Holding a work permit or study permit does not always stop you from buying a home in Canada, but the rules are much stricter than for permanent residents. For permanent residents and general newcomer steps, see buying a home as a newcomer.
Step 1: the federal ban and its exceptions
The Prohibition on the Purchase of Residential Property by Non-Canadians Act stops most people who aren’t citizens or permanent residents from buying a home. Its regulations list exceptions.
| Your situation | Conditions for the exception |
|---|---|
| Work permit or work authorization | 183 days or more of validity left on the date of purchase, and you have not purchased more than one residential property |
| Student at a designated learning institution | All required tax returns filed for each of the 5 tax years before the purchase; physically in Canada at least 244 days in each of those 5 calendar years; price of $500,000 or less; not more than one property purchased |
| Buying with a spouse or common-law partner | The Act allows a purchase with a spouse or partner who holds a listed status, such as Canadian citizen or permanent resident |
The ban covers only homes with up to three units in census metropolitan areas and census agglomerations, and since March 27, 2023 it does not cover vacant land. Ask your lawyer which date counts as the “date of purchase” for your 183 days.
The end date. Finance Canada extended the ban to January 1, 2027. As of November 2, 2026, we found no official notice that says whether it will be extended again, replaced or allowed to end. Check before you sign an offer. Provincial taxes are separate.
Step 2: mortgage options
Insured mortgages (less than 20% down). All three insurers can cover temporary residents who are not blocked by the federal ban:
- CMHC: you must be legally authorized to work in Canada. The home can have 1 to 4 units, with at least one unit occupied by the owner. Non-traditional (borrowed) down payments are not available to non-permanent residents.
- Sagen (New to Canada) and Canada Guaranty (Maple Leaf Advantage): you need a valid work permit or permanent residency. The maximum is 4 units, and one must be owner-occupied.
These programs do not describe a study permit alone as enough. A student who has only a study permit should ask a lender early whether insurance is possible, and should plan for 20% or more down.
Uninsured mortgages (20% or more down). There is no insurer, so the lender’s own policy applies. Lenders can set stricter rules for temporary residents. Ask about the minimum down payment for your permit, how foreign income is treated, and what happens at renewal if your permit has expired.
Step 3: down payment
The insurers use the normal minimum down payment for 1- and 2-unit homes: 5% of the first $500,000 and 10% of the rest, with a limit below $1.5 million. Homes with 3 or 4 units need 10%.
A gift from a relative can be used. An FHSA is possible only if you are a resident of Canada for tax purposes and meet the first-time buyer rules, so confirm your position with the CRA.
Step 4: foreign buyer taxes and rebates
An exception from the federal ban does not exempt you from these taxes.
Ontario: Non-Resident Speculation Tax (NRST). The tax is 25% of the price, anywhere in Ontario, if any buyer is a foreign national.
- Exemptions: Ontario Immigrant Nominee Program nominees, protected persons, and the spouse of a citizen, permanent resident, nominee or protected person. Status must exist on closing, and all buyers must certify that they will live in the home as their principal residence within 60 days. Both spouses must be on the title.
- Permanent resident rebate: you may get the tax back if you become a permanent resident within four years of the purchase and you live in the home as your principal residence, starting within 60 days of registration. The ministry must receive your application within 180 days of the day you become a permanent resident. Don’t wait for your PR card.
- No longer available: the old rebates for international students and foreign workers (agreements signed by March 29, 2022 only).
British Columbia: additional property transfer tax. The tax is 20% of the fair market value of your share in Metro Vancouver, the Fraser Valley, the Capital Regional District, Central Okanagan and Nanaimo.
- Exemption: a confirmed B.C. Provincial Nominee, once only, for a principal residence. A work permit or student visa alone does not make you a nominee.
- Refund: you may apply if you become a permanent resident or citizen within one year of registration, move in within 92 days and live there for at least a full year. You must apply after the first anniversary of moving in and before 18 months from registration.
B.C. speculation and vacancy tax. This is a yearly tax in designated areas. The rate for foreign owners is 3% of assessed value for 2026 and 4% from 2027. The principal residence exemption is limited to citizens and permanent residents, so living in the home does not exempt a foreign owner. A rental exemption or a credit based on B.C. income may apply.
Worked example
Arjun holds a work permit with 14 months left. He earns $140,000 and wants a $600,000 home in Ontario with property tax of $4,500 a year and heating of $125 a month. He is a foreign national with no NRST exemption.
- Minimum down payment: $35,000.
- Mortgage of $565,000 plus a 4.00% premium of $22,600 = $587,600.
- At 4.49% over 25 years the payment is about $3,249 a month. At the qualifying rate of 6.49% it is $3,932, and GDS is 38.0%, inside the 39% limit.
- Cash needed at closing: $35,000 down payment + $150,000 NRST + $8,475 Ontario land transfer tax + $1,808 sales tax on the premium = $195,283, before legal fees.
He qualifies on income, but the tax is more than four times his down payment. If his wife were a permanent resident buying with him, and they met the conditions, the NRST would not apply and his cash to close would fall to $45,283. If he becomes a permanent resident within four years and meets the rebate conditions, he could apply to get the $150,000 back.
Steps to take
Before you look at homes, ask a real estate lawyer how the exceptions and your province’s tax apply to you. Then ask a lender or broker about your permit type and get a pre-approval. Use the closing costs calculator, and add any foreign buyer tax yourself.
Sources: the Act and its regulations; Finance Canada, extension; CMHC, the Act; CMHC, newcomers; Sagen, New to Canada; Canada Guaranty, Maple Leaf Advantage; Ontario, NRST exemptions and rebates; B.C., additional property transfer tax and refunds; B.C., speculation and vacancy tax rates and exemptions; CRA, opening an FHSA. Mortgage figures were calculated with this site’s mortgage engine.