How to Buy a House in Canada (2026 Step-by-Step Guide)

Updated May 1, 2026. Learning how to buy a house in Canada is mostly about understanding four things: how much down payment you actually need, what the federal mortgage rules require you to prove, which first-time-buyer programs are still live in 2026, and how the foreign-buyer rules apply to your immigration status. Get those right and the rest of the process (pre-approval, search, offer, inspection, closing) becomes a checklist rather than a guessing game. This guide walks through every stage in plain English, anchored to the 2026 rules at CMHC, Canada.ca, the Financial Consumer Agency of Canada, the Canada Revenue Agency, and OSFI. It is written for newcomers, permanent residents, and Canadian citizens buying their first home in Canada.

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Key Takeaways

Minimum down payment in 2026: 5% on the first $500,000 and 10% on the portion from $500,000 to $1,499,999. Homes priced at $1,500,000 or above require a 20% down payment because CMHC mortgage insurance is not available above that threshold. Source: Canada.ca, How much you need for a down payment.
First-time buyers and buyers of newly built homes can take a 30-year insured amortization as of December 15, 2024, up to the $1.5 million cap. Source: Department of Finance Canada.
The federal Foreign Buyer Ban (Prohibition on the Purchase of Residential Property by Non-Canadians Act) was extended to January 1, 2027. Permanent residents are unaffected; work permit holders with 183+ days of validity remaining can buy one home to live in. Source: Canada.ca.
The mortgage stress test requires lenders to qualify borrowers at the higher of the contract rate plus 2% or 5.25%. With a 5-year fixed around 4.04% to 4.29% in April 2026, the qualifying rate is roughly 6.04% to 6.29%. Source: OSFI Guideline B-20.
First-time-buyer programs that still exist in 2026: Home Buyers’ Plan (RRSP withdrawal up to $60,000 since April 2024), First Home Savings Account (FHSA, $8,000/year, $40,000 lifetime), the new federal GST rebate of up to $50,000 on a new home under $1.5 million (Bill C-4, Royal Assent March 12, 2026), and the First-Time Home Buyers’ Tax Credit ($1,500 federal credit).
The First-Time Home Buyer Incentive (CMHC shared equity) was discontinued on March 21, 2024. It is no longer a live option, even though many older articles still list it.
Closing costs typically run 1.5% to 4% of purchase price, on top of the down payment. The biggest line items are land transfer tax (varies by province), legal fees, title insurance, inspection, and PST on the CMHC premium in QC, ON, and SK.

Take A Look At Canada Bans Foreigners from Buying Residential Property:

How to Buy a House in Canada in 9 Steps (The Short Version)

Most Canadian home purchases follow the same nine-step path, whether the buyer is a citizen, a permanent resident, or a work permit holder.

Confirm eligibility. Citizens and permanent residents face no federal restriction. Work permit holders need 183+ days of permit validity remaining and can buy one home. Visitors and most other temporary residents cannot buy until January 1, 2027.
Save the down payment. Target the 5% / 10% / 20% tier that matches the home price you want, plus another 1.5% to 4% for closing costs.
Build a Canadian credit file. New arrivals usually need 6 to 12 months of on-time bill payments before a lender will approve a standard mortgage. Newcomer programs at the big six banks shortcut this.
Get pre-approved. A mortgage pre-approval locks a rate for 90 to 120 days and tells you the exact price ceiling at the qualifying (stress-test) rate.
Hire a real estate agent. The buyer’s agent is paid out of the seller’s commission in most provinces. The agent runs the showings, drafts the offer, and negotiates conditions.
Find the home and make an offer. A standard Canadian offer (Agreement of Purchase and Sale) includes the price, deposit (typically 1% to 5% of price), closing date, and the conditions: financing, inspection, sometimes status certificate for a condo.
Complete the inspection and finalize the mortgage. A licensed home inspector charges $400 to $800. The lender then issues firm approval based on the appraised value of the actual home.
Hire a real estate lawyer or notary. The lawyer reviews title, registers the mortgage, calculates land transfer tax, and handles the funds transfer. Legal fees run $1,200 to $2,500.
Close the deal. On closing day, funds move, the deed is registered, and the buyer collects the keys. Move-in usually happens the same day.

The OnTheMoveCanada mortgage calculator in Canada guide walks through the payment math for steps 2 and 4, including the stress test and CMHC premium.

Check Out This First Time Home Buyer Guide if You are Buying a House in Canada:

Who Can Buy a House in Canada in 2026?

The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act has been in force since January 1, 2023 and was extended to January 1, 2027 by Order in Council in February 2024. Source: Canada.ca.

Who can buy in 2026:

Canadian citizens (anywhere in Canada).
Permanent residents (anywhere in Canada). PRs are treated identically to citizens for the purpose of the Act.
Work permit holders with at least 183 days of validity remaining on the permit at the date of purchase, and who have not previously bought a residential property under the Act. Limited to one home, intended to live in. The 2023 amendments removed the old tax-filing and work-history tests. Source: Justice Laws, SOR/2022-250.
International students who have filed Canadian tax returns for the prior 5 years, have been physically in Canada at least 244 days each of those 5 years, and are buying a home priced at $500,000 or less.
Refugees and protected persons under the Immigration and Refugee Protection Act.
Diplomatic and consular personnel with valid accreditation.

Who cannot buy until January 1, 2027:

Visitors, study-permit-only students who don’t meet the 5-year tax filing test, and most other temporary residents.
Foreign corporations and Canadian-incorporated companies controlled by non-Canadians (3% threshold).

The Act applies inside Census Metropolitan Areas (CMAs) and Census Agglomerations (CAs), which together cover most of where Canadians actually live. Recreational properties, cottages, and homes in smaller towns outside a CMA or CA are exempt. Penalties for breaching the Act can reach $10,000, and a court can order the property sold.

A separate set of provincial taxes applies to non-residents who are allowed to buy:

Ontario Non-Resident Speculation Tax (NRST): 25% of the purchase price on residential property anywhere in Ontario, paid at closing. PRs who become PR within four years can apply for a rebate. Source: Ontario.ca, NRST.
BC Additional Property Transfer Tax: 20% of the property value on top of the regular PTT, in designated regions including Metro Vancouver, the Fraser Valley, the Capital Regional District, the Central Okanagan, and Nanaimo. Source: BC, Additional PTT.

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Down Payment Minimums in Canada (2026)

Canada uses a tiered minimum down payment that scales with the purchase price. The 2026 schedule has been in force since December 15, 2024, when the federal government raised the insured-mortgage cap from $1 million to $1.5 million.

Purchase Price	Minimum Down Payment	Why
Up to $500,000	5% of the price	Insured high-ratio mortgage
$500,001 to $1,499,999	5% on first $500,000 + 10% on the remainder	Insured high-ratio mortgage
$1,500,000 or more	20% of the price	CMHC insurance not available

Worked example for a $750,000 home:

5% on the first $500,000 = $25,000
10% on the next $250,000 = $25,000
Minimum down payment = $50,000 (6.67% of price)

The $1.5 million boundary is hard. A $1,499,999 home can close with $125,000 down. A $1,500,000 home requires the full $300,000, because the mortgage default insurance market does not cover loans above the cap. Source: Canada.ca, How much you need for a down payment.

Non-residents who are still allowed to buy under the Act (mostly Ontario / BC investment-property buyers, given NRST and Additional PTT) usually face a 35% minimum at the major banks because the mortgage is not insurable.

CMHC Mortgage Insurance: What It Is and What It Costs

A high-ratio mortgage (down payment under 20%) requires mortgage default insurance, which protects the lender if the borrower defaults. The borrower pays the premium. There are three insurers in Canada: CMHC (the federal Crown corporation), Sagen, and Canada Guaranty. Premium schedules are nearly identical.

The 2026 CMHC premium schedule, applied to the loan amount (purchase price minus down payment):

Loan-to-Value (LTV)	Down Payment	Premium
Up to 65%	35% or more	0.60%
65.01% to 75%	25% to 34.99%	1.70%
75.01% to 80%	20% to 24.99%	2.40%
80.01% to 85%	15% to 19.99%	2.80%
85.01% to 90%	10% to 14.99%	3.10%
90.01% to 95%	5% to 9.99%	4.00%
90.01% to 95% (non-traditional down payment)	5% to 9.99%	4.50%

Source: CMHC, Mortgage Loan Insurance Premium Information.

The premium is added to the mortgage and amortized over the life of the loan. In Quebec, Ontario, and Saskatchewan, the provincial sales tax on the premium must be paid in cash at closing and cannot be rolled into the mortgage. On a $400,000 home with 5% down, the CMHC premium is $15,200; the Ontario PST on that premium is $1,216 in cash at closing.

A higher down payment cuts the premium twice over: a smaller loan and a lower premium rate.

The Mortgage Stress Test in Canada

A Canadian mortgage approval carries two interest rates at once.

Contract rate. The actual rate written into the mortgage. In April 2026, a 5-year fixed sits around 4.04% (insured) to 4.29% (uninsured at the big six). A 5-year variable runs roughly 3.35% to 4.15%. The Bank of Canada held the overnight rate at 2.25% on April 16, 2026.
Qualifying rate. Under OSFI Guideline B-20 (uninsured mortgages) and the parallel CMHC rule for insured loans, the lender must test the borrower at the higher of contract rate plus 2% or 5.25%. Source: OSFI.

At 4.29%, the qualifying rate is 6.29%. The lender approves only if the borrower’s debt-service ratios stay inside the limits at 6.29%, even though the actual payment is calculated at 4.29%.

Two ratios decide approval:

Gross Debt Service (GDS). Mortgage principal and interest, property tax, heat, plus 50% of condo fees, divided by gross monthly income. CMHC ceiling: 39%.
Total Debt Service (TDS). GDS plus all other monthly debt payments (car loan, line of credit, credit-card minimums, student loan), divided by gross monthly income. CMHC ceiling: 44%.

A practical 2026 rule of thumb: a household earning $100,000 gross can afford a mortgage of roughly $420,000 to $480,000 under stress-test math, depending on property tax and condo fees.

Live First-Time Home Buyer Programs in 2026

Federal first-time-buyer support changed materially between 2023 and 2026. Some older articles still list the discontinued First-Time Home Buyer Incentive; this section covers only programs that are open as of May 1, 2026.

Home Buyers’ Plan (HBP) — RRSP Withdrawal up to $60,000

The Home Buyers’ Plan lets a first-time buyer withdraw up to $60,000 tax-free from their RRSP toward a down payment (up to $120,000 for a couple where both partners qualify). The limit was raised from $35,000 on April 16, 2024. Repayment is over 15 years, with a temporary 5-year grace period for withdrawals between January 1, 2022 and December 31, 2025. Source: CRA, The Home Buyers’ Plan.

A “first-time buyer” under the HBP means the buyer (and spouse / common-law partner) did not occupy a home they owned in the four-year window ending two years before the year of withdrawal.

First Home Savings Account (FHSA)

The First Home Savings Account opened on April 1, 2023 and is the most powerful single account for a Canadian first home purchase. Contributions are tax-deductible (like an RRSP), withdrawals for a qualifying home purchase are tax-free (like a TFSA), and growth inside the account is tax-sheltered.

Annual contribution limit: $8,000.
Lifetime contribution limit: $40,000.
Carry-forward: Up to $8,000 of unused room from the prior year, after the FHSA is opened.
Withdrawal use: Tax-free if used to buy a qualifying first home in Canada.
Eligibility: Resident of Canada, age 18 or older (19 in some provinces) up to age 71, first-time home buyer.

Source: Canada.ca, Participating in your FHSAs.

A buyer can stack the HBP and the FHSA on the same purchase, taking up to $60,000 from the RRSP and up to $40,000 from the FHSA toward the same down payment.

First-Time Home Buyers’ Tax Credit (HBTC)

The HBTC is a non-refundable federal tax credit claimed on line 31270 of the federal return in the year of purchase. The qualifying amount is $10,000 at a 15% rate, which works out to a $1,500 federal tax reduction. A couple can split the claim. Source: Canada.ca, Line 31270.

GST/HST New Housing Rebates (Including the New 2026 First-Time Buyer Rebate)

GST or the federal portion of HST applies to newly built and substantially renovated homes, not to most resales. Two federal rebates and several provincial ones reduce the bill.

First-Time Home Buyers’ GST/HST Rebate (Bill C-4, Royal Assent March 12, 2026). Eliminates the federal GST (or federal portion of HST) on a new home priced up to $1 million purchased by a first-time buyer, with a phased reduction up to $1.5 million. The maximum saving is $50,000. Source: Canada.ca, FTHB GST/HST rebate.
Existing GST/HST New Housing Rebate. Available to all buyers (not only first-time) of new or substantially renovated homes. The rebate phases out between $350,000 and $450,000 (federal portion). Provincial portions vary. Source: Canada.ca, GST/HST new housing rebate.
Ontario provincial rebate (proposed in the 2026 Budget). Removes the 8% provincial portion of HST on new homes up to $1 million for first-time buyers, with the same phase-out to $1.5 million. Combined with the federal rebate, that can stack to roughly $130,000 in HST relief on an eligible new home.

What Is No Longer Available: First-Time Home Buyer Incentive

The First-Time Home Buyer Incentive (CMHC’s shared-equity loan program, launched 2019) was discontinued on March 21, 2024, with no new approvals after March 31, 2024. Source: CMHC. Existing borrowers still owe the shared-equity payback at the lower of 25 years from advance or the date of sale. New applicants in 2026 should ignore any guide that lists FHBI as a live option.

Provincial Land Transfer Tax: A Comparison

Land transfer tax (LTT) is the largest single closing-cost line item for most buyers and varies sharply by province. The table below shows the 2026 schedule for the four newcomer hotspots.

Province / City	LTT Rate	First-Time Buyer Rebate	Worked Example: $750,000 home
Ontario	0.5% to 2.5% (graduated, top rate above $2M)	Up to $4,000 (provincial)	$11,475 LTT, $7,475 net for a first-time buyer
Toronto (provincial + municipal)	Province + Municipal LTT (matches province)	Up to $4,475 (municipal) on top of the $4,000 provincial	$22,950 combined LTT, $14,475 net for a first-time buyer
British Columbia	1% on first $200K; 2% on $200K to $2M; 3% on $2M to $3M; 5% above $3M	Up to $8,000 (full exemption to $835K, partial to $860K)	$13,000 PTT, fully exempt for first-time buyer up to $835K
Alberta	No LTT. Title and mortgage registration fees only ($50 base + $2 per $5,000 of value, each)	Not applicable	About $360 in registration fees on $750K
Quebec	0.5% to 1.5% (graduated, “welcome tax” / droit de mutation)	Varies by municipality; Montreal offers up to ~$11,150 for first-time buyers	About $9,000 welcome tax, partial Montreal rebate possible

Sources: Ontario.ca, Land Transfer Tax, BC.gov, Property Transfer Tax, City of Toronto, Municipal LTT.

Alberta’s lack of LTT saves an Edmonton or Calgary buyer thousands compared to a Toronto or Vancouver buyer for the same purchase price. The OnTheMoveCanada Edmonton newcomer guide walks through the cost-of-living math.

Closing Costs: What 1.5% to 4% Actually Buys

Most buyers underestimate closing costs. A safe budget is 1.5% to 4% of purchase price on top of the down payment, with the upper end driven mostly by land transfer tax in Ontario, BC, and Quebec.

A 2026 closing-cost checklist:

Line Item	Typical Range	Notes
Land transfer tax	$0 (Alberta) to 4% (Toronto on a $1.5M home)	Largest single item; first-time-buyer rebates can offset thousands
Real estate lawyer / notary	$1,200 to $2,500	Quebec uses a notary; legal review and registration fees included
Title insurance	$200 to $500	Lender usually requires it
Home inspection	$400 to $800	Optional but standard; condos can use a status certificate
Appraisal	$300 to $500	Often paid by the lender; sometimes waived
PST on CMHC premium	$0 to ~$1,400	QC, ON, SK only; cash at closing, cannot be rolled in
Property tax adjustment	Variable	Buyer reimburses seller for prepaid annual tax
Mortgage broker fee (if applicable)	Often $0	Brokers are usually paid by the lender on insured deals
Moving costs	$500 to $3,000	More for cross-province moves
Home insurance (first year)	$1,000 to $2,500	Required at closing for any mortgaged home

The FCAC publishes a free Closing Costs Worksheet that captures every line item.

Buying a House in Canada as a Newcomer

Big-six banks all run dedicated newcomer mortgage programs that work around a thin or empty Canadian credit file. The five programs and their headline terms:

Program	Status Required	Time in Canada	Down Payment	Notes
RBC Newcomer Mortgage	PR or work permit	Up to 5 years	5% (with credit) or 35% (no Canadian credit)	Bundled with Newcomer Advantage chequing
Scotiabank StartRight	PR, work permit, or international student	Up to 5 years	5% to 10%	Foreign income accepted with documentation
BMO NewStart	PR or work permit	Up to 5 years	5% (with credit) or 20%+ (no Canadian credit)	Wide acceptance of foreign job-letter income
CIBC Newcomer	PR or work permit	Up to 5 years	5% to 10%	Pairs with CIBC Smart Account
TD New to Canada	PR or work permit	Up to 5 years	5% to 10%	Strong international branch network

Two practical paths through these programs:

Path 1: 5% down with a substituted credit assessment. The bank accepts a foreign credit report (Equifax / TransUnion International, or a reference letter from a major foreign bank) in place of the Canadian file. Standard CMHC insurance applies; the stress test still applies.
Path 2: 35% down with no Canadian credit assessment. The mortgage is uninsured (LTV is 65%), so risk is limited and most newcomer programs accept this with a Canadian job offer plus three to six months of bank statements.

Documentation is similar across all five: passport, PR card or work permit, three months of bank statements (Canadian or foreign), Canadian job-offer letter or two recent pay stubs, and proof of down-payment funds. Banks usually want a 90-day source-of-funds trail when the down payment was wired from overseas, a CRA / FINTRAC anti-money-laundering requirement.

For a deeper newcomer-banking walk-through, the OnTheMoveCanada how to manage my finances guide covers credit-building from zero, secured cards, and the no-SIN-for-90-days rule at RBC.

A Closer Look at Each Step in the Process

Step 1: Get Pre-Approved for a Mortgage

A mortgage pre-approval is a written commitment from a lender stating the maximum loan amount and the locked rate, valid for 90 to 120 days. It is not a guaranteed approval; the lender will still verify the appraised value of the actual home and confirm employment at funding. Pre-approval is free at the big six and at brokers.

To get pre-approved, the lender wants:

Two recent pay stubs and a job-offer letter or T4 / NOA (if newcomer, the Canadian job offer).
Proof of down-payment funds (bank statements, gift letter if applicable, FHSA / RRSP / TFSA statements).
Photo ID and SIN.
Foreign credit report or reference letter (newcomers without a Canadian file).

The pre-approval letter sets the price ceiling for the home search and signals to sellers that the offer is serious.

Step 2: Hire a Buyer’s Agent

In Ontario, BC, and most of Canada, the seller pays the commission for both agents (typically 4% to 5% of price split between them). Buyers therefore pay nothing direct to their agent. The buyer’s agent runs MLS / Realtor.ca searches, books showings, drafts the Agreement of Purchase and Sale, and negotiates the price and conditions.

A good buyer’s agent for newcomers does three extra things: explains the local market norms (bidding wars in Toronto and Vancouver, conditions in calmer markets), recommends a real estate lawyer, and times the offer for the closing date that lines up with the mortgage.

Step 3: Make an Offer With the Right Conditions

A standard Canadian offer includes:

Price. The negotiated number.
Deposit. Usually 1% to 5% of price, paid within 24 hours of acceptance, held in trust by the listing brokerage. The deposit is credited to the down payment at closing.
Closing date. Typically 30 to 90 days from acceptance.
Conditions. The most common are financing (5 to 10 business days), inspection (5 to 10 business days), and condo status certificate review (10 business days). In hot markets, sellers sometimes refuse conditions; the buyer should pre-inspect and finalize financing before bidding.
Inclusions and exclusions. Appliances, light fixtures, window coverings.

If a condition fails (financing falls through, inspection turns up a major defect), the buyer walks with the deposit returned. Once conditions are waived, the deposit is at risk.

Step 4: Inspection and Final Mortgage Approval

A licensed home inspector examines the structure, roof, electrical, plumbing, HVAC, and visible foundation. The report typically runs 30 to 60 pages. Common deal-breakers in Canadian housing stock include knob-and-tube wiring, aluminum wiring, asbestos, vermiculite insulation, and active water infiltration.

The lender then orders an appraisal to confirm the home is worth the contract price. If the appraisal comes in low, the buyer must cover the gap in cash or renegotiate. Once the appraisal clears, the lender issues firm approval.

Step 5: Hire a Real Estate Lawyer or Notary

The lawyer (notary in Quebec) does five things between firm approval and closing: title search, title insurance, calculation of land transfer tax and adjustments, registration of the mortgage and deed, and the funds transfer at closing. Legal fees run $1,200 to $2,500 plus disbursements, almost always quoted as a flat fee.

The lawyer’s office is also where the buyer signs the mortgage documents, transfers the balance of the down payment, and (a few days later) collects the keys.

Step 6: Closing Day

On closing day, the lawyer confirms funds, registers the mortgage and deed, and releases the keys. The mortgage starts accruing interest from this date. The buyer should change the locks, set up utilities (the OnTheMoveCanada utilities in Canada guide covers the phone calls and account setups), update their address with CRA and Service Canada, and schedule the move.

Province-Specific Notes for Newcomer Hotspots

Ontario (Toronto, Mississauga, Brampton, Ottawa)

Ontario buyers pay a graduated provincial LTT and (in Toronto) a matching municipal LTT, doubling the closing-cost LTT line in the city. First-time buyers can claim $4,000 provincial and (in Toronto) up to $4,475 municipal for a combined $8,475 maximum rebate. A non-resident buyer pays the 25% NRST on top of LTT, with a four-year PR rebate available. The OnTheMoveCanada city guides for Toronto, Mississauga, and Brampton cover neighbourhood-level pricing.

British Columbia (Vancouver, Surrey, Victoria)

BC’s Property Transfer Tax tops out at 5% above $3 million. First-time buyers receive a full exemption up to $835,000 and a partial exemption to $860,000. The 20% Additional PTT applies to non-resident buyers in designated regions. New construction under $1.1 million is also fully exempt for owner-occupier first-time buyers under the Newly Built Home Exemption.

Alberta (Calgary, Edmonton)

Alberta has no land transfer tax, only nominal title and mortgage registration fees. On a $750,000 home, total registration is roughly $360, versus ~$23,000 in Toronto. Alberta also has no provincial sales tax, so the PST-on-CMHC line item is zero. For newcomers prioritizing affordability, the OnTheMoveCanada Edmonton newcomer guide walks through the math.

Quebec (Montreal, Quebec City)

Quebec buyers pay the droit de mutation immobilière (welcome tax), a graduated municipal tax of 0.5% to 1.5%. Montreal offers a first-time-buyer subsidy of up to roughly $11,150 (varies by household and home price). All Canadian mortgages in Quebec close at a notary’s office, not a lawyer’s. Standard fees run $1,500 to $2,500. The OnTheMoveCanada Montreal city guide covers cost of living and neighbourhoods.

How Lenders Treat Newcomers Differently

Canadian lenders run two tracks for mortgage applications:

Standard track. Requires a Canadian credit file (typically 12+ months of credit history with at least two trade lines), a 2-year Canadian work history, and Canadian-source income.
Newcomer track. Substitutes a foreign credit report or major-foreign-bank reference letter, accepts a current Canadian job offer in lieu of 2 years of T4s, and is generally available for 5 years from arrival.

Practical implications:

Open a chequing account in week one. Newcomer packages at RBC, Scotiabank, BMO, CIBC, and TD waive monthly fees and bundle a credit card on day one (no Canadian credit needed). The credit card is the start of the Canadian credit file.
Use the credit card for routine spending and pay it off in full each month. Six months of on-time payments and a utilization ratio under 30% will pull a standard FICO score into the 680+ range, which is the floor most lenders want.
Save the down payment in an FHSA where possible. The FHSA contribution is tax-deductible the year it goes in (up to $8,000), and the eventual withdrawal for a first home is tax-free. The HBP comes with a 15-year repayment obligation; the FHSA does not.
Document the source of funds in advance. Anti-money-laundering rules require a 90-day trail for any large deposit. Foreign-currency wires, gifts from family, and large bank transfers all need a paper trail.
Keep the income-to-debt math clean. A car loan in the first year costs $400 to $700 a month against the TDS ratio, which usually translates to $80,000 to $120,000 less mortgage at the qualifying rate.

How to Buy a House in Canada: Frequently Asked Questions

Can a permanent resident buy a house in Canada in 2026?

Yes. Permanent residents are exempt from the Foreign Buyer Ban and are treated identically to Canadian citizens for the purpose of the Prohibition on the Purchase of Residential Property by Non-Canadians Act. PRs face the same down-payment minimums (5% / 10% / 20%) and the same first-time-buyer programs as citizens. PRs may also qualify for newcomer mortgage programs at the big six banks for up to five years from landing.

Can a work permit holder buy a house in Canada?

Yes, if the work permit has at least 183 days of validity remaining at the date of purchase and the buyer has not already purchased a residential property under the Act. The 2023 amendments removed the older tax-filing and work-history tests, so a single year of Canadian work history is no longer required. The buyer is limited to one home, intended to live in.

What is the minimum down payment to buy a house in Canada?

The minimum is 5% of the purchase price up to $500,000, plus 10% on the portion from $500,000 to $1,499,999. Homes priced at $1,500,000 or above require a 20% down payment because CMHC mortgage insurance is not available above the cap. Non-residents who are still allowed to buy typically face a 35% minimum from the major banks.

What is the mortgage stress test in Canada?

The federal stress test requires lenders to qualify a borrower at the higher of the contract rate plus 2% or 5.25%. With a 4.29% 5-year fixed rate in April 2026, the qualifying rate is 6.29%. The borrower must show enough income at the qualifying rate to keep the GDS ratio at or below 39% and the TDS ratio at or below 44%, even though the actual payment is calculated at the lower contract rate.

Is the First-Time Home Buyer Incentive still available in 2026?

No. The CMHC First-Time Home Buyer Incentive was discontinued on March 21, 2024 (with no new approvals after March 31, 2024). The live federal first-time-buyer programs in 2026 are the Home Buyers’ Plan ($60,000 RRSP withdrawal), the FHSA ($8,000/year and $40,000 lifetime), the First-Time Home Buyers’ Tax Credit ($1,500 federal credit), and the new Bill C-4 GST rebate of up to $50,000 on a new home priced under $1.5 million.

How does the First Home Savings Account (FHSA) work?

The FHSA combines RRSP-style tax-deductible contributions with TFSA-style tax-free withdrawals. A first-time buyer can contribute up to $8,000 a year and $40,000 lifetime, deduct the contribution against income, grow the money tax-free, and withdraw it tax-free for a qualifying first home purchase in Canada. Unused annual room (up to $8,000) carries forward once the FHSA is open. The FHSA can be combined with the HBP for a single purchase.

How much are closing costs in Canada?

Closing costs typically run 1.5% to 4% of the purchase price on top of the down payment. The biggest line items are land transfer tax (varies by province; nothing in Alberta, up to 4% combined in Toronto), legal fees ($1,200 to $2,500), title insurance ($200 to $500), inspection ($400 to $800), appraisal ($300 to $500, often waived), and PST on the CMHC premium in QC, ON, and SK.

Does buying a house in Canada lead to permanent residency?

No. Buying property in Canada gives no immigration status, no PR pathway, and no right of residence. Permanent residency must be obtained through a federal economic program (Express Entry, Provincial Nominee, family sponsorship) or another pathway. The OnTheMoveCanada PGWP and Express Entry guide walks through the most common newcomer routes.

What is the federal GST rebate for first-time buyers?

The First-Time Home Buyers’ GST/HST Rebate (Bill C-4, Royal Assent March 12, 2026) eliminates the federal GST or federal portion of HST on a newly built home priced up to $1 million for a first-time buyer, with a phased reduction up to $1.5 million. The maximum federal saving is $50,000. Ontario has proposed an additional provincial rebate of up to $80,000 on the same homes; together the combined HST relief on a qualifying new build can reach roughly $130,000.

How long does it take to buy a house in Canada?

From the start of the search to the keys in hand, most Canadian purchases take 60 to 120 days: 30 to 60 days to find the right home and accept an offer, plus 30 to 90 days from accepted offer to closing. Pre-approval and credit-building should start before the search; newcomers should plan on 6 to 12 months of credit-building before a standard mortgage application, or apply directly under a newcomer program at the big six.