Can Immigrants Buy a Home in Canada? A GTA-Focused Guide

If you are new to Canada and eyeing the Greater Toronto Area, the short answer is yes—most newcomers can buy a home. The details, however, depend on your status, where you plan to buy, and a handful of federal, provincial, and City of Toronto rules. This guide breaks it down in plain language, so you can move from questions to keys in hand.

Quick Answer by Status

• Canadian citizens and permanent residents (PRs): Free to buy anywhere in Canada, including the GTA.
  
  

• Temporary residents (work permit holders and some students): May be able to buy if they meet specific conditions.
  
  

• Non-residents/foreign buyers (not PRs or citizens): Currently barred from purchasing most residential property in urban areas (like the GTA) until January 1, 2027, with limited exceptions; some options exist outside designated metro areas, or for buildings with four or more units.

The Big Rules You Need to Know

1) Canada’s “Foreign Buyer Ban” — Where It Applies, and Until When

Canada prohibits most non-Canadians from buying residential property (1–3 units) in Census Metropolitan Areas (CMAs) and Census Agglomerations (CAs); which includes the entire GTA. The federal government extended this measure through January 1, 2027. Properties with four or more units, and properties outside CMAs/CAs, are not covered by this prohibition.

Exceptions for Some Temporary Residents

Work-permit holders and certain students may purchase one residential property if they meet strict conditions (for example, valid work authorization with sufficient remaining time, or specific study and presence requirements), and have not bought a home while the prohibition is in effect.

2) Ontario’s Non-Resident Speculation Tax (NRST)

In Ontario, foreign nationals, foreign corporations, and taxable trustees face a 25% NRST (N0n-Resident Speculation Tax) on the purchase price of residential property anywhere in the province (separate from the federal ban and any land transfer taxes).

3) Toronto’s Municipal Non-Resident Speculation Tax (MNRST)

On top of the provincial NRST, Toronto applies its own Municipal Non-Resident Speculation Tax (MNRST) of 10% to certain residential purchases by foreign buyers from January 1, 2025. Limited rebates exist if a buyer becomes a permanent resident within four years and meets principal-residence and ownership criteria. toronto.ca

Bottom line: If you are not a citizen or PR, buying in the GTA is challenging right now due to the federal prohibition, and costly due to provincial and municipal speculation taxes.

Can Permanent Residents Buy Like Citizens?

Yes. PRs can purchase property like citizens, including in the GTA. PRs can also access first-time buyer programs and land transfer tax rebates (subject to eligibility). Toronto and Ontario offer first-time buyer rebates of up to $4,475 (Toronto MLTT) and $4,000 (Ontario LTT), respectively.

Mortgages for Newcomers: What Lenders Look For

Stress Test and Qualification

Most mortgages from federally regulated lenders must pass Canada’s mortgage stress test—you must qualify at the greater of 5.25% or your contract rate plus 2%. Renewals that are straight switches may be exempt from re-testing, but new borrowing generally is not.

Down Payments and Programs

• Standard minimums (for eligible buyers): 5% on the first $500,000 of purchase price, 10% on the portion from $500,000 to $1,000,000, and 20% for $1,000,000+.
  
  

• CMHC “Newcomers” mortgage insurance: Available to both permanent and non-permanent residents with work authorisation, using alternative credit history if needed. This can help buyers with smaller down payments qualify.
  
  

• Non-residents (living outside Canada) typically face higher down payments, often 35%, and stricter documentation. This is a lender policy reality rather than a law.
  
  

Taxes and Costs Specific to the GTA

Land Transfer Taxes

Buying in Toronto means two land transfer taxes—provincial (Ontario LTT) and municipal (Toronto MLTT). First-time buyer rebates can offset part of each, as noted above.

Vacancy and “Underused” Taxes

• Toronto Vacant Home Tax: 3% of assessed value if a property sits vacant as defined by the City.
  
  

• Federal Underused Housing Tax (UHT): 1% annual tax that generally targets non-resident, non-Canadian owners of vacant or underused homes, with detailed filing rules and some Canadian owners also captured in certain structures.

Smart Ways Newcomers Can Boost Buying Power

Leverage First-Time Buyer Accounts and Credits

• First Home Savings Account (FHSA): Contribute up to $8,000 per year, $40,000 lifetime; contributions are typically tax-deductible, and qualified withdrawals for your first home are tax-free.
  
  

• Home Buyers’ Plan (HBP): Withdraw up to $60,000 from RRSPs (per person) for a down payment, with a temporary grace period allowing repayments to start in the fifth year for withdrawals made between 2022 and 2025.

Build Credit the Canadian Way

Open a Canadian bank account, use a secured or newcomer-friendly credit card, pay on time, and keep balances low. Many banks run “newcomer” programs that pair day-to-day banking with credit-building tools.

Where You Can Buy, Right Now

If You Are a Citizen or PR

You can purchase any residential property in the GTA (subject to normal mortgage qualification and taxes).

If You Hold a Valid Work Permit or You Are a Student

You may be able to buy a single residential property in the GTA if you meet the federal exception criteria (for example, sufficient time remaining on your work permit). Students face additional hurdles and, in many cases, a $500,000 price cap under the exception. Always confirm you meet every condition before you write an offer.

If You Are a Non-Resident (Not PR or Citizen)

You are generally prohibited from buying most residential property in the GTA until January 1, 2027. You could consider properties outside CMAs/CAs, or buildings with four or more units, which fall outside the ban—though Ontario’s 25% NRST (and Toronto’s 10% MNRST if you buy in the city) may still apply where purchases are permitted.

Step-by-Step: A Practical Path to Homeownership

Get Your Paperwork in Order

• Immigration documents (PR card, work permit, or study permit)
  
  

• Employment letters, recent pay stubs, and CRA tax slips if available
  
  

• International references if your Canadian credit history is thin
  
  

Map Your Budget

Use a reputable mortgage qualifier or meet a lender to see what you can afford under the stress test, then layer in closing costs: land transfer taxes, legal fees, title insurance, and potential NRST/MNRST if applicable.

Optimise Your Down Payment

Open an FHSA, top up your RRSP for the HBP, and set an automated savings plan. If you are a non-resident, be prepared for higher down-payment expectations from lenders.

Choose the Right Property

Balance commute, schools, and transit with smart trade-offs: a slightly older condo with solid reserves, a townhouse with manageable fees, or a duplex that adds rental income.

Work With a Local GTA Team

A seasoned local team will pre-screen listings, flag regulatory risks, run proper comparables, and pace your offer strategy—especially important in multi-offer situations.

Frequently Asked “Edge Cases”

Can my Canadian-citizen or PR spouse buy with me if I am a non-resident?

Yes—purchases with a spouse who is a Canadian, a PR, or otherwise exempt can qualify under the federal regulations; confirm details with your lawyer before making an offer.

Does the foreign buyer ban apply to vacant land or 4-plexes?

Vacant land is excluded from the prohibition, and properties with four or more units are not considered “residential property” under the Act.

Will I owe vacancy taxes if I leave the home empty?

In Toronto, expect a 3% Vacant Home Tax if your property meets the city’s vacancy definition; federal UHT may also apply to certain non-resident owners.

Final Word (and a Hand to Help)

Buying a home in the GTA as a newcomer is absolutely possible. Your path depends on your status, your financing, and how you navigate a few key rules. With the right plan—stress test readiness, smart use of FHSA and HBP, clarity on Toronto and Ontario taxes, and a data-driven offer strategy—you can buy with confidence.

The Johnson Team is a trusted name across the GTA, known for market expertise, creative marketing, and client-first service. Led by Jeff and Liz Johnson, our team guides buyers and sellers through every step—financing introductions, neighbourhood insights, accurate pricing, and firm negotiation—so your expectations are met, and surpassed. 

As your Buyer’s Representative, we help you define your budget, shortlist the right homes, analyse comparables, and negotiate the best terms, at no cost to you as a buyer. If you are ready to start house-hunting, contact us today to work with an agent right away.