Can you host a Canadian website in Canada? Yes, and you should.
I was surprised to learn that major hosting companies offering .ca domains will not necessarily put the website on a server physically located in Canada. Fortunately I read about this in advance!
Why host in Canada? Governing law, for starters. Also faster loading speeds and better search engine ranking for Canadian visitors.
After reading several reviews and comparing plans I decided to go with Hostpapa.ca. They are Canadian owned and operated, use green power offsets and offer servers across the country. Hostpapa offers what I need for a reasonable price and even bills in CAD. My experience to date with Hostpapa has been smooth.
If you live in have a website hosted in another country consider migrating to Canada when your current term expires.