A new survey found that 37% of Canadians say they do not know enough about the cross-border buying process
A new poll from the Royal Bank of Canada has put hard numbers to something many mortgage brokers already sense in client conversations: Canadians are curious about United States real estate, but largely confused about how to pursue it.
The RBC survey found that 37% of Canadians say they do not know enough about the cross-border buying process. That's a knowledge gap that, for brokers positioned to guide clients through it, represents an underserved and potentially growing segment of the market.
That figure sits alongside a broader trend in which Canadian interest in US real estate has cooled significantly amid tariff tensions and political friction, yet a committed minority remains drawn south of the border.
Knowledge gap drives hesitation
According to the RBC data, nearly three in ten Canadians, or 29%, believe purchasing US property is either too complicated or too expensive. A further 27% say the tax implications feel overwhelming.
These concerns are not entirely unfounded. Cross-border property transactions require navigating both US and Canadian tax obligations simultaneously.
Under the Foreign Investment in Real Property Tax Act (FIRPTA), for instance, the IRS applies a 15% withholding tax on the gross sale price when a Canadian resident sells a US property, a rule that catches many buyers off guard long after the purchase is made.
Canadian residents selling US property face obligations in both countries, with only half of the capital gain taxable in Canada due to the 50% inclusion rate, though currency conversion adds another layer of complexity.
Financing is a parallel challenge. Traditional US mortgage lenders often have strict requirements that can be difficult for Canadians to meet, and may charge a higher interest rate for foreign nationals, though cross-border programmes from Canadian banks have emerged to bridge that gap.
Working with a cross-border lender allows Canadians to use their Canadian credit history for US mortgages, though a minimum down payment of 20% is generally required for primary residences and vacation homes, rising to 25% for investment properties.
These are precisely the conversations that brokers, with the right training and lender relationships, are well placed to lead. There has been a growing complexity of cross-border mortgage options and specialist expertise now available to facilitate them.
Who is still buying — and why
Despite the hesitation, the RBC poll shows that 11% of Canadians are either looking to own or already own US property.
Among that group, the motivations are telling: 35% cite quality of life as their primary driver, while 28% are motivated by retirement or long-term planning.
The data suggests these are deliberate, considered buyers, not speculative ones, and they are sensitive to economics.
US property prices are the top purchase influence at 27%, followed by exchange rates at 25% and the cost of maintaining a second property at 24%.
The National Association of Realtors has noted that Canadians remain among the top two foreign investors in US real estate, though transactions have declined significantly in recent years compared to the 2010s.
The political environment has accelerated that decline. A RAM Development Group survey found that 81% of Canadians now prefer to keep their investments at home, and real estate professionals have noted a sharp uptick in Canadians listing their second homes in the US as tariff uncertainty continues.
Yet even within this environment, the retirement and lifestyle-driven segment identified in RBC's data is unlikely to disappear entirely. Florida and Arizona, long the preferred destinations for Canadian buyers, retain their appeal for those planning their post-work years.
What brokers need to know
The opportunity embedded in the RBC findings is straightforward: the largest single barrier to cross-border home buying is not cost, it is information.
With 37% of Canadians citing a lack of knowledge as their primary obstacle, brokers who can demystify the process stand to differentiate themselves meaningfully.
That means becoming fluent in cross-border financing programmes offered by major Canadian banks, understanding the basics of FIRPTA and dual tax obligations, and being able to connect clients with cross-border legal and tax specialists.
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