How to work with newcomers to Canada as a real estate agent.

In today’s market, newcomers who moved to Canada within the last five years make up a growing segment of active homebuyers in BC. They’re motivated, often financially ready and deeply committed to building a future here – and sick of paying high rents. Helping new buyers successfully navigate the process requires more than just showing homes, it requires education, time preparation and strong advisory skills. For example, it’s obvious to us that “REALTOR®” is a professional label, but our newcomer clients may be totally unaware of this distinction.

As agents, our role isn't just to find properties for our clients, but to protect their interests, guide them through legal and financial complexities and ensure their buying journey is smooth and compliant. Here’s some things every real estate professional should know when working with newcomer buyers.

1. Immigration status – the foundation of every first conversation.

The first and most important step is to understand your buyer’s legal status. This determines financing options, down payment requirements, tax exposure and, in some cases, whether they are even eligible to write an offer. Time is valuable to us all, so now may not be the right time for your buyer and that’s okay. A great agent is in it for the long game – be ready for your clients and maybe a referral will come later.

Temporary residents (work permits).

• Temporary residents can purchase property, but financing may be more challenging. Most major lenders require at least 35% down if the buyer is not a Permanent Resident. Proof of employment, income stability or contract work documentation is often necessary.
• Work permit holders with a valid work permit or authorization to work in Canada are exempt from the foreign buyer ban, as long as they have at least 183 days remaining on their permit and have not already purchased more than one residential property. In BC, the foreign buyer ban is in place until January 1st, 2027 for freehold and leasehold properties – but did you know co-ops are exempt?
• Buyers may be subject to foreign buyer’s tax unless exempt. This is a bigger conversation for eligibility, so check the details carefully.

Permanent residents (PR) and Canadian citizens.

• Your buyers are good to go. Just remember all your buyers in a deal need to have PR or citizenship to qualify. What happens if one buyer is not a resident? Your buyers should get legal advice, but there is a potential path forward with standard mortgage options of 5–20% down, depending on the price and property type.
• Always verify clients’ status before starting showings. It affects affordability, taxation and sometimes their maximum purchase power by thousands.

2. The 90-day rule – when the money matters more than the mortgage.

• Lenders must confirm that funds are legitimate, seasoned and not borrowed. This is where the 90-day history rule comes in. Here’s what you should tell your newcomer buyers:
  • Lenders will request 90 days of bank statements showing where the funds have been sitting. Any large or unexplained deposits will trigger questions and must be backed up with documentation (bank statements, transfer receipts, letters).
  • Buyers should transfer money to a Canadian bank account early, even before writing an offer to begin the 90-day clock. Otherwise ensure your completion date on the offer is more than 90 days away.
  • There can be a path forward if the funds are only in their account for 15–30 days before closing, but this may increase costs and it’s not guaranteed. Lenders often require documentation to verify the source of the funds, especially if they haven’t been “seasoned” in the account for very long. If handled properly, the buyer may still close on their home and avoid losing their deposit or facing legal risk from the seller.
  • Gifted down payments are allowed by most big banks, but usually only from a buyer’s immediate family. This requires a signed gift letter confirming it is a gift, not a loan and the funds must be deposited before closing and may still require proof of origin.
• If the money isn’t already in Canada, your buyer may not truly be “ready to write.” Being house-hunting-ready means financial documentation-ready.

3. International transfers – where time and paperwork can kill deals.

• Many newcomers assume transferring their savings is quick and simple. In reality, delays are common and can jeopardize an offer if done too late. Here are some average timelines you can expect when working with newly-arrived clients:
  • Smaller transfers (under $100,000): three to ten business days.
  • Larger transfers (over $100,000): three days to two or more weeks; may need additional verification.
  • After the funds arrive, banks may hold funds. No agent wants that phone call from a buyer, so keep this in mind.

Documentation required.

• Lenders and lawyers may ask for transfer receipts, source of funds, exchange rate confirmations and proof the money is not borrowed. Late or incomplete transfers could lead to mortgage delays, or worse, breach of contract. Insufficient paperwork can result in lenders refusing to accept the money altogether and then your buyer may need to look at a B lender or private lender.
• Encourage clients to start transferring early, ideally before they even begin viewing homes. Communication with their mortgage broker is critical so everyone knows the plan, especially if your buyer finds the home they love earlier than expected.

4. Understanding the first time home buyer property transfer tax exemption in BC.

• If your client qualifies as a First Time Home Buyer (FTHB), they may be eligible for significant savings through the Property Transfer Tax (PTT) exemption that was updated on April 1st, 2024. This exemption can reduce or even eliminate the PTT up to $8,000.

Who qualifies as a first time home buyer?

• Don’t forget to be eligible for the FTHB exemption in BC, the buyer must meet all of the following criteria:
  • They have never owned a principal residence anywhere in the world at any time.
  • Must be a Canadian citizen or permanent resident and meet BC residency requirements, meaning they must have lived in BC for at least 12 consecutive months before registration, or filed two BC income tax returns in the last six years.
• Don’t forget, a FTHB client must move into the property within 92 days of purchase and use it as their principal residence for at least one year.
• For a quick refresher: a purchase price of $500,000 or less means full exemption; $500,000 to $835,000 is a partial exemption; $835,000 to $860,000 is a sliding scale.
• For newly-built homes the exemptions are higher. The price for the new home must be less than $1.1 million. A partial exemption is available for properties with a fair market value between $1.1 million to $1.15 million.

Key tips for opening a FHSA and handling contribution room.

• Don’t forget to tell your client about the First Home Savings Account (FHSA). This is a great little tax saver that many newcomers may not be aware of.
• Your client will need to open the FHSA to start accumulating contributions. Their annual participation room is $8,000 in the first year they open an FHSA. If they don’t use all the $8,000 in a year, they can carry forward unused participation room but only up to $8,000; essentially they have a maximum of $16,000 in a given year (current plus previous).
• Note that the timing of contributions matters for tax deductions. Contributions are deductible for the year in which they are made, but there are caveats. Contributions made in the first 60 days of a calendar year cannot be claimed on the prior year’s tax return (unlike RRSPs).

Final agent takeaway: help them be offer-ready, not just house-ready.

Many newcomers think pre-approval or having money somewhere is enough – it's not.

To review, being “offer-ready” means:

• Money is in Canada.
• Funds are traceable and documented.
• 90-day history is building or complete.
• Gift letters are prepared.
• Pre-approval is confirmed.

The more proactive we are, the smoother the transaction and the better we protect both our newcomer clients and ourselves.