Can newcomers to Canada buy a home in Markham?Yes. Permanent residents can buy like any Canadian. Many work permit holders can buy one home under exceptions to the federal foreign buyer ban. Foreign nationals usually pay Ontario's 25% Non-Resident Speculation Tax, unless an exemption applies.
Buying your first home in a new country is a big step. The rules, the paperwork and even the words are different. The good news is that the process in Ontario is clear once someone walks you through it in order.
Michael John Lau and the Kaizen Real Estate Team, a trusted team for first-time buyers in Markham, have helped newcomer families buy their first Canadian home. This guide covers what you need to know, step by step. It is general information, so always confirm your own situation with a real estate lawyer and a mortgage professional.
Step 1: Confirm that you can buy
Canada's Prohibition on the Purchase of Residential Property by Non-Canadians Act is in place until January 1, 2027. It limits who can buy homes with three units or fewer, which includes houses, semis, townhouses and condos in Markham.
| Your status | Can you buy a home in Markham? |
|---|---|
| Canadian citizen | Yes |
| Permanent resident | Yes, the federal ban does not apply to you |
| Work permit holder | Usually yes, for one home, if your permit has at least 183 days left at the time of purchase and you have not already bought under this exception |
| Buying with a spouse who is a citizen or permanent resident | Usually yes, under the spousal exception |
| Foreign national living outside Canada | Generally no, while the ban is in place |
The rules can change. The federal government is reviewing the ban ahead of its January 2027 expiry, so confirm the current rules with your lawyer before you make an offer.
Ontario's Non-Resident Speculation Tax
Separate from the federal ban, Ontario charges a 25% Non-Resident Speculation Tax (NRST) on homes bought by foreign nationals anywhere in the province. Being allowed to buy under the federal rules does not remove this tax. A work permit on its own is not an NRST exemption. Exemptions and rebates exist for some buyers, such as Ontario Immigrant Nominee Program nominees, protected persons and certain spouses. Your lawyer can tell you whether one applies before you sign anything.
Step 2: Know your down payment
In Canada, the minimum down payment depends on the price of the home:
- 5% of the first $500,000
- 10% of the portion from $500,000 to $1.5 million
- 20% for homes priced at $1.5 million or more
| Example purchase price | Minimum down payment | Type of Markham home at this price |
|---|---|---|
| $638,000 | $38,800 | Average condo apartment, August 2026 |
| $1,031,000 | $78,100 | Average freehold townhouse, August 2026 |
| $1,200,000 | $95,000 | Close to the average Markham home, August 2026 |
Prices from TRREB Market Watch, August 2026. Down payments under 20% require mortgage default insurance, which adds a premium to your mortgage. Your lender may ask for more than the minimum.
Plan for closing costs too. Land transfer tax, legal fees, a home inspection, title insurance and adjustments usually add about 1.5% to 4% of the price. Markham does not charge a municipal land transfer tax, unlike Toronto, so you pay the Ontario land transfer tax only.
Step 3: Get a mortgage with little Canadian credit
Many newcomers have a strong income but a short Canadian credit history. Several major Canadian lenders offer newcomer mortgage programs for this reason. Requirements differ, but lenders usually ask for:
- Proof of status, such as your permanent resident card or work permit
- A job letter and recent pay stubs from your Canadian employer
- Bank statements showing where your down payment came from, usually for the last 90 days
- Records for any money sent from outside Canada. Move these funds early, because lenders need to trace them.
Every buyer must also pass the mortgage stress test. You qualify at the higher of your contract rate plus 2% or 5.25%. Get a pre-approval before you start viewing homes, so you know your real budget.
Step 4: Check first-time buyer programs
| Program | What it offers | Newcomer note |
|---|---|---|
| Ontario land transfer tax refund | Up to $4,000 back at closing | You must never have owned a home anywhere in the world, and must be a citizen or permanent resident within 18 months of buying |
| First Home Savings Account (FHSA) | Save up to $8,000 a year, $40,000 lifetime, tax-free for your first home | Open it early. Room builds from the year you open the account |
| RRSP Home Buyers' Plan | Borrow up to $60,000 from your RRSP | Depends on your Canadian RRSP savings |
| 30-year amortization | Lower monthly payments on insured mortgages for first-time buyers | Ask your lender if you qualify |
Program rules are set by the Government of Ontario and the Government of Canada and can change. Owning a home in another country may affect your eligibility for some programs.
Buying your first home in Canada?
Michael John Lau can walk you through each step, connect you with the right professionals and help you compare Markham neighbourhoods before you view a single home.
Book a buyer consultationSearch Markham homesPrefer to talk? Call the Kaizen Real Estate Team at (647) 370-8885.
Step 5: Choose the right Markham neighbourhood
Markham is a city of very different communities. Think about your commute, your budget and the kind of home you want first, then narrow down the area.
- For newer homes and a large park near the GO train, look at Wismer.
- For a planned community with a hospital next door, look at Cornell.
- For heritage streets and a walkable main street, look at Unionville.
- For condo living near transit, look at Downtown Markham along Highway 7.
The pros and cons of living in Markham give you the full picture.
Step 6: Understand how buying works in Ontario
- Sign a buyer representation agreement. In Ontario, a REALTOR® needs a written agreement with you before working on your behalf. Read it carefully and ask questions. See whether you can work with more than one agent.
- Make an offer. Your offer sets the price, deposit, closing date and conditions, such as financing or a home inspection.
- Pay the deposit. In the Greater Toronto Area, the deposit is often due within 24 hours of your offer being accepted.
- Complete your conditions. Arrange the inspection and final mortgage approval. For condos, your lawyer reviews the status certificate. Ontario sellers are not required to fill out a disclosure form, so read what protects buyers instead.
- Close with your lawyer. Your real estate lawyer handles the title search, land transfer tax and any first-time buyer refund, then gives you the keys.
Frequently asked questions
Can a permanent resident buy a house in Markham?
Yes. Permanent residents are not affected by the federal foreign buyer ban and do not pay Ontario's Non-Resident Speculation Tax. They can buy a home in Markham the same way a Canadian citizen can.
Can I buy a home in Markham on a work permit?
Often, yes. Under the federal rules in place until January 1, 2027, many work permit holders can buy one home if their permit has at least 183 days left. Ontario's 25% Non-Resident Speculation Tax may still apply, so speak with a real estate lawyer first.
How much down payment does a newcomer need to buy in Markham?
The minimum is 5% of the first $500,000 and 10% of the amount from $500,000 to $1.5 million. For a $638,000 condo, that is about $38,800. Some newcomer mortgage programs may ask for more.
Michael John Lau and Neeraj Moolchandani are licensed REALTORS® with the Kaizen Real Estate Team, eXp Realty, Brokerage, 9763 Markham Rd, Markham, ON L6E 1A4. Licence #4784577. Market figures are approximate, drawn from TRREB MLS® data and other sources noted in the article, and can change. This article is general information only and is not financial, legal or tax advice. Not intended to solicit buyers or sellers currently under contract with another brokerage.
