Buying a Home in BC as a Newcomer to Canada

Moving to Canada and ready to put down roots? Permanent residents can buy a home in BC much like anyone else, while work permit holders and students face extra rules and taxes. Here is who can buy, which programs depend on your status, and how to get a mortgage without a long Canadian credit history.

The short version

The federal ban on foreign buyers

Canada's Prohibition on the Purchase of Residential Property by Non-Canadians Act took effect on January 1, 2023, and is currently set to end on January 1, 2027. A non-Canadian is anyone who isn't a Canadian citizen, a permanent resident or registered as an Indian under the Indian Act. The ban covers houses and buildings with up to three units, including semi-detached homes and condos, in Statistics Canada's census metropolitan areas and census agglomerations, which take in Metro Vancouver.

• Work permit holders can buy if their permit has at least 183 days of validity left on the purchase date and they haven't bought more than one residential property.
• International students can buy only if they have filed tax returns for each of the past five years, were in Canada at least 244 days in each of those years, pay no more than $500,000 and buy no more than one home.
• Protected persons and refugee claimants whose claims have been referred to the Refugee Protection Division are exempt.
• Couples. A non-Canadian can buy together with a spouse or common-law partner who is a citizen or permanent resident.

Vacant land has been excluded since March 27, 2023. Breaking the ban can mean a fine of up to $10,000, and a court can order the home sold. The mortgage insurers won't insure a buyer the ban applies to, so check where you stand before you start looking.

BC's additional property transfer tax

If you aren't a citizen or permanent resident, BC charges an additional property transfer tax of 20% of the fair market value of your share of a home in Metro Vancouver, including the Tri-Cities, and in the Fraser Valley, Capital, Central Okanagan and Nanaimo regional districts. It is on top of the regular property transfer tax. On a $900,000 condo, that is $180,000 more.

• Provincial nominees. If you are a confirmed BC Provincial Nominee when the transfer is registered, and the home will be your principal residence, you can be exempt. The exemption can only be used once.
• Refund. If you become a citizen or permanent resident within one year of the transfer being registered, you may get the tax back. You must move in within 92 days, live there as your principal residence for at least a year, and apply after the first anniversary of moving in but within 18 months of registration.

Programs that depend on your status

• BC's first-time buyers' exemption from property transfer tax is for citizens and permanent residents who have lived in BC for at least a year before buying, or filed two BC tax returns in the last six years. You can't have owned a home you lived in anywhere in the world.
• BC's newly built home exemption also requires citizenship or permanent residence.
• The GST rebate for first-time buyers of new homes, worth up to $50,000, is for citizens and permanent residents aged 18 or over. You don't qualify if, in the current year or the previous four years, you lived in a home that you or your spouse or common-law partner owned, in Canada or abroad.
• The FHSA and the RRSP Home Buyers' Plan depend on being a resident of Canada for tax purposes, not on your immigration status, and each has its own first-time buyer test. CRA says most newcomers become tax residents when they establish enough ties here, usually the day they arrive.
• The federal home buyers' tax credit has no citizenship rule, but you don't qualify if, in the year you buy or the four years before, you lived in a home that you or your spouse or common-law partner owned, in Canada or abroad.

I explain each program in First-Time Home Buyer Programs in BC.

Getting a mortgage as a newcomer

The minimum down payment is the same for everyone: 5% on the first $500,000, 10% on the part from $500,000 to $1.5 million, and 20% on a home of $1.5 million or more. With less than 20% down, your mortgage has to be insured, and all three insurers have programs for people new to Canada:

• CMHC Newcomers. For permanent residents and people authorized to work in Canada, with no minimum time in the country. At least one borrower or guarantor needs a credit score of 600 or more, and if you have little Canadian credit history, CMHC may consider an international credit report, a reference letter from your bank at home, or 12 months of rent and other regular payments. Work permit holders can't use a borrowed down payment.
• Sagen New to Canada. For permanent residents and work permit holders. Since February 2026, you no longer need to have arrived in Canada within the last five years. Debts you still have outside Canada count when your lender works out what you can afford.
• Canada Guaranty Maple Leaf Advantage. For permanent residents and work permit holders, with as little as 5% down. The down payment can come from your own savings or a gift from close family, but not from borrowed money.

You still qualify at the stress test rate, the greater of your contract rate plus 2% or 5.25%. I explain how that works in How Much House Can You Afford?

Bringing your down payment from abroad

Lenders have to verify where your down payment comes from, and federal guidelines for banks note that income from outside Canada can be harder to verify. Move your funds into a Canadian account well before you make an offer, and keep the statements that show the money leaving your account at home and arriving here. If family is helping, expect your lender to ask for a gift letter from them confirming the money doesn't have to be repaid. Your real estate brokerage must also verify your identity and keep a record of any deposit it receives.

Building your Canadian credit

Canada has two main credit bureaus, Equifax and TransUnion. The Financial Consumer Agency of Canada suggests a secured credit card if you are new to Canada with no credit history, paying every bill on time and using less than 30% of your credit limit. You can order your credit reports for free. If you are a temporary resident, your social insurance number starts with 9 and expires with your immigration documents, so keep it up to date.

Speculation and vacancy tax

The Tri-Cities are in BC's speculation and vacancy tax area, and every owner declares each year. The principal residence exemption is only for citizens and permanent residents, so a home you own and live in on a work permit can be taxed after the year you buy it: 3% of its assessed value for 2026 and 4% for 2027, less any credit based on your BC income, unless another exemption applies. Once you become a permanent resident, the principal residence exemption can apply.

Questions newcomers often ask me

Can permanent residents buy a home in BC?

Yes. The federal ban and BC's additional property transfer tax don't apply to permanent residents, and you can use BC's first-time buyers' exemption if you meet its residency rules and have never owned a home you lived in, anywhere in the world.

Can I buy a home in Canada on a work permit?

Under the current ban, yes, if your permit has at least 183 days left and you haven't bought more than one residential property. In Metro Vancouver, the 20% additional property transfer tax also applies unless you are exempt.

Do I need a Canadian credit history to get a mortgage?

Not always. CMHC, Sagen and Canada Guaranty accept other proof, such as an international credit report, a reference letter from your bank at home, or a year of rent and bill payments.

How much down payment do I need as a newcomer?

The same minimum as everyone else, starting at 5% on the first $500,000. Newcomer programs from all three insurers allow insured mortgages with as little as 5% down.

When does the foreign buyer ban end?

It is currently set to end on January 1, 2027. The federal government can extend or change it, so check the rules again before you buy.

Getting ready to buy? Start with a mortgage pre-approval and see how the steps fit together in From Offer to Keys.

This article is general information, not legal, tax or immigration advice, and the rules for non-Canadians can change. Talk to a lawyer before you buy. For the Province's guide, see the additional property transfer tax.