Real Estate Investment Trusts (REITs) have become one of the most accessible ways for Canadian investors to gain exposure to commercial and residential real estate without buying property directly. If you are wondering where to buy REITs in Canada, this guide breaks down the main channels, platforms, and considerations so you can make an informed decision.
REITs trade like stocks on major exchanges, which means you can purchase them through a variety of accounts and brokers. The right choice depends on your investment goals, account type, and tolerance for fees.
The most common answer to where to buy REITs in Canada is through an online brokerage account. Platforms such as Questrade, Wealthsimple Trade, and the big-bank brokerages (RBC Direct Investing, TD Direct Investing, and others) allow you to trade REITs listed on the TSX and TSX Venture Exchange.
Key points to consider:
- Commissions and fees: Some brokers charge per-trade commissions, while others offer commission-free trading on Canadian-listed securities.
- Account types: You can hold REITs in a TFSA, RRSP, or non-registered account. TFSA and RRSP shelters can make REIT distributions more tax-efficient.
- Research tools: Look for platforms that provide analyst reports, dividend history, and real-time quotes.
Before opening an account, compare minimum deposits, inactivity fees, and the range of REITs available. A discount broker is often the most cost-effective route for self-directed investors.
If you prefer diversification over picking individual trusts, you can buy REIT exchange-traded funds (ETFs) or mutual funds. These products bundle multiple REITs and trade on the same exchanges, so the process of where to buy REITs in Canada remains the same: through your brokerage or a fund dealer.
Popular options include broad Canadian real estate ETFs and sector-specific funds covering retail, industrial, and residential REITs. This approach reduces single-asset risk and simplifies portfolio management, though it adds a management fee.
Robo-advisors can include REIT exposure within a diversified portfolio, which suits investors who want hands-off management. Full-service advisors, meanwhile, can recommend specific REITs and handle trades on your behalf, typically for a fee based on assets under management.
When deciding where to buy REITs in Canada, weigh distribution yield, payout ratio, property sector, and interest-rate sensitivity. REITs are required to distribute a large share of income, so understand the tax treatment of distributions in taxable accounts.
Whether you use a low-cost online brokerage, an ETF, or an advisor, buying REITs in Canada is straightforward. Compare platforms, match the account type to your tax situation, and review each trust's fundamentals before investing.