Buying your first home in Ontario as a newcomer: a step-by-step guide

Buying a home in a new country is a big step. The good news is that the process in Ontario follows clear stages. Here is what to expect, so you can plan with confidence.

This guide is general information, not legal, tax, mortgage or financial advice. Rules and programs change, so always confirm the details for your situation with a lender, lawyer or accountant.

1. Start building your Canadian credit history

Lenders look at your credit history to decide how much they will lend. If you are new to Canada, you may not have one yet. Many newcomers start with a secured credit card or a newcomer banking package, pay every bill on time and keep balances low. Some lenders have special newcomer mortgage programs, so ask about them.

2. Understand your down payment

Your down payment is the part of the price you pay yourself. The minimum depends on the price of the home, and a smaller down payment usually means you need mortgage default insurance. If your money is overseas or coming from family, read using savings from abroad or a family gift.

Remember to budget for closing costs too. If you aren’t yet a citizen or permanent resident, first read whether you can buy a home in Ontario.

3. Ask about first-time buyer programs

Canada and Ontario have programs that may help first-time buyers, such as the First Home Savings Account (FHSA), the RRSP Home Buyers’ Plan and land transfer tax refunds for first-time buyers. Eligibility rules apply, so ask your lender, lawyer or accountant whether you qualify.

4. Get pre-approved

A mortgage pre-approval tells you how much you can borrow and holds an interest rate for a period of time. It also shows sellers that you are a serious buyer.

5. Find the right home with your agent

This is where Lena comes in. She will listen to what matters to your family, such as schools, commute, community and budget, then help you search, tour homes and understand each neighbourhood.

6. Make an offer

When you find the right home, Lena prepares your offer, explains every clause in your language and negotiates on your behalf. Offers often include conditions, such as financing and a home inspection.

7. Work with a real estate lawyer

In Ontario, a real estate lawyer handles the legal side of the purchase: checking the title, preparing documents and transferring funds.

8. Closing day

On closing day, the lawyer completes the transaction and you receive your keys. Congratulations, and welcome home!

Have questions?

Every family’s situation is different. Book a free consultation with Lena to talk through your plan in English, Farsi or Dari.