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This guide is general information, not legal, tax or immigration advice. Rules on who can buy residential property in Canada depend on your exact status and can change. Before you sign anything, confirm your situation with a lawyer licensed in Newfoundland and Labrador and, for immigration questions, a licensed immigration consultant (RCIC) or immigration lawyer. You can check a consultant's licence on the CICC public register.
If you are new to Canada and thinking about buying in St. John's, you will face a few questions other buyers don't: whether the federal ban on foreign buyers applies to you, how to get a mortgage without a long Canadian credit history, and which first-time buyer programs you can use. This guide walks through each one and points you to the official sources. For settling in more generally, see our newcomer checklist for moving to St. John's.
Can you buy? The foreign buyer ban in plain terms
Who the Act covers
The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act stops non-Canadians from buying residential property in a census metropolitan area or census agglomeration. Property outside those areas is excluded. Regulations, SOR/2022-250 St. John's is a census metropolitan area, so the ban applies here. CMHC explainer
Who is not covered, and the exemptions
The rules include several groups the ban does not apply to:
- Canadian citizens and permanent residents.
- Protected persons and refugee claimants.
- A spouse or common-law partner buying together with a citizen, a
permanent resident or a temporary resident who meets the exemption.
- Diplomats.
The regulations also exempt some temporary residents. For example, the rules include a test for some work-permit holders, based on how long their permit remains valid on the purchase date and how many residential properties they have bought. There is a separate test for some international students, based on years of tax filings, time spent in Canada, the purchase price and the number of properties. These tests have more conditions than a summary can show, and they have been amended before. Whether you are exempt depends on your exact status, so confirm with a Canadian real estate lawyer before you make an offer.
Current expiry date and why to check before you sign
In 2024 the federal government extended the ban to January 1, 2027. Finance Canada, Feb 4, 2024 As of October 16, 2026, we had not found an official decision on a further extension. The rules could change, so check the current position before you sign.
Getting a mortgage without a long Canadian credit history
CMHC Newcomers
CMHC's mortgage loan insurance program for newcomers is built for people who have not been in Canada long. CMHC Newcomers Under the program:
- You need permanent resident status or legal authorization to work in
Canada. There is no minimum time you must have lived here.
- A buyer who is not a permanent resident must be exempt from the
foreign buyer ban.
- If you don't have a Canadian credit history, alternative credit
evidence may be accepted. Your lender decides.
- The home can have 1 to 4 units, and at least one must be
owner-occupied.
- You can borrow up to 95% of the value for 1 to 2 units (5% minimum
down) and up to 90% for 3 to 4 units.
- Non-traditional down payments are not available to buyers who are
not permanent residents.
The insurance premium is 4.00% of the loan when you borrow 90.01% to 95% of the value, or 4.50% with a non-traditional down payment. CMHC premiums
Other insurers and lenders
Other mortgage insurers and lenders may have their own newcomer options. Ask a mortgage broker or your bank what is available for your situation.
Down payment and cash to close
Minimum down payment rules
The federal minimum down payment is 5% of the first $500,000, 10% of the portion from $500,000 to $1.5 million, and 20% for homes at $1.5 million or more. FCAC: down payment You will also need money for closing costs. See our breakdown of home buying costs in St. John's.
Proving where your funds come from
If your down payment is coming from abroad, expect your lender to ask for bank records that show where the money came from and how it moved, and a gift letter if family is helping. Start gathering these early. Your lender decides what it will accept.
First-time buyer help you may qualify for
FHSA eligibility, including homes owned abroad
To open a First Home Savings Account (FHSA), you must be a resident of Canada, at least 18 (19 where that is the age of majority) and no older than 71 at December 31 of the year. CRA: opening an FHSA You must also be a first-time home buyer: you did not live, as your principal residence, in a home that you or your spouse or common-law partner owned at any time in the year or the previous four calendar years. A home you owned and lived in abroad counts. Confirm your eligibility with CRA or a tax professional.
NLHC First-time Homebuyers Program
Newfoundland and Labrador Housing has a First-time Homebuyers Program. Read our First-Time Homebuyer Guide for Newfoundland and the NLHC program page for the current details. You can also join our free first-time home buyer workshop.
Your team: REALTOR®, lender, NL lawyer and inspector
- A REALTOR® helps you find homes, understand the local market and
negotiate your offer.
- A lender or mortgage broker confirms what you can borrow.
- A lawyer licensed in Newfoundland and Labrador handles the title,
registration and closing, and can tell you whether the foreign buyer ban applies to you.
- A home inspector checks the condition of the home before you firm up.
For help settling in, the province's Office of Immigration and Multiculturalism lists newcomer supports.
Step-by-step timeline from pre-approval to keys
- Confirm with a lawyer whether the foreign buyer ban applies to you.
- Gather your income, credit and source-of-funds documents.
- Get a mortgage pre-approval.
- Choose your neighbourhoods. See
how to choose a neighbourhood in St. John's.
- View homes and make an offer with the conditions you need.
- Complete the inspection, financing and insurance.
- Sign with your lawyer and close on the date in your agreement.
Common questions from newcomers
Can I buy a house in St. John's on a work permit?
Possibly. The federal rules exempt some work-permit holders, for example based on how long the permit remains valid and how many homes they have bought. Your situation depends on your exact status, so confirm with a Canadian real estate lawyer before you make an offer.
Do I need Canadian credit history to get a mortgage?
Not always. Under CMHC Newcomers, alternative credit evidence may be accepted. Your lender decides.
How much down payment do newcomers need?
The federal minimums are 5% of the first $500,000, 10% of the portion from $500,000 to $1.5 million, and 20% at $1.5 million or more. Under CMHC Newcomers, the minimum is 5% for a 1 to 2 unit home.
Can I use money from overseas for my down payment?
Yes, if you can document where it came from. Your lender decides what it will accept.
Am I a first-time buyer if I owned a home in another country?
For the FHSA, if you lived in a home you owned abroad in this year or the previous four calendar years, you don't qualify. Confirm with CRA or a tax professional.
Is this guide legal or immigration advice?
No. This guide is general information, not legal, tax or immigration advice. Rules on who can buy residential property in Canada depend on your exact status and can change. Before you sign anything, confirm your situation with a lawyer licensed in Newfoundland and Labrador and, for immigration questions, a licensed immigration consultant (RCIC) or immigration lawyer.
Sources
Official references checked October 16, 2026. Confirm what applies to your property with your lender, lawyer or municipality.
