Buying a home soon after arriving in Canada is possible, and many newcomers to the GTA do it within their first few years. The rules depend heavily on your immigration status, and lenders look at your file differently than they would for someone with a long Canadian credit history. This guide explains what applies to you and how to prepare.
Step one: which status do you have?
- Permanent residents can buy any home in Canada on the same terms as citizens. You are exempt from the federal foreign buyer ban and from Ontario’s non-resident speculation tax.
- Work permit holders are covered by the federal Prohibition on the Purchase of Residential Property by Non-Canadians Act, which runs until January 1, 2027. There is an exemption for some work permit holders who have at least 183 days left on their permit and have not already bought a home in Canada. Ontario’s 25 per cent non-resident speculation tax can still apply unless you qualify for an exemption, for example as an Ontario Immigrant Nominee Program nominee.
- International students, visitors and people living abroad are generally restricted by the ban and would face the 25 per cent Ontario tax where a purchase is allowed.
- Refugees and protected persons are exempt from the federal ban.
These rules change and exemptions have detailed conditions. Have a real estate lawyer confirm your eligibility before you sign an offer.
Getting a mortgage without a long credit history
Most major Canadian banks run newcomer mortgage programs. Typical requirements include:
- Permanent resident status, or a valid work permit for some programs.
- Full-time employment in Canada, often with a completed probation period.
- Proof of income: a job letter and recent pay stubs.
- A down payment of at least 5 to 10 per cent for permanent residents with limited credit history, and often 20 per cent or more for work permit holders or where the lender cannot insure the mortgage.
- Proof of where your down payment came from, usually 90 days of bank statements. If the money came from abroad, keep the transfer records.
Start building credit on day one: open a Canadian credit card, pay it in full every month and keep your phone and utility bills in your name. Even six to twelve months of history helps.
Help that newcomers can use
- First Home Savings Account (FHSA): if you are a Canadian resident for tax purposes and have not owned a home you lived in during the last four years, you can open an FHSA and save up to $8,000 a year tax-free toward your first home.
- Land transfer tax refunds: Ontario’s first-time buyer refund of up to $4,000 requires that you have never owned a home anywhere in the world, including in your home country. Many newcomers do not qualify for this one because they owned a home before moving.
- GST/HST rebates on new homes: first-time buyers of new homes may qualify for the federal rebate of up to $50,000. The same worldwide ownership question applies.
Our first-time buyer guide explains each program and includes a closing-cost example.
Rent first, or buy right away?
Most newcomers do better renting for 6 to 12 months first. It gives you time to learn the neighbourhoods, confirm where you will work, build credit and meet lender requirements. It also avoids a common mistake: buying in an area that looked good online but means a two-hour commute or the wrong school boundary.
Where newcomers often buy in the GTA
Brampton, Mississauga and Scarborough have large, established immigrant communities with places of worship, grocery stores and services in many languages. Brampton in particular offers detached homes with basement rental units, which many families use to share costs or house relatives. Read more in why buyers choose Brampton and our Toronto neighbourhood guide.
Things that surprise newcomers
- Closing costs are paid in cash, not added to the mortgage. Budget for land transfer tax, legal fees and adjustments.
- Offers are legal contracts. Once your offer is accepted and conditions are removed, walking away can cost you your deposit and more.
- A written buyer agreement is required. Ontario agents must have a signed representation agreement before working for you. Read it and ask questions.
- Home inspections are not automatic. You have to ask for an inspection condition in your offer.
If you are new to the GTA and planning a purchase, get in touch. We can walk you through the process in plain language. HomeLife Landmark Realty Inc., Brokerage.
Immigration-related rules are general information as of September 2026 and are not legal advice. Confirm your situation with a lawyer.