Buying in Canada follows the same steps for newcomers as for anyone else, but two things need attention early: your Canadian credit history and, if you are not yet a permanent resident, the rules on who may buy. Source: Immigration, Refugees and Citizenship Canada.
Build a Canadian credit history
Lenders check your credit score, and Canadian banks may not recognize your credit history from another country. Open a Canadian account and a credit card soon after you arrive, pay every bill on time, and speak with a bank early about what it needs from you.
Down payment and mortgage insurance
Your mortgage is the price minus your down payment, and the minimum down payment depends on the price. With less than 20% down you will likely need mortgage loan insurance. Work out both with the down payment calculator and the CMHC insurance calculator.
The federal ban on non-Canadian buyers
The Prohibition on the Purchase of Residential Property by Non-Canadians Act stops non-Canadians from buying homes of up to three units in census metropolitan areas and census agglomerations. Canadian citizens, permanent residents and people registered under the Indian Act are not affected. There are exceptions, including some temporary workers with at least 183 days left on their work permit, some students, refugees and protected persons, and people buying with a Canadian or permanent resident spouse. The 2024 extension runs to January 1, 2027; check whether it has been extended again before you buy. Breaking the ban can mean a fine of up to $10,000 and a court-ordered sale. Source: CMHC.
Provincial and city taxes on foreign buyers
Where a purchase is allowed, some provinces add a tax for buyers who are not citizens or permanent residents: 25% in Ontario, a further 10% in Toronto, 20% in parts of British Columbia and 10% in Nova Scotia. See the land transfer tax calculator for the regular tax, and ask your lawyer or notary whether an extra tax applies.
Next steps
Follow the home buying checklist, and if this is your first home in Canada, read the first-time buyer programs guide: the programs look at whether you owned and lived in a home anywhere in the world.
Try the down payment calculator →
Official source
This guide explains general rules. Confirm your figures with your lender, lawyer, or the official source before you act.