New Comers

New immigrants to Canada may not be familiar with the real estate process, or know what they have to do in order to be eligible to buy a home here. Below are some answers to common questions about buying real estate for new Canadians - for more information, reach out to our team.

Can New Canadians Buy Real Estate?

Yes! Newcomers to Canada are eligible to buy real estate with no extra restrictions. They would still need to meet the financial and other requirements that any homebuyer would, but there are no additional requirements because they’re new to the country.

Do You Need to be a Canadian Citizen to Buy Property?

As of January 1st, 2023, the Prohibition on the Purchase of Residential Property by Non-Canadians Act went into effect which includes a two-year ban on the purchase of a home in Canada by non-Canadians. This prohibition is scheduled to run through December 31st, 2024.

Learn More About the Prohibition on the Purchase of Residential Property by Non-Canadians Act

Prior to January 01, 2023 there were  no laws requiring a property buyer to be a Canadian citizen. Anybody could purchase property in Canada, whether they were a citizen, permanent resident, in the country temporarily, or a citizen of another country who wished to invest in Canadian property. Before the new Act went into effect, anybody could purchase property in Canada, whether they were a citizen, permanent resident, in the country temporarily, or a citizen of another country who wishes to invest in Canadian property.

Can New Canadians Get a Mortgage?

Like with buying a home, a newcomer to Canada is eligible for a mortgage as long as they meet the financial requirements just like any other Canadian, and non-residents can qualify for a mortgage in Canada if they meet the other requirements to obtain one.

Many newcomers to Canada face the challenge of not having an established credit or employment history here. However, many lenders have special programs specifically designed to help newcomers get a mortgage despite these challenges. These programs typically have a few specific requirements to be eligible:

• Permanent Resident Status: You must have obtained permanent resident status in Canada if you do not yet have citizenship.
  
• Proof of Income: Proof of income in Canada will be required, with many lenders requiring the applicant to have at least two years of Canadian income. In some cases, if a larger down payment is put down, this requirement will be waived.
  
• Down Payment: While 5% is the minimum down payment for any home buyer in Canada, many mortgage programs for newcomers require 20% down or possibly as much as 35% if you don’t have 2+ years of employment history in Canada.
  
• Credit History: If you’re new to Canada you likely don’t have much of a credit history established here. A positive credit record can help, but if you don’t have a track record built up already, most lenders will consider other factors in lieu of this when making a decision on your application.
  
• Bank Letter from Previous Country of Residence: If you don’t have two years of employment history in Canada, a letter from your bank in your last country of residence may be required to help establish your total income and credit history.
  

What Are the Steps in the Home Buying Process?

For more information on the steps to buying a home, click here.

Does Your Real Estate Team Work with Newcomer Buyers?

Absolutely! We work with buyers in all types of situations, and love helping new Canadians achieve the dream of home ownership in Canada. To find out more, contact us today.