Buying a home as a newcomer to Canada (2026 GTA guide)

Yes, newcomers can buy a home in Canada. Permanent residents buy on the same terms as citizens, with the same down payment rules and first-time buyer refunds. On a work or study permit, the federal foreign buyer ban (in force until January 1, 2027) and Ontario's 25% Non-Resident Speculation Tax may apply unless you qualify for an exemption.

Many newcomers buy within their first few years. This guide explains what you need to know, from building credit to choosing between renting and buying in the GTA, with real numbers from homes for rent and for sale right now.

$1,800/moMedian asking rent, basement apartment2,724 active listings

$2,998/moMedian asking rent, 2-bedroom condo2,116 active listings

$647,000Median asking price, 2-bedroom condo3,769 active listings

$16,475Land transfer tax on an $800,000 Toronto home, first-time PR buyerAfter both refunds

$304,950Same home, foreign nationalAdds 25% NRST and 10% MNRST

Jan 1, 2027Current end date of the foreign buyer banCheck CMHC for any extension

Rents and prices are asking figures on active listings, not signed leases or sale prices.

Source: Dibz analysis of active MLS® listings and active for-lease MLS® listings (TRREB, via PropTx), Oct 2, 2026; Ontario Ministry of Finance (LTT, NRST 25%); City of Toronto (MLTT, MNRST 10% since Jan 1, 2025); CMHC. Dibz calculation.

Step 1: Can newcomers buy a home in Canada? Know your status

Your immigration status shapes almost everything else.

Permanent residents and citizens

Canadian citizens, permanent residents and people registered under the Indian Act are not "non-Canadians" under the federal ban. You can buy anywhere in Canada, you don't pay Ontario's Non-Resident Speculation Tax, and you can qualify for Ontario's and Toronto's first-time buyer land transfer tax refunds.

Temporary residents: the foreign buyer ban

The Prohibition on the Purchase of Residential Property by Non-Canadians Act bars most non-Canadians from buying residential property. It was extended to January 1, 2027. As of this writing, no further extension has been announced, but that could change, so check the latest from CMHC before you plan around the end date.

The ban covers buildings with up to three dwelling units, including houses, semi-detached homes and condo units, in Census Metropolitan Areas and Census Agglomerations. The GTA is inside those areas.

Key exemptions (each has conditions; read the full rules):

• Temporary workers with a valid work permit or authorization and at least 183 days of validity remaining at the time of purchase, who haven't already bought a property under this exemption.
• International students who meet several tests, including filing tax returns and spending at least 244 days a year in Canada for the previous five years, buying a property of $500,000 or less.
• Refugees and protected persons, and certain refugee claimants and people with humanitarian temporary resident status.
• Spouses and common-law partners buying jointly with a Canadian citizen, permanent resident or another person who is allowed to buy.

Penalties for breaking the ban include fines of up to $10,000 and a possible court-ordered sale.

Ontario's Non-Resident Speculation Tax (NRST)

Separately from the federal ban, Ontario charges a 25% NRST on residential purchases anywhere in the province by foreign nationals (people who aren't citizens, permanent residents or registered under the Indian Act), foreign corporations and taxable trustees. It's on top of regular land transfer tax.

There are exemptions for Ontario Immigrant Nominee Program nominees, protected persons and spouses of citizens or permanent residents, subject to conditions. Ontario also offers a rebate if you become a permanent resident within four years of buying.

In the City of Toronto, a separate 10% Municipal Non-Resident Speculation Tax has applied to foreign buyers of certain residential properties since January 1, 2025.

What does that mean in dollars? On an $800,000 home in Toronto, a permanent resident buying their first home pays $16,475 in land transfer tax after both refunds. A repeat buyer who is a citizen or PR pays $24,950. A foreign national who is exempt from the ban would pay $304,950, because the NRST adds $200,000 and the MNRST adds $80,000.

• Ontario LTT (net of refund)
• Toronto MLTT (net of rebate)
• Ontario NRST (25%)
• Toronto MNRST (10%)

Assumes the foreign national qualifies for an exemption from the federal ban and for no NRST or MNRST exemption. Outside Toronto there's no MLTT or MNRST, but the 25% NRST applies anywhere in Ontario.

Source: Ontario Ministry of Finance (LTT, NRST 25%); City of Toronto (MLTT, MNRST 10% since Jan 1, 2025). Dibz calculation.

Show the numbers

	Ontario LTT (net of refund)	Toronto MLTT (net of rebate)	Ontario NRST (25%)	Toronto MNRST (10%)
First-time buyer (citizen or PR)	$8,475	$8,000	$0	$0
Repeat buyer (citizen or PR)	$12,475	$12,475	$0	$0
Foreign national (exempt from ban)	$12,475	$12,475	$200,000	$80,000

Bottom line: if you're not yet a permanent resident, talk to a real estate lawyer before you sign anything. The combination of the federal ban, the NRST and Toronto's MNRST can make a purchase illegal or very expensive.

Step 2: Build your Canadian credit history

Lenders rely on your Canadian credit report, and many newcomers arrive with none. Start building it right away:

• Open a bank account and a credit card. If you can't get a regular card, a secured credit card (backed by a deposit) is a common first step.
• Pay every bill on time, and keep balances well below your limits.
• Check your reports from both Equifax and TransUnion. You can get them free online.
• Keep records of rent payments, utility bills and any foreign credit history. Some lenders and mortgage insurers accept alternative evidence.

Step 3: Can newcomers get a mortgage in Canada?

Yes. Permanent residents generally qualify for the same mortgages as citizens. CMHC mortgage insurance is available to citizens, permanent residents and non-permanent residents who are legally authorized to work in Canada, and CMHC says it may consider alternative ways of establishing creditworthiness for borrowers with no Canadian credit history, such as newcomers.

All three mortgage insurers (CMHC, Sagen and Canada Guaranty) have options aimed at newcomers. Terms differ by insurer and lender, so a mortgage broker who works with newcomers regularly can save you time.

Expect to provide:

• Proof of status (PR card or work permit).
• Employment letter and recent pay stubs. Many lenders want to see that you've passed probation.
• Proof of down payment and where it came from, including any funds transferred from abroad.
• Bank statements, often covering the last 90 days.

Down payment rules for newcomers

The minimum down payment is the same for newcomers who qualify for insured mortgages: 5% on the first $500,000, 10% on the portion from $500,000 to under $1.5 million, and 20% at $1.5 million or more. On a $647,000 two-bedroom condo (the GTA median asking price), that works out to $39,700. Lenders may ask for more if your credit history is thin or you're on a temporary permit.

You also have to pass the mortgage stress test, which qualifies you at the greater of 5.25% or your contract rate plus 2%. Our first-time home buyer guide for Ontario shows how that plays out step by step.

Step 4: Which first-time buyer programs can newcomers use?

Many newcomers are first-time buyers in Canada, but the definitions vary:

• Ontario's land transfer tax refund (up to $4,000) and Toronto's rebate (up to $4,475) require you to be a citizen or permanent resident and to have never owned a home anywhere in the world. A home you owned in another country counts. Ontario allows up to 18 months after the purchase to become a permanent resident and still claim.
• The FHSA and RRSP Home Buyers' Plan look at whether you lived in a home you owned in the current year or the previous four calendar years, and you must be a resident of Canada. See our FHSA and HBP guide.
• The first-time home buyers' GST rebate applies to eligible new homes.

For how land transfer tax is calculated and what else to budget for at closing, see our closing costs guide.

Step 5: Rent first or buy now?

There's no single right answer. Renting for your first year or two often makes sense when:

• Your job or immigration status is still settling.
• You're still learning which neighbourhoods suit your commute, schools and community.
• You need time to build credit and save for a down payment plus closing costs.

Buying sooner can make sense if you have permanent residence, stable income, a solid down payment and a clear sense of where you want to live long term.

The monthly numbers help explain why many newcomers rent first. A typical one-bedroom GTA condo asks $2,250 a month to rent. Owning one at the median asking price would cost about $2,914 a month in mortgage, condo fee and property tax, before you count the down payment and closing costs. For a two-bedroom, it's $2,998 to rent versus about $4,142 to own. Part of each mortgage payment does pay down your loan, which renting doesn't.

• Rent (median asking)
• Own (mortgage + fee + tax)

Own = mortgage with the minimum down payment and CMHC premium added (4.05%, 30 years) + median condo fee + median property tax ÷ 12. Excludes insurance, utilities, closing costs and the down payment itself. Bedrooms are above-grade; a den counts separately.

Source: Dibz analysis of active MLS® listings (TRREB, via PropTx), Oct 2, 2026; Bank of Canada: 5-yr+ fixed insured mortgage rate on new funds advanced, July 2026 (4.05%, series V122667780); FCAC minimum down payment rules; CMHC premium table (+0.20% for 30-yr amortization); Ontario 8% RST on premiums. Dibz calculation.

Show the numbers

	Rent (median asking)	Own (mortgage + fee + tax)
Studio	$1,950/mo	$2,260/mo
1 bed	$2,250/mo	$2,914/mo
1 bed + den	$2,450/mo	$3,323/mo
2 bed	$2,998/mo	$4,142/mo
3+ bed	$3,800/mo	$4,788/mo

Condos aren't your only option. Basement apartments, the second-biggest group of GTA rentals with 2,724 active listings, ask a median $1,800 a month, and condos (the biggest group, with 6,105) ask $2,650. A whole detached house asks $4,100.

Asking rents on active listings; groups with 20 or more listings. Highlighted: the two largest groups, condos (6,105 listings) and basement apartments (2,724).

Source: Dibz analysis of active for-lease MLS® listings (TRREB, via PropTx), Oct 2, 2026

Show the numbers

	Value
Room	$1,050/mo
Basement apartment	$1,800/mo
Upper level	$2,495/mo
Condo (apartment or townhouse)	$2,650/mo
Main floor of a house	$2,800/mo
Whole freehold townhouse	$3,300/mo
Main + upper floors	$3,300/mo
Whole semi-detached	$3,500/mo
Whole detached house	$4,100/mo

A middle path many newcomers take: rent in the area you're considering, and use that time to study the market. On Dibz, one switch flips the whole app between homes for rent and for sale, so you can compare what similar homes lease for and sell for in the same neighbourhood. With a free account you can see recently leased and sold prices, and every listing shows nearby schools with scores based on EQAO results and neighbourhood information from the census, including the languages spoken in the area.

Step 6: Get to know GTA neighbourhoods

The GTA is huge, and the right area depends on your priorities. Things newcomers often weigh:

• Commute: test the trip at rush hour. On Dibz, save your workplace as one of your "My places" and you'll see an estimated drive time on every home.
• Schools: check catchment boundaries with the school board directly.
• Community: grocery stores, places of worship and community services that fit your family.
• Transit: proximity to the subway, GO Transit or major bus routes.

Cost varies by city, too. A two-bedroom condo in Toronto asks a median $3,100 a month, while in Milton and Burlington it's $2,575, about $525 less. Renting in a cheaper area for a year is a low-risk way to test whether it suits you before you buy there.

Municipalities with 20 or more active 2-bedroom condo listings. Asking rents, not signed leases.

Source: Dibz analysis of active for-lease MLS® listings (TRREB, via PropTx), Oct 2, 2026

Show the numbers

	Value
Toronto	$3,100/mo
Markham	$3,000/mo
Mississauga	$2,900/mo
Richmond Hill	$2,900/mo
Oakville	$2,850/mo
Vaughan	$2,700/mo
Brampton	$2,600/mo
Burlington	$2,575/mo
Milton	$2,575/mo

Our guide to choosing a neighbourhood in the GTA goes deeper, and you can browse rentals and homes for sale side by side on the Dibz map.

Step 7: Build your team

You'll want:

• A licensed real estate agent who knows the areas you're considering. In Ontario, agents are regulated by RECO, and your buyer representation agreement must be in writing. On Dibz, you can find licensed agents by area and language and message them in the app; your phone number and email stay hidden in chat. Dibz is a technology platform, not a brokerage, and those agents are independent licensed professionals.
• A mortgage broker or lender experienced with newcomers.
• A real estate lawyer to confirm whether the ban, NRST or MNRST applies to you, review your offer and handle closing.

FAQ

Can a permanent resident buy a home in Canada?

Yes. Permanent residents are not covered by the foreign buyer ban, don't pay Ontario's NRST, and can qualify for first-time buyer land transfer tax refunds if they meet the other conditions, including never having owned a home anywhere in the world.

Can I buy a home in Toronto on a work permit?

Possibly. Temporary workers can be exempt from the federal ban if they meet the conditions, including at least 183 days left on their work authorization. You would generally still owe Ontario's 25% NRST and Toronto's 10% MNRST unless an exemption applies. Get legal advice first.

How much is the NRST on a home in Toronto?

Ontario's NRST is 25% of the price, and Toronto adds a 10% MNRST, both on top of regular land transfer tax. On an $800,000 Toronto home, that's $200,000 plus $80,000, for $304,950 in total transfer taxes, versus $16,475 for a permanent resident buying a first home. Exemptions and rebates exist, so check with a lawyer.

When does the foreign buyer ban end?

It's currently set to expire on January 1, 2027. The government has extended it before, so check CMHC's page for the latest status.

How much does it cost to rent in the GTA as a newcomer?

It depends on the type of home. On October 2, 2026, median asking rents for active GTA listings were $1,050 for a room, $1,800 for a basement apartment, $2,650 for a condo and $4,100 for a whole detached house. A two-bedroom condo asked $3,100 in Toronto and $2,575 in Milton or Burlington.

Do I need Canadian credit history to get a mortgage?

It helps a lot, but it's not always required. Mortgage insurers and some lenders may accept alternative evidence such as rent and utility payment records or a reference from your bank abroad.

Does owning a home in my home country affect first-time buyer benefits?

Yes, for some programs. Ontario's and Toronto's land transfer tax refunds require that you've never owned a home anywhere in the world. The FHSA and Home Buyers' Plan use a four-year look-back instead.

Sources

• CMHC: Prohibition on the Purchase of Residential Property by Non-Canadians Act
• Ontario: Non-Resident Speculation Tax
• City of Toronto: MLTT and Municipal Non-Resident Speculation Tax
• Ontario: Calculating land transfer tax
• Ontario: Land transfer tax refunds for first-time homebuyers
• City of Toronto: MLTT rates and fees
• City of Toronto: MLTT rebate opportunities
• CMHC: Mortgage loan insurance requirements
• CMHC: Premium information for homeowner loans
• Bank of Canada: Insured 5-year-plus fixed mortgage rate, funds advanced (series V122667780)
• FCAC: Down payment
• FCAC: Getting your credit report and credit score
• FCAC: Choosing a credit card
• GTA rents and prices: Dibz analysis of active for-sale and for-lease MLS® listings (TRREB, via PropTx), October 2, 2026. These are asking figures, not signed leases or sale prices.

This article is general information, not financial, legal or immigration advice. Rules change; confirm your situation with a lawyer and official sources.