Can newcomers buy property in Canada?
Newcomers can buy property in Canada, but rules vary by status. Learn about PR rights, temporary resident rules, mortgage options, and building credit basics.
Yes, newcomers to Canada can buy property. There are no restrictions on permanent residents purchasing real estate. Temporary residents face some additional considerations under recent federal legislation, but pathways to homeownership exist for many newcomers.
Permanent Residents
Permanent residents have the same rights as Canadian citizens when it comes to buying property. You can purchase at any time, access the same mortgage products, and apply for first-time buyer programmes if you haven't previously owned a home.
Temporary Residents
In January 2023, the federal government introduced the Prohibition on the Purchase of Residential Property by Non-Canadians Act, which restricted foreign buyers from purchasing certain residential properties. The prohibition has been subject to amendments and exceptions since its introduction.
As of the most recent information available, temporary residents who meet certain criteria, including those who have filed tax returns and spent a qualifying amount of time in Canada, may be eligible to purchase property. The rules are complex and subject to change. Consulting a real estate lawyer before proceeding is strongly recommended.
Getting a Mortgage as a Newcomer
Canadian lenders offer mortgage products specifically designed for newcomers. These programmes recognize that newcomers may have limited Canadian credit history and employment history, and they use alternative criteria to assess eligibility. Requirements vary by lender but typically include:
- Proof of permanent resident status or eligible work permit
- A larger down payment (often 20% or more for those without established Canadian credit)
- Proof of employment in Canada
- Bank statements showing savings and financial stability
Building Credit Before You Buy
If you're planning to buy in the future, start building a Canadian credit profile as soon as possible. A secured credit card or credit-builder product is a practical first step. The stronger your credit profile when you apply for a mortgage, the better the rate you're likely to receive.