Newcomer's Guide to Buying or Renting a Home in Ontario

Your immigration status decides most of the rules

Two rules shape what a newcomer can buy: the federal Prohibition on the Purchase of Residential Property by Non-Canadians Act (the foreign buyer ban) and Ontario's Non-Resident Speculation Tax (NRST). Both turn on your status on the day you buy.

Under the federal ban, a "non-Canadian" is anyone who is not a Canadian citizen, a permanent resident or a person registered under the Indian Act. Permanent residents are not covered by the ban and do not pay the NRST. Temporary residents, such as people on work or study permits, are covered unless an exemption applies.

Check your status and the exemptions before you make an offer. An offer you cannot legally complete, or one that triggers a tax you did not plan for, is expensive to undo.

• First-time home buyer guide →
• The home buying process in Ontario →

The foreign buyer ban and its exemptions

The ban took effect on January 1, 2023. Finance Canada extended it on February 4, 2024, and it is set to end on January 1, 2027. As of our check on October 6, 2026, no further extension had been enacted. Check the current status before you buy.

The regulations (SOR/2022-250, amended March 27, 2023) exempt some groups if they meet set conditions. They include some work-permit holders and international students, refugees and protected persons, and a non-Canadian buying with a spouse or common-law partner who is a citizen or permanent resident. The conditions include limits such as the number of homes you may buy, so read them in full or ask a real estate lawyer.

Breaking the ban can mean a fine and a court-ordered sale of the home, and people who knowingly help can be fined too.

Ontario's Non-Resident Speculation Tax (NRST)

Ontario charges a 25% NRST on homes of one to six units bought anywhere in the province by foreign nationals, foreign corporations and taxable trustees. It has applied across Ontario since October 25, 2022. It is paid on top of the regular land transfer tax.

In Toronto, a separate 10% Municipal Non-Resident Speculation Tax has applied since January 1, 2025, on top of the NRST.

Exemptions exist for nominees under the Ontario Immigrant Nominee Program, protected persons, and the spouse of a Canadian citizen or permanent resident. Every buyer on title must move into the home as their principal residence within 60 days of registration, and conditions apply.

The NRST rebates that used to exist for international students and foreign nationals working in Ontario ended for homes conveyed after March 29, 2022, unless the agreement of purchase and sale was signed on or before that date.

• Closing costs in Ontario →

Credit history and getting a mortgage as a newcomer

To get mortgage insurance from CMHC, at least one borrower or guarantor needs a credit score of 600 or more. If you have little Canadian credit history, CMHC may accept other proof, such as an international credit report or a reference letter from a bank in your home country.

Permanent residents can use all of CMHC's homeowner insurance products, with a minimum down payment starting at 5% and no minimum time in Canada. Non-permanent residents must be legally allowed to work in Canada, the purchase must not be prohibited by the foreign buyer ban, and on a one- to four-unit home at least one unit must be owner-occupied.

Lenders still decide. They apply the stress test (you must qualify at the greater of 5.25% or your contract rate plus 2 percentage points) and debt limits: housing costs up to 39% of gross income and all debts up to 44% for an insured mortgage. A Canadian bank account, a credit card used and paid in full each month, and steady Canadian income all help.

• Get pre-qualified →
• Mortgage calculator →

Down payment rules for newcomers

The national minimum down payment is 5% of the first $500,000, 10% of the portion from $500,000 up to $1.5 million, and 20% on homes priced at $1.5 million or more. Under 20% down, the mortgage must be insured, which adds a premium (for example 4.00% of the loan at 95% loan-to-value with CMHC).

Lenders will want to see where your down payment came from. Money moved from abroad usually needs bank statements showing it in your name for a period before closing. Keep records of every transfer.

Homes priced at $1,500,000 or more cannot be insured, so the minimum down payment is 20%.

First-time buyer programs newcomers may use

First Home Savings Account (FHSA): up to $8,000 a year and $40,000 in total, tax-deductible going in and tax-free coming out for a qualifying first home. You must be a resident of Canada and meet CRA's first-time buyer test.

RRSP Home Buyers' Plan: withdraw up to $60,000 from your RRSP for a first home and repay it over 15 years.

Land transfer tax refunds: Ontario refunds up to $4,000 for eligible first-time buyers, and Toronto up to $4,475. Eligibility includes residency-status conditions, so check them before you count on the refund.

• Saving for a down payment →
• Closing costs calculator →

Renting first: what newcomers should know

Many newcomers rent for a year or two while they build Canadian credit and learn the neighbourhoods. Landlords often ask for proof of income, references and a credit check. If you have no Canadian credit yet, an employment letter, bank statements and references from previous landlords can help.

Most Ontario tenancies use the Standard Form of Lease. A landlord can ask for a rent deposit of no more than one month's rent, and must pay interest on it each year. Rent can rise at most once every 12 months, with 90 days' written notice.

Renting while you save into an FHSA is a common path to buying later.

• Homes for rent →
• Renting on Summitly →
• Rent to own in Ontario, explained →