New to Canada and Want to Buy a Home? What You Actually Need to Buy in the GTA

For many newcomers, buying a home is part of building a long-term life in Canada.

A new Royal LePage survey released on September 24, 2026 found that 90% of newcomers surveyed said homeownership was important to feeling established in Canada.

But wanting to own and being ready to buy are two different things.

Only about one-third of respondents currently owned their primary residence, while 66% said they did not own any property. Among newcomers who did not own but intended to buy, 61% identified saving for a down payment as their biggest barrier, followed by securing more stable or higher-paying employment at 50%. Credit history, understanding the buying process and deciding where to live were also common challenges.

For newcomers living in Toronto and the GTA, this raises a much more practical question:

What do you actually need before you are ready to buy a home?

The answer is not simply “get a mortgage approval.”

Your immigration status, down payment, income, debt, credit history, property type and location can all affect what is realistically possible.

First, the New Survey Shows the Demand Is Still There

The Royal LePage survey included 1,400 people who had immigrated to Canada within the previous 10 years. It was conducted online between August 25 and September 8, 2026, in six languages.

Because it was an online non-probability survey, the results should not be treated as a precise estimate of every newcomer in Canada. But it still provides an interesting look at the priorities and difficulties reported by recent immigrants.

Among respondents who planned to buy but did not yet own:

• 61% said saving a down payment was a major barrier;
• 50% cited the need for more stable or higher-paying employment;
• 28% wanted to better understand the Canadian home-buying process;
• 27% identified building credit history or a credit score;
• 26% were still deciding where they wanted to live.

Those numbers are especially relevant in Ontario.

Nearly half of newcomers surveyed said Ontario was the province where they first settled, and many continued living in the community where they originally established themselves.

For GTA buyers, that often creates a difficult trade-off:

Stay close to the community you know, or move farther out to get more home for the same budget?

How Much Down Payment Do You Actually Need?

This is usually the first question.

Canada’s current minimum down-payment requirements depend on the purchase price.

For a home priced at $500,000 or less, the minimum is generally:

5%

For a property above $500,000 but below $1.5 million, the minimum is:

5% on the first $500,000 + 10% on the portion above $500,000

Properties priced at $1.5 million or more generally require at least 20% down because insured mortgage financing is not available at or above that threshold.

For example:

That difference becomes very important in the GTA.

A newcomer may feel financially close to buying a $1.3 million property, but moving into the $1.5 million range creates a much larger jump in required down payment.

So before searching for homes, it helps to know:

Which price range actually fits your available cash?

Not just which monthly mortgage payment appears manageable.

A Down Payment Is Not the Only Cash You Need

This is where first-time buyers often underestimate the cost of purchasing.

Suppose you have exactly enough money for the minimum down payment.

That does not mean you should immediately use every dollar for the purchase.

Depending on the property and transaction, buyers may also need to budget for items such as:

• Ontario land transfer tax;
• Toronto municipal land transfer tax if buying in Toronto;
• lawyer fees;
• title insurance;
• appraisal or mortgage-related costs;
• home inspection;
• moving expenses;
• adjustments on closing;
• furniture and immediate repairs.

If you are buying a Condo, you may also want your lawyer to review the status certificate.

For a freehold home, you may want to budget more carefully for future maintenance.

That is why we generally prefer to look at:

Available cash after closing

—not only the maximum possible down payment.

Buying a home and immediately having no emergency funds left can create a very different experience from buying with a financial cushion.

Do You Need Permanent Residence to Get a Mortgage?

Not necessarily.

This is an area where newcomers often receive conflicting information.

CMHC currently offers insured financing for eligible borrowers who are either permanent residents or certain non-permanent residents who are legally authorized to work in Canada, such as some work-permit holders.

CMHC also says there is no minimum Canadian residency period for its newcomer program, and alternative ways of establishing creditworthiness may be considered where Canadian credit history is limited.

That does not mean every temporary resident can automatically buy every residential property.

Canada’s federal prohibition on purchases of certain residential property by non-Canadians remains in force until January 1, 2027, and the legislation contains specific definitions and exemptions. Mortgage eligibility and legal eligibility to purchase are therefore separate questions.

So if you are not yet a Canadian citizen or permanent resident, don’t rely on a simple rule such as:

“Work permit means I can buy.”

or:

“No PR means I can’t buy.”

Your status and circumstances need to be checked against the rules that apply at the time of purchase.

What If You Don’t Have Much Canadian Credit History?

This is another major concern for recent newcomers.

You may have:

a good job,

substantial savings,

and excellent financial history in your home country,

but only six months of Canadian credit history.

That does not necessarily mean buying is impossible.

The federal government’s newcomer guidance notes that Canadian lenders consider credit history when assessing mortgages, while CMHC says that where Canadian credit history is limited, it may consider alternatives such as an international credit report or a reference from a financial institution in the borrower’s country of origin in eligible insured-mortgage cases.

But lender requirements can differ.

That is why getting a mortgage conversation started before seriously shopping for properties can be useful.

You may discover that you are ready now.

Or you may discover that another six months of employment history, reducing a car loan, or strengthening your credit profile could materially improve your buying power.

That is much better information to have before falling in love with a property.

Employment Matters—But There Is No Single “Newcomer Salary Requirement”

Another common question is:

“How much salary do I need to buy a home?”

There is no one answer.

Two households earning the same income can qualify for very different amounts because lenders also consider factors such as:

• down payment;
• existing debt;
• credit;
• interest rate;
• property taxes;
• Condo fees;
• other housing costs.

For example, someone earning $120,000 with no debt and a large down payment is in a very different position from someone earning $120,000 with a large car loan, credit balances and a smaller down payment.

This is also why buyers should be careful about purchasing large financed items shortly before applying for a mortgage.

A new car may seem unrelated to buying a house.

To a lender, however, the monthly debt payment can affect how much mortgage the household can carry.

Your Mortgage Approval Should Not Automatically Become Your Home Budget

Suppose your lender says:

“You may qualify up to $900,000.”

That does not necessarily mean:

“Go buy a $900,000 home.”

Your own budget should also account for lifestyle.

Do you have children?

Do you expect childcare costs?

Will your parents eventually live with you?

Do you need two cars?

Are you sending money overseas?

Are you planning to return to school?

Could one spouse take parental leave?

These are not questions the MLS listing price answers.

Sometimes buying slightly below the maximum budget gives a newcomer family far more flexibility while settling into life in Canada.

Condo, Townhouse or Freehold: Which Makes More Sense for a First GTA Home?

For many newcomer buyers, the biggest compromise is not whether to buy.

It is what to buy.

Condo

A Condo can provide a lower entry price in some GTA markets, particularly for buyers who prioritize transit, shorter commutes and lower exterior-maintenance responsibility.

But buyers should pay attention to monthly Condo fees, unit size, parking, building condition and the corporation’s financial health.

A cheaper purchase price does not automatically mean a lower total monthly cost.

Townhouse

Townhouses can provide a middle ground between a Condo and detached home.

Depending on the community, buyers may find more bedrooms and family space without moving as far from major employment areas.

But make sure you know whether it is a freehold townhouse or a Condo townhouse because the ongoing costs can be very different.

Detached or Semi-Detached

These can provide more privacy, land and flexibility, but they typically require a larger budget in many GTA communities.

Home maintenance also becomes the owner’s responsibility.

For a first-time buyer, the right question is not:

“Which property type is best?”

It is:

“Which one fits my family and my monthly budget?”

Markham, Richmond Hill, Vaughan or Toronto?

The survey also highlights something we see frequently in newcomer home searches:

community matters.

Many newcomers want to stay close to:

• family;
• friends;
• schools;
• cultural communities;
• familiar restaurants and businesses;
• places of worship;
• transit;
• employment.

The survey found that 71% of respondents still lived in the same city or town where they first settled, while among Ontario newcomer homeowners, 65% had purchased their primary residence in the community where they initially settled.

But buyers should still compare neighbouring GTA markets.

For the same budget, the property options in:

Toronto

can look very different from:

Markham, Richmond Hill, Vaughan, Mississauga or other GTA communities.

Sometimes moving 10–20 kilometres changes the available property type significantly.

For example, the question may not be:

“Can I afford a home?”

It may be:

“Would I rather have a two-bedroom Condo close to work or a larger Townhouse farther away?”

That is a much more useful real-estate conversation.

Should You Wait Until You Have 20% Down?

Not necessarily.

A 20% down payment can reduce the mortgage amount and generally avoids mortgage default insurance, but waiting years to reach exactly 20% is not automatically the right decision for everyone.

Canadian rules allow eligible buyers to purchase with less than 20% down within the insured-mortgage limits, subject to lender and insurer requirements.

The better comparison is:

Option A

Buy sooner with a smaller down payment and insured mortgage.

versus

Option B

Continue renting and save toward a larger down payment.

Neither option is automatically better.

You need to compare:

• current rent;
• expected savings rate;
• target home price;
• mortgage payment;
• closing costs;
• emergency savings;
• your expected length of ownership.

First-Time Buyers May Have More Financing Flexibility Than Before

Since December 2024, 30-year insured mortgage amortizations have been available to all eligible first-time homebuyers, as well as buyers of new builds.

A longer amortization can lower the monthly mortgage payment, although it can also increase the total interest paid over the life of the mortgage.

For some newcomer buyers, that can make the monthly calculation easier.

But again:

lower monthly payment does not automatically mean cheaper homeownership.

It is another financing tool that should be evaluated based on the household’s longer-term plans.

The Biggest Mistake: Starting With Listings Instead of a Plan

A lot of buyers begin like this:

1. Open Realtor.ca.
2. Find beautiful homes.
3. Pick a neighbourhood.
4. Go to showings.
5. Then ask the bank how much they can borrow.

For a newcomer, I would reverse that process.

Start with:

1. Confirm your legal purchase eligibility

Especially if you are not yet a citizen or permanent resident.

2. Understand your mortgage position

Talk with a qualified mortgage professional about income, credit, down payment and current debt.

3. Decide how much cash you want to keep after closing

Do not automatically put every dollar into the property.

4. Establish a comfortable monthly budget

Not simply the maximum approval.

5. Compare GTA communities

Then decide which combination of location and property type fits the budget.

6. Start viewing properties

Now the listings you look at actually make sense for your situation.

JDL Realty Perspective

Today’s newcomer buyer does not necessarily need someone to simply send more listings.

There are already thousands of listings online.

What many first-time newcomer buyers actually need is help answering:

• What can my budget realistically buy?
• Which GTA communities should I compare?
• Should I look at Condo, Townhouse or Freehold?
• How much cash should I keep for closing?
• Is it worth moving farther away for more space?
• Should I buy resale or consider a new development?

The new Royal LePage survey found that 55% of newcomer homeowners surveyed had turned to a real estate agent for information about buying a home in Canada.

For us, that is the most important part of the story.

The role of a real estate professional should not simply be:

“Here are some houses.”

It should be helping buyers understand how the housing market works and turning a broad goal—“I want to own a home in Canada”—into a realistic property search.

At JDL Realty, we work with buyers across Toronto and the GTA to compare neighbourhoods, property types, resale homes and new developments based on their actual needs and budget.

Not Sure What Your Budget Can Buy in the GTA?

You do not need to know exactly which property you want before speaking with us.

Start with three things:

Your approximate budget

For example:

$600K / $800K / $1M / $1.2M+

Your preferred area

Toronto, Markham, Richmond Hill, Vaughan, Mississauga or elsewhere in the GTA.

Your preferred property type

Condo, Townhouse, Semi or Detached.

From there, we can help you compare what is currently available and whether changing the location or property type could give you better options.

Contact JDL Realty for a personalized GTA home search and market comparison.

Frequently Asked Questions

Can a newcomer buy a home in Canada without permanent residence?
Potentially, depending on the buyer’s status and circumstances. CMHC provides insured-mortgage options for eligible permanent residents and certain non-permanent residents legally authorized to work in Canada, but the federal prohibition on purchases by non-Canadians remains in effect until January 1, 2027 and contains specific exemptions. Buyers should verify their eligibility before making an offer.

How much down payment does a newcomer need?
The general minimum down-payment rules are based primarily on property price. Eligible purchases up to $500,000 can generally start at 5%; from $500,000 to below $1.5 million, the requirement is 5% on the first $500,000 and 10% on the remaining amount. Homes at $1.5 million or above generally require at least 20%.

Can I get a mortgage without a long Canadian credit history?
Possibly. CMHC says alternative evidence such as an international credit report or financial-institution reference may be considered for eligible newcomer borrowers with limited Canadian credit history. Individual lender requirements can differ.

Should I wait until I have a 20% down payment?
Not necessarily. Eligible buyers can obtain insured mortgages with less than 20% down, subject to financing requirements. Whether waiting makes sense depends on your savings, rent, target property and financial situation.

Where should a newcomer buy in the GTA?
There is no single best community. Buyers should compare price, commute, schools, family connections, transit and property type across areas such as Toronto, Markham, Richmond Hill, Vaughan and Mississauga.

The Bottom Line

The latest survey suggests that the desire to own a home remains strong among many newcomers to Canada.

But the biggest obstacles are practical:

down payment, income, credit, knowledge and location.

Those are problems that can be planned around much more effectively when buyers know where they stand before they begin looking at properties.

So if you are new to Canada and thinking:

“Maybe I want to buy in the next year or two.”

you do not need to wait until you feel 100% ready before learning what your options are.

The better first question is:

“Based on my budget today, what could I realistically buy in the GTA?”

Once you know that, you can decide whether to buy now, keep saving, change locations or adjust the type of home you are targeting.

Thinking about buying your first home in Toronto or the GTA? Contact JDL Realty and tell us your approximate budget, preferred area and property type. We can help you compare the options currently available.

Source: Newswire

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