Work Permit Holders Can Buy Homes in Canada - Here’s How (2025 Guide)

Buying your first home in Canada while on a work permit might seem impossible - but it's absolutely allowed and thousands of newcomers are doing it every year. Whether you're in Winnipeg or anywhere else in Canada, you can purchase property even if you don't have permanent residency yet. 

As a real estate professional who has helped many work-permit clients become homeowners, I’ll walk you through exactly what you can buy, what rules apply, how to qualify for a mortgage, and a few real-life tips to make your journey smoother.

In this guide, I'll explain exactly what you can buy, what rules apply, how to get a mortgage, and a few insider tips from real experiences helping work-permit clients become homeowners.

1. Can Work Permit Holders Buy a House in Canada?

 Yes, you can!

If you hold a valid work permit and are currently living and working in Canada, you’re legally allowed to buy residential property under the current federal housing rules.

Under the Prohibition on the Purchase of Residential Property by Non-Canadians Act (updated in 2024), temporary residents such as work-permit holders are exempt from the foreign-buyer ban if they meet certain conditions:

✅ You hold a valid work permit (or have authorization to work under the Immigration and Refugee Protection Regulations);

✅ Your work permit is valid for at least 183 days (about six months) from the date you purchase; and

✅ You buy only one residential property anywhere in Canada.

So, if you’re in Canada legally, working, and planning to stay long-term — you can absolutely own a home even before becoming a permanent resident.

So yes - if you're here legally, working, and planning to stay long-term, you can own a home even before you become a permanent resident.

2. How to Get a Mortgage as a Work Permit Holder

Getting a mortgage in Canada as a work-permit holder is easier than many people think. Most major banks and mortgage lenders — including RBC, Scotiabank, TD, and several credit unions — offer special mortgage programs for newcomers and temporary residents.

Here’s what lenders typically look for:

1️⃣ Valid Work Permit – You’ll need a valid work permit with at least 6 months of validity remaining at the time of mortgage approval.

2️⃣ Employment Letter or Recent Pay Stubs – Proof of stable employment and income helps lenders verify your ability to make payments.

3️⃣ Canadian Credit History – If you’ve been in Canada for a while, a good credit score will strengthen your application and help you qualify for better rates.

4️⃣ Down Payment – Usually 5% – 10% is required, but this can vary depending on your residency status, income type, and lender policies.

5️⃣ Identification – A valid SIN (Social Insurance Number) and government-issued photo ID are required for verification.

💡 Pro Tip:

If you’re new to Canada and haven’t built a long credit history yet, many lenders will accept alternative proof of financial reliability, such as:

• Consistent rental payment history

• Utility or phone bills paid on time

• International credit reports from your home country

3. Minimum Down Payment Requirements

Home Price	Minimum Down Payment	Notes
Up to $500,000	5%	Most common for first homes
$500,000 – $999,999	5% on first $500K + 10% on remainder
$1 million and above	20%	Required by law
For work permit holders	Usually 10–20% if no Canadian credit history	Some lenders may need 35% for brand-new newcomers

For work-permit holders:

If you don’t yet have an established Canadian credit history, some lenders may ask for a 10–20% down payment. For brand-new newcomers with no credit or limited work history, a few lenders could require up to 35%.

However, if you’ve been living and working in Canada for over a year and have a good credit score, you can often qualify for the minimum 5% down payment, just like any permanent resident or citizen.

4. Documents You'll Need

To buy a home in Canada, you’ll typically need:

• ✅ Valid Work Permit

• ✅ Passport or Government-issued Photo ID

• ✅ Employment Letter from your employer

• ✅ Recent Pay Stubs (showing consistent income)

• ✅ Bank Statements (proof of down payment and savings)

• ✅ T4 / Tax Returns (if available)

• ✅ Credit Report (Canadian or international)

💡 Tip: Having your documents organized in advance can help your mortgage approval and offer process move much faster — a big advantage in competitive markets.

5. Types of Properties You Can Buy

As a work-permit holder, you can purchase:

• 🏠 A house, duplex, townhouse, or condo

• 🏗 A new construction or pre-construction property

• 🪵 Or even build your own custom home on land you own

Note: You can only purchase one residential property under the federal exemption until you become a permanent resident.

You cannot buy more than one residential property under the federal rules until you become a permanent resident.

6. Legal & Tax Considerations

When buying a home in Manitoba (or anywhere in Canada), keep these costs in mind:

• 💰 Land Transfer Tax: Paid at closing and based on your property’s value.

• 🏗 GST/HST: Applies only to new-build homes. You may qualify for the New Housing Rebate.

• 🏡 Property Taxes: Annual taxes paid to your local municipality.

• ⚖ Legal Fees: Expect $1,200 – $2,000 for your real-estate lawyer.

👉 Good news for Manitoba buyers: There is no additional foreign-buyer tax in Manitoba. As a work-permit holder, you pay the same property taxes as Canadian citizens

7. Can You Get a First-Time Home Buyer Incentive?

Yes, you can!

If you meet the income and down-payment requirements, temporary residents may still qualify for:

• The First-Time Home Buyer Incentive (FTHBI) — a shared-equity program with the federal government that reduces your monthly payments.

• The GST/HST New Housing Rebate — which refunds part of the tax paid on new homes.

These incentives can save you thousands of dollars and make home ownership much more affordable.

8. Step-by-Step Buying Process for Work Permit Holders

• Get Pre-Approved – Speak with a lender or mortgage agent familiar with work permit mortgages.
• Hire a Realtor – Choose an agent experienced with new comers and first-time buyers.
• Start Searching – Focus on areas with good value and growth (e.g., Prairie Pointe, Devonshire Park, Aurora, Bonavista in Winnipeg).
• Make an Offer – Once you find the right home, your agent will help you negotiate.
• Do Your Inspections – Check structure, electrical, plumbing, and HVAC.
• Finalize Mortgage + Legal Documents – Your lawyer registers the property.
• Get the Keys! – Welcome to your first home in Canada

Real Example

Many of my recent clients in Winnipeg purchased homes on valid work permits - some as early as within their first year in Canada. With the right guidance, pre-approval, and documentation, it’s 100% achievable.

Final Thoughts

Owning a home in Canada while on a work permit is absolutely possible - and it's one of the smartest steps you can take if you plan to settle long-term.

With interest rates easing and Winnipeg's housing market still affordable compared to other cities, now is a great time to start.

If you'd like guidance on where to start, connect with a local Realtor or mortgage expert who's experienced with work-permit buyers - they'll walk you through each step and make sure you’re protected.