I've never had a problem with hostels only wanting foreigners. I've hostelled across Canada twice.
Most places in Canada just have an HI. You're only really spoiled for choice in Vancouver, Banff, Toronto and Montreal. There are some other non-HIs scattered about. I've been working on trying to compile a list of every hostel in Canada. So far I'm done all the HIs and about half done the independants in BC. If you know more specifically where you're headed I can check my lists for you.
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