Buying your first Ontario home as a newcomer to Canada

Many Canadian lenders offer newcomer mortgage programs that accept limited Canadian credit history, using proof of employment, savings and international credit references instead. Permanent residents generally qualify on standard terms once they have local credit.

Two tax matters need care. Ontario applies a non-resident speculation tax on residential purchases by foreign nationals, foreign corporations and taxable trustees across the entire province, and the rate is substantial. There is also a federal annual tax on underused housing that can apply to certain non-resident owners.

Before you make an offer, get written advice on your status and any available rebates or exemptions. These taxes are assessed on closing and are expensive to fix afterward.