Britain put up a good fight but did not have enough against one of the top sides in the world, despite an excellent performance and 14 points from Ade Orogbemi.
Canada edged into a 21-16 lead after five unanswered point in the final two minutes of the first quarter.
From there, Canada only needed to shade the remaining quarters and they took the second 12-11 to give them a 33-27 half-time lead.
The third period was where the damage was done. With five minutes to play the score was 41-33, but a flurry of baskets put the Canadians home and dry with a 57-37 lead at the end of the quarter.
Despite Britain's best efforts, they lost 69-52 overall and will face the United States in the bronze-medal match, while Canada will face Australia for gold.