You don’t need to wait years after arriving to buy a home in Canada. Permanent residents can get the same insured mortgages as citizens, often with 5% down, and the three mortgage insurers have programs for buyers with little Canadian credit history. What you need is the right paperwork, and to know which rules apply to your status.
First, check your status: the federal foreign buyer ban
The Prohibition on the Purchase of Residential Property by Non-Canadians Act took effect on January 1, 2023, and the federal government extended it to January 1, 2027. With that date close, check whether it has been extended again or replaced before you sign anything. While it applies:
- It does not apply to Canadian citizens, permanent residents, or people registered under the Indian Act.
- It covers houses and similar buildings with up to three dwelling units, plus units such as semi-detached houses, townhouses and condos.
- It applies only in census metropolitan areas and census agglomerations (cities and larger towns). Property outside them is exempt.
- Work permit holders are exempt if they have at least 183 days left on their permit or work authorization on the date of purchase and haven’t bought more than one residential property.
- Some students are exempt, but only under strict conditions (including five years of tax filing and physical presence and a price of $500,000 or less). Certain refugee claimants and protected persons are also exempt.
- Breaking the rule can bring a fine of up to $10,000, and a court can order the property sold.
Being exempt from the federal ban doesn’t exempt you from provincial taxes on foreign buyers.
Provincial foreign buyer taxes
- Ontario: Non-Resident Speculation Tax (NRST). 25% of the price, anywhere in Ontario, on homes with one to six units, when any buyer is a foreign national (someone who isn’t a citizen or permanent resident). There are exemptions for provincial nominees, protected persons, and spouses of citizens, permanent residents, nominees or protected persons. If you become a permanent resident within four years of the purchase, you can apply for a rebate. The NRST is in addition to the regular land transfer tax.
- British Columbia: additional property transfer tax. 20% of the fair market value of a foreign national’s share, on residential property in Metro Vancouver, the Fraser Valley, the Capital Regional District, Central Okanagan and Nanaimo. Confirmed B.C. Provincial Nominee Program nominees can be exempt once, for a principal residence.
Other provinces have their own rules, so ask your real estate lawyer or notary before you make an offer.
Down payment and newcomer mortgage programs
The minimum down payment rules are the same as for anyone: 5% of the first $500,000, 10% of the rest, and 20% at $1.5 million or more. All three mortgage insurers accept newcomers:
- CMHC: permanent residents can use all CMHC homeowner products, with no minimum time in Canada. Non-permanent residents must be legally authorized to work in Canada and must not be blocked by the federal ban. Down payments start at 5%, but non-permanent residents can’t use borrowed (non-traditional) down payments.
- Sagen (New to Canada program): for buyers who have immigrated or relocated to Canada with a work permit or permanent residency, with as little as 5% down.
- Canada Guaranty (Maple Leaf Advantage): aimed at new immigrants with limited credit history, also with as little as 5% down.
Lenders set their own requirements on top of the insurers’, especially for work permit holders, so ask what minimum down payment they will accept for your status.
Credit history and income
A thin Canadian credit file is the most common hurdle. CMHC requires at least one borrower or guarantor to have a credit score of 600, but when there’s no Canadian history it may accept alternatives such as an international credit report or a reference letter from your bank at home. Sagen accepts an international credit report, 12 months of rent, utility or phone bill payments, or a reference letter from a recognized financial institution.
Start building Canadian credit right away: open a Canadian credit card, use it lightly and pay it in full every month. For income, standard verification applies: expect to show pay stubs and proof of your job, and ask lenders how they treat probation periods and short Canadian work histories.
Documenting a down payment from abroad
Lenders must know where your down payment came from. If your savings are outside Canada:
- Keep statements from your foreign bank showing the money building up, and records of every transfer.
- Move the funds to a Canadian account early, so the lender can see them there for the period it requires (often 90 days).
- Gifts from relatives are accepted by the insurers if they’re non-repayable; you’ll need a signed gift letter and proof the money arrived.
- Budget for closing costs of at least 1.5% of the price on top of the down payment.
Requirements vary, so check with your lender before you transfer.
Worked example
Ana and Rahul became permanent residents in 2025. They earn $130,000 together, pay $300 a month on a car loan, and want a $550,000 townhouse with property tax of $4,200 a year and heating of $125 a month.
- Minimum down payment: 5% of $500,000 + 10% of $50,000 = $30,000.
- Mortgage of $520,000 plus a 4.00% CMHC premium of $20,800 = $540,800.
- At 4.49% over 25 years the payment is about $2,990 a month. They qualify at 6.49%, a payment of $3,619.
- GDS is 37.8% and TDS 40.6%, inside the 39% and 44% limits, so they qualify.
As permanent residents, the federal ban and Ontario’s NRST don’t apply to them. As first-time buyers they may also use an FHSA, though they must be Canadian residents to open one.
Steps to take
- Confirm your status and whether the federal ban or a provincial tax applies.
- Open a Canadian bank account and credit card, and move your savings early.
- Gather documents: passport, PR card or work permit, pay stubs, employment letter, bank statements and any foreign credit report.
- Get a pre-approval from a lender or broker that works with newcomers.
- Run your numbers in the affordability calculator and closing costs calculator.
- Hire a real estate lawyer or notary early, and make your offer conditional on financing.
Sources: Finance Canada, extension of the ban; the Act and its regulations; Ontario, Non-Resident Speculation Tax; B.C., additional property transfer tax; CMHC, newcomers; Sagen, New to Canada; Canada Guaranty, Maple Leaf Advantage; CRA, opening an FHSA.