HousingFebruary 14, 202614 min read

Ontario Housing Market Guide for Newcomers (2026)

By WelcomeAide Team

Newcomer family viewing Ontario house with real estate agent

Understanding Ontario's Housing Market as a Newcomer

Ontario is home to nearly 40% of Canada's population, including major cities like Toronto, Ottawa, Hamilton, Kitchener-Waterloo, and London. It is also Canada's most expensive housing market, with the Greater Toronto Area (GTA) being one of the priciest real estate markets in North America. For newcomers, understanding how Ontario's housing market works — from renting your first apartment to eventually buying a home — is essential for financial stability and long-term planning.

This guide covers everything newcomers need to know about renting, buying, tenant rights, and navigating Ontario's unique housing landscape.

Residential neighbourhood in Ontario showing variety of housing types

Renting in Ontario — Where Most Newcomers Start

The vast majority of newcomers start by renting. Ontario's rental market is competitive, especially in Toronto and the GTA, but understanding the rules gives you a significant advantage.

Average Rental Costs (2025-2026)

Toronto (downtown): 1-bedroom $2,200-$2,800/month; 2-bedroom $2,800-$3,600/month
Toronto (suburbs — Scarborough, Etobicoke, North York): 1-bedroom $1,800-$2,300/month; 2-bedroom $2,200-$2,900/month
Ottawa: 1-bedroom $1,600-$2,100/month; 2-bedroom $2,000-$2,600/month
Hamilton: 1-bedroom $1,400-$1,800/month; 2-bedroom $1,700-$2,200/month
Kitchener-Waterloo: 1-bedroom $1,500-$1,900/month; 2-bedroom $1,800-$2,300/month
London: 1-bedroom $1,300-$1,700/month; 2-bedroom $1,600-$2,100/month
Windsor: 1-bedroom $1,100-$1,500/month; 2-bedroom $1,400-$1,800/month

Where to Find Rental Listings

Rentals.ca: rentals.ca — comprehensive Canadian rental listings
PadMapper: padmapper.com — map-based search
Kijiji: kijiji.ca — classifieds; very popular for rentals in Ontario
Facebook Marketplace and community groups: Many rental listings, especially for rooms and shared housing
Realtor.ca: realtor.ca — also lists rental properties
Viewit.ca: viewit.ca — long-running Toronto-focused rental site

What Landlords Typically Require

When applying for a rental in Ontario, landlords may ask for:

Employment letter or proof of income — showing you can afford the rent (typically landlords look for income of at least 3x the monthly rent)
References — from previous landlords if available, or from your employer or settlement agency
Credit check — this is challenging for newcomers with no Canadian credit history. Many landlords understand this and accept alternative proof of financial stability
First and last month's rent — Ontario landlords can legally collect the first month's rent plus a last month's rent deposit (equal to one month's rent) at signing. They CANNOT charge a security/damage deposit — this is illegal in Ontario

Newcomer viewing a rental apartment in Ontario

Tenant Rights in Ontario

Ontario has some of the strongest tenant protections in North America under the Residential Tenancies Act (RTA). As a newcomer, knowing your rights is essential:

Rent Increases

Landlords can only increase rent once every 12 months and must give 90 days written notice
For most units (occupied before November 15, 2018), the increase is limited to the annual rent increase guideline set by the Ontario government (2.5% for 2025)
Units first occupied after November 15, 2018 are exempt from the guideline — landlords can increase by any amount (though still once per year with proper notice). This is a major consideration when choosing a rental

Eviction Protections

A landlord cannot evict you simply because they want to raise the rent beyond the guideline or find a new tenant
Legal reasons for eviction include: non-payment of rent, damage to the property, illegal activity, or the landlord genuinely needs the unit for personal use (or a close family member's use)
All evictions must go through the Landlord and Tenant Board (LTB) — a landlord cannot simply change the locks or remove your belongings

Maintenance and Repairs

Landlords are responsible for maintaining the rental property in a good state of repair, including plumbing, heating, electrical systems, and structural elements. If your landlord fails to make necessary repairs, you can file a maintenance application with the LTB.

Illegal Practices

The following are illegal for Ontario landlords:

Charging a damage or security deposit (only last month's rent deposit is allowed)
Requiring post-dated cheques (you can offer them voluntarily, but they cannot be required)
Charging a "key deposit" greater than the actual cost of replacing the keys
Discriminating based on race, ethnicity, immigration status, family status, or source of income
Preventing you from having guests or visitors

Building Credit for Future Housing

Building Canadian credit history is essential for eventually qualifying for a mortgage. Start as soon as you arrive:

Get a secured credit card: Newcomer credit cards from RBC, BMO, and CIBC do not require Canadian credit history. Use the card for small purchases and pay the full balance every month
Pay all bills on time: Phone bills, utilities, and loan payments all build credit
Get a newcomer bank account: Most major banks have newcomer banking packages with fee waivers for the first year
Consider a credit builder loan: Some credit unions offer small loans specifically designed to help build credit
Monitor your credit: Check your credit score for free through Borrowell or Credit Karma

Buying a Home in Ontario

For newcomers who plan to stay in Ontario long-term, buying a home is a major goal. Here is what you need to know:

Can Newcomers Buy Property?

Yes. Permanent residents have the same property rights as Canadian citizens. There are no restrictions on permanent residents buying property in Ontario. However, as of January 2023, the Prohibition on the Purchase of Residential Property by Non-Canadians Act restricts most temporary residents (work permits, study permits) from buying residential property in census metropolitan areas and census agglomerations. There are exceptions for some work permit holders.

The Home Buying Process

Get mortgage pre-approval: Banks will assess your income, credit, down payment, and debt levels. Newcomer mortgage programs from major banks may accept foreign income and credit history
Minimum down payment: 5% for homes under $500,000; 10% for the portion above $500,000 up to $999,999; 20% for homes $1,000,000 and above
Mortgage stress test: You must qualify at the higher of your contract rate plus 2% or the Bank of Canada's qualifying rate (currently around 5.25%)
Hire a real estate agent: Buyer's agents are free to you — the seller pays their commission
Make an offer: Your agent will help you prepare a competitive offer
Home inspection: Strongly recommended before finalizing
Close the deal: A real estate lawyer handles the legal transfer

Government Programs for First-Time Buyers

First Home Savings Account (FHSA): Save up to $40,000 tax-free for your first home. Contributions are tax-deductible (like an RRSP) and withdrawals for a home purchase are tax-free (like a TFSA)
Home Buyers' Plan (HBP): Withdraw up to $60,000 from your RRSP tax-free for a first home (must repay over 15 years)
First-Time Home Buyers' Tax Credit: $10,000 non-refundable tax credit ($1,500 in tax savings)
Ontario Land Transfer Tax Refund: First-time buyers in Ontario can receive a refund of up to $4,000 on provincial land transfer tax
Toronto Land Transfer Tax Rebate: If buying in Toronto, an additional rebate of up to $4,475

Newcomer family receiving keys to their first home in Ontario

Avoiding Rental and Housing Scams

Newcomers are frequently targeted by housing scammers. Protect yourself:

Never pay rent before seeing the property in person (or via a live video tour if you are still abroad)
Never wire money or send e-Transfers to someone you haven't met
Verify the landlord owns the property — check the address on the Ontario Land Registry
Be wary of deals that seem too good to be true — if a downtown Toronto 2-bedroom is listed at $1,200/month, it is almost certainly a scam
Read our detailed guide: How to avoid rental scams in Canada

Key Takeaways

Most newcomers start by renting — expect to pay $1,500-$2,800/month for a 1-bedroom in most Ontario cities
Ontario has strong tenant protections — know your rights under the Residential Tenancies Act
Landlords can only collect first and last month's rent — damage deposits are illegal
Start building credit immediately with a secured credit card and on-time bill payments
Permanent residents can buy property; temporary residents face restrictions
Take advantage of FHSA, HBP, and first-time buyer tax credits when ready to buy
Always verify listings and never pay before seeing the property

Understanding Your Rental Agreement and Tenant Rights in Ontario

Navigating rental agreements in a new country can feel complex, but understanding your rights and responsibilities in Ontario is crucial for a smooth transition. The province is governed by the Residential Tenancies Act (RTA), which outlines the rules for most residential tenancies. It's highly recommended to familiarize yourself with this legislation to avoid common pitfalls. A key document you'll encounter is the Ontario Standard Lease Form, which landlords are legally required to use for most new tenancies. This comprehensive form clearly spells out the terms...

Related Resources

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