For a Canadian citizen, buying a home in BC is mostly about money. For a newcomer, it's first about status. A permanent resident pays the same taxes as a citizen and gets most of the same programs. A work permit holder can buy, but in most of BC's cities pays an extra 20% in transfer tax, which may be refundable. Someone living abroad generally can't buy a home in a Canadian city at all until 2027. This guide goes through each rule and who it applies to, with the numbers.
Four definitions that decide everything
The rules use different words for "not Canadian," and they don't mean the same thing.
- Canadian citizen or permanent resident (PR). Treated the same as a Canadian for almost every housing rule in this guide. A PR who landed last month can buy with the same taxes as someone born here.
- "Non-Canadian" under the federal ban. Anyone who isn't a citizen, a PR, or registered under the Indian Act, including work permit holders and students. The ban applies to non-Canadians unless an exception fits.
- "Foreign national" for BC's additional transfer tax. Anyone who isn't a citizen or PR. A work permit holder is a foreign national even if the federal ban's exception lets them buy.
- Non-resident for tax. This depends on where you live and have ties, not on your immigration status. A PR who moves back abroad can become a non-resident. A work permit holder living here is usually a tax resident. It matters for programs like the FHSA and for selling later.
The federal ban on non-Canadian buyers
Since January 1, 2023, the Prohibition on the Purchase of Residential Property by Non-Canadians Act has stopped most non-Canadians from buying residential property in Canada's cities. It has been extended to January 1, 2027. As of late September 2026, no further extension or repeal had been announced, so check before you plan around the date.
What it covers: buildings with three dwelling units or fewer, including houses, condos and townhouses. It applies in census metropolitan areas and census agglomerations, which in BC take in Metro Vancouver, Victoria, Kelowna, Abbotsford–Mission, Nanaimo, Kamloops, Chilliwack and most other towns. Rural and recreational property outside them isn't covered. Vacant land, buildings of four or more units, and property bought for development are excluded.
The main exceptions:
- Work permit holders authorized to work in Canada, with at least 183 days of validity left on the purchase date, who haven't bought more than one residential property.
- International students who have filed Canadian tax returns for each of the previous five years and were in Canada at least 244 days in each of those years. The price must be $500,000 or less, and only one property is allowed.
- Protected persons and refugee claimants, under conditions.
- A non-Canadian buying with a spouse or common-law partner who is a citizen, a PR, or otherwise permitted.
The penalties are serious. There's a fine of up to $10,000, and a court can order the property sold, with the buyer getting back no more than they paid. Anyone who knowingly helps, including an agent or lawyer, can also be fined.
Expect your lawyer or notary to ask for proof of status and to document the exception you're relying on.
BC's 20% additional property transfer tax
On top of the normal transfer tax, BC charges foreign nationals, foreign corporations and some trusts an extra 20% of the fair market value of residential property in five regions:
- Metro Vancouver
- the Fraser Valley
- the Capital Regional District
- the Central Okanagan
- the Regional District of Nanaimo
It applies to the foreign national's share of the property.
A work permit holder buying a $750,000 condo in Burnaby on their own pays:
- the normal $13,000 transfer tax
- plus $150,000 of additional tax
That's $163,000 due on completion, on top of the down payment. Buying 50/50 with a Canadian spouse halves the additional tax to $75,000.
Exemption: confirmed nominees of the BC Provincial Nominee Program are exempt when they buy.
Refund: a foreign national who becomes a citizen or PR within one year of the purchase, and has lived in the home as their principal residence since buying, can apply to get the 20% back.
For someone whose PR is close, the timing of the purchase can mean a difference of $150,000. A work permit on its own doesn't give an exemption, even if it lets you buy under the federal ban.
Outside the five regions, such as Kamloops, Prince George or the Kootenays, the additional tax doesn't apply. See the transfer tax calculator for the full calculation.
Timing a purchase around PR
For work permit holders in the five additional-tax regions, the date PR arrives can matter more than the price you negotiate.
A $750,000 resale condo in Burnaby, bought by a single buyer:
| Buy now on a work permit | Buy after PR, as a first-time buyer | |
|---|---|---|
| Transfer tax | $13,000 | $5,000 after the $8,000 exemption |
| Additional 20% tax | $150,000, refundable if PR within a year and you live there | $0 |
| Cash due on completion for taxes | $163,000 | $5,000 |
| Minimum down payment | Typically 10%, $75,000 | $50,000 |
Even when the refund comes through, the $150,000 has to be paid in cash on completion. Lenders don't finance it, and the refund takes months to arrive. Buying on the permit also means missing the first-time buyer exemption.
If PR is close, waiting usually wins. If it's uncertain or years away, look at the alternatives:
- Buy outside the five regions. Kamloops, Prince George, Vernon, Penticton and the Kootenays have no additional tax.
- Buy with a spouse who's a citizen or PR, with title arranged so the foreign national's share, and therefore the tax, is as small as your lawyer advises.
- Confirm a BC Provincial Nominee Program nomination first, if you're in that stream.
Getting a mortgage as a newcomer
The three mortgage insurers, CMHC, Sagen and Canada Guaranty, all have newcomer programs, and most big banks and many other lenders use them.
Permanent residents who arrived within about the last five years can often buy with as little as 5% down, the same as any first-time buyer. What's typically required:
- at least 3 months of full-time employment in Canada, which may be waived for corporate relocations
- credit history. At the highest loan-to-value, lenders usually want either an international credit report or about 12 months of rent and bill payment history.
Work permit holders can get insured mortgages too, for a home they'll live in. The minimum down is typically 10%. Some insurers allow 5% with at least a year of Canadian credit history. Lenders look closely at how long the permit has left, and whether PR is in process.
Every lender applies the same stress test, and counts debts you still have abroad in your ratios. Foreign rental income usually isn't counted.
A broker who places newcomer files regularly is worth more than a single bank's offer. So is a pre-approval before you start viewing.
Moving your down payment to Canada
Lenders need to see where the down payment came from, usually through 90 days of statements, and they want it in a Canadian account before completion. If your savings are abroad:
- Move them early. Transfers can take weeks, and banks may hold large international wires for review.
- Keep the full paper trail. That means foreign statements, the transfer confirmation, and the Canadian deposit. Canadian lawyers and lenders have anti-money-laundering duties under FINTRAC rules and must verify where funds came from.
- Get gift letters for family money. Gifts from immediate family abroad are generally accepted with a signed gift letter and proof of transfer. Newcomer programs at 95% loan-to-value usually require the first 5% to come from your own resources.
- Watch the currency. Plan for exchange-rate movement between approval and completion. A few percent can mean thousands of dollars.
Building Canadian credit quickly
- Get a credit card in your first month, secured if necessary. Use it for small regular purchases and pay it in full.
- Put your phone plan and utilities in your own name. Some rent-reporting services can add your rent payments to your credit file.
- Keep your balance low. Aim for under 30% of your limit when the statement closes. Don't apply for several cards at once.
- Get an international credit report, if your home country's bureau is supported. Some lenders accept one in place of Canadian history.
Six to twelve months of clean history usually makes a real difference to your options.
Temporary residents receive a Social Insurance Number starting with 9. Lenders know what it means, so it's not a problem, but it does signal temporary status on the file.
First-time buyer programs, by status
| Program | Permanent resident | Work permit holder |
|---|---|---|
| BC first-time buyer transfer tax exemption (up to $8,000) | Yes, if never owned anywhere and 12 months in BC, or 2 of the last 6 returns filed in BC | No. It requires citizenship or PR |
| BC newly built home exemption | Yes | No |
| Federal first-time buyer GST rebate (up to $50,000) | Yes | No |
| Standard GST new housing rebate (homes up to $450,000) | Yes | Yes |
| First Home Savings Account | Yes, if a Canadian tax resident | Yes, if a Canadian tax resident |
| RRSP Home Buyers' Plan | Yes | Yes, if a tax resident with RRSP savings |
| First-time home buyers' tax credit ($1,500) | Yes | Yes, if a tax resident |
| 30-year insured amortization | Yes, as a first-time buyer | Yes, as a first-time buyer, if insurable |
| BC home owner grant | Yes | No. It requires citizenship or PR |
For a PR, the first-time home buyer guide applies almost word for word.
For a work permit holder, the FHSA and Home Buyers' Plan still help. The biggest savings, the transfer tax exemptions and the GST rebate, have to wait until PR.
If PR is months away, delaying the purchase can be worth tens of thousands of dollars.
Taxes after you buy
- Property tax is the same for everyone. The home owner grant, which reduces it by up to $570 in the Lower Mainland, requires citizenship or PR.
- Speculation and vacancy tax. Every owner in a taxable area must declare each year, by March 31. A home that is your principal residence is generally exempt, unless most of your household's income isn't taxed in Canada. Foreign owners whose homes aren't exempt pay 3% for 2026 and 4% from 2027. See the speculation tax calculator.
- Vancouver's Empty Homes Tax. Inside the City of Vancouver, every property must also be declared each year, and an empty home pays 3%. See the Empty Homes Tax calculator.
- Selling later. A tax resident's principal residence is generally free of capital gains tax. If you leave Canada and sell as a non-resident, part of the price is held back until CRA issues a clearance certificate, and years after you move out may be taxable. Plan before you move.
Documents to have ready
- Your passport and status document: PR card or confirmation, or work or study permit, with the expiry date clearly visible.
- Your SIN, and your Canadian tax returns and notices of assessment if you've filed any.
- A letter of employment showing salary, start date and whether you're permanent or on probation. Also recent pay stubs.
- 90 days of bank statements for the down payment, including foreign accounts and transfer records.
- A gift letter and the giver's bank records, if family is helping.
- Rental references or payment history, and an international credit report if you have one.
- For a BC Provincial Nominee, your nomination confirmation, for the transfer tax exemption.
Buy now, or rent first?
Renting for your first year gives you time to learn the neighbourhoods, build credit, and for many work permit holders, get PR. That can remove the 20% additional tax and open up the first-time buyer exemptions.
Buying sooner makes sense when:
- you're already a PR
- you're buying outside the five additional-tax regions
- PR is certain within a year and you're prepared to live in the home and apply for the refund
With prices in much of the Lower Mainland below their 2022 peak, there's less pressure to rush than there was a few years ago. The rent vs buy calculator can put numbers on the choice.
Mistakes we see newcomers make
Assuming a work permit exempts you from the 20% tax. It lets you buy under the federal exception. It doesn't remove BC's additional tax.
Buying with a few weeks left on a permit. You need 183 days or more on the purchase date, and lenders want more.
Leaving the down payment abroad until the last minute. International wires get held, and exchange rates move.
Buying just before PR arrives and paying tens of thousands you might have saved by waiting a few months, or by applying for the refund.
Putting a non-Canadian relative on title to help qualify. Their share can attract the additional tax and affect everyone's program eligibility.
Not declaring for the speculation tax because you live in the home. Every owner declares, every year.
Questions people ask us
Can I buy a house in BC on a work permit?
Yes, if your work permit has at least 183 days of validity left on the purchase date and you haven't bought another residential property in Canada since the ban began. In Metro Vancouver, the Fraser Valley, the Victoria region, the Central Okanagan and the Nanaimo region, you'll also pay BC's 20% additional transfer tax, unless you're a confirmed BC Provincial Nominee. It's refundable if you become a PR within a year and live in the home.
Do permanent residents pay the foreign buyer tax in BC?
No. Permanent residents are treated like Canadian citizens for BC's additional transfer tax, and aren't covered by the federal ban.
When does Canada's foreign buyer ban end?
It's in effect until January 1, 2027. As of late September 2026, no further extension or repeal had been announced. Check the current status before relying on the date.
How much down payment do newcomers need in Canada?
Permanent residents who arrived within about five years can often buy with 5% down through newcomer insurance programs. Work permit holders typically need 10%, or sometimes 5% with at least a year of Canadian credit history, depending on the insurer.
Can I get the first-time buyer property transfer tax exemption as a new PR?
Yes, if you've never owned a home anywhere in the world. You also need to have lived in BC for the 12 months before buying, or filed two of the last six tax returns as a BC resident. Work permit holders aren't eligible, because it requires citizenship or PR.
Can international students buy a home in Canada?
Only under narrow conditions. You must have filed Canadian tax returns for each of the previous five years and been in Canada at least 244 days in each of those years. The price must be $500,000 or less, and only one property is allowed. Financing is also difficult without employment income.
Can I buy a cabin or recreational property as a foreign buyer?
The federal ban only applies inside census metropolitan areas and census agglomerations, so rural and recreational property outside them can be bought. BC's 20% additional tax still applies if the property is in one of its five regions.
Does my spouse's status help if I'm not Canadian?
The federal ban has an exception for a non-Canadian buying with a spouse or common-law partner who is a citizen, PR or otherwise permitted. BC's additional tax still applies to the foreign national's share of the property.
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New to BC and thinking about buying?
Dan works with newcomer buyers and speaks English and Russian. He can connect you with brokers who place newcomer mortgages and lawyers who handle status questions, and help you time the purchase around PR. Your checker results come along with the message.
From Ukraine under CUAET? See our CUAET buying guide.
