Can People on Work Permit Buy Property in Mississauga (Canada)?
Yes you can certainly buy a property on work permit after paying Foreign Buyers Tax or NRST. The Non Resident Speculation Tax (NRST) is a 15 per cent tax on the purchase or acquisition of an interest in residential property located in the Greater Golden Horseshoe Region (GGH) by individuals who are not citizens or permanent residents of Canada or by foreign corporations (foreign entities) and taxable trustees. This amount is reimbursed to you when you get your Permanent Residence (PR) or under situations discussed below. Exceptions include: apartment buildings with 7+ units, land, commercial or industrial properties.
Buying Property in GTA on Work Permit – New to Canada Program
Buying Property in GTA on Work Permit is possible as part of New To Canada program for First Time Home Buyers at many Canadian banks and Lenders. Given below are some current general guidelines for your reference. However, please note that guidelines are subject to change and revisions. It is prudent to discuss your situation and get advice directly from a mortgage specialist. We work with a few highly experienced and seasoned mortgage specialists and we will put you in touch with them at the time you are looking to buy a home or a condo.
Key Guidelines for buying a Home or a Condo in Mississauga, Toronto or elsewhere in the GTA while on a Work Permit:
For Conventional mortgages, banks or lenders can work with home buyers making a 35% down-payment as long as they have a valid work permit and it is still valid for 6 months or more.
For Insured mortgages (where the home buyer is putting in less than 20% down payment), the borrower must have arrived in Canada within five years of the application date and provide a copy of their passport from the country of origin showing the date of entry.
Also for up to 90% LTV, a written reference from the current employer, or a letter of reference from a recognized Canadian financial institution or the last 6 months of Canadian bank statements from a primary bank account or U.S. or international credit bureau report demonstrating satisfactory credit history.
For 90% to 95%, one of the following is also required:
Proof of timely payments (no arrears) for the past 12 months from two sources of credit. Acceptable sources include the following:
Canadian rental payment history confirmed by letter from the landlord (must indicate name of tenant, monthly rent, length of tenancy, payment history) and bank statements (must support the amount of rent and timeliness of payments outlined in the letter).
Canadian utility payment history from an acceptable source such as hydro, gas, telephone, or cable. They require a letter from the service provider confirming a satisfactory payment history for the past 12 months or 12 months billing statements or U.S. or international credit bureau report demonstrating satisfactory credit history. The borrower must provide a complete address from their country of origin for this purpose.
As a work permit holder you will be required to pay 15% Foreign Buyer Tax or Non-Resident Speculation Tax (NRST).
The Non‑Resident Speculation Tax (NRST) is a 15% tax on the purchase or acquisition of an interest in residential property located in the Greater Golden Horseshoe Region (which includes Toronto, Mississauga, Brampton, Halton, Hamilton among others) by individuals who are not citizens or permanent residents of Canada or by foreign corporations (foreign entities) and taxable trustees.
The NRST applies in addition to the general Land Transfer Tax (LTT) in Ontario.
A rebate of the NRST may be available in the following situations:
- Foreign national who becomes a permanent resident of Canada – The foreign national becomes a permanent resident of Canada within four years of the date of the purchase or acquisition
- International student – The foreign national is a student who has been enrolled full-time for a continuous period of at least two years from the date of purchase or acquisition in an “approved institution” (under section 8 of Ontario Regulation 70/17 of the Ministry of Training, Colleges, and Universities Act) at a campus located in Ontario. Full-time means enrolled in at least 60 per cent (if the individual does not have a disability) or 40 per cent (if the individual has a disability) of what the approved institution considers to be a full course load for the academic year, or
- Foreign national working in Ontario – The foreign national has legally worked full-time under a valid work permit in Ontario for a continuous period of at least one year since the date of purchase or acquisition. Full-time means an employment position that requires no fewer than 30 hours of paid work per week over a 12-month period and no fewer than a total of 1,560 hours of paid work over that period.
To qualify for a rebate, the foreign national must exclusively hold the property, or hold the property exclusively with his or her spouse. The property must also have been occupied as the foreign national’s (and if applicable his or her spouse’s) principal residence for the duration of the period that begins within 60 days after the date of the purchase or acquisition.
For Additional information about the Non-Resident Speculation Tax (NRST), contact:
Ministry of Finance
Land Tax Section
33 King Street West
Oshawa ON L1H 8H9
Ontario Immigrant Nominee Program (OINP)
This is an opportunity where foreign workers, international students, business owners or entrepreneurs from outside of Canada can apply for permanent residence in Ontario, or where Ontario businesses can recruit international talent.
The Ontario Immigrant Nominee Program (OINP) is the province’s economic immigration program.
Foreign workers, international students and others with the right skills, experience and education apply to the OINP for a nomination. The OINP recognizes and nominates people for permanent residence who have the skills and experience the Ontario economy needs, and the Government of Canada makes the final decision to approve applications for permanent residence.
Buying Property in GTA on Work Permit – Do you have a Unique Situation?
New to Canada Program is for people who come to Canada as a transfer from their company, or who come to Canada as a student and are now on a valid work permit with a full time and looking to buy their first home.
Important thing to keep in mind us that whatever your situation, you must be working and your debt ratios must fall within the guidelines in order to buy a home or condo in Mississauga, Toronto or elsewhere in the GTA while you are on a work permit.
Also, please bear in mind that rules keep changing. If you are interested in buying property in GTA on work permit, please reach out to us. We will put you in direct contact with our mortgage specialists who can guide you every step of the way based on your unique individual situation.
Why Rent When You Can buy?
We work with a lot of people who come to Mississauga and area on a work permit. We have helped many of them buy their first home in Mississauga and elsewhere in the GTA. There are many first time home buyer options available to you. Our clients agree that in majority of cases, it makes prudent sense to buy vs. rent.
As long as you have been in Canada for a couple of months, are working and your ratios fall within the guidelines discussed above, you can buy a home in Mississauga and area.
Your Home Buying Steps
The process begins by calling us to book your complimentary First Time Home Buyer Session. This is to discuss your individual requirements on type of home or condo, proximity with schools, transit or your workplace, budget. We will introduce you to one of our mortgage specialists, who will apply for your conventional or insured mortgage approval, based on how much down payment you are putting in. Once you are approved by the lender, Team Amit Kalia will commence the home or condo viewing and the selection process will begin.
Here are answers to some questions that might be on your mind as a Newcomer or a First Time Buyer in Mississauga
What is Better – to Rent or Buy a Property after becoming a Permanent Resident?
With the price growth in our lower segment properties like condos, it may make sense to buy if you think your PR is going to take more than one year or so. The amount you will save by buying and not paying rent might justify buying over renting. We highly recommend buying vs. renting, as renting is simply throwing away money (or paying off someone else’s mortgage), which you will agree, mostly does not make prudent sense. We conduct First Time Buyer sessions for Permanent Residents of Canada looking to buy in 1-2 years of landing. This informative session will clear any questions or concerns that you may have about buying a home or a condo in Mississauga & area as a First Time Buyer.
By far the most important factor is building your own real estate wealth as soon as possible.
Remember – the amount that you pay as rent on a monthly basis can cover the cost of your own mortgage on your own home or condo, depending on the down payment that you are able to put in at the time of buying.
Second important consideration is that Real estate market is doing very well in Canada & some property types are still affordable.
However, we do understand that circumstances might compel you to rent initially, before you can buy. This is fine and we can help even in this scenario.
Team Kalia can help you with our unique Rent Now – Buy Later Program.
As part of this program we can assist you with finding a suitable property to rent for 1-2 years (max). Closer to the end of your lease term (or earlier depending on your readiness to purchase), we will start sending you for sale listings that closely match your needs. We will arrange for showings so that you can cherry pick the home or condo you would like to buy.
As a Buyer, when you Buy your home or condo with Team Kalia, you DO NOT pay us any fee or commission, as the Buyer Broker fee or commission is typically covered by the Seller in Canada.
- Rent Now-Buy Later Program Benefits
- Ideal for Newcomers, People on Work Permit, Millennial Home Buyers, First Time Home Buyers in Mississauga
- Gives you peace of mind – helps you secure a unit for rent in a typically tight rental market
- Gives you confidence – knowing that you will soon become a homeowner & contribute towards your own mortgage payment
- Allows you time to save for a down payment towards your home purchase
- Gives you time to figure out the best neighbourhood to buy in, based on your work, school & other criteria
- Makes you an informed buyer as we will educate you about mortgage, resale vs. builder new options, first time buyer incentives & much more