Buying a Home in Ontario as a Newcomer to Canada: A 2026 Guide

Buying a home in Ontario as a newcomer to Canada is absolutely possible, and it is one of the most common questions I hear from families who have recently landed in Hamilton. Newcomers qualify for the same insured mortgage rules as Canadian citizens through dedicated programs from CMHC, Sagen, and Canada Guaranty, and CMHC's newcomer product has no minimum residency period. This guide covers the down payment rules, what to do if you have no Canadian credit history, how international income is treated, and your first steps.

Yes, Newcomers Can Buy a Home in Ontario

Newcomers to Canada can buy a home in Ontario under the same insured mortgage rules as citizens. CMHC, Sagen, and Canada Guaranty all offer newcomer programs, and CMHC's has no minimum residency period, so you can qualify shortly after you land.

You are also in good company: about one in four Hamiltonians is an immigrant, and the Mountain is full of families who started exactly where you are now.

How Much Down Payment Do You Need?

The down payment rules for newcomers are the same tiered rules every Canadian buyer follows: 5% on the first $500,000 of the purchase price and 10% on the portion between $500,000 and $1.5 million. Homes above $1.5 million require 20% down and are not eligible for mortgage default insurance.

On a $700,000 home, the minimum down payment is $45,000: $25,000 on the first $500,000 plus $20,000 on the remaining $200,000.

One difference: if you are buying on a work permit, lenders often cap the loan at 90% of the purchase price, and some ask for 10% to 20% down regardless of price. A broker who works with newcomers can tell you where you stand.

What If You Have No Canadian Credit History?

Having no Canadian credit history does not disqualify you. Lenders accept alternative credit documentation, including an international credit report from your home country's credit bureau, a letter of reference from your bank back home, 12 months of verified rent payments with a landlord letter and bank statements, and recurring bills in your name like phone or hydro.

Typically, at least one borrower or guarantor needs a credit score around 600. If yours is lower, a small secured credit card used consistently for six months can help you build a Canadian credit file before you apply.

Can You Use Income From Your Home Country?

Yes. International income can be used to qualify for a mortgage in Canada as long as it is documented and verifiable, with pay stubs, bank statements, and certified translations where needed.

One nuance: Sagen and Canada Guaranty do not count foreign rental income in qualifying income, so if part of your plan depends on it, work with a broker to understand how it is treated before you set your budget.

The Foreign Buyer Ban and Ontario Taxes

The federal foreign buyer ban restricts purchases by non-Canadians, but permanent residents are exempt, and work permit holders with at least 183 days left on their permit can buy one home for their own use.

Ontario also charges a 25% Non-Resident Speculation Tax on residential purchases by foreign nationals; permanent residents and citizens are exempt. If you are buying on a work permit, confirm your exemption status with a real estate lawyer before you sign, because the rules vary by situation.

Your First Steps as a Newcomer Buyer in Hamilton

Buying your first home in a new country can feel like a lot, but the path is straightforward. Start here:

Want the full picture? Read the mortgage pre-approval guide and the first-time home buyer guide, browse the neighbourhood guides, and see the official programs on the CMHC newcomer page.