Coinbase is now the best place to buy Litecoin in Canada.
Another option would be to use Ripple.
In Canada, one of the best/easiest ways to get money into Ripple is via RippleUnion¹. The way this would work is that you'd:
- Create a Ripple wallet
- Use one of RippleUnion's funding mechanisms (e.g. using a credit card with their gift card exchange program, using their upcoming Interac e-Transfers, or contacting them for larger amounts). They will send you enough XRP to fund your Ripple wallet and then send you CAD/RippleUnion. Alternatively you could use another Ripple gateway to get something else into Ripple (e.g. there are many Bitcoin Ripple gateways).
- Select one of the Ripple gateways that support Litecoin, e.g. DividendRippler or JustCoin.
- Possibly make a trade offer in Ripple from the funds you got in step 2 (e.g. CAD/RippleUnion) into LTC at the gateway you picked (e.g. LTC/DividendRippler or LTC/JustCoin). This step completely optional!
- Follow the instructions at the Litecoin Ripple gateway you chose to make a LTC payment within Ripple to them. If you completed step 4, you'd just send the LTC you traded for; if you skipped that step, Ripple will find the best path to convert your current Ripple balances into LTC using the current best market offers.
- For DividendRippler you're done; they will immediately initiate a Litecoin transaction and send your LTC to the Litecoin address you've configured with them. For other gateways, like JustCoin, you need to log into the gateway and withdraw your Litecoin as you would with an exchange.
For repeated use, once setup, it can be as simple as:
- Send CAD funds to RippleUnion.
- Make a LTC payment within Ripple to your DividendRippler withdrawal address.
¹ Disclaimer: Although I'm not currently affiliated with RippleUnion I know the operators.