Can I buy a house in Canada on a work permit?

Yes, work permit holders can buy property in Canada. You must have worked in Canada for at least 183 days in the last 12 months and hold a valid work permit at the time of purchase. Most conventional lenders require a 20–35% down payment. You should also confirm whether the Non-Resident Speculation Tax (NRST) applies to your situation.

What is the Non-Resident Speculation Tax (NRST) in Ontario?

The NRST is a 25% tax on the purchase price when a non-resident or foreign national buys residential property in Ontario. However, work permit holders who have worked full-time in Canada for at least 183 days are exempt. Permanent residents and Canadian citizens are also exempt. Always verify your NRST status with a real estate lawyer before purchasing.

How much down payment does a work permit holder need in Canada?

Most lenders require work permit holders to put down 20–35% of the purchase price. The standard 5% CMHC-insured mortgage (available to citizens and PRs) is generally not available to non-residents. Some lenders offer "newcomer" mortgage programs with lower requirements for holders of certain work permits.

Do work permit holders qualify for first-time home buyer programs in Canada?

Work permit holders may qualify for some first-time buyer programs but not all. The FHSA requires Canadian residency (work permit holders qualify as residents). The RRSP Home Buyers' Plan is available to residents. However, the First-Time Home Buyer Tax Credit requires you to file a Canadian tax return. CMHC-insured mortgages (5% down) are generally not available.

Buying a Home in Canada on a Work Permit

If you're in Canada on a work permit, you can buy property — but there are important conditions to understand before you start house hunting.

Can Work Permit Holders Buy Property in Canada?

Yes. The foreign home buyers ban (the Prohibition on the Purchase of Residential Property by Non-Canadians Act, extended to January 2027) contains explicit exemptions for work permit holders who meet certain conditions:

You have worked in Canada for at least 183 days in the 12 months prior to purchase
Your work permit is still valid (ideally with significant time remaining)
You are purchasing for use as your primary residence
You have not previously purchased Canadian residential property under this exemption

Down Payment Requirements

This is where work permit holders face a meaningful difference from PRs and citizens:

CMHC mortgage insurance (which enables 5%–19% down payments) is generally not available to work permit holders. Most conventional lenders require a minimum 20–35% down payment.

Some lenders have specific newcomer programs that allow lower down payments with strong employment and credit history — a mortgage broker who specializes in newcomers can identify these options.

The Non-Resident Speculation Tax (NRST)

The NRST is a significant risk to watch for:

Ontario NRST: 25% tax on the purchase price if a "foreign national" is on title
BC Foreign Buyer Tax: 20% in Metro Vancouver and certain other areas

Work permit holders who meet the 183-day work requirement are generally exempt from the Ontario NRST — but verify this with your lawyer. If a non-resident spouse or family member is added to the title, the NRST may apply to the entire purchase.

Documents You'll Need

Valid work permit (copy)
2 years of Canadian T4 slips or Notices of Assessment
3 months of pay stubs
Employment letter confirming your position and salary
Proof of 183+ days Canadian work history
3–6 months of bank statements showing down payment funds

Mortgage Pre-Approval Strategy

Work with a mortgage broker (not just a bank) who has experience with newcomer and work permit applicants. Different lenders have very different policies for work permit holders — a broker can match you with lenders who have the most favourable terms for your specific situation.

Timing Consideration: PR Application

If you are in the process of applying for permanent residence, it may be worth waiting until your PR is confirmed before purchasing. As a PR, you'll have:

Access to CMHC-insured mortgages (lower down payment required)
No NRST risk
No questions about work permit expiry affecting your mortgage term
Access to all first-time buyer programs (FHSA, RRSP HBP)

Source: Government of Canada, Ontario Ministry of Finance, CMHC. Information current as of January 2026. Rules change — always verify with a licensed mortgage professional and immigration lawyer.