What the foreign-buyer rules mean for newcomers

If you are new to Canada, two different sets of rules may apply to you when you buy a home in Greater Vancouver. They come from different governments and work differently.

The federal purchase ban

The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act restricts people who are not Canadian citizens or permanent residents from buying certain residential property. There are exceptions — for example, for some temporary residents working in Canada, and for spouses buying with a Canadian or permanent-resident partner.

The ban was set up as a temporary measure and has been extended before, so check whether it is still in force on your purchase date. The official text is on the Justice Laws website.

BC’s additional property transfer tax

Separately, BC charges an additional property transfer tax when foreign entities or taxable trustees buy residential property in specified areas of the province, including Greater Vancouver. It is paid on top of the regular property transfer tax.

Owning a home you don’t live in

BC’s speculation and vacancy tax can apply to homes in designated areas that sit empty. If you plan to buy before you move here, ask about it early.

The right answer depends on your status, your timing and the property. Talk to a lawyer before you make an offer.

[Avery’s note: the questions newcomers ask her most often.]

This article is general information, not legal, tax or financial advice.