Buying a Property in Canada as a Temporary Resident

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Buying a Property in Canada as a Temporary Resident

Buying a property in Canada as a temporary resident is entirely possible, although there are certain important conditions and requirements to know before getting started. Contrary to what many might think, Canadian law allows foreign workers, international students, and young professionals to purchase property, even if they have only recently moved to the country.

You do not need to have a long rental history or hold permanent residency to begin this process. The key is to demonstrate employment stability, have a valid work permit, and possess the required down payment.

The Down Payment: Requirements and Considerations

One of the most important aspects of purchasing a property is the down payment. In Canada, the minimum required down payment is 5% of the property’s value if the mortgage is insured (which means mandatory mortgage insurance is required).

However, some financial institutions may require a down payment of up to 35% for an uninsured (conventional) mortgage, which is why it’s important to compare your options. Working with a mortgage broker can make this step much easier and help you find the best conditions.

Important notes:

  • The funds must have been in your possession for at least 3 months.

  • The money must be transferred and available in Canada at least 30 days before the notary signing.

Conditions and Documents Required to Obtain a Mortgage

To apply for a mortgage as a temporary resident in Canada, you must meet the following criteria:

  • Valid work permit

  • Stable full-time job with probation period completed

  • Intend to live in the property as an owner-occupant

  • Have the minimum required down payment

  • Show proof of sufficient savings to cover closing costs

Documents to provide:

  • Valid passport

  • Work permit

  • Bank reference letter

  • Proof of down payment

  • Recent pay stub

Building a Credit History as a Newcomer

In Canada, foreign credit history is not considered. Therefore, it is essential to start building a local credit history upon arrival to improve access to loans and mortgage financing.

Recommendations:

  • Apply for a credit card for newcomers

  • Use it regularly and make payments on time

  • Keep utility bills and monthly payments up to date

Support Programs for Temporary Residents

Temporary residents may also qualify for some federal, provincial, and municipal assistance programs:

Federal and Provincial:

  • First-Time Home Buyer Incentive (IAPP)

  • Home Buyers’ Plan (HBP/RAP)

  • Tax-Free First Home Savings Account (FHSA/CELIAPP)

  • First-Time Home Buyers’ Tax Credit

Municipal:

  • Accès Famille (Quebec)

  • Residential Purchase Assistance Program (Montreal)

  • Local subsidies (Sherbrooke)

Benefits of Buying in Quebec

Here are a few reasons why Quebec is an excellent choice:

  • Lower transaction fees

  • No additional tax for foreign buyers (unlike Toronto or Vancouver)

⚠️ Important: Buying a property does not guarantee permanent residency.

Erico Ballester
Residential – Commercial – Industrial Real Estate Broker
Mortgage Broker / Local & International Commercial Franchise
📞 (514) 400-1897
🌐 www.equipeballester.com

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