Home Buying in Canada: A Warm Guide for Newcomers

09 Mar 2026

Welcome to your comprehensive and reassuring guide to buying property in Canada for permanent residents, temporary work permit holders, and people with refugee status. This guide offers practical advice, advantageous programs, and a compassionate approach to help you realize your dream of becoming a homeowner.

1. Homebuying options for permanent residents

As a permanent resident, you can access programs that facilitate homeownership with a reduced down payment. For example, Sagen's "Newcomers to Canada" program allows you to purchase a property with only 5% down for properties up to $500,000; beyond that, 10% is added on the excess portion. The CMHC also offers this program with similar conditions.

The National Bank notes that several mortgage insurers (CMHC, Sagen, Canada Guaranty) support newcomers, and you can withdraw up to $60,000 from your RRSP via the Home Buyers' Plan (HBP) to fund your down payment tax-free.

Finally, TD Canada Trust offers options depending on your down payment: if you have 35%, no mortgage insurance is required; otherwise, starting at 5% with insurance, for a home price under $1.5 million.

2. Options for temporary work permit holders

If you are a temporary resident with a valid work permit for less than two years and employed full-time for at least three months, TD offers:

A down payment of 20% without mortgage insurance.
Or a down payment of only 5% (with insurance) for properties under $1.5 million.

Additionally, the First-Time Home Buyer Incentive program from CMHC is accessible to non-permanent residents authorized to work: a 5% down payment on the first $500,000 and 10% beyond that, depending on the property’s value.

3. Programs for people with refugee status

For refugees, several assistances are offered upon arrival. The Resettlement Assistance Program (RAP) provides financial support for temporary housing, settlement, and budgeting help for up to a year.

Organizations such as RefPIC assist refugees in finding stable housing, accompanying them to viewings, negotiating with landlords, and facilitating settlement in the community.

Private sponsorship programs, such as PSR (Private Sponsorship of Refugees), allow Canadian groups or organizations to support refugees with material, social, and financial backing during the first year after arrival.

4. Special advantages for newcomers

Lower down payment: starting at 5% for permanent residents, up to 20% for work permit holders, depending on the programs.
RAP (RRSP): up to $60,000 tax-free to finance the purchase.
FHSA (First Home Savings Account): registered savings account since 2023, tax-deductible contributions to save for the down payment, tax-free growth investments.

5. Practical and reassuring tips

Work with a real estate agent who understands your needs: they will guide you through viewings, inspections, negotiation, and the offer process.
Plan for additional costs: property taxes, home insurance, maintenance, heating, etc.
Build your credit score as soon as possible: bank statements, on-time bill payments can help offset a limited history.
Seek help from community organizations like MOSAIC (British Columbia), RefPIC, or other settlement services for personalized support.

Conclusion

You are not alone in this important step. Whether you are a permanent resident, temporary worker, or refugee, advantageous programs and caring organizations are there to support you. With a reduced down payment, tax incentives, personalized assistance, and practical advice, you can move forward confidently toward purchasing your property in Canada. Your new home awaits, and we are here to cheer you on every step of the way.

Sources

The information in this article is for general purposes only and may not reflect current laws or regulations. Verify any details with a qualified professional before making decisions. Some portions may have been created with AI assistance and should be confirmed for accuracy.

Written by Olivier de Raucourt

Mortgage broker