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. If you’re one of them, here’s some things you should know as a newcomer buyer.
1. Immigration status – the foundation of every first conversation.
The first and most important step is to understand your legal status. This determines financing options, down payment requirements, tax exposure and, in some cases, whether you can even be eligible to write an offer.
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 your eligibility, so check the details carefully.
Permanent residents (PR) and Canadian citizens.
You are good to go. Just remember all buyers in a deal need to have PR or citizenship to qualify. What happens if one buyer is not a resident? You 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 your own status and anyone buying property with you before starting showings. It affects affordability, taxation and sometimes your 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 know about finances as a buyer:
- 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 an offer is more than 90 days away.
- There can be a path forward if the funds are only in your 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, you 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, you 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:
- 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. This can trip-up your otherwise well-planned offer, so account for it.
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 you may need to look at a B lender or private lender.
So, start transferring early, ideally before you even begin viewing homes. Communication with a mortgage broker is critical so everyone knows the plan, especially if you find the home you love earlier than expected.
4. Understanding the first time home buyer property transfer tax exemption in BC.
If you qualify as a First Time Home Buyer (FTHB), you 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?
To be eligible for the FTHB exemption in BC, you must meet all of the following criteria:
- You 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 you 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 must move into the property within 92 days of purchase and use it as your principal residence for at least one year.
For a quick overview: 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 about the First Home Savings Account (FHSA). This is a great little tax saver that many newcomers may not be aware of.
You will need to open the FHSA to start accumulating contributions. The annual participation room is $8,000 in the first year you open an FHSA. If you don’t use all the $8,000 in a year, you can carry forward unused participation room but only up to $8,000; essentially you 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.
Final takeaway: 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 you are, the smoother the transaction and the better you’ll protect yourself as a newcomer buyer. If you need an experienced agent to help guide you through buying a home as a newcomer, REW has experts ready to help.
