How to Buy Land in Canada: A Simple Guide

Want to buy land in Canada? Whether you're dreaming of building your perfect home, investing for the future, or just want a piece of Canada's beautiful countryside, buying vacant land is a smart move. 

Here's how you do it: check the title to confirm ownership, verify zoning to know what you can build, secure financing (you'll need a bigger down payment than for houses), test the land quality, and close the deal with help from a real estate pro. While it might seem complicated at first, the process is actually straightforward when you break it down. And unlike buying a finished house, land gives you the freedom to create exactly what you want. Let's walk through each step so you can buy with confidence.

How to Buy Land: 5 Quick Tips

• Check who really owns the land with a title search
• Find out what you can build by learning local zoning rules
• Figure out financing—you'll need a bigger down payment than for a house
• Test the land with surveys and soil tests before buying
• Work with a real estate pro who knows land deals

Who Can Own Land in Canada?

Before you start looking at properties, know the basic rules about land in Canada.

The Land Title Act protects buyers like you. While there are numerous versions for each province, these acts generally ensure the seller actually owns the land they're selling. Always do a title search—it shows if there are any problems with the property like unpaid taxes or restrictions on what you can build.

Canada has three main types of land:

• Private land (owned by people or companies)
• Crown land (owned by the government)
• Indigenous lands (with special ownership rules)

In Canada, private individuals or businesses generally cannot buy Indigenous land, as it is held in trust by the federal government and not privately owned, though it can be leased or developed through partnerships with Indigenous communities. 

Crown land, which makes up most of Canada's land, is owned by federal or provincial governments and is rarely sold, but it can be leased or licensed for specific uses like forestry, mining, tourism, or agriculture. Any access to either type of land is heavily regulated, often requires consultation with Indigenous groups, and must comply with environmental and land-use policies.

What Can You Actually Build? Check Zoning Rules First

Found a piece of land you love? Hold up! Check the zoning rules before you get too excited.

Zoning laws tell you what you can and can't do with the land. Every city and town has different rules. Zoning classes for land in British Columbia include:

• Class 1: Residential
• Class 7: Managed Forest Land (Privately-Owned)
• Class 8: Recreational Property/Non-Profit Land
• Class 9: Farm

Call the local planning office and ask about the exact property you want to buy. If the land isn't zoned for what you want to do, you might be able to apply for a change—but this takes time and isn't guaranteed.

You'll need building permits before you start any construction. Don't skip this step! Illegal building can lead to BIG fines and headaches later.

Is It Raw Land or Vacant Land? The Difference Matters

Raw land and vacant land differ in key ways that impact investment decisions. 

Raw land is completely undeveloped, with no utilities, structures, improvements, or established access, often lacking surveys and clear zoning. This means lower purchase prices but higher development costs, more difficult financing (requiring larger down payments and higher interest rates), longer development timelines, and more regulatory hurdles. 

Vacant land, however, may already have utilities nearby, established access, previous development work, clear boundaries, and existing zoning, making it more expensive upfront but easier to finance, quicker to develop, and less risky overall. 

Your choice depends on your investment timeline, budget, risk tolerance, and whether you prefer complete development control (raw land) or a clearer, faster path to building (vacant land). Either way, investing in land can be a good decision with proper planning.

How to Pay for Land (It's Different From Buying a House)

Got your eye on some land? The way you pay for it is different from buying a house. Traditional down payment requirements range from 5% to 20%, depending on home value.

Land loans require much larger down payments, with most banks asking for 20–30% upfront. Private lenders might ask for up to 50%! Why so much? Because empty land is riskier for banks.

Interest rates are usually higher for land too. Some options to look into:

• Land loans from banks (different from construction loans, which provide funding in phases)
• Home equity lines of credit (if you already own property)
• Personal loans (for smaller land purchases)
• Seller financing (where the seller acts like the bank)

Before talking to lenders, know exactly what you plan to do with the land and when. Having clear plans makes banks more willing to lend you money.

Check the Land Before You Buy (Don't Skip This!)

Never buy land without checking it thoroughly first. You don't want surprise problems after you've paid.

Start with a professional land survey. This shows the exact boundaries of the property. You might be surprised—what the seller thinks they own and what they legally own might be different! Especially with waterfront homes, because riparian rights can create challenging boundaries. 

Get these tests done too:

• Topographical survey (shows hills, water flow, and low spots)
• Soil tests (crucial if you're building or installing septic systems)
• Environmental assessment (checks for contamination from previous uses)

Verify if there are easements - these give others the right to use part of your land, like for power lines or shared driveways.

Making an Offer and Closing the Deal

Ready to buy? Here's how to handle the final steps.

Do your homework on prices. Check what similar land in the area has sold for recently. This gives you a strong starting point for negotiating.

Don't just focus on the price—you can also negotiate:

• Who pays closing costs
• How much deposit you'll put down
• How much time you need to complete the inspections

Add "contingencies" to your offer—contingencies are conditions that protect you if you find serious problems. Good contingencies include:

• Satisfactory land survey results
• Ability to get financing
• Acceptable soil test results

Closing costs usually run 1–4% of the purchase price. These include:

• Land transfer taxes
• Legal fees
• Title insurance
• Recording fees

Work with a real estate agent who specializes in land. They'll help you negotiate better and avoid common mistakes.

Frequently Asked Questions

How Much Does Vacant Land Cost in Canada?

Vacant land prices in Canada vary by province and location.

In Ontario, expect to pay $20,000–$100,000 in the north and $200,000–$1M+ near urban areas.

British Columbia ranges from $40,000 in remote areas to over $600,000 for vacant land near Okanagan Lake or Vancouver Island.

In Alberta, rural land can be $30,000–$150,000, while plots near cities go up to $500,000. 

Nova Scotia offers some of the most affordable land, from $20,000 in rural areas to $250,000+ near Halifax. Waterfront and serviced lots usually cost significantly more.

Can Foreigners Buy Vacant Land in Canada?

Non-Canadians are temporarily banned from buying real estate in urban areas with more than 100,000 people until 2026. Under the law, foreigners may be able to buy land in some regions, but will be restricted in the most popular investment markets. 

Buy Your Land with Confidence

Now you know the steps to buy land in Canada. Start by checking ownership and zoning. Secure your financing early. Test the land thoroughly before buying. And work with professionals who know land deals.

With the right preparation, you can find the perfect piece of land for your needs—whether you're building a home, starting a business, or investing for the future.

Planning a move to British Columbia? Call the agents at KelownaHomes.ca at 250-999-9844 to talk with a local real estate agent who can help you find your dream home in the beautiful province of British Columbia.