- ✓New to Canada programs help newcomers get mortgages with just 5% down payment
- ✓You don't need permanent residence to buy a house in Canada
- ✓Most lenders require 12-24 months of credit history in Canada
- ✓Buying property does NOT automatically give you permanent residence
- ✓Ontario's foreign buyer tax is 25% for non-residents
Buying your first home in Canada as a newcomer feels overwhelming. You're dealing with unfamiliar mortgage rules, foreign buyer taxes, and confusing paperwork. The good news? Thousands of immigrants successfully buy homes every year, even without permanent residence.
- 01🏠 Can Foreigners Buy Houses in Canada?
- 02🎯 New to Canada Mortgage Programs
- 03📋 Requirements for New to Canada Programs
- 04💰 Down Payment Requirements
- 05🏡 Does Buying Property Give You Permanent Residence?
- 06💸 Provincial Foreign Buyer Taxes
- 07📊 Step-by-Step Home Buying Process
- 08❓ Frequently Asked Questions
Canada actually wants newcomers to buy homes and build roots. Special programs exist to help you get a mortgage with less paperwork and smaller down payments than you might expect.
🏠 Can Foreigners Buy Houses in Canada?
Yes, foreigners can buy residential property in Canada. However, recent changes make it more expensive and complicated than before.
In 2022, Canada introduced a foreign buyer ban on residential properties. But this ban has several important exceptions. You can still buy if you're a temporary resident with a work permit, study permit, or protected person status.
The ban mainly targets foreign investors who don't live in Canada. If you're actually moving to Canada and building a life here, you have options.
"I bought my condo in Toronto on a work permit in 2025. The New to Canada program helped me get approved with just 12 months of Canadian credit history. No one told me it was possible until I talked to a mortgage broker who specialized in newcomers."
🎯 New to Canada Mortgage Programs
New to Canada programs are special mortgage products designed for newcomers. They recognize that you might not have extensive Canadian credit history yet.
These programs typically require you to have been in Canada for less than 5 years. Some lenders extend this to 7 years depending on your situation.
RBC, TD, Scotiabank, and BMO all have New to Canada programs. They typically offer 5% down payment options and flexible credit requirements.
Local credit unions often have more flexible requirements. They're especially good if you're buying in smaller cities or rural areas.
If banks say no, alternative lenders specialize in complex situations. They charge higher rates but can approve deals banks won't touch.
📋 Requirements for New to Canada Programs
Each lender has slightly different requirements, but here are the common criteria you'll see across most New to Canada mortgage programs.
Must be in Canada less than 5 years. Some lenders allow up to 7 years. Time starts from when you first landed.
Work permit, study permit with work authorization, or permanent resident status required.
Minimum 12 months of Canadian credit history. Some programs accept as little as 6 months with strong income.
Stable job with minimum 3-6 months employment history. Letter from employer often required.
What's your biggest concern about getting a mortgage as a newcomer?
💰 Down Payment Requirements
The minimum down payment in Canada depends on the purchase price of your home. According to the Government of Canada, here's how it breaks down.
For homes under $500,000, you need minimum 5% down. For homes between $500,000 and $999,999, you need 5% on the first $500,000 and 10% on the remaining amount. For homes $1 million or more, you need 20% down.
🚨 Key comparison:
Under $500K
Over $1M
Difference
Most newcomers start with the 5% minimum down payment option. This makes homeownership more accessible when you're just establishing yourself financially in Canada.
If you put down less than 20%, you must pay mortgage default insurance. This protects the lender and adds to your monthly payment.
🏡 Does Buying Property Give You Permanent Residence?
No, buying property in Canada does not automatically give you permanent residence. This is one of the biggest misconceptions among newcomers.
Property ownership and immigration status are completely separate matters. You can own multiple properties and still need to maintain your work permit or apply for permanent residence through regular channels.
However, owning property can demonstrate your commitment to Canada in certain immigration programs. It shows you have ties to the country and plan to stay long-term.
Buying property shows you're serious about making Canada your home, but it doesn't replace the need for proper immigration applications.
💸 Provincial Foreign Buyer Taxes
Several provinces charge extra taxes when non-residents buy property. Ontario has the highest rate at 25% for non-resident buyers.
These taxes apply to your purchase price on top of other closing costs. For a $500,000 home in Ontario, a foreign buyer would pay an extra $125,000 in tax.
The good news is you can often get refunds of these taxes if you become a permanent resident or citizen later. Each province has different refund timelines and requirements.
📊 Step-by-Step Home Buying Process
Here's exactly how to buy your first home in Canada as a newcomer. Each step builds on the previous one, so don't skip ahead.
Get a Canadian credit card immediately after arriving. Use it for small purchases and pay it off monthly. Most lenders want to see 12 months of payment history.
You need a minimum of 5% for homes under $500,000 as a newcomer. Start saving as soon as you arrive. Open a high-interest savings account at a Canadian bank. Consider a First Home Savings Account (FHSA) — you can contribute up to $8,000 per year tax-free.
Before you start house hunting, get pre-approved. This tells you exactly how much you can borrow. Contact banks that have New to Canada programs — RBC, TD, Scotiabank, BMO, and CIBC all offer them. Pre-approval typically lasts 90-120 days.
A good real estate agent is essential. Look for one who has experience working with immigrants and understands the challenges you face. They can help you understand neighbourhoods, school districts, and commute times — things that matter but are hard to research from outside Canada.
Once you find a home, your agent will help you make an offer. Always include a condition for a home inspection. A licensed home inspector will check for structural problems, roof issues, electrical faults, and plumbing problems. Never skip this step — repairs can cost tens of thousands of dollars.
A real estate lawyer is required in Canada — not optional. They review the purchase agreement, conduct a title search, transfer ownership, and handle the funds. Budget $1,000–$2,500 for legal fees. In Quebec, you use a notary instead of a lawyer.
Once your offer is accepted, take your pre-approval back to your bank and convert it to a full mortgage. Your lender will request a property appraisal. On closing day, your lawyer transfers the funds and you get the keys. Budget for land transfer tax — this varies by province and adds 1–2% of the purchase price.
Congratulations — you are a homeowner in Canada! Set up your utilities (hydro/electricity, gas, water, internet) before your move-in date. Update your address with CRA, IRCC, your employer, and your bank right away.
❓ Frequently Asked Questions
About Author
