How to Buy a House in Ontario as a Newcomer: A Step-by-Step Guide for Immigrants and New Residents

Buying a home in Ontario as a newcomer to Canada is one of the most meaningful milestones of your immigration journey - and one of the most complex financial decisions you will ever make. Whether you arrived recently as a permanent resident, are on a work permit, or have just received your citizenship, the Canadian real estate process has rules, timelines, and requirements that differ significantly from what you may have experienced in your home country. This guide breaks down every stage of the homebuying process in plain language, so you can move forward with clarity and confidence.

Fardad Farhanian is a licensed real estate broker with RE/MAX REALTRON REALTY INC., Brokerage, serving newcomer buyers across the Greater Toronto Area and beyond for over 25 years with $750M+ in successful transactions. As a bilingual (English and Farsi) broker, Fardad understands the cultural, financial, and logistical challenges that immigrants face when entering the Canadian property market.

Can Newcomers and Immigrants Buy Property in Ontario?

As of 2026, most newcomers to Canada - including permanent residents, certain work permit holders, and temporary residents - are legally permitted to purchase residential property in Ontario. The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act, which came into effect in 2023, introduced restrictions on non-resident foreign buyers, but it contains important exemptions. Permanent residents of Canada are fully exempt from this prohibition and may purchase property on the same terms as Canadian citizens. Certain temporary residents who meet specific criteria - such as those who have filed Canadian income tax returns for the preceding two years or who have been physically present in Canada for a minimum number of days - may also be eligible.

Before making any purchase, it is strongly recommended that you consult a qualified real estate lawyer to confirm your eligibility based on your specific immigration status. A licensed broker like Fardad can also help you understand which rules apply to your situation and connect you with the right legal professionals.

Step 1 - Understand Your Financial Standing in Canada

One of the first challenges newcomers face is that their financial history from their home country does not automatically transfer to Canada. Canadian lenders assess your creditworthiness based on your Canadian credit score, which you may not have if you recently arrived. Here is how to start building a solid financial foundation:

• Open a Canadian bank account as soon as possible after arriving.
• Apply for a secured credit card or a newcomer credit card product offered by major banks - these help establish your Canadian credit history.
• File your Canadian income tax returns even if your income was low or zero in your first year, as lenders and the government use these records.
• Gather foreign income documentation such as tax returns, pay stubs, or bank statements from your home country - some lenders accept these for newcomer mortgage programs.

Use the RealtyMan mortgage calculator to get a preliminary sense of what monthly payments might look like based on different home prices and down payment amounts. This is a free tool that can help you set realistic expectations before speaking with a mortgage professional.

Step 2 - Explore Newcomer Mortgage Programs in Canada

Major Canadian financial institutions - including the Big Six banks and several credit unions - offer specialized mortgage products for newcomers who lack an established Canadian credit history. As of 2026, programs like the TD New to Canada Banking Package, RBC Newcomer Advantage, and Scotiabank StartRight Program allow qualified newcomers to apply for mortgages with alternative documentation, including foreign credit bureau reports and employment letters.

The Canada Mortgage and Housing Corporation (CMHC) also provides mortgage loan insurance for newcomers, which allows buyers to purchase with as little as 5% down on homes priced under $500,000, or a sliding scale for properties priced between $500,000 and $999,999. Properties at $1,000,000 or above require a minimum 20% down payment and are not eligible for CMHC insurance.

It is important to speak with a licensed mortgage broker or your bank’s mortgage specialist to determine which program best fits your situation. Fardad Farhanian works closely with trusted mortgage professionals and can provide referrals to help you navigate this stage efficiently.

Step 3 - Get Pre-Approved Before You Search

A mortgage pre-approval is not just a formality - it is an essential step that defines your price range, strengthens your offer in a competitive market, and signals to sellers that you are a serious buyer. For newcomers, the pre-approval process may take longer than for established Canadian buyers because lenders need to assess alternative credit documentation.

Documents commonly required for a newcomer mortgage pre-approval include: your valid work permit or permanent resident card, proof of employment or offer of employment in Canada, recent Canadian bank statements, foreign income tax returns or equivalent foreign financial statements, and a copy of your passport. Having these documents organized in advance can significantly speed up the process.

Explore residential properties currently listed across Ontario once you have your pre-approval in hand - this ensures you are searching within a realistic budget.

Step 4 - Choose the Right Location for Your Lifestyle and Budget

Ontario is home to hundreds of communities, each with its own character, price point, transit options, school systems, and cultural communities. As a newcomer, you may already have family or a cultural community in a specific area - and that social network can be enormously valuable as you settle in.

Fardad Farhanian serves buyers across the Greater Toronto Area including Thornhill, North York, Markham, Richmond Hill, Vaughan, Aurora, Brampton, and Mississauga, as well as other Ontario cities such as Kingston and Barrie. Each of these communities offers a different balance of affordability, proximity to employment hubs, transit access, and community resources.

Visit the RealtyMan service areas page to learn more about the communities Fardad serves across Ontario and beyond.

Step 5 - Work With a Broker Who Understands Your Background

Choosing the right real estate broker is one of the most important decisions you will make as a newcomer homebuyer. You need someone who understands not just the local market, but also the questions and concerns specific to immigrants - from navigating government programs to communicating with sellers and lawyers on your behalf.

Fardad Farhanian brings over 25 years of experience helping buyers from diverse backgrounds - including many Iranian-Canadian and Farsi-speaking families - find the right home in Ontario. His deep community ties, multilingual communication, and award-winning track record (RE/MAX Hall of Fame Award, RE/MAX 100% Club Award) make him one of the most trusted names in GTA real estate. Learn more about Fardad Farhanian’s background and expertise.

Step 6 - Make an Offer and Navigate the Legal Process

Once you have found a property you love and your broker recommends moving forward, you will submit a written Agreement of Purchase and Sale. This legally binding document includes the offer price, deposit amount, conditions (such as a financing condition or home inspection condition), and your proposed closing date.

As a newcomer, it is especially important to include a financing condition in your offer, which gives you time to finalize your mortgage approval after your offer is accepted. The typical condition period is five to ten business days. Your real estate lawyer will review the agreement before or after it is signed - always engage a lawyer for this stage. Ontario law does not require a buyer’s agent, but it does require a real estate lawyer to handle the title transfer and closing.

To understand what types of properties are available on the market right now, search current listings on RealtyMan to compare options across price points and community types.

Step 7 - Closing Day and Taking Possession

On closing day, your lawyer will facilitate the transfer of title, the payment of all remaining funds (your down payment plus closing costs), and the registration of your mortgage with the Land Registry Office. You will then receive the keys to your new home.

Closing costs in Ontario typically range from 1.5% to 4% of the purchase price and include land transfer tax (and the additional municipal land transfer tax if you are buying in Toronto), legal fees, title insurance, and home inspection costs. First-time buyers in Ontario may be eligible for a land transfer tax rebate of up to $4,000 - ask your broker and lawyer whether you qualify based on your status and purchase history in Canada.

Ready to Start Your Homebuying Journey in Ontario?

Buying your first home in a new country is a profound act of commitment - to your family, your future, and your community. With the right guidance, the process is far less daunting than it may appear. Fardad Farhanian and the team at RE/MAX REALTRON REALTY INC., Brokerage, are here to walk with you every step of the way - from understanding your mortgage options to finding the right neighbourhood to closing day and beyond.

Explore all available properties in Canada listed through RealtyMan or visit the RealtyMan homepage to learn more about the full range of services available to newcomer buyers. When you are ready to speak with Fardad personally, call +1 416-707-1031 or send an email to info@realtyman.ca. The office is located at 7646 Yonge Street, Thornhill, ON L4J 1V9, and appointments are available at your convenience.