Can Non-Residents Get a Mortgage in Canada in 2027?

Published 2 November 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty

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By Jatin Dua · Broker of Record, RE/MAX Quantum Realty · Updated 2 November 2026 · 9 min read — Who can get a mortgage as a non-resident in 2027, how much down payment each group needs, and the NRST cash lenders will not finance.

Short answer

Some can. Work permit holders living in Canada can get CMHC-insured mortgages with as little as 5% down on homes under $1.5 million. Foreign nationals living abroad cannot get that insurance, need at least 20% down, and are barred from most existing homes by the federal ban. Ontario’s 25% NRST must be paid in cash.

This guide is for people who are not permanent residents of Canada, or who live outside Canada, and want a mortgage on a home in Ontario in 2027. It explains which “non-residents” can get financing, how much down payment each group needs, the stress test, the documents lenders ask for, and the cash you need on top of the down payment.

Can non-residents get a mortgage in Canada in 2027?

Some can, and the answer depends on who you are, not just where you live. Before any lender looks at your file, two other rules decide whether the purchase is even possible and what it costs:

The federal foreign buyer ban stops most non-Canadians from buying existing homes. It is scheduled to end on 1 January 2027, but Budget 2026 (5 November 2026) proposes extending it on existing and resale homes to 1 January 2029 while exempting new homes. That proposal still needs legislation.
Ontario’s 25% Non-Resident Speculation Tax (NRST), plus Toronto’s 10% municipal version inside the city, applies to foreign nationals unless an exemption fits.

CMHC, the federal mortgage insurer, will not insure a loan on a purchase the ban prohibits. So the first step is always to confirm you are allowed to buy.

What does “non-resident” mean to a mortgage lender?

People use one word for three very different situations. Lenders, insurers and tax rules treat them differently.

Who you are	Can you buy an existing home?	Ontario NRST (25%)	CMHC insurance (under 20% down)
Canadian citizen or permanent resident living abroad	Yes, the ban does not apply	Not charged	Depends on the lender and the insurer’s rules for your situation
Foreign national living in Canada on a work permit	Yes, with 183+ days left on the permit, one home	Charged unless exempt	Available if legally authorized to work in Canada, for a home you will live in
Foreign national living outside Canada	No, while the ban applies to existing homes	Charged unless exempt	Not available under CMHC Newcomers

Source: Prohibition on the Purchase of Residential Property by Non-Canadians Regulations (SOR/2022-250); Ontario Ministry of Finance NRST page; CMHC Newcomers eligibility; as of 10 November 2026.

The third group is the one most people mean by “foreign buyer”. For them, the mortgage question only becomes real if the Budget 2026 new-home exemption becomes law, or if they fit another exception, such as buying with a Canadian spouse.

How much down payment does a non-resident need in Canada?

There are two paths: insured and uninsured.

Insured (less than 20% down). CMHC Newcomers covers permanent residents and non-permanent residents who are legally authorized to work in Canada, for homes they will live in. The minimum down payment on a one- or two-unit home is 5% of the first $500,000 and 10% of the rest, and the price must be below $1.5 million. Three- and four-unit homes need 10% down. You must live in one of the units.

Uninsured (20% or more down). Anyone who cannot get insurance, including most foreign nationals living abroad, needs at least 20% down. Lenders can ask for more from borrowers with foreign income or no Canadian history, and each lender sets its own figure, so I will not quote one number as “the” non-resident rule.

Bank programs show how this works in practice. TD’s newcomer program lets work permit holders who moved to Canada within the last two years, with at least three months of full-time Canadian work, put 20% down without insurance or as little as 5% with insurance. For recent permanent residents, TD’s no-insurance option asks for 35% down. RBC says its newcomer programs can serve temporary foreign workers and foreign income earners, with down payments from 5% where insurance applies. See my guide to the minimum down payment at every price for the standard Canadian rules.

Can a work permit holder get a mortgage with 5% down?

Often, yes. Under CMHC Newcomers, a non-permanent resident needs:

legal authorization to work in Canada, such as a work permit;
a home with one to four units, where you live in one;
a purchase that is not prohibited by the foreign buyer ban;
at least one borrower or guarantor with a 600 credit score, or, without a Canadian report, an international credit report, a reference letter from your bank back home or another accepted method.

The down payment must come from savings, the sale of a property or a non-repayable gift from a relative. Non-permanent residents cannot use CMHC’s borrowed down payment option. The premium is added to the loan; at 90.01% to 95% loan-to-value it is 4.00% of the loan. My guide to buying a house in Ontario on a work permit covers the ban and tax side of this.

Free tool — what can you actually afford?

Do non-residents have to pass the mortgage stress test?

Yes. The same qualifying rules apply whatever your status. For uninsured mortgages at federally regulated lenders, OSFI’s minimum qualifying rate is the higher of your contract rate plus 2 points or 5.25%. CMHC uses the same test for insured loans and caps your housing costs at 39% of gross income (GDS) and all debts at 44% (TDS).

Rates moved up in late 2026. The Bank of Canada raised its policy rate to 2.50% on 28 October 2026, and the big banks raised prime to 4.70%. A higher contract rate means a higher qualifying rate, so get a fresh pre-approval rather than relying on one from the summer. My stress test explainer shows how the maths works.

What documents do lenders ask non-residents for?

Expect to prove three things: who you are, what you earn, and where the down payment came from. Lists from TD, RBC and CMHC include:

your work permit or PR card;
pay stubs, an employment letter and bank statements showing your pay deposited;
statements of your assets, income and debts, including those from your home country;
bank or investment statements, or a gift letter, showing the source of your down payment;
a Canadian credit report, or an international credit report or bank reference letter if you are new.

Money coming from abroad needs a clear paper trail. Start gathering statements months before you shop, not the week of your offer. If you are building Canadian credit from scratch, read what lenders look for in a credit score.

How much cash does a foreign buyer need on top of the down payment?

This is where most plans fall apart. The NRST is paid in cash at closing and is not financed by the mortgage. Here is a $750,000 condo bought by a work permit holder with no tax exemption.

Cash item	Mississauga, 5% insured	Toronto, 5% insured	Mississauga, 20% down	Toronto, 20% down
Down payment	$50,000	$50,000	$150,000	$150,000
Ontario land transfer tax	$11,475	$11,475	$11,475	$11,475
Toronto land transfer tax	Not charged	$11,475	Not charged	$11,475
Ontario NRST (25%)	$187,500	$187,500	$187,500	$187,500
Toronto MNRST (10%)	Not charged	$75,000	Not charged	$75,000
Cash needed before legal fees	$248,975	$335,450	$348,975	$435,450

Source: my calculations using Ontario Ministry of Finance and City of Toronto rates and CMHC’s minimum down payment rules, as of November 2026. In the insured cases a CMHC premium of $28,000 (4.00% of a $700,000 loan) is added to the mortgage. Legal fees, adjustments and moving costs are extra.

A buyer exempt from the NRST, for example someone buying with a Canadian citizen spouse who meets Ontario’s conditions, would need about $61,475 in the first column instead. Status changes the cash picture far more than the mortgage rate does.

Watch out

Never borrow your down payment and present it as savings, and never overstate your income. Non-permanent residents are not eligible for CMHC’s borrowed down payment option, and lenders verify foreign funds closely. Budget 2026 also proposes letting the Canada Revenue Agency offer lenders an income verification service to catch mortgage fraud. A misstatement can cost you the deal, your deposit and much more.

Can a Canadian living abroad get a mortgage in Ontario?

Yes, and you start in a better spot than a foreign national. Ontario says a Canadian citizen buying alone or with other citizens or permanent residents does not pay the NRST, wherever they live, and the federal ban does not apply to citizens or permanent residents. The hard part is income: lenders must verify earnings paid abroad, and each sets its own rules for foreign income, so speak to more than one.

Plan for the rest of the ownership cycle too. If you rent the home out while living abroad, the CRA requires 25% of gross rent to be withheld unless an NR6 is approved; see non-resident landlord withholding. When you sell, the section 116 clearance process applies to non-residents for tax purposes.

My take

For non-residents, the mortgage is rarely the deal-breaker; the tax and the source-of-funds paperwork are. Get your status confirmed by a lawyer, your cash-to-close calculated including the NRST, and a written pre-approval from a lender that actually serves your situation before you look at a single listing. If you are on track for permanent residence soon, the numbers in the table above are usually a strong reason to wait.

What to do next

Work out which of the three groups you are in, and confirm with a real estate lawyer that you are allowed to buy.
Use the affordability tool above to set a price range, then add the NRST, and the MNRST in Toronto, to your cash needs.
Gather two to three months of pay and bank statements, your permit, and proof of where the down payment came from.
Get written pre-approvals from at least two lenders that serve your status, and ask each for its minimum down payment.
If you are waiting for the Budget 2026 new-home exemption, watch for the legislation before signing anything.

Need help with this? Talk to me.

I’m Jatin Dua, Broker of Record at RE/MAX Quantum Realty, and I’m the best agent to do this kind of work for you in Toronto and across the GTA. Over $100 million in GTA sales and 100+ families helped sell. Feel free to contact me any time: call or text 833-330-1925 or email [email protected].

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Frequently asked questions

Can non-residents get a mortgage in Canada?

Yes, but it depends on status. Work permit holders living in Canada can get CMHC-insured mortgages with as little as 5% down on homes under $1.5 million. Foreign nationals living abroad cannot get CMHC Newcomers insurance and need at least 20% down, and in 2026 the federal ban stops most of them buying existing homes.

How much down payment does a foreigner need for a mortgage in Canada?

At least 20% if you cannot get mortgage insurance, which is usually the case for foreign nationals living outside Canada. Lenders set their own minimums above that. Work permit holders authorized to work in Canada can qualify for insured loans from 5% of the first $500,000 and 10% of the rest, as of November 2026.

Can I get a mortgage in Ontario on a work permit in 2027?

Yes, often. CMHC insures mortgages for non-permanent residents who are legally authorized to work in Canada, on one- to four-unit homes they live in, if the purchase is allowed under the foreign buyer ban. At least one borrower needs a 600 credit score or accepted alternative, and the down payment cannot be borrowed.

Do non-residents pay more for a mortgage in Canada?

Not necessarily in rate, but usually in cash. Foreign nationals in Ontario pay the 25% Non-Resident Speculation Tax at closing, plus 10% in Toronto, which the mortgage does not cover. Lenders may also ask for a larger down payment. On a $750,000 Toronto condo the two speculation taxes alone total $262,500 in 2026.

Can a Canadian citizen living abroad get a mortgage in Canada?

Yes. A Canadian citizen is not caught by the foreign buyer ban and, in Ontario, does not pay the 25% NRST when buying alone or with other citizens or permanent residents, wherever they live. Lenders still need to verify foreign income, and each lender sets its own rules, so compare more than one in 2027.

Is there a stress test for non-resident mortgages in Canada?

Yes. Federally regulated lenders must qualify uninsured borrowers at the higher of the contract rate plus 2 points or 5.25%, and CMHC uses the same test for insured loans, with debt limits of 39% GDS and 44% TDS. These rules apply whatever your residency status in 2026 and 2027.

Can I get a mortgage in Canada with no Canadian credit history?

Sometimes. CMHC may accept an international credit report, a reference letter from your bank in your home country, or other ways of showing creditworthiness. TD and RBC both say newcomers can qualify with little or no Canadian credit history if they meet their other criteria. Expect to document income and savings carefully.

Will foreigners be able to buy new homes in Canada in 2027?

Possibly. Budget 2026, tabled on 5 November 2026, proposes exempting new residential properties from the foreign buyer ban while extending it on existing homes to 1 January 2029. The legislation and regulations had not been published as of November 2026, and Ontario’s 25% NRST would still apply.