Can a Temporary Resident Buy a House in Canada?
In short: yes, a temporary resident can buy a house in Canada in 2026, provided they meet the exceptions set out in federal law. The real obstacle is usually not the law, but the financing: without a Canadian credit history, banks hesitate. This is where a private mortgage for temporary residents can get the project moving.
Since the Prohibition on the Purchase of Residential Property by Non-Canadians Act came into force on January 1, 2023, the rules have been stricter. Exceptions do exist, however, for work and study permit holders who meet the criteria.
Before you begin, three things need to be confirmed: your legal eligibility, your down payment and your financing capacity.
Who Counts as a Temporary Resident in Canada?
A temporary resident is a person authorized to stay in Canada for a limited period. This includes work permit holders, study permit holders, and certain refugees and protected persons.
Unlike a permanent resident or a Canadian citizen, a temporary resident has no permanent status: their right to stay depends on the validity of their permit. This status, and above all how much validity remains on it, is decisive both when buying property and when applying for a temporary resident mortgage.
Can Temporary Residents Buy a House in Canada? What the Law Says
Yes, but within a defined framework.
Since January 1, 2023, the Prohibition on the Purchase of Residential Property by Non-Canadians Act has generally barred the purchase of residential property by people who are neither citizens nor permanent residents, within census agglomerations and census metropolitan areas, in other words, urban areas. The measure is intended to protect market access for Canadians.
The prohibition has been extended to January 1, 2027. In the case of a prohibited purchase, the buyer, along with any notary, broker or agent who knowingly assists with the transaction, faces a fine of up to $10,000, and a court may order the property to be sold.
The January 1, 2027 deadline is approaching. The rules could be renewed, amended or lifted. Always confirm the state of the law at the time of your purchase with a professional.
What Are the Exceptions for Temporary Residents?
Federal regulations set out clear exceptions. Relaxed on March 27, 2023, they make home ownership more accessible for many temporary workers and students.
Work Permit Holders
You can buy if:
- your work permit (or work authorization) is valid for at least 183 days at the time of purchase;
- you are buying only one residential property.
Study Permit Holders
The conditions are stricter:
- you have filed income tax returns for each of the 5 preceding taxation years;
- you were physically present in Canada for at least 244 days in each of the 5 preceding calendar years;
- the purchase price does not exceed $500,000;
- you are buying only one property.
The type of permit therefore has a direct impact on your eligibility and, in turn, on your mortgage financing options.
Want to confirm your eligibility and your buying budget? Talk to a Financière Victoria specialist.
Mortgage for Temporary Residents: Credit History Is the Real Barrier
This is where most projects stall. Having no Canadian credit history makes it difficult to obtain a mortgage from a traditional bank: newcomers often have no file yet with Equifax or TransUnion, which prevents lenders from running their usual risk assessment.
A private mortgage for a temporary resident in Canada relies on different criteria, better suited to your reality:
- the value of the property;
- the down payment available;
- actual repayment capacity.
At Financière Victoria, private mortgages range from $15,000 to $1,000,000 depending on the product, with approval possible within 24 hours and no minimum credit score required.
It is a transitional option: private mortgage rates are higher than a bank’s and the terms are shorter. Long enough to build a Canadian credit file or obtain permanent residency, then refinance.
What Down Payment Is Required for a Temporary Resident?
The general rule in Canada sets the minimum down payment at 5% on the first $500,000, then 10% on the portion between $500,000 and $1.5 million.
In practice, a temporary resident with no Canadian credit history should often plan for more: lenders frequently require a larger down payment to offset the risk.
On the private financing side, the focus is on home equity. Financière Victoria, for example, finances up to 75% of the property’s value, roughly a 25% down payment, for a purchase or refinancing loan.
Can You Buy a Duplex or an Income Property?
The law targets residential property and, in most cases, the purchase must serve as a principal residence. A duplex may be permitted if the buyer occupies one of the units. Purely speculative purchases, or those intended as rental investments, are generally restricted for non-Canadians while the prohibition remains in force.
Once your status is regularized, permanent residency or citizenship, the doors open: Financière Victoria then offers loans for real estate investors.
Your Spouse’s Role in the Purchase Application
If your spouse or common-law partner is a Canadian citizen or permanent resident, this can simplify the transaction and lift certain restrictions. A partner’s status carries weight in the assessment of your file, both legally and from a mortgage standpoint. Have the transaction structured by a notary or a specialized broker.
Buying in Quebec and Montreal: What’s Different?
Montreal is part of a census metropolitan area covered by the federal law, so the rules apply in full. Make sure the property is eligible and that your status corresponds to an exception.
In Quebec, the transaction is closed by a notary rather than a lawyer, a distinction worth knowing if you are coming from another province or another country.
Because the Montreal market is competitive, having financing pre-approved before making an offer is a decisive advantage, all the more so when a private lender’s speed of approval makes the difference.
Steps to Buying a House as a Temporary Resident
- Verify your status and your eligibility under the law.
- Consult a mortgage broker and, if needed, an immigration lawyer.
- Obtain a pre-qualification or pre-approved financing.
- Find an eligible property.
- Make an offer to purchase.
- Close the transaction with a notary.
Professional guidance sharply reduces the risk of an administrative or legal misstep.
Mistakes to Avoid
- Assuming a temporary resident cannot buy at all. This is false; exceptions exist.
- Underestimating the down payment actually required without Canadian credit.
- Waiting too long to consult a financing specialist.
Tax Implications
Buying a property can have tax consequences, particularly for your tax residency and your income tax returns. The number of days you spend in Canada and the income you report affect certain obligations. An accountant or tax specialist can clarify your situation.
From Temporary Resident to Homeowner: The Right Financing Makes the Difference
Buying a house as a temporary resident is possible in Canada, under strict conditions. Your eligibility depends on your permit, the length of your stay, your down payment and your financial capacity. If a bank turns you down because of a limited credit history, solutions exist: private mortgages from Financière Victoria offer flexible financing, with no minimum credit score, designed for newcomers.
Ready to move forward? Apply online or contact our team for a fast, confidential answer.
The January 1, 2027 deadline is approaching. The rules could be renewed, amended or lifted. Always confirm the state of the law at the time of your purchase with a professional.
