What do lenders look at on a work permit mortgage application?

How long is left on the permit, how stable the employment is, whether the employer is established, and whether there is a realistic path to renewal or permanent residency. Employment past probation, a larger down payment and some Canadian banking history all strengthen the file.

Do non-residents pay extra tax when buying property in Ontario?

Ontario applies additional tax to certain purchases by non-residents, and whether it applies depends on immigration status, the property, how the purchase is structured, and rules that change over time. Exemptions and rebates exist in some circumstances. This is a legal and tax question with a large dollar consequence - ask a real estate lawyer before making an offer.

Answers › New to Canada

I’m on a work permit, not a permanent resident. Does that disqualify me?

Q: Can I get a mortgage in Canada on a work permit?

Yes. Plenty of lenders finance buyers on a valid work permit. Permanent residents get more lender choice, but a work permit holder with steady employment can absolutely buy. Big banks are often stricter on these files than alternative lenders.

Answered by Rajiv Verma, Mortgage Broker · Reviewed 18 August 2026 · About a 3 minute read

The direct answer

No. Absolutely not. Plenty of lenders finance buyers on a valid work permit. Permanent residents get more choice, but a work permit holder with steady employment can absolutely buy. If the big banks are stiff about it, alternative lenders are considerably more comfortable. Separately, ask a real estate lawyer whether any provincial tax applies to non-resident purchasers in your situation — that’s a legal question, and it’s worth answering before you make an offer.

THE SHORT VERSION

A valid work permit is financeable — this is routine
Steady employment matters more than the immigration category
PRs get more lender choice, not a different universe
Big banks are often stricter here than alternative lenders
⚖️ Ask a lawyer about non-resident purchaser tax before you offer

What lenders actually assess

Can you make the payments, and will you be here to make them? That’s it.

So they look at: how long is left on the permit, how stable the employment is, whether the employer is established, and whether there’s a realistic path to renewal or permanent residency. A two-year permit with eighteen months left and a permanent job at a large employer is a straightforward file.

What strengthens it

Time remaining on the permit — more is better, and lenders differ on how much they want
Employment past probation, ideally permanent rather than contract
A larger down payment — it widens the lender list noticeably
A PR application in progress, with evidence
Some Canadian banking history, even a few months

The most common reason a work permit file gets declined isn’t the permit. It’s that the file went to a lender who doesn’t do them, and nobody checked first. That’s a placement problem, not a qualification problem — and it’s exactly what a broker is for.

⚖️ The tax question — ask a lawyer, not me

Ontario applies additional tax to certain purchases by non-residents. Whether it applies to you depends on your immigration status, where the property is, how you’re buying, and rules that change.

I’m not going to give you a number or a date on this page. It’s a legal and tax question with a large dollar consequence, and the rules have moved more than once. Ask a real estate lawyer before you make an offer — not after. Some buyers also qualify for rebates or exemptions, which is another reason to ask someone who does this properly.

When to wait

When there’s very little time left on the permit and no renewal in progress. Renewing first opens more doors.

When you’re still on probation. Completing it is often enough to change the answer.

When PR is close. If it’s months away and nothing is forcing the timing, waiting can meaningfully widen your options and lower your rate.

What to check

Time remaining on your permit, and whether renewal is under way
Whether your employment is permanent and past probation
Your down payment — and whether it can be documented
What a real estate lawyer says about provincial tax in your situation
Whether the lender you’re speaking to actually does work permit files

What to do next

Send me your permit details, your employment, and your down payment position. I’ll tell you which lenders will take the file and what it costs — and if waiting a few months would materially improve it, I’ll say that too.

Talk it through →

Related questions

Answered by Rajiv Verma, Mortgage Broker · Mortgage Architects — FSRA Brokerage Licence #12728 · Licensed in Ontario · Office 289.505.0631 · Direct 647.291.7116

General information about Ontario mortgages — not financial, legal, tax or immigration advice. Nothing on this page describes your tax position. Provincial taxes applying to non-resident purchasers change, and eligibility for exemptions or rebates depends on individual circumstances — speak to a real estate lawyer. Lender guidelines vary and change. Every file is reviewed individually.