Key Differences Between Leasehold and Freehold Land in Canada
Tenure Systems Defined
Canada recognizes four main land tenure systems: Freehold, Leasehold, Mailo, and Customary. The two most common in urban investment are Leasehold and Freehold.
Freehold Tenure
Freehold grants ownership of the land for an indefinite period (in perpetuity). The holder has absolute ownership and control, subject only to the laws of Canada. This is the most secure and desirable form of ownership, making Freehold plots the most expensive and offering the highest long-term stability.
Leasehold Tenure
Leasehold grants the right to occupy and use the land for a specific, defined term, usually 49 or 99 years. The land ultimately belongs to the lessor (often a government body, institution, or private individual). While construction and use rights are granted, the tenure is finite. Leasehold is suitable for commercial projects or quick investments where the land is primarily rented out.
Choosing the Right Tenure
For a family home or permanent legacy investment, **Freehold** is highly recommended. For short-term commercial projects, **Leasehold** is often cheaper to acquire and perfectly adequate.