Quick answer: If you are a permanent resident, you can buy a home in Ontario much like a Canadian citizen. With steady income you may qualify for an insured mortgage with as little as 5% down, even without a long Canadian credit history. If you are in Canada on a work permit, you may still be able to buy, but the rules are stricter, and you may owe Ontario's 25% Non-Resident Speculation Tax. Here is what to know before you start, and the steps that make it easier.
Can you buy a home here? It depends on your status
| Your status | Can you buy? | What to watch |
|---|---|---|
| Canadian citizen | Yes | Normal rules. First-time buyer programs may apply. |
| Permanent resident | Yes | Normal rules. Generally exempt from the federal foreign buyer ban and Ontario's Non-Resident Speculation Tax. |
| Work permit holder | Often, with conditions | Exempt from the federal ban only if you meet its conditions, for example enough time left on your permit and no other home in Canada. Ontario's 25% tax can still apply unless you qualify for an exemption or a later rebate. |
| International student or other temporary resident | Limited | Narrow exemptions only. Speak to a real estate lawyer before you look at homes. |
The federal ban on most non-Canadians buying homes is scheduled to end on January 1, 2027 unless Ottawa extends it again. Ontario's Non-Resident Speculation Tax is a separate provincial tax and does not end with it. Because these rules change, confirm your own situation with a real estate lawyer before you make an offer.
Down payment: how much you need
The minimum down payment in Canada is 5% of the first $500,000 of the price plus 10% of the part between $500,000 and $1.5 million. With less than 20% down your mortgage must be insured, and the insurance premium is added to your loan. Some lenders ask newcomers on work permits for a larger down payment.
If your savings are outside Canada, move them early. Lenders usually want to see where the down payment came from and that it has been in your account for a while, often about 90 days. Keep statements from your home country, and translations if they are not in English.
Getting a mortgage without Canadian credit history
Many banks and mortgage insurers have programs for newcomers. They may accept proof such as:
- A job offer or employment letter in Canada, and recent pay stubs
- A credit report from your home country
- Twelve months of rent or utility payments made on time
- Bank statements showing your savings
Start building Canadian credit as soon as you arrive. Open a Canadian bank account and get a credit card, even a secured one. Use it for small purchases and pay it off in full every month. Then get a mortgage pre-approval before you start looking, so you know your real budget. Lenders test you at the higher of 5.25% or your rate plus 2%.
First-time buyer programs newcomers can use
- Ontario land transfer tax refund: up to $4,000 back if you have never owned a home anywhere in the world. You must be a Canadian citizen or permanent resident. If you become one within 18 months of buying, you may be able to apply for the refund then.
- First Home Savings Account (FHSA): once you are a resident of Canada for tax purposes and have a social insurance number, you can save up to $8,000 a year tax-free toward your first home.
- First-time buyer GST rebate on new homes, and 30-year insured mortgages for first-time buyers.
Our first-time home buyer guide explains each program and the amounts.
Plan for closing costs
On top of your down payment, budget about 1.5% to 4% of the price for land transfer tax, legal fees, title insurance, a home inspection and moving. If the Non-Resident Speculation Tax applies to you, it is 25% of the price, so you need to know before you sign.
Why many newcomers look at Simcoe County
Homes in Barrie, Innisfil, Bradford and the rest of Simcoe County usually cost less than similar homes in Toronto, Brampton or Mississauga, and the area has Highway 400 and GO train service to the GTA. Many families also look for a home with a basement apartment or room for parents and grandparents. Ask us which areas fit your budget, your commute and your family.
Step by step
- Check your status with a real estate lawyer: the federal ban, the Ontario tax and any refunds.
- Build Canadian credit and move your savings early.
- Get a mortgage pre-approval from a lender with a newcomer program.
- Choose your areas: commute, schools, places of worship, and room for family.
- Work with a REALTOR® who explains every form. Ontario real estate forms are in English. We go through each one with you in Punjabi, Hindi, Urdu, Gujarati or English, so you know what you are signing.
- Make an offer with conditions, usually financing and a home inspection.
- Close with your lawyer, who registers the sale and applies any refunds.
Talk it through in your language
Sumant and Shelley Sarin help newcomers and families buy their first home across Barrie, Simcoe County and the GTA, in five languages. See how we work in your language, call or text 705-500-5333, or book a call.
Sources
- Ontario – Non-Resident Speculation Tax
- Investment Executive – Foreign buyer ban extended to 2027
- Greater Vancouver Realtors – Foreign buyer ban extended to January 1, 2027
- Ratehub – First-Time Home Buyer Programs in Canada
Rules as of October 27, 2026. Rules and amounts can change, so confirm with your lawyer, lender or accountant. This article is general information, not legal, tax, immigration or financial advice.
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