Can You Buy a Home in Toronto as a Newcomer to Canada?

Quick answer: Yes. Permanent residents and people authorized to work in Canada can get an insured mortgage with as little as 5% down and no minimum time in Canada (CMHC). Your status changes the tax bill, though. On a $700,000 Toronto condo, a first-time buyer with permanent residence pays $12,475 in land transfer tax after refunds. A buyer on a work permit can owe $265,950 at closing once the two foreign buyer taxes are added.

Why does your immigration status matter so much in Toronto?

In Toronto you pay two land transfer taxes, one to Ontario and one to the City. If you aren’t a citizen or permanent resident, two speculation taxes can be added on top: 25% to Ontario and 10% to Toronto. Most of what follows comes down to one question: are you a permanent resident on closing day?

Can newcomers qualify for a mortgage?

Yes, and sooner than most people expect. Under CMHC’s newcomer rules (CMHC):

• You need permanent resident status or legal authorization to work in Canada, such as a work permit.
• There’s no minimum period of residency.
• The minimum down payment is 5% of the first $500,000 and 10% of the rest, on homes under $1.5 million.
• At least one borrower or guarantor needs a credit score of 600 or more.
• If your Canadian credit is thin, CMHC may consider an international credit report or a reference letter from your bank in your home country.

The lender also has to approve your income in Canada, usually from an employment letter and recent pay stubs.

The down payment can come from savings, the sale of a property or a gift from a relative. Money from abroad is fine. Expect the lender to ask for statements that trace it from your account at home to your Canadian account. Borrowed down payments aren’t available to buyers who aren’t permanent residents.

Can you buy at all on a work permit?

Usually, yes. The federal ban on non-Canadians buying residential property runs to January 1, 2027 (CMHC), and Toronto is inside it. Permanent residents aren’t affected. Work permit holders are exempt if, on the day they buy, the permit has 183 days or more left and they haven’t bought another residential property (Regulations, s. 5).

International students face stricter tests: a $500,000 price cap, tax returns filed for the past five years, and at least 244 days a year in Canada over those five years.

Who pays the foreign buyer taxes?

If you aren’t a citizen or permanent resident, two taxes apply on top of land transfer tax:

• Ontario’s Non-Resident Speculation Tax (NRST): 25% of the price, anywhere in Ontario. If any buyer on title owes it, it’s charged on the full price (Ontario).
• Toronto’s Municipal Non-Resident Speculation Tax (MNRST): 10% of the price, since January 1, 2025 (City of Toronto).

You’re exempt if you’re an Ontario Immigrant Nominee Program nominee who has applied for permanent residence, a protected person, or the spouse of a citizen or permanent resident and both of you are on title. In each case you must live in the home as your principal residence. Toronto’s exemptions follow the same three categories (Ontario, City of Toronto).

If you pay and later become a permanent resident within four years, both taxes can be rebated. You must have owned the home alone or only with your spouse and lived in it as your principal residence. Ontario wants the application within 180 days of becoming a permanent resident (Ontario). Toronto wants it within 90 days (City of Toronto). The old Ontario rebates for international students and foreign nationals working in Ontario are gone. They only covered agreements signed on or before March 29, 2022.

What does it cost on a $700,000 Toronto condo?

Two first-time buyers buy the same $700,000 condo alone with the minimum 5% down. One is a permanent resident. The other is on a work permit and qualifies under the ban exemption, but none of the NRST exemptions apply.

	Permanent resident	Work permit holder
Down payment (5% of $500,000 + 10% of $200,000)	$45,000	$45,000
Ontario land transfer tax	$10,475	$10,475
Toronto land transfer tax	$10,475	$10,475
First-time buyer refunds (Ontario $4,000, Toronto $4,475)	−$8,475	not at closing
Ontario NRST (25%)	$0	$175,000
Toronto MNRST (10%)	$0	$70,000
Taxes paid at closing	$12,475	$265,950

The land transfer taxes use the same brackets for both levels: 0.5% up to $55,000, 1% to $250,000, 1.5% to $400,000 and 2% to $2 million (Ontario, City of Toronto). Both buyers also pay Ontario’s 8% sales tax on the CMHC premium in cash at closing: $2,096 on a 4.00% premium on the $655,000 mortgage (CMHC). For the rest of the closing costs, see Toronto closing costs.

If the work permit holder becomes a permanent resident within 18 months, both first-time buyer refunds can still be claimed (Ontario, City of Toronto). Within four years, the $245,000 in speculation tax can come back too. You still have to pay it on closing day.

If your permanent residence is close, it’s often worth timing the closing date around it. Ask your immigration lawyer, not your mortgage broker, how close you really are.

When doesn’t this apply?

Every example here assumes you’re buying a home to live in. If any of these apply to you, the rules change:

• You’re buying with a citizen or permanent resident spouse, and both of you are on title. Then the spouse exemption removes the NRST and MNRST.
• You’re buying a rental, or a second property.
• Your spouse owned a home while you were together. Then neither of you gets the Ontario first-time buyer refund.

These rules also change. The ban was extended once already, so check where it stands before you sign.

What should you do next?

Before you look at listings, find out which column of that table you’re in. Send me your status, your landing date or permit expiry, and where your down payment is sitting, and I’ll tell you what you qualify for and what you’d pay at closing. Book a 20-minute call with Joshua Tagg. For the down payment rules on their own, see 5% vs 20% down in Toronto.

This is commentary, not legal, tax or immigration advice. Figures as of October 26, 2026. Tax rates are set by the Province of Ontario and the City of Toronto. All mortgages are subject to lender and insurer approval.