Table of Contents

• Can Newcomers to Canada Buy a Home in Ontario?
• Mortgage Options for Newcomers to Canada
• Down Payment Requirements
• Government Programs for First-Time Buyers
• Building Credit as a Newcomer
• Step-by-Step Home Buying Process in Ontario
• Closing Costs to Budget For
• Practical Tips for Newcomers Buying a Home
• Frequently Asked Questions

As a newcomer to Canada buying home Ontario, you are taking an exciting step toward homeownership. Buying your first home as a newcomer to Canada is an exciting milestone — but it also comes with a unique set of challenges that Canadian-born buyers don’t face. Whether you’re a permanent resident, a protected person, or a recent new Canadian citizen, navigating Ontario’s real estate market can feel overwhelming when you’re still learning the system.

The good news is that newcomers to Canada can absolutely buy a home in Ontario, and there are mortgage products, government programs, and real estate professionals specifically designed to help you succeed. This guide will walk you through everything you need to know about buying your first home in Ontario as a newcomer in 2026.

Can Newcomers to Canada Buy a Home in Ontario?

Yes. In Ontario, there are no restrictions preventing newcomers — including permanent residents, protected persons, and new citizens — from purchasing a home. Even non-residents can purchase real estate in Ontario, though additional taxes and restrictions may apply under the Prohibition on the Purchase of Residential Property by Non-Canadians Act, which has been extended through 2026.

If you are a permanent resident, you have the same property ownership rights as a Canadian citizen, including access to most mortgage products and government buyer programs.

Mortgage Options for Newcomers to Canada

Getting a mortgage as a newcomer to Canada is entirely possible. However, lenders will assess your application differently if you don’t have a Canadian credit history. Here’s what you need to know:

The “New to Canada” Mortgage Program

Both Canada Mortgage and Housing Corporation (CMHC) and several major Canadian banks offer special “New to Canada” mortgage programs designed for immigrants and permanent residents with little or no Canadian credit history.

Key features typically include:

• Minimum 5% down payment for properties under $500,000 (with CMHC insurance)
• International credit bureau reports accepted as proof of creditworthiness
• Foreign income may be considered in the application
• Must have been in Canada for 5 years or less to qualify as a “newcomer”

Conventional Mortgages

Newcomers who have been in Canada for a longer period, have established Canadian credit, and can show stable employment may qualify for standard conventional mortgages on the same terms as any other Canadian resident.

Alternative and Private Lenders

If you don’t yet qualify with a major bank, alternative (B) lenders and private lenders can provide mortgages with more flexible qualification criteria — typically at slightly higher interest rates. This can be a good bridge solution while you establish your Canadian financial profile.

Down Payment Requirements for Newcomers to Canada

Down payment requirements in Canada are the same for newcomers as for other buyers:

• 5% minimum for homes priced up to $500,000
• 10% on the portion of the purchase price between $500,000 and $999,999
• 20% minimum for homes priced at $1,000,000 or more (no CMHC insurance available)

Importantly, down payments gifted from family members living abroad are generally acceptable, as long as they are not required to be repaid. Provide a signed gift letter and proof of receipt to your lender.

Government Programs for First-Time Buyers in Ontario

First Home Savings Account (FHSA)

The FHSA allows eligible first-time buyers to contribute up to $8,000 per year (lifetime maximum $40,000) to a tax-free savings account specifically for a home purchase. Contributions are tax-deductible, and withdrawals for a qualifying home purchase are tax-free. As a permanent resident, you are eligible to open an FHSA.

First-Time Home Buyer’s Tax Credit

Eligible first-time buyers in Canada can claim a $10,000 non-refundable tax credit on their federal income tax return, resulting in up to $1,500 in tax savings. Permanent residents qualify for this credit.

Ontario Land Transfer Tax Refund

First-time buyers in Ontario can receive a refund of up to $4,000 on provincial land transfer tax. In Toronto, there’s an additional municipal land transfer tax, but first-time buyers also qualify for a refund of up to $4,475 on that tax as well.

GST/HST New Housing Rebate

If you’re purchasing a new construction home, you may qualify for a rebate of a portion of the GST/HST paid. The rebate is available to buyers who use the property as their primary residence.

Building Credit as a Newcomer to Canada

A strong Canadian credit history is important for mortgage qualification. If you’ve just arrived, here are practical steps to build your credit quickly:

• Open a Canadian bank account immediately upon arrival
• Apply for a secured credit card or a credit card designed for newcomers
• Pay all bills and obligations on time, every time
• Keep your credit utilization below 30% of your available limit
• Avoid applying for too many new credit products at once
• Ask your Canadian bank about using international credit reports to supplement your application

Step-by-Step Home Buying Process in Ontario

• Step 1: Get pre-approved for a mortgage with a lender experienced in newcomer applications
• Step 2: Work with a trusted REALTOR® who understands the local market and newcomer-specific considerations
• Step 3: Search for homes within your budget and preferred neighbourhoods
• Step 4: Make an offer and negotiate terms with the help of your REALTOR®
• Step 5: Have the property inspected by a licensed home inspector
• Step 6: Finalize your mortgage with your lender
• Step 7: Work with your real estate lawyer for the legal closing process
• Step 8: Receive keys on closing day and move in!

Closing Costs to Budget For as a Newcomer

In addition to your down payment, budget for these closing costs in Ontario:

• Land Transfer Tax (provincial, and municipal if in Toronto): 0.5%–2.5% of purchase price
• Legal fees: $1,500–$2,500 for a real estate lawyer
• Home inspection fee: $400–$700
• Title insurance: $200–$400
• CMHC mortgage insurance premium: 2.8%–4% of the mortgage amount (if applicable), typically added to your mortgage
• Moving costs, utilities setup, and other adjustments

Practical Tips for Newcomers Buying Their First Home in Ontario

• Choose a REALTOR® who speaks your language and understands your culture — communication is key
• Don’t rush — take the time to understand the market and process before committing
• Learn about the neighbourhoods: schools, transit, community services, and proximity to cultural communities
• Have your legal documents ready: permanent resident card, employment letter, NOA, and bank statements
• Consider consulting with a newcomer-focused financial advisor to maximize available programs and tax benefits

Frequently Asked Questions

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

In some circumstances, yes. Work permit holders may be eligible to purchase property in Ontario under the exemptions to the Prohibition on the Purchase of Residential Property by Non-Canadians Act. Consult a real estate lawyer for your specific situation.

Do I need a Canadian credit score to get a mortgage as a newcomer?

Not necessarily. Several lenders and CMHC’s New to Canada program accept international credit history. However, having even a short Canadian credit history will significantly improve your options and terms.

Buying your first home as a newcomer to Canada is a major life milestone — and Ontario offers outstanding opportunities for new Canadians to build wealth through real estate. The Team Rajpal real estate team has deep experience helping newcomers navigate Ontario’s market with confidence. Reach out today to get started.

For official information on newcomer mortgage programs, visit the CMHC Newcomers to Canada page.

Disclaimer: This guide is for informational purposes only. Mortgage and program eligibility conditions change. Always consult a qualified mortgage professional and real estate lawyer for advice specific to your situation.

Have Questions?

Reach out to our experts! Whether you need help with a transaction or you’re just looking for market information, we’re here to help.

Contact Us