Renting and buying a home

Most newcomers rent first and consider buying later. This article summarizes guidance from IRCC and CMHC and the rules on non-Canadians buying homes.

Types of housing

• Detached houses, semi-detached houses, townhouses.
• Apartments in rental buildings, from bachelor units to 3 bedrooms.
• Condominium (condo) units owned by different owners.
• Rooms in someone else's home or apartment; parts of houses converted into rentals.

Renting

• Each province has a residential tenancy law setting out landlords' and tenants' rights and duties.
• The lease states the rent, due dates, term and repair responsibilities. Read it carefully before signing.
• Depending on the province, the landlord may ask for first and last month's rent, or a deposit.
• Rent is usually due on the 1st of each month; always ask for a receipt.
• Ask whether heat, electricity, water and internet are included.
• Watch for scams: don't send money before viewing the unit and verifying the landlord.

Buying

• Most buyers need a mortgage. Banks look at income, assets and credit score.
• According to IRCC, most banks ask for at least 10% of the price from your own money.
• Beyond the mortgage: property taxes, home insurance; condos also have fees.

If you aren't a citizen or permanent resident

• The ban on non-Canadians buying residential property was extended to January 1, 2027, per the Department of Finance's 2024 announcement.
• Main exceptions: homes outside census urban areas; work permit holders with at least 183 days left who haven't bought more than one residential property; specific conditions for students.
• Permanent residents aren't subject to the ban.

Note CMHC (Canada Mortgage and Housing Corporation) has detailed guidance for renters and buyers. For rental disputes, contact your province's residential tenancy authority.