Buying your first home in Canada: the newcomer's version

Most of the people who come to us are buying their first home in Canada. The rules are the same as for anyone else, but four things trip up newcomers again and again.

1. Credit history is short

Lenders want two active credit accounts with a two-year history. Newcomers rarely have it. What works: a secured credit card the month you arrive, a phone plan in your name, and never a missed payment. Some lenders accept an international credit report or a bank reference letter from your home country under newcomer programs, and will lend with three months of Canadian employment. Ask for a lender with a newcomer program by name.

2. Self-employment needs two years

If you are self-employed or incorporated, lenders average two years of tax returns. Less than that and you are looking at a B-lender or a larger down payment. If you are moving from employment to your own business, buy first.

3. Gifted down payments are fine, with paperwork

A gift from immediate family is accepted by every lender with a signed gift letter stating it is not repayable, and proof the money landed in your Canadian account before closing. Money arriving from abroad needs a paper trail: the transfer receipt, the source account. A large unexplained deposit in your 90-day statements is the most common reason an application stalls.

4. Non-resident speculation tax

If any buyer on title is not a Canadian citizen or permanent resident, Ontario charges a 25% non-resident speculation tax on the whole price. Work-permit holders are caught. There are rebates for those who become permanent residents within four years, but you pay first. Check status before you put a name on the agreement, not after.

What stacks for you

If everyone on title qualifies as a first-time buyer — no home owned and lived in this year or the previous four, anywhere in the world:

• Ontario land transfer tax refund, up to $4,000; Toronto adds up to $4,475 inside the city.
• The 2026 first-time buyer HST rebate on a new build, up to $130,000.
• FHSA room: $8,000 a year, $40,000 lifetime, per person, deductible going in and tax-free coming out. Open it now.
• Home Buyers' Plan: up to $60,000 per person from an RRSP, repayable over 15 years.
• The first-time home buyers' tax credit, worth $1,500.

The free money finder adds them up for your price.

What to read next

The document checklist has a newcomer setting that lists exactly what a lender will ask for. Gather it before you apply.