Buying a Home in Canada as an Immigrant in 2025

A lot of immigrants in Canada say the same thing: the first apartment feels like survival, the first job feels like stability, and the first house feels like you’ve finally arrived. Owning a home isn’t just a financial decision; it’s cultural, it’s emotional, and for many newcomers it marks the moment they stop feeling like guests and start seeing themselves as part of Canada’s future.

But getting there is hard. You walk into a bank and the advisor asks for a Canadian credit score you don’t have. You look up average prices in Toronto or Vancouver and your heart skips. You hear about the “stress test,” the “first home savings account,” the “land transfer tax,” and it sounds like alphabet soup.

This guide is for you, the person starting to wonder not just if you can buy a home, but how. It mixes hard numbers from lenders and regulators with lessons from immigrants who’ve done it.

Down payment rules in 2025 are blunt: 5 percent minimum for homes under $500,000; 5 percent on the first $500,000 and 10 percent on anything above that up to $1.5 million; 20 percent minimum for anything beyond.

So let’s say you’re buying a $600,000 home in Ottawa. You’ll need $25,000 for the first $500,000, plus $10,000 for the extra $100,000; a total of $35,000. That’s just to unlock the mortgage. Add legal fees, land transfer taxes, and moving costs, and you’re looking at closer to $45,000.

For newcomers saving in a high-rent city, that number feels intimidating. That’s why many start with condos. Yes, the monthly maintenance fees sting, but they offer lower entry prices and less responsibility for things like snow shoveling or roof repairs.

The big question right now: how much will your loan cost you each month?

The Bank of Canada’s key interest rate sits at 4.75 percent, slightly down from late 2024’s peak. At major banks, the average five-year fixed mortgage is around 5.14 to 5.39 percent; variable mortgages hover around 5.25 to 5.45 percent.

Rates are high compared to the pandemic lows, but the trend is easing. Most economists expect gentle cuts through 2025, though no one sees a return to the ultra-cheap money of 2020.

Here’s the reality check. According to the Canadian Real Estate Association, as of January 2025:

For immigrants, Calgary and Ottawa have become the “gateway cities”—lower prices, growing job markets, and higher rental yields if you’re thinking about investment. Vancouver and Toronto remain aspirational, but for many first-time buyers, they’re simply out of reach without family wealth or dual incomes well above six figures.

The harsh truth: your credit record from Nigeria, India, the Philippines, or anywhere else doesn’t follow you. Canadian banks look for a local score, ranging from 300 to 900. Above 680 is strong. Below 600 is a red flag.

For newcomers, this means one of your first financial tasks is building credit. RBC, Scotiabank, and others offer “newcomer programs” with starter credit cards. Small steps like paying your phone bill on time or financing a car can build the history you need. The payoff: lower interest rates when you finally apply for a mortgage.

Here’s a story you hear a lot: someone falls in love with a house, makes an offer, and then finds out the bank won’t lend them enough. Pre-approval avoids that heartbreak. It tells you exactly how much you can borrow and locks in an interest rate for up to 120 days.

Lenders use a “stress test,” meaning they calculate your eligibility as if rates were 2 percent higher than what you’re quoted. It’s a buffer against shocks like job loss or rate hikes. It also means you may qualify for less than you think, so always run the numbers.

Immigrants often save diligently for the down payment, then get blindsided by closing costs. These can add 1.5 to 4 percent of the purchase price. In Toronto, you’ll pay both a provincial and a municipal land transfer tax. In Quebec, there’s the so-called “welcome tax.” Everywhere, you’ll need legal fees, title insurance, and adjustments for property taxes.

On a $600,000 home, those extras can easily top $15,000. Ignore them and you risk running short at the finish line.

The federal government has tried to make things easier:

Then there are provincial perks. For instance, Ontario refunds land transfer taxes for first-time buyers. BC reduces the property transfer tax. Quebec gives a $1,500 tax credit. These small boosts can make a real difference when you’re scraping together every dollar.

Permanent residents have full access to the housing market. Work permit holders can also buy, but may face higher down payment requirements unless exempt under the foreign buyer ban. International students remain restricted in most cases. Refugees and protected persons are exempt.

It’s worth checking your exact status with a mortgage broker before shopping.

Some immigrants don’t buy a home to live in; rather they buy to invest. The math here is about rental yield. As of early 2025:

That’s why more investors are looking west or to smaller urban centers. It may be something you’re interested in too. 

Most analysts predict modest growth: 2 to 4 percent nationally. Alberta and Atlantic provinces may see stronger gains, while Toronto and Vancouver may experience lags. Immigration targets, all the same look to remain aggressive, and with 485,000 newcomers in 2025, it is apparent that the demand isn’t going anywhere. Supply, however, continues to be the crux of the matter.

Buying a home in Canada as an immigrant isn’t easy. You face hurdles your Canadian-born peers don’t: building credit from zero, proving income, navigating programs that change every year. But you also bring something powerful: persistence, long-term vision, and the willingness to start small and grow.

That first condo in Calgary, that fixer-upper in Halifax, that modest townhouse in Ottawa, it may not be the dream house you pictured, but it’s a foothold. And from there, you can climb.

👉 Next in the Series:

Until next time,