Canada welcomes hundreds of thousands of newcomers every year, and Ontario — particularly Mississauga and the broader GTA — is one of the most common places they choose to build their lives. For many newcomers, buying a home and establishing a business are early priorities. Ontario’s legal framework for both is welcoming but specific, and understanding it from the start can prevent costly mistakes and ensure you are building on a sound foundation.
Can Newcomers Buy Property in Ontario?
The question of foreign ownership of Canadian real estate changed significantly with the Prohibition on the Purchase of Residential Property by Non-Canadians Act, which came into force on January 1, 2023. This federal law — commonly called the foreign buyer ban — restricted the purchase of residential property by non-Canadians in urban areas for a two-year period.
The ban has since been modified and extended with several important exceptions. The current rules are nuanced, and they depend on your immigration status:
- Canadian citizens and permanent residents can purchase residential property in Ontario without restriction
- Temporary residents — including those with valid work permits — may qualify for an exemption if they meet certain criteria (including having filed tax returns in Canada and not having purchased under the exemption before)
- International students may qualify for an exemption in specific circumstances
- Non-residents who do not qualify for an exemption are generally prohibited from purchasing residential property in designated urban areas
The rules are technical and have been updated since the original legislation. If you are on a temporary status and wish to purchase property, consulting a real estate lawyer before making any offer is essential. The consequences of purchasing in violation of the ban include mandatory sale of the property and financial penalties.
The Home Buying Process in Ontario: A Newcomer’s Overview
If you are eligible to purchase, Ontario’s real estate transaction process may be different from what you experienced in your home country. The key participants are the buyer, the seller, real estate agents (one for each side), and — critically — a real estate lawyer.
Unlike in some countries, Ontario law requires a lawyer to be involved in every real estate transaction. The lawyer conducts the title search (confirming clean ownership), prepares or reviews the closing documents, registers the transfer of title, and handles the flow of funds. The lawyer represents only your interests — not the agent’s, not the lender’s.
The Agreement of Purchase and Sale
When you decide to buy a property, you (or your agent) prepare a written offer called an Agreement of Purchase and Sale. This is a legally binding contract once both parties sign and all conditions are met. Conditions — like financing approval or a satisfactory home inspection — protect you, but they must be waived formally when satisfied.
Read every word of the APS before signing. Have your lawyer review it if possible. This document governs your entire transaction.
Land Transfer Tax
Ontario levies a land transfer tax on every real estate purchase. The tax is calculated on a sliding scale based on the purchase price. First-time buyers who are Canadian citizens or permanent residents may qualify for a rebate of up to $4,000 on the provincial tax, and an additional rebate on the City of Toronto tax if purchasing within Toronto.
Newcomers who are permanent residents qualify for the first-time buyer rebate on their first Ontario property purchase. Temporary residents generally do not qualify.
Mortgage Qualification for Newcomers
Canadian financial institutions offer newcomer mortgage programs that take into account the reality that new immigrants may not have Canadian credit history. These programs often accept documentation of international income, employment letters from a Canadian employer, and reference letters from foreign banks. Some programs allow smaller down payments for newcomers who meet specific criteria.
Working with a mortgage broker experienced with newcomer clients can identify the most appropriate programs for your situation. Your real estate lawyer can review the mortgage commitment and ensure the terms are clearly understood before you sign.
Starting a Business in Ontario
Ontario is one of the most business-friendly jurisdictions in Canada, with a range of corporate structures available to newcomers at any immigration status.
Can Non-Residents Incorporate in Ontario?
Yes, with some requirements. Under the Ontario Business Corporations Act, a majority of the directors of an Ontario corporation must be resident Canadians (citizens or permanent residents). This can be a practical challenge for newcomers on temporary status who wish to incorporate.
Federal incorporation under the Canada Business Corporations Act has its own residency requirements, though recent amendments have created more flexibility. Sole proprietorships and partnerships have no residency requirements but offer no liability protection.
A corporate lawyer can advise on the appropriate structure for your situation — whether that is an Ontario corporation, a federal corporation, or a temporary arrangement that can evolve as your immigration status changes.
Business Registration
If you are operating as a sole proprietor or partnership under a name other than your legal name, you must register your business name with the Ontario government. This is done through ServiceOntario and is a straightforward process.
Corporations are incorporated through a separate process and receive a certificate of incorporation. A lawyer can incorporate a company quickly — in many cases within a day or two.
Contracts and Commercial Obligations
Many newcomers enter into commercial contracts — leases, service agreements, supplier agreements — without fully understanding Ontario’s legal framework. Ontario contract law is based on common law principles inherited from the English legal system, which may differ substantially from civil law systems used in many other countries.
Having a business lawyer review key commercial contracts — particularly commercial leases, which can have terms of five to ten years or longer — before signing is one of the most valuable investments a new business owner can make.
Banking, AML, and Know Your Client
Canadian financial institutions and law firms are required to verify the identity and source of funds for all clients, including newcomers. This means you will be asked to provide identification, documentation of your immigration status, and information about the source of funds for any significant transaction.
These requirements are applied consistently and are not specific to newcomers. Having your documentation organized — passport, immigration documents, employment records, bank statements — makes the process smoother for everyone.
Finding the Right Legal Help
One of the most common mistakes newcomers make is relying entirely on community networks for legal advice. Your community may be full of knowledgeable, generous people — but legal advice from a friend, however well-intentioned, is not the same as advice from a licensed Ontario lawyer who understands the current law and is professionally accountable for what they tell you.
Goldstone Law PC serves a diverse client base across Mississauga and the GTA, including many newcomers navigating Ontario’s real estate and business law landscape for the first time. Our team understands the practical and legal challenges newcomers face and is committed to providing clear, accessible guidance at every step.
Final Thoughts
Ontario’s legal framework for real estate and business is robust, transparent, and designed to protect both parties in any transaction. Newcomers who take the time to understand that framework — and who work with qualified Ontario lawyers from the outset — build on solid ground. The questions you ask before you sign a contract are always easier to answer than the ones you ask after something goes wrong.
Ready to Get Legal Advice You Can Trust?
Goldstone Law Professional Corporation serves clients across Mississauga, Brampton, Oakville, and the greater GTA in real estate, corporate, estate, and mortgage law. Whether you are buying your first home, structuring a business deal, or planning your estate, our team provides the clear, practical legal guidance you need.
Visit goldstonelawpc.com or call us at 905-595-9917. We are located at 201-186 Robert Speck Parkway, Mississauga, ON L4Z 3G1.
Disclaimer: This article is intended for general informational purposes only and does not constitute legal advice. For advice specific to your situation, please consult a qualified Ontario lawyer.
This article is provided for general information only and does not constitute legal advice. For advice about your specific situation, please contact Goldstone Law PC directly.