Can I buy a home in Ontario as a newcomer, and what extra rules apply?

The federal prohibition on purchases by non-Canadians

The Prohibition on the Purchase of Residential Property by Non-Canadians Act has been in force since 1 January 2023. It bars people who are neither citizens nor permanent residents, and corporations they control, from buying residential property in most urban areas, with exemptions for certain work-permit holders, students, refugees and people buying with a Canadian spouse. Breach is an offence and a court can order the property sold.

The Act was written with an end date that has already been extended once, so check whether it is still in force when you buy. Your lawyer will ask for your status documents and, where an exemption applies, confirm that you meet its conditions before closing.

Ontario's non-resident speculation tax

Ontario charges the non-resident speculation tax on the purchase of residential property anywhere in the province by a foreign national, a foreign corporation or a taxable trustee, on top of land transfer tax. It is a percentage of the value of the consideration; the current rate is on the province's page. Where a foreign national buys jointly with a Canadian, the tax generally applies to the whole price unless a spousal exemption applies.

Exemptions exist for nominees under the provincial immigration programme, protected persons, and spouses of Canadians, among others. A rebate may be available if you become a permanent resident within the period the province sets, so keep the deadline in your diary.

The first-time buyer refund and your status

The Ontario land transfer tax refund for first-time buyers requires the purchaser to be a Canadian citizen or permanent resident. A buyer who is not yet either at closing may still apply within 18 months if they become one during that period. The other conditions (never having owned a home anywhere in the world, the spouse rule, moving in within nine months) apply equally to newcomers, and ownership abroad counts.

Financing with a short Canadian credit history

Lenders verify income, credit and the source of the down payment. Foreign income needs documentation that can be verified, and funds arriving from abroad need a paper trail showing the account they came from and when. Lenders, your lawyer and the brokerage all have anti-money-laundering obligations, so plan transfers early and keep every confirmation.

The law does not set minimum down payments for newcomers beyond the general rules; lenders set their own criteria. We do not recommend lenders or products, but we can tell you what documents a lender will need to see on closing and what our own verification rules require.

Identity, residency and the closing documents

Bring your passport and your status document (permanent resident card, work permit or study permit). The transfer includes statements about citizenship and residency for land transfer tax and speculation tax purposes, and the buyer signs them under oath. A social insurance number or individual tax number is needed for the rebates and for your tax return. How title is held matters too: spouses on title, a matrimonial home and joint tenancy have consequences under Ontario family and estates law that may differ from those in your home country.