A Canadian work permit can qualify some buyers for a federal purchase exception. Check the federal rules, Ontario and Toronto taxes and your lender separately before making an offer.

Information checked November 11, 2026.

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Check federal purchase eligibility first

CMHC says a person relying on the work authorization exception generally needs at least 183 days of validity remaining at the time of purchase and must not have previously purchased residential property in Canada while the prohibition is in effect. The property, ownership and any other relevant exceptions also matter. Ask your lawyer to check when the purchase is considered to occur under the rules.

Then check the tax at the exact address

Ontario’s Non-Resident Speculation Tax is generally 25% on covered transactions, unless an exemption applies. The City of Toronto has a separate 10% municipal non-resident speculation tax on covered purchases. Markham and Richmond Hill are outside Toronto’s municipal tax jurisdiction. A federal purchase exception does not automatically grant a tax exemption.

Ask your lawyer to calculate provincial and municipal land transfer taxes and any applicable non-resident tax based on all people taking title and the property type.

Confirm lender requirements before going firm

Show the lender your work authorization, employment evidence, down payment source and expected closing date. Ask about documentation, credit history and what happens if your permit changes. Have your lawyer confirm eligibility before committing a deposit.

A work permit purchase checklist for one Ontario address

Imagine a buyer with a Canadian work permit considering one home in Markham and another in Toronto. Before an offer, the buyer gives the lawyer the current permit and planned title information through a secure channel. The lawyer checks federal purchase rules and the relevant transaction taxes for each address. The lender makes its own assessment of income, documentation, credit and the property. All three checks can affect whether the buyer can complete.

Use the actual timing of the proposed purchase. If work authorization could change before signing or closing, notify the lawyer and lender rather than assuming an earlier answer still applies. Make the tax and funding estimate for the actual municipality and all people taking title.

A practical decision checklist

Confirm the federal purchase rule that applies

Ask your lawyer whether the property and proposed purchase fall within the federal rules. Provide valid authorization, relevant dates and previous purchase information. Identify which part of your plan depends on this information. It is easier to decide what to verify first when you know whether it affects the price, the timetable, or your ability to proceed.

A permit by itself does not establish the specific exception. Confirm eligibility and timing before making an offer. Check the outcome under a modest change before you decide how much room to leave.

Check the 183-day test against the actual date

CMHC describes the remaining-validity requirement for the work authorization exception. Ask which transaction date is relevant and which documentation establishes validity. When the answer changes, update any cost or deadline that depended on it.

A later closing or extension does not automatically resolve the purchase-date question. Give the lawyer the permit and the proposed agreement before committing. Keep the item on a shared list if more than one person is involved. Record who is responsible for getting the answer and what evidence will count as complete.

Calculate provincial and city taxes separately

Use the legal address, property type and people taking title. Ask about Ontario NRST and Toronto MNRST where relevant, apart from regular transfer tax. If you are comparing two options, use the same dates, scope and units for both. Where they differ, show that difference on its own line so you can see how much it matters.

The federal purchase exception is different from a tax exemption. Use the transfer tax guide and have counsel calculate the full cash requirement. If the numbers do not line up, confirm the reason before relying on the cheaper or easier option.

Give the lender current employment and funds information

Ask which permit, employment, credit and residency records are needed. Confirm source of down payment and actual dates. Use the result to choose one practical next step and a fallback if the answer is delayed.

A financing quote can change with documentation or property review. Request a property-specific answer and keep the applicable condition deadline. A short note is enough if it records what you checked, who can confirm it and when you need the answer. Carry that note into your next conversation rather than relying on memory.

Review the effect of co-ownership

List everyone who will sign, borrow or be registered on title. Ask which person’s circumstances affect each rule and tax. Test the conclusion against a second piece of evidence when one is available. A single estimate can be useful, but a different date, service or starting figure can explain an apparent discrepancy.

Changing ownership shares can change earlier estimates. Have the lawyer and lender confirm the same ownership plan. Take the unresolved difference to the person who can verify the terms.

Set a fallback before the deposit is at risk

Ask what remains unresolved before making a binding commitment. Compare a later date or another address if the checks cannot be completed. Give yourself time to get an updated answer before accepting a deadline or giving up another choice.

A late tax or eligibility finding can require substantially more cash or prevent closing. Use offer protections only with advice on the actual agreement. Keep the estimate and the confirmed answer in separate columns. An estimate helps you set a range; a confirmed answer gives you something you can use to make the next commitment.

Follow-up questions

Does a mortgage preapproval prove I can buy?

No. Lender qualification is separate from the federal purchase rules and applicable taxes. Verify eligibility, the tax treatment and actual funding before making a commitment. Use secure channels for permit and identity information.

What changes if I look outside Toronto?

The municipality can change the city tax calculation. The federal and provincial rules still need separate review for the particular property and buyer. Ask for a new estimate when the legal address, title or use changes.

Before putting down a deposit, get a written checklist covering federal eligibility, address-specific taxes and lender approval. Treat each answer as current to its facts and date.