What Canadians Need to Know Before Buying Property in Orlando

Florida is the top U.S. destination for Canadian buyers — by a significant margin. Ontario buyers alone account for a large share of Canadian-owned Florida properties, followed by Quebec, British Columbia, and Alberta. And within Florida, the Orlando market is where I consistently see Canadians land: Dr. Phillips and Windermere for the lifestyle and luxury, Lake Nona for the newer construction and medical community employment ties, and gated communities along the I-4 corridor for the snowbird rental model.

Here's what makes a cross-border purchase work — and what trips people up.

Know the Real Cost Before You Fall in Love With a House

Property taxes and insurance in Florida are real budget items. On a $700,000 home in Orange County, expect annual property taxes around $7,000–$10,000 (assuming no homestead exemption — non-residents don't qualify). Wind and general homeowners insurance has risen sharply since 2022; budget $4,000–$8,000/year for a single-family home depending on age, roof type, and location. Flood insurance is separate and mandatory in many zones. I tell Canadian clients: run the carrying cost before you run the purchase price.

Financing as a Foreign National

You can get a U.S. mortgage as a Canadian citizen — it just requires more documentation. Cross-border specialists like RBC Bank (U.S.) or CIBC's U.S. mortgage division work with Canadians regularly. Expect a 25–30% down payment requirement, and rates 0.5%–1% above standard conforming loans. Many Canadian buyers in the $600,000–$1.2M range opt for cash purchases to simplify the transaction, then explore home equity financing later.

Also factor in the Canadian dollar exchange rate. When the CAD is at 0.72–0.75 against the USD, a $900,000 purchase costs over $1.2M Canadian. That's a number worth running before you make an offer.

FIRPTA — The Rule That Surprises Everyone at Closing

This is where most buyers get caught off guard. FIRPTA (Foreign Investment in Real Property Tax Act) requires the buyer's title company to withhold 15% of the gross sale price when a foreign national sells U.S. real estate. That's 15% of the sale price — not the gain.

On a $700,000 sale, that's $105,000 withheld at closing and submitted to the IRS, pending your U.S. tax return filing. You can get it back — but it requires filing a U.S. non-resident return (Form 1040-NR), and the process takes 6–12 months. Plan for it, and work with a cross-border CPA (not just a Canadian accountant) well before you're ready to sell.

Pick the Right Neighborhood for Your Use Case

This matters more than anything else. A snowbird home used 3–4 months per year has different needs than a rental investment. For the snowbird model, gated communities with on-site HOA management work well — communities like Phillips Grove and Turtle Creek in Dr. Phillips or Keene's Pointe in Windermere have maintained grounds and low-maintenance exteriors. For a rental investment, you want a location with tight vacancy — south Orange County near Lake Nona (zip code 32827) and southwest Orange (32836) have strong year-round rental demand driven by hospital and airport employment.

HOA Rules Can Kill a Rental Strategy

Don't assume you can rent a property short-term. HOA communities in Florida vary widely — some allow 30-day minimum rentals, others allow 12-month leases only, and some prohibit rentals entirely. Read the CC&Rs before you close, not after. I've had clients fall in love with a community only to discover on day three of due diligence that their Airbnb plan was prohibited. The title company will not catch this for you.

Property Management Is Not Optional for Absentee Owners

A professional property manager costs 8–12% of monthly rent, or a flat fee for seasonal oversight. In Orlando, that runs about $150–$250/month for a home that's occupied by owners part-time and vacant the rest. That fee covers: hurricane shutter deployment, AC system monitoring (critical — a dead AC in July causes mold within days), vendor coordination, and emergency response. For Canadian buyers who fly home in May, this isn't optional — it's basic risk management.

Get the Right Professionals in Place Early

You need a Florida real estate attorney (not just a title company), a cross-border CPA familiar with FIRPTA and the Canada-U.S. Tax Treaty, and a local agent who knows the neighborhoods you're considering. At MaxLife Realty, I work with Canadian buyers regularly and can connect you with the professionals who make these transactions run smoothly. Reach out to start the conversation.

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