Newcomers can buy a home in the GTA. What you're allowed to buy, what taxes you pay and which programs help all depend on your immigration status. Permanent residents can buy like citizens. Work permit and study permit holders face a federal purchase ban unless they meet an exemption, plus extra provincial and Toronto taxes. Your credit history and down payment paperwork matter more than usual.

This guide goes status by status, then covers credit, down payments and incentives. For the general buying steps, see our buyer's guide.

What your status means, at a glance

Your status	Federal purchase ban	Ontario NRST (25%)	Toronto MNRST (10%)	Ontario and Toronto first-time LTT refunds
Canadian citizen or permanent resident	Doesn't apply	Doesn't apply	Doesn't apply	Yes, if you meet the other rules
Work permit holder	Exempt if you meet the conditions below	Applies unless an exemption fits	Applies unless an exemption fits	Only if you become a citizen or PR within 18 months of the transfer (Ontario and Toronto both allow this)
Study permit holder	Exempt only if you meet stricter conditions	Applies unless an exemption fits	Applies unless an exemption fits	Same as work permit holders
Living outside Canada, not a PR or citizen	Generally prohibited in the GTA	Applies	Applies	No

Last checked: October 2026. Sources are linked in each section below.

The federal ban on foreign buyers

The Prohibition on the Purchase of Residential Property by Non-Canadians Act took effect January 1, 2023. The government extended it to January 1, 2027. Check its status before you sign anything near or after that date, since it could be extended again, changed or allowed to expire.

Who it covers. A "non-Canadian" is anyone who isn't a Canadian citizen, a permanent resident or a person registered under the Indian Act. Permanent residents aren't affected.

What it covers. Residential properties with three or fewer units, including houses, semis and condo units, inside census metropolitan areas and census agglomerations. The GTA's cities are inside these areas. Since March 27, 2023, vacant land is excluded.

Main exceptions, from the Act and its Regulations:

Work permit holders: at least 183 days left on the permit (or work authorization) on the purchase date, and you haven't bought more than one residential property.
Students: enrolled at a designated learning institution, filed tax returns for each of the past five years, physically in Canada at least 244 days in each of those five years, a price of $500,000 or less, and no more than one property bought.
Protected persons under immigration law.
Spouses or common-law partners buying together with a Canadian citizen, permanent resident or other exempt person.

Exceptions are technical. Have a real estate lawyer confirm yours before you make an offer.

Ontario and Toronto taxes on foreign buyers

Ontario's Non-Resident Speculation Tax (NRST) is 25% of the price, anywhere in Ontario, for buyers who aren't Canadian citizens or permanent residents. It's charged on top of regular land transfer tax. It's based on citizenship and PR status, not on where you file taxes. If you become a permanent resident within four years of the purchase, you may qualify for a rebate.

In the City of Toronto, foreign buyers also pay the 10% Municipal Non-Resident Speculation Tax (MNRST), in force since January 1, 2025.

Both list exemptions, including nominees under the Ontario Immigrant Nominee Program, protected persons, and a foreign national buying with a spouse who is a citizen, permanent resident, nominee or protected person.

On a $700,000 home, 25% is $175,000. For most newcomers on a work permit, the timing of PR status is the biggest money question in the whole purchase.

Building a credit history lenders can use

Canada has two main credit bureaus, Equifax and TransUnion. Banks here may not recognize your credit history from another country, which is why building Canadian credit early helps.

For insured mortgages, CMHC's newcomer rules say:

At least one borrower (or guarantor) needs a credit score of 600 or higher.
With limited Canadian history, CMHC may consider an international credit report, a reference letter from your bank back home, or other ways to show you manage credit well.
No minimum time living in Canada is required.

Practical steps that help: open a Canadian bank account and a credit card soon after you arrive, pay every bill on time, and keep balances low. Keep records of your rent payments and your employment.

Mortgage options for newcomers

Many lenders have newcomer mortgage programs. Terms, rates and required documents vary by lender and change often, so compare at least two before you rely on one.

What the official rules say:

Permanent residents can use all of CMHC's homeowner insurance products.
Non-permanent residents can apply for CMHC homeowner loans if they're legally authorized to work in Canada, and only if the purchase isn't prohibited under the foreign buyer ban.
Insured mortgages need a purchase price below $1.5 million.
The minimum down payment is the same for newcomers as for anyone: 5% up to $500,000, 10% on the portion between $500,000 and $1.5 million, and 20% at $1.5 million or more. Individual lenders can ask for more.
Federally regulated lenders must qualify uninsured borrowers at the greater of the contract rate plus 2% or 5.25%.

Get pre-approved before you look. A pre-approval doesn't guarantee final approval, but it shows you which documents the lender wants.

Where your down payment can come from

CMHC accepts these down payment sources for insured mortgages: your savings, money from selling a property, and a non-repayable gift from a relative. Borrowed down payments are limited, and non-permanent residents can't use them.

If your savings are abroad, move them early. Expect your lender to ask for statements showing where the money came from and how it reached your Canadian account. A large deposit with no paper trail can delay an approval. A gift usually needs a signed gift letter. Ask your lender for their exact list.

Which first-time buyer programs can newcomers use?

Several programs depend on residency or status, and some count homes you owned abroad.

FHSA: you must be a resident of Canada for tax purposes. A home you owned and lived in outside Canada in the current year or the previous four calendar years counts against you.
RRSP Home Buyers' Plan: you must be a Canadian resident, and the same four-year test includes homes outside Canada.
Ontario land transfer tax refund: citizens and permanent residents. If you become one within 18 months of registration, you can still apply. You must also never have owned a home anywhere in the world.
Toronto MLTT rebate: citizens and permanent residents. If you become one within 18 months of the transfer, you can still apply.
First-Time Home Buyers' GST/HST rebate on new homes: citizens and permanent residents.

If you owned and lived in a home back home, you can become eligible for the FHSA and HBP again once four full calendar years have passed. The Ontario and Toronto land transfer tax refunds stay off the table. Our incentives guide has the amounts, and the land transfer tax guide shows what the refunds are worth at different prices.

Help in English, Hindi and Punjabi

I work with buyers in English, Hindi and Punjabi. That can help when parents or relatives are part of the decision or the down payment, so everyone hears the same plan in the language they're most comfortable with.

Book a free Gameplan Session

Your status, your credit file and where your down payment sits decide what you can buy and when. In a Gameplan Session we lay out your timeline, the taxes and rebates that apply to you, and the documents to start gathering, in English, Hindi or Punjabi. Book a free Gameplan Session.

This is general information, not financial, tax, immigration or legal advice. Confirm your situation with your lender, lawyer and accountant, and an immigration professional where status matters.