Buying your first home in Canada.
If you're new to Canada, buying a home here works differently than it might in your home country. Here's what you need to know, in the order it actually matters.
STEP 1
The first 90 days in Canada.
Before you can do anything financial in Canada, you need three things in place. A Social Insurance Number (SIN), which you apply for at any ServiceCanada office. A Canadian bank account, which most major banks offer with newcomer-specific packages (RBC, TD, Scotia, BMO, and CIBC all have programs that waive fees for the first year). And proof of your immigration status (PR card, work permit, study permit, COPR, or other IMM document). These three unlock everything else.
What to do if you don't have a job yet
Open the bank account anyway. Most newcomer banking packages don't require Canadian employment to open. Apply for a Canadian credit card, even a secured card if necessary (with a $500 to $1,000 deposit). Use it for small purchases each month and pay the full balance every month. Six months of consistent use builds enough credit profile to start serious financial planning.
STEP 2
Renting first might be smarter.
A lot of newcomers feel pressure to buy quickly. Don't. Renting for 12 to 24 months gives you time to understand the neighbourhoods, build Canadian credit, save more for a down payment, and decide if your job and life are stable enough to commit to a specific city. Buying too fast in the wrong neighbourhood costs more than renting for a year and getting it right. Canada's rental market is renter-friendly compared to many countries. You have real legal protections under the Residential Tenancies Act.
When buying actually makes sense
Buying makes sense when you have stable Canadian employment (typically at least 2 years), at least 5% saved for the down payment plus closing costs, decent Canadian credit, and a plan to stay in the same city for at least 5 years. If any of these are uncertain, renting is the safer bet. Renting is not throwing money away if it gives you the runway to make a better decision later.
Read the renter's guide →STEP 3
Build your Canadian credit history.
Most Canadian lenders want to see 12 to 24 months of Canadian credit history before they'll approve a mortgage. Foreign credit history doesn't transfer. The fastest path to building credit is a secured credit card. Use it for small monthly purchases (groceries, gas, transit) and pay the full balance every month. After 6 months you'll have a credit score. After 12 months it'll be strong enough for most lending decisions. Avoid carrying balances or missing payments.
What if you can't wait
Some lenders specialize in newcomers and will accept alternative documentation. International credit reports. Employer letters with income confirmation. Larger down payments in lieu of credit history. You'll pay slightly higher interest rates but can sometimes qualify within months of arriving. Talk to a mortgage broker who works with newcomers specifically. They know which lenders are flexible and what documentation each one accepts.
Find a mortgage broker →STEP 4
Understand the foreign buyer ban.
As of 2023, the Prohibition on the Purchase of Residential Property by Non-Canadians Act bans most non-Canadians from buying residential property in Canada. The ban is currently in effect through 2027. However, several categories of newcomers are exempt: permanent residents, refugees, work permit holders who meet specific employment and tax filing requirements, and international students who meet tax filing and residency criteria. Spouses of Canadian citizens or permanent residents are also exempt.
Confirm your status before you shop
Misunderstanding your eligibility can cost you. Penalties for buying while banned include fines up to $10,000 and a forced sale of the property. Before you make any offer, confirm your eligibility with a Canadian real estate lawyer. A 30-minute consultation costs around $200 to $300 and is genuinely worth it for the peace of mind. Your real estate agent should also confirm eligibility before drafting an offer.
Eligible to buy and ready to start? A Saint Aubyn Hill agent who works with newcomers can guide you through Canadian conventions and connect you with mortgage brokers who specialize in newcomer files.
STEP 5
Newcomer mortgage programs exist.
Most major Canadian banks have specific newcomer mortgage programs. Common features: they accept shorter Canadian credit history (sometimes as little as 3 months), they consider foreign income or Canadian employment offers, they may accept a larger down payment in place of strong credit, and they often waive some standard requirements for permanent residents who've been in Canada less than 5 years. Each bank's program has different rules, so shopping matters.
Don't apply at the bank counter
A mortgage broker who specializes in newcomers will shop you across multiple lenders and often find better rates and terms than walking into a single bank branch. Brokers in Toronto's immigrant-heavy areas (North York, Brampton, Markham, Mississauga, Scarborough) often have multilingual staff and deep knowledge of programs specific to your country of origin. Their fee is paid by the lender, not by you.
Run the mortgage numbers →STEP 6
Down payment, and documenting where it came from.
Canadian banks need to verify the source of your down payment. This is a federal anti-money-laundering requirement. If your down payment came from your home country, you'll need to provide bank statements, transfer documentation, and proof that the funds were legally earned (employment income, sale of property, inheritance, business income). The bank typically needs 60 to 90 days of statements showing the funds in your account, either in Canada or in a verifiable foreign account.
Gift funds from family
Money gifted by an immediate family member is acceptable as a down payment, but you'll need a written gift letter signed by the family member confirming the money isn't a loan and doesn't need to be repaid. Banks have a standard template for this. If the gift comes from overseas, expect more documentation. International wire transfers over $10,000 are automatically flagged for review by both the sending and receiving banks.
STEP 7
The Canadian buying process, in plain language.
The Canadian system works differently from many countries. You don't bid for properties at auction (with rare exceptions). You make a written offer through your buyer's agent. The seller either accepts, counters, or rejects. Most offers include conditions (financing, home inspection, status certificate for condos) that protect you for a few days. If any condition fails, you can walk away and get your deposit back. Closing typically happens 30 to 60 days after an offer becomes firm.
Your buyer's agent costs you nothing directly
In Ontario, the seller pays the commission for both sides of the deal. You don't pay your buyer's agent directly. This is different from many countries where buyers pay for their own representation. Use it. A good agent will guide you through the entire process, explain Canadian conventions, recommend a real estate lawyer, connect you with a newcomer-friendly mortgage broker, and represent your interests at every stage.