Buying Your First Home in Oakville as a Newcomer to Canada

Moving to a new country takes courage. Buying your first home here is one of the best signs that you are putting down roots. If you are new to Canada and dreaming of a home in Oakville, the good news is that many newcomers buy within their first few years. The process simply has a few extra steps that people who grew up here never have to think about. This guide walks you through those steps in order.

1. Confirm your status lets you buy

Citizens and permanent residents can buy a home in Oakville without restriction.

Work permit holders. Canada's federal ban on foreign buyers applies in Oakville, but there are exceptions. Many work permit holders can buy a home to live in, as long as they meet the conditions, including having enough time left on their permit on the day they buy. The ban was scheduled to end on January 1, 2027, so check its current status with your lawyer before you plan your purchase.

Ontario's Non-Resident Speculation Tax. Ontario charges an extra tax on many buyers who are not citizens or permanent residents, with some exemptions. It can add a large amount to your purchase, so ask a real estate lawyer whether it applies to you before you make an offer.

2. Start building Canadian credit right away

Your credit history from back home usually does not follow you to Canada. Even if you had an excellent record there, Canadian lenders may see you as starting from zero. Credit takes time to build, so start in your first months here.

• Open a Canadian credit card, even a secured one with a small limit
• Use it for everyday purchases and pay the full balance every month
• Put your phone plan and utilities in your name and pay them on time
• Avoid applying for several new cards or loans at once

Some lenders offer mortgage programs designed for newcomers that look at your job, income and savings when your Canadian credit history is short. A mortgage professional can tell you which ones you may qualify for.

3. Plan your down payment and paperwork early

Lenders need to see where every dollar of your down payment came from. For newcomers, that often means extra documents.

1. Move money from abroad early. Lenders often want to see your down payment sitting in a Canadian account for a period of time before closing. Ask your lender how long, so you are not rushing in the final weeks.
2. Keep a paper trail. Save statements from your home country account and your Canadian account showing each transfer.
3. Gifts from family. If parents or relatives are helping, your lender will usually ask for a signed gift letter confirming the money does not need to be repaid.
4. Proof of status and income. Have your permanent resident card or work permit, a job letter and recent pay stubs ready.

Budget for closing costs as well as your down payment. You can estimate your monthly payments with my mortgage calculator.

4. Check which first-time buyer programs fit you

Newcomers can often use the same first-time buyer programs as everyone else, but a few rules catch people by surprise.

Ontario land transfer tax refund. First-time buyers can get back up to $4,000 of the provincial land transfer tax. To qualify, you generally cannot have owned a home anywhere in the world, so a home you owned back home can disqualify you. There are also citizenship and residency rules, so ask your lawyer to confirm. Read more in my post on land transfer tax as a first-time buyer.

First Home Savings Account (FHSA). Once you are a Canadian resident with a Social Insurance Number, you can open an FHSA and contribute up to $8,000 a year, to a lifetime limit of $40,000. Contribution room only starts building once the account is open, so open it as early as you can.

RRSP Home Buyers' Plan. This lets you withdraw up to $60,000 from your RRSP toward a first home. RRSP room comes from income earned in Canada, so it may be limited in your first year or two.

Each program has its own rules, so check them one by one with your accountant or lawyer. My First-Time Home Buyers in Oakville page explains every program in detail.

5. Choose a neighbourhood that fits your new life

Many newcomer families choose Oakville for its strong schools, parks and trails and a calm, safe feel. Commuting is manageable too, with Oakville GO and Bronte GO on the Lakeshore West line and quick access to the QEW, 403 and 407.

Think about where you work, which schools matter to you, whether you want to be near your community and places of worship, and how much space you will need in five years. If you are living in Toronto now, my guide to moving from Toronto to GTA West compares costs, taxes and commutes.

Mistakes I see newcomers make

• Touring homes before building any Canadian credit or getting pre-approved
• Moving down payment money from abroad in the final weeks
• Assuming they qualify for the land transfer tax refund after owning a home overseas
• Not checking the Non-Resident Speculation Tax before making an offer
• Changing jobs or ending probation right before closing

Want everything in one place? Request my Free Buyer's Guide or visit my First-Time Home Buyers in Oakville page.

Tarlika Sehgal, REALTOR®, SRS®, ABR® | eXp Realty Of Canada, Inc., Brokerage

This article is general information, not legal, tax, immigration or financial advice. Rules, rates and limits change. Please confirm your situation with a real estate lawyer, accountant, mortgage professional or licensed immigration advisor.