 6 months of PITIA cash reserves  

✔ 12-month rental income history (for short-term rentals like Airbnb)  

✔ Market rent appraisal or 12-month documented rental income  

✔ Can close from the home country   

3. Fix and Flip Loan 

These Short-term loans are ideal for investors purchasing, renovating, and reselling properties for profit.   

Requirements:  

✔ 6-24 months loan term  

✔ 25% – 30% down payment  

✔ Up to 85% Loan-to-Cost (LTC) and 75% After Repair Value (ARV)  

✔ Detailed renovation plan with cost estimates  

✔ Proof of previous successful flip projects   

4. Bridge Loan  

These short-term financing options are ideal for investors needing immediate funds to secure a new property before selling it.   

Requirements:  

✔ 6-24 months loan term  

✔ 25% – 30% down payment  

✔ Up to 75% LTV (Purchase)  

✔ Up to 70% LTV (Rate term refinance)  

✔ Up to 65% LTV (Cash-out refinance)  

✔ Proof of existing property equity  

✔ Exit strategy for loan repayment (e.g., property sale)   

5. HomeAbroad’s US Newcomer Mortgage  

Tailored for those new to the US without an established FICO score, helping them secure home financing based on foreign financial history.   

Requirements:  

✔ Down payment: 20%  

✔ No US credit is needed  

✔ Max DTI Ratio: 43%  

✔ Loan term: Up to 30 years  

✔ Loan amount: Up to $3 million  

✔ 6 months of cash reserves required  

✔ Foreign assets accepted for down payment and closing costs  

✔ No prepayment penalty   

With an Established US Credit History  

However, Canadians buying real estate with an established credit can qualify for traditional loans like FHA, Freddie Mac, and Fannie Mae.   

1. FHA Loan    

FHA loan is an excellent option for first-time home buyers with an established US credit history.   

Requirements: 

• This loan allows for a lower down payment of 3.5% and offers attractive, low-interest rates.   

• To qualify for an FHA loan, applicants need a credit score of more than 500.   

• Additionally, they must have verifiable employment and income records.   

• While FHA loans benefit US citizens, stricter criteria may make it challenging for most foreigners and non-residents to qualify.      

2. Conventional Loan   

Requirements: 

• Lenders require borrowers to meet specific criteria to be eligible for these loans.   

• Conventional mortgage lenders typically prefer a credit score of 620 or higher from borrowers.   

• A 43% or lower debt-to-income ratio is desirable for qualifying these loans.  

• Finding a lender who works with foreigners and understands the process is essential for a smooth approval process.   

What are the Tax Implications of Buying Property in Florida as a Canadian?  

The tax implications are not very different from those of any other state. However, you should know Florida’s tax rules and regulations before making informed decisions.   

Benefits for Canadians Buying Property in Florida  

Canadians remain the top foreign buyers in the U.S. real estate market, with 25.1% of all foreign purchases occurring in Florida. Between April 2023 and March 2024, Canadian buyers purchased approximately 11,300 properties in Florida, investing an estimated $5.5 billion. Here are the key benefits for Canadians buying in Florida:   

1. Favorable Weather & Vacation Lifestyle  

• Florida’s warm climate makes it a top choice for Canadian snowbirds looking to escape harsh winters. Many buyers purchase vacation homes that can also generate rental income when not in use.  

• The state offers beautiful beaches, golf courses, and world-famous attractions like Disney World. 

2. No State Income Tax  

Florida has zero state income tax, meaning you keep more of your rental or investment income, increasing profit margins. This is especially beneficial for those looking to earn from short-term vacation rentals.   

3. Strong & Stable Real Estate Market  

• Despite rising prices, Florida remains more affordable than major Canadian cities. The median home price in the U.S. as of April 2024 was $407,600, much lower than in Toronto or Vancouver.  

• Florida real estate remains relatively stable, even during economic downturns.   

4. Strong Return on Investment  

• The median purchase price for Canadian buyers is $416,100, with an average price of $485,000.   

• According to Neighborhood Scout, Florida real estate appreciated 27.41% from Q1 2021 to Q1 2022, making it a profitable investment.  

5. Higher Buying Power  

Despite a slightly weaker Canadian dollar, Florida homes are cheaper per square foot than real estate in Canada’s major cities. International buyers, including Canadians, comprise a large portion of the market, providing sustained demand.  

5. Simple Buying Process  

• Florida has a streamlined real estate process for foreign buyers, making it easy for Canadians to invest in properties without additional restrictions.  

• Purchasing property in Florida is straightforward, and there are no citizenship restrictions on foreign property ownership.  

6. Strong Rental Market: 

Florida offers strong rental income potential, resulting in high rental yields and strong cash flow potential with affordable prices and high demand. Check out these top cities: 

City	Rental Income	Cash on Cash Return
Old Town, Dixie	$1,395	5.71%
Suwannee, Dixie	$1,373	5.46%
Florahome, Putnam	$1,614	5.03%
Margate, Broward	$1,649	4.95%
South Palm Beach	$2,580	4.67%

Secure passive income and own a slice of Florida’s sunshine! 

Is It Worth Buying? 

Yes! With its strong market, tax benefits, and vacation appeal, Florida remains the top US destination for Canadian investors. If you’re considering buying, now may be a good time before prices increase.   

Given these factors, buying property in Florida is a solid investment opportunity for Canadians looking for a vacation home, rental income, or long-term appreciation.   

Would you like help finding the best Florida cities for investment? 

Best Places for Canadians to Buy Property in Florida  

Some best places to invest in Florida, five stand out as top choices:  

Each location presents unique opportunities for property buyers, catering to various preferences and interests.   

Click here: 10 Best Places for Canadians to Buy Vacation Property in the USA. 

Ready to Buy a Property in Florida? HomeAbroad Makes It Easy for Canadians! 

Florida has long been a destination for Canadian buyers seeking vacation homes, investment properties, or retirement retreats. However, navigating the US real estate market can be complex—especially without a US credit history or local financial connections.   

HomeAbroad simplifies the process, offering tailored solutions for Canadians, including:  

✔ Foreign National Mortgages – Secure financing without a US credit history.  

✔ AI-Powered Property Search – Find the perfect home aligned with your investment goals.  

✔ Expert Real Estate Agents – Get personalized guidance from a network of 500+ US professionals.  

✔ Comprehensive Concierge Services – From setting up an LLC to opening a US bank account, HomeAbroad handles it.     

With HomeAbroad, buying property in Florida is hassle-free, efficient, and tailored to Canadian buyers. Whether investing or relocating, HomeAbroad provides the tools, expertise, and seamless support to make your US real estate journey successful.  

Are you looking to buy a property in Florida? Contact HomeAbroad today to get started with a mortgage solution tailored to you! 

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