A recent Royal LePage survey found 54% of Canadians with property south of the border are considering selling within the next year, with nearly a third planning to reinvest in Canadian real estate. While some cited political and social issues in the U.S., industry voices caution against overstating those concerns.
Speaking with Canadian Mortgage Trends, Ryan Sims of TMG The Mortgage Group noted that sentiment among Canadians in the U.S. is less severe than often portrayed.
“Political affairs are absolutely influencing a lot of Canadians right now, however I think it is also overblown by the media,” said Sims, who is based in the U.S. Gulf Coast. “While there are certainly a lot of political winds blowing, I really do not believe that any laws will change to take away property or property rights from non-U.S. citizens.”
What’s really driving sales
For many owners, the concerns are more practical. Sims cites rising property taxes, soaring insurance premiums in hurricane-prone states, and the drag of a weak Canadian dollar. In Florida, for instance, insurance costs have doubled in the past three years following three storm-heavy seasons.
“These factors alone make a lot of people queasy about owning in Florida,” he explains. “Couple that with a Canadian dollar that is sinking fast, and those taxes and insurance payments only get blown up more.”
Financing pressures are compounding the strain. Many Canadians purchased U.S. property in 2020–22 by drawing on home equity at home. With today’s higher rates, the combination of U.S. expenses and renewed Canadian mortgages is tightening budgets.
Selling a U.S. property to pay down debt at home has since become a logical, if not necessary, step for many Canadian homeowners. “Selling the U.S. property is a win-win for these folks,” Sims says, noting the move often frees up cash flow, even before accounting for the currency conversion advantage of selling in U.S. dollars.
Reinvestment pressures and emotional decisions
According to Royal LePage’s data, almost one third (32%) of respondents who have recently sold or are planning to sell within the next year plan on reinvesting into the domestic housing market, indicating that the broader ‘Buy Canadian’ movement is extending into real estate.
“The shift of wealth from U.S. property sales is tangible,” Tracy Valko, Founder of Valko Financial, told Canadian Mortgage Trends. “The bulk of demand is for detached homes, cottages, and retirement properties, echoing buyer desire for both lifestyle and wealth preservation.”
Canadian lenders are generally receptive to the repatriated funds, as larger down payments reduce leverage. But Valko stresses the need for clean documentation. Borrowers must show detailed proof of sale proceeds, evidence of U.S. tax compliance — including FIRPTA withholdings — and conversion records. Enhanced scrutiny around anti–money laundering rules means buyers should expect longer timelines.
No blanket incentives exist for these buyers, but brokers say that in today’s tighter lending environment, a well-capitalized client with significant cash is often viewed as a stronger file.
According to Royal LePage, of those who have sold their property in the U.S. within the last year, 44% say it was due to the current political administration.
Sims argues those concerns are largely emotional. “Emotion never works when using it for finance or financial decisions, and this is no different,” he says.
Valko also advises against reactionary moves. “Don’t underestimate the complexity or opportunity presented by this shift,” she says. “Sellers need a team that includes both Canadian and U.S. tax consultants, as well as mortgage and real estate professionals who specialize in cross-border transactions.”
With cross-border capital gains, dual tax exposure, and potential IRS withholdings, the net proceeds from a U.S. sale may be smaller than expected.
That makes advance planning essential to avoid delays and surprises when reinvesting at home. And for buyers competing in smaller Canadian markets, this new flow of capital could mean tighter inventory and rising prices in the months ahead.
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Last modified: September 18, 2025