Buying a House as an International Student in Ontario

Buying a home while you are studying in Ontario can look like a smart move, especially if you are paying rent for years. But your immigration status changes the rules more than almost any other factor. Federal restrictions, an Ontario tax aimed at non-residents, and lender policies can all apply to you at once.

This article walks through the main hurdles in plain language. It is general information, not advice on your situation. Because these rules have changed several times and depend on the details of your status, it is worth confirming the current position with a lawyer before you sign anything.

The federal foreign-buyer restrictions

A federal regulation restricts the purchase of residential property by people who are not Canadian citizens or permanent residents. It contains limited exceptions. The exception for temporary-resident students is narrow: you must be enrolled at a designated learning institution, have filed taxes for each of the five preceding years, have been present in Canada at least 244 days in each of those five years, pay no more than $500,000, and not have bought more than one residential property.

For most current students, that five-year history is difficult to meet. A separate exception exists for work-permit holders, who may buy if the permit has 183 days or more of validity remaining on the purchase date and they have not bought more than one residential property. The restrictions have been extended before, so confirm whether they are still in force and in what form on the date you plan to buy.

Ontario's 25% Non-Resident Speculation Tax

Ontario's Non-Resident Speculation Tax (NRST) is 25% and applies to residential property anywhere in Ontario bought by foreign nationals, meaning anyone who is not a Canadian citizen or permanent resident, as well as foreign corporations and certain trustees. On a purchase of any size, that is a very large extra cost.

Exemptions include transferees who are nominees, protected persons, or spouses of Canadian citizens or permanent residents. A Permanent Resident Rebate is available if the transferee becomes a permanent resident within four years of registration. The exemptions listed for the tax do not include one specific to international students.

You may hear about an international student rebate. That older rebate applied only to agreements of purchase and sale entered into on or before March 29, 2022, and it required two continuous years of full-time study at an Ontario campus. Its application window ended March 31, 2025, so it should not be relied on for a purchase today.

Land transfer tax and the first-time buyer refund

Ontario land transfer tax is charged on a sliding scale: 0.5% up to $55,000, 1.0% from $55,000 to $250,000, 1.5% from $250,000 to $400,000, and 2.0% above $400,000, with 2.5% on the portion over $2,000,000 for land with one or two single family residences.

Ontario also offers a first-time homebuyer refund of up to $4,000. To qualify, you must be at least 18, occupy the home as your principal residence within nine months of the transfer, and have never owned an eligible home anywhere in the world. For agreements after November 14, 2016, you must also be a Canadian citizen or permanent resident, which means a student on a study permit generally does not qualify until their status changes. Toronto has its own separate municipal land transfer tax, which you should ask about if you are buying there.

Mortgage and down payment hurdles

CMHC says the minimum down payment is 5% of the first $500,000 of the price plus 10% of the portion above $500,000, and that gifts from immediate family and RRSP withdrawals are acceptable sources. CMHC also says its programs are open to non-permanent residents with work authorization. Whether a study permit alone counts as work authorization for a particular lender or program depends on the lender, so ask directly.

A mortgage pre-approval is an estimate of the maximum mortgage and likely rate, based on a credit check and a review of your income, debts and assets. It does not guarantee approval, and the lender can lock the rate for roughly 60 to 130 days depending on the lender. Before final approval, the lender checks that the property meets its standards, and it may offer a smaller mortgage, a higher rate, a larger down payment or require a co-signer.

• A limited Canadian credit history can make it harder to qualify, so ask lenders what they accept in its place.
• Income from part-time work or a study-permit job may be treated differently from regular employment.
• Money sent from abroad should be well documented, because lenders and your lawyer will ask where the down payment came from.
• A gift from family should be non-repayable; lenders set their own paperwork requirements.

Legal checks before you commit

If you buy a condo, CMHC advises making a satisfactory status (estoppel) certificate a condition of your offer. The corporation must give the certificate within 10 days of the request and fee, and may charge up to $100 including taxes. It can include the by-laws, current budget, reserve fund information, arrears, special assessments and any ongoing litigation.

Title insurance is not required in Ontario and does not replace legal advice. If you choose it, your lawyer should explain the searches the lawyer will not perform, such as zoning, encroachments and survey issues, and what they would reveal.

What to do next

• Confirm your exact immigration status and how long it is valid.
• Ask a lawyer whether the federal foreign-buyer rules currently apply to you and whether an exception fits.
• Ask about the 25% NRST before you make any offer, and whether any exemption or rebate applies.
• Get a pre-approval from more than one lender and ask how each treats study permits.
• Gather proof of the source of your down payment.
• Make financing and, for condos, a status certificate review conditions of any offer.

Frequently asked questions