Guide

Buying a home in Ontario when you are new to Canada

The legal process of buying is the same for everyone. What differs for newcomers is financing, tax and paperwork, and those differences are where people get caught out. Here is what actually changes.

Getting a mortgage without Canadian credit history

Lenders want to see credit history, and a newly arrived buyer usually does not have any here. Most major banks run newcomer mortgage programs that accept alternatives: proof of employment, an international credit report, or a larger down payment.

Start this before you look at houses. Finding out what you can borrow after you have fallen for a property is the wrong order, and pre-approval is what lets you make a credible offer.

The foreign buyer ban, and who it does not apply to

Canada restricts residential purchases by non-Canadians, and the measure has been extended. It is important to know that it does not apply to everyone who is not a citizen: permanent residents are not covered, and there are exemptions including for certain work permit holders and international students meeting specific conditions.

Whether it applies to you depends on your specific status, so confirm your position with a real estate lawyer before making an offer rather than relying on a summary, including this one.

Non-Resident Speculation Tax

Ontario applies a Non-Resident Speculation Tax on residential purchases by foreign nationals, foreign corporations and taxable trustees, and it applies province-wide at a substantial rate on top of ordinary land transfer tax.

Rebates and exemptions exist in defined circumstances. This is a large enough number that you should get it confirmed for your situation in writing, early.

Down payment and where the money comes from

The usual minimums apply: five percent up to $500,000, ten percent on the portion to $1.5 million, twenty percent above. Some newcomer programs ask for more.

If your down payment is coming from overseas, allow time. Lenders must verify the source of funds, and transfers plus documentation take longer than people expect. Gifted funds normally need a signed gift letter.

What the process looks like from here

Pre-approval, then search, then an offer with conditions, then fulfil those conditions, then closing through a lawyer. Your lawyer handles title, land transfer tax and the final transfer of funds. You do not need to be a citizen or a permanent resident to work with a realtor, and you can do all of this in Mandarin or English.

Common questions

Can I buy a home in Ontario on a work permit?

Possibly. The federal restriction on non-Canadian buyers contains exemptions, including for certain work permit holders who meet conditions. Whether you qualify depends on your specific status and should be confirmed by a real estate lawyer before you offer.

Do permanent residents pay the Non-Resident Speculation Tax?

The tax targets foreign nationals, foreign corporations and taxable trustees. Permanent residents are not foreign nationals for this purpose. Because rebates and exemptions turn on specifics, get your situation confirmed in writing.

How much down payment do I need as a newcomer?

The standard minimums are five percent to $500,000, ten percent on the portion to $1.5 million and twenty percent above, but some newcomer mortgage programs require more. Your lender will tell you your actual number at pre-approval.

Can we do the whole process in Mandarin?

Yes, including document walkthroughs. The signed documents themselves are in English, which is standard in Ontario, so understanding them before signing matters.