Irina Marchenkova · RE/MAX Realtron Realty
Buying a Home in Toronto as a Newcomer
How newcomers buy a home in Toronto and the GTA in 2026: who can buy, mortgages without Canadian credit, taxes and refunds by status, and a step-by-step plan.
By Irina Marchenkova, Sales Representative, RE/MAX Realtron Realty · Certified Multicultural Agent · Senior Real Estate Specialist (SRES®) · Last updated October 2026
Moving to Canada is a big step, and buying your first home here can feel like learning a whole new system. I know, because I made the same move myself, from Moscow to Toronto. This guide explains what newcomers need to know before buying in Toronto and the GTA: who can buy, how to get a mortgage without a Canadian credit history, which taxes and refunds apply to you, and the steps to follow from your first appointment to closing day.
Newcomer buying at a glance
- Permanent residents can buy a home on the same terms as Canadian citizens, often with as little as 5% down.
- Temporary residents (work permit or study permit) face extra rules: a federal ban on foreign buyers in effect until January 1, 2027, with specific exceptions, and Ontario’s 25% Non-Resident Speculation Tax.
- No Canadian credit history? Newcomer mortgage programs from CMHC, Sagen and Canada Guaranty accept alternatives such as a foreign credit report or rent and utility payment history.
- First-time buyer refunds of up to $4,000 (Ontario) and $4,475 (Toronto) require citizenship or permanent residence, and owning a home anywhere in the world, including abroad, disqualifies you from the Ontario refund.
- Budget for closing costs of roughly 1.5% to 4% of the purchase price on top of your down payment.
Can you buy a home in Canada as a newcomer?
What you can buy, and what it costs, depends on your immigration status.
Canadian citizens and permanent residents
If you are a permanent resident, you can buy any type of home anywhere in Canada, on the same terms as a citizen. You can use insured mortgages with a small down payment, and you can qualify for first-time buyer refunds and programs.
Work permit and study permit holders
The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act stops most people who are not citizens or permanent residents from buying homes of up to three units in Canada’s cities, including the entire GTA. It is in effect until January 1, 2027. There are exceptions for certain work-permit holders, international students, refugees, and people buying with a Canadian citizen or permanent resident spouse, but the conditions are specific. The federal government is reviewing what will happen after the ban expires and, as of October 2026, has not announced an extension or replacement. Before you make an offer, confirm your eligibility with a real estate lawyer.
Non-citizens who are not permanent residents also pay Ontario’s 25% Non-Resident Speculation Tax (NRST) on residential property, and the City of Toronto charges its own municipal version on top. If you become a permanent resident within four years of buying, you can apply to Ontario for a rebate of the NRST.
Getting a mortgage without Canadian credit history
Most lenders want to see a Canadian credit history, which newcomers don’t have yet. That is why Canada’s three mortgage insurers, CMHC, Sagen and Canada Guaranty, offer newcomer programs that lenders use to approve buyers who are new to the country.
- Permanent residents can often buy with the minimum down payment (5% on the first $500,000), even with limited Canadian credit, if they have stable income here.
- Work-permit holders who are eligible to buy usually need 5% to 10% down, depending on how much Canadian credit history they have built.
- Instead of a Canadian credit score, lenders may accept an international credit report, 12 months of rent payments, utility bills, or a reference letter from your bank back home.
- Proof of your down payment is required: lenders typically want to see the funds in your account for at least 90 days, including money transferred from abroad. Gifts from close family are often accepted with a signed gift letter.
- The stress test applies to everyone: you must qualify at the higher of 5.25% or your mortgage rate plus 2%.
Start building Canadian credit as soon as you arrive: open a bank account, get a credit card, use it for small purchases, and pay the full balance every month. Even six to twelve months of history makes a difference. For the full process, see my mortgage pre-approval guide.
How much down payment do you need?
| Purchase price | Minimum down payment |
|---|---|
| Up to $500,000 | 5% |
| $500,000 to $1.5 million | 5% of the first $500,000 + 10% of the rest |
| $1.5 million or more | 20% (mortgage insurance not available) |
With less than 20% down, your mortgage must be insured, and the insurance premium is added to your loan. First-time buyers and buyers of newly built homes can choose a 30-year amortization on an insured mortgage, which lowers the monthly payment. Read more in my down payment guide.
Taxes and refunds: what applies to you
| Citizen or permanent resident | Work or study permit holder | |
|---|---|---|
| Ontario land transfer tax | Yes | Yes |
| Toronto municipal land transfer tax (City of Toronto only) | Yes | Yes |
| First-time buyer refund: up to $4,000 Ontario + $4,475 Toronto | Yes, if you qualify | Only if you become a citizen or permanent resident within 18 months of closing |
| Ontario 25% Non-Resident Speculation Tax | No | Yes (rebate possible if you become a permanent resident within 4 years) |
| Toronto municipal non-resident speculation tax | No | Yes, for homes in Toronto |
Important for newcomers: to get the Ontario first-time buyer refund, you must never have owned a home anywhere in the world. If you owned an apartment or house in your home country, you are not a first-time buyer for this refund, even if this is your first home in Canada. Estimate your tax with my land transfer tax calculator, and see all other costs in my guide to closing costs in Ontario. Buying a newly built home? Read my guide to GST and HST on new homes.
Savings programs for first-time buyers
- First Home Savings Account (FHSA): save up to $8,000 a year ($40,000 lifetime) with a tax deduction on contributions and tax-free withdrawals for your first home. You must be a Canadian resident, at least 18, and a first-time buyer, which means you have not lived in a home that you or your spouse owned, in Canada or abroad, in the current year or the previous four years.
- Home Buyers’ Plan (HBP): withdraw up to $60,000 from your RRSP to buy your first home and repay it over time. You need RRSP savings and contribution room, which builds as you earn income in Canada.
These programs reward time spent saving in Canada, so it is worth opening an FHSA early, even if you plan to buy in a few years.
Step-by-step: buying your first home as a newcomer
- Set up your finances: open a Canadian bank account and a credit card, and start building credit history.
- Gather your documents: passport, permanent resident card or confirmation of permanent residence (or your work permit), employment letter and pay stubs, a foreign credit report if available, and statements showing your down payment.
- Talk to a mortgage specialist who works with newcomer programs, and get pre-approved so you know your budget.
- Check your eligibility for the foreign buyer rules, the NRST, first-time buyer refunds and the FHSA.
- Choose your neighbourhoods based on commute, schools, community and budget.
- Build your team: a REALTOR® who knows newcomer buying and a real estate lawyer.
- Make an offer, usually with conditions for financing and a home inspection.
- Plan for closing: set aside 1.5% to 4% of the price for land transfer tax, legal fees and other costs.
- Close and apply for any refunds you qualify for.
Choosing a neighbourhood
Many newcomers start with communities where they can find familiar languages, shops and services, along with good transit and schools. These guides are a good place to begin:
- Most affordable neighbourhoods in Toronto and the GTA
- Best neighbourhoods for families
- Thornhill, Richmond Hill, Vaughan and Bathurst-Steeles
- North York, Markham and Scarborough
- All neighbourhood guides
Renting first?
Many newcomers rent for their first year while they build credit and get to know the city, and that can be a smart choice. My lease or buy guide compares the two, and my rental checklist and introduction letter guide help you stand out to landlords when you have no Canadian rental history yet.
How I help newcomers
I’m a Certified Multicultural Agent, and I work with clients in English and Russian. Having made the move to Canada myself, I understand the questions newcomers face, from proving your income to choosing a neighbourhood you’ve never visited. I’ll connect you with mortgage specialists and lawyers who work with newcomers, and guide you through each step.
Talk to Irina
Tell me a little about your situation, and I will get back to you within one business day. You can also call 416-846-8064.
Newcomer buyer FAQ
Can I buy a home in Toronto with a work permit?
Until January 1, 2027, most work-permit holders cannot buy a home in the GTA because of the federal foreign buyer ban, but there are exceptions with specific conditions. If you qualify, you will also pay Ontario’s 25% Non-Resident Speculation Tax and, in Toronto, a municipal version. Confirm your eligibility with a real estate lawyer before making an offer.
Do I need a Canadian credit history to get a mortgage?
Not always. Newcomer mortgage programs let lenders use alternatives such as a foreign credit report, rent payment history or a bank reference letter. Building Canadian credit as soon as you arrive will still give you more options and better rates.
I owned an apartment in my home country. Am I still a first-time buyer?
For Ontario’s land transfer tax refund, no: you must never have owned a home anywhere in the world. For the First Home Savings Account and the Home Buyers’ Plan, the rules are different and look at whether you lived in a home you owned in the last four years, in Canada or abroad.
Can I use money from abroad for my down payment?
Yes. Lenders will want to see where the money came from and usually need it in your account for at least 90 days before closing. Plan your transfers early and keep all bank statements.
What happens to the foreign buyer ban after 2027?
The ban is set to expire on January 1, 2027. The federal government is reviewing what comes next, and, as of October 2026, has not announced a decision. I will update this page when the rules change.
Related guides
- First-time home buyer guide
- Understanding the Toronto real estate market: a guide for newcomers
- Mortgage pre-approval guide
- Closing costs in Ontario
- Land transfer tax calculator
This guide is general information, not legal, tax or mortgage advice. Rules for newcomers change often, so confirm the details for your situation with a real estate lawyer and a mortgage professional before you buy.
Compare neighbourhoods: Most affordable areas · Best for families · Best for downsizing · First-time buyer guide · Downsizing guide · All neighbourhood guides