Newcomer to Canada? How to Buy a Home in Toronto and Ontario

Buying your first home in a country you have not grown up in means learning a whole system at once: credit history that starts at zero, rules that depend on your status, taxes with names you have never heard. I moved here from Delhi, and I walk newcomers through it in plain language, start to finish.

Your status decides the rules

Canadian citizens and permanent residentsYou can buy like anyone else. No foreign-buyer ban and no non-resident speculation tax.
Work permit and other temporary residentsCanada’s ban on non-Canadians buying residential property is in force until January 1, 2027. There are narrow exceptions, including for some work permit holders and for refugees and protected persons, and the conditions are specific. Ontario also charges a 25% Non-Resident Speculation Tax on foreign nationals. Have a real estate lawyer confirm your position before you offer.

Getting the mortgage

Minimum down payment5% of the first $500,000, 10% of the portion from $500,000 to $1.5 million, and 20% on homes over $1.5 million.
Short credit historyMajor lenders run newcomer mortgage programs that look at employment letters, rent history and credit from your home country. Requirements vary by lender, so get pre-approved before you shop.
First-time buyer amortizationFirst-time buyers can take a 30-year amortization on an insured mortgage, which lowers the monthly payment.

Money that is easy to miss

Land transfer tax refundsFirst-time buyers can get up to $4,000 back on Ontario land transfer tax, plus up to $4,475 on Toronto’s municipal tax. Both usually require you to be a citizen or permanent resident; your lawyer claims them at closing.
FHSAThe First Home Savings Account lets Canadian residents 18 and over save $8,000 a year, up to $40,000, tax-free for a first home.
RRSP Home Buyers’ PlanYou can borrow up to $60,000 from your RRSP for a first home and repay it over time.
Closing costsBudget roughly 1.5% to 4% of the price for land transfer tax, legal fees, title insurance and adjustments. My land transfer tax calculator and affordability calculator do the maths.

Tell me where you are in the process

About a minute. I will tell you what applies to you.