Housing in Canada

Most newcomers rent for the first few years — here’s what that costs, what buying involves, and the rules that only apply to non-residents.

Rent vs. buy

Given how far home prices have run ahead of local incomes — especially in Toronto and Vancouver — most newcomers rent for their first one to three years while they build Canadian credit and employment history. Buying adds real costs beyond the down payment: legal fees, land transfer tax, inspection, typically 1.5–4% of the purchase price in closing costs alone.

Buying, if you go that route

The Bank of Canada’s rate has held at 2.25% since late 2025, putting typical five-year fixed mortgages around 4.24% and variable closer to 3.45%. Every buyer must qualify at roughly 2 points above their actual rate (a "stress test"). Down payment minimums scale with price: 5% under $500,000, a blended 5–10% up to $1.5 million, and a full 20% — with no mortgage insurance available at all — above that.

Toronto and Vancouver prices are actually down 4–5% year-over-year as of mid-2026, while Calgary and Montreal are up 3–5% — a genuine split worth knowing before assuming "Canadian housing" moves as one market.

Rules specific to non-residents

A federal ban currently prevents non-Canadians from buying most residential property in cities, confirmed through January 2027 with its extension beyond that still undecided. The ban doesn’t apply to property outside major urban areas, to international students meeting residency and price conditions, to work permit holders with 183+ days remaining, or to anyone buying jointly with a Canadian or PR spouse. Non-residents who do legally buy face an additional 25% withholding tax on rental income and capital gains, plus provincial surtaxes in Ontario and BC that can run 15–20%.

Renting: deposits and notice periods

Standard leases run 12 months before converting to month-to-month. One caveat worth knowing: Ontario’s Landlord and Tenant Board has a well-documented backlog, and evictions there can take 4–9 months to actually enforce regardless of the notice period on paper — it cuts both ways, for tenants and small landlords alike.