Buying property as a PR: what applies and what doesn't

As a permanent resident buying property in Canada, you have a major advantage: you are treated like a Canadian citizen under the federal rules. This guide walks you through what costs apply, what doesn't, and how to make the most of first-time-buyer savings if you qualify.

You're not subject to the federal foreign-buyer ban

The Prohibition on the Purchase of Residential Property by Non-Canadians Act, which came into effect in 2023 and is set to continue until January 1, 2027, prohibits non-citizens and non-permanent residents from buying residential property in Canada. Permanent residents are specifically exempt from this ban. You can buy property freely, anywhere in Canada, without any restrictions or extra federal paperwork related to the ban itself.

This means you can shop for homes in any census metropolitan area or census agglomeration without triggering the foreign-buyer prohibition. If you're planning to buy soon after arriving in Canada or even years after getting your PR card, the federal ban does not affect you.

Ontario and BC foreign-buyer taxes do not apply to you

Ontario and British Columbia have introduced their own provincial foreign-buyer taxes on top of standard land transfer tax. Ontario imposes a Non-Resident Speculation Tax (NRST) of 25% on the purchase price in eligible residential property purchases. British Columbia charges an Additional Property Transfer Tax of 20% in designated regions such as Metro Vancouver, the Capital Regional District, and parts of the interior. However, these taxes apply only to non-residents who are not Canadian citizens or permanent residents. As a PR, you are exempt from both of these taxes.

Other provinces such as Alberta, Manitoba, Quebec, Nova Scotia, and others do not have province-wide foreign-buyer surtaxes, though some municipalities (like Vancouver and Toronto) do have annual vacancy taxes on underused properties—separate from purchase-time foreign-buyer taxes.

The Underused Housing Tax generally doesn't apply to you either

The federal Underused Housing Tax (UHT) is a 1% annual tax on the value of vacant or underused residential property held by non-resident, non-Canadian owners. It came into effect on January 1, 2022. Canadian citizens and permanent residents who own property directly are excluded from the UHT entirely. You do not need to file a return or pay this tax simply because you own a home in Canada as a PR.

The exception: if you hold property in an unusual ownership structure—for example, as a trustee of a trust or as a partner in a partnership—you may have UHT obligations. If your ownership is straightforward (your name alone or jointly with a spouse on the title), you need not worry about the federal UHT.

Land transfer tax: the main cost you'll owe

Land transfer tax is where the costs vary most sharply by province. It is a one-time tax paid at closing on the purchase price of your property. It is one of the largest closing costs when buying a home and is different from (and in addition to) any provincial sales tax (GST/HST) on new construction.

Ontario

Ontario charges land transfer tax using a tiered bracket system. On a $500,000 property, for example, the first $55,000 is taxed at 0.5%, the next portion up to $250,000 is taxed at 1%, up to $400,000 at 1.5%, up to $2,000,000 at 2%, and amounts above $2,000,000 at 2.5%. Each bracket applies only to the portion of the price within that range.

If you buy in Toronto, you pay the provincial land transfer tax and an additional municipal land transfer tax (MLTT). Toronto's MLTT mirrors the Ontario provincial rates for properties up to $2 million and includes luxury tax brackets ranging from 4.4% to 8.6% for eligible residential properties valued above $3 million as of April 1, 2026. This means Toronto buyers effectively pay twice—provincial and municipal—making closing costs significantly higher than elsewhere in Ontario. On a $600,000 home in Toronto, you could owe roughly $13,400 before any rebates; the same home in Alberta would have registration fees of only $500–$800.

British Columbia

British Columbia calls its land transfer tax the Property Transfer Tax (PTT). It uses a graduated rate system with higher rates applied to more expensive homes. BC offers very generous first-time-buyer relief: a full exemption on homes valued up to $835,000, with partial exemption extending to $860,000. For repeat buyers, the standard rates apply. BC has no second municipal surtax like Toronto does.

Alberta

Alberta charges no land transfer tax at all. Instead, you pay registration fees when the property title transfers. On a $500,000 home with a $400,000 mortgage, Alberta's total registration fees (both property value and mortgage components) are approximately $500–$800. This is one of the most affordable land transfer cost regimes in Canada and a significant advantage for buyers moving west.

Other provinces

Saskatchewan charges no land transfer tax; instead, it has a title transfer fee of roughly 0.4% of the property value (or smaller fees for lower-priced properties). Manitoba, Quebec, Nova Scotia, New Brunswick, and Prince Edward Island all charge percentage-based land transfer tax with their own tiered brackets. Quebec calls it the 'taxe de bienvenue' (welcome tax) and sets it municipally, so rates vary by city. Montreal applies higher brackets for properties over $500,000. Newfoundland and Labrador charges only a small registration fee. Check your specific province and municipality to know exactly what you'll owe.

First-time-buyer rebates can save you thousands

If you are a first-time homebuyer, you may qualify for generous land transfer tax rebates even if you immigrated to Canada years ago. Being a first-time buyer means you have never owned residential property anywhere before, and you must occupy the property as your principal residence (not a rental). Most programs require you to be a Canadian citizen or permanent resident. Importantly, arriving in Canada recently does not disqualify you—only prior home ownership does.

Ontario first-time rebate

Ontario offers a provincial rebate of up to $4,000 on land transfer tax. This rebate covers the tax on the first approximately $368,000 of your home's purchase price. A first-time buyer purchasing a home valued up to roughly $368,000 pays no Ontario land transfer tax at all. Above that price, you still receive the $4,000 rebate, reducing the tax you owe. Your real estate lawyer will apply the rebate directly at closing.

Toronto additional rebate

If you buy in Toronto, you qualify for an additional municipal land transfer tax rebate of up to $4,475. This is separate from and in addition to the Ontario provincial rebate. Combined, first-time buyers in Toronto can receive up to $8,475 in relief, nearly eliminating the land transfer tax on homes under $368,000 and substantially reducing costs on higher-priced homes.

British Columbia first-time exemption

British Columbia offers the most generous first-time-buyer relief in Canada. You receive a full exemption from Property Transfer Tax on homes valued up to $835,000 and a partial exemption on homes valued between $835,000 and $860,000. This means you pay zero PTT on the entire purchase price of a home under $835,000. The exemption threshold was raised from $500,000 in April 2024, making it one of the most valuable first-time-buyer programs in the country.

Prince Edward Island first-time exemption

PEI offers a full exemption from Real Property Transfer Tax for first-time buyers purchasing properties below a certain value threshold. You must download and complete the First-Time Homebuyers Declaration form from PEI's government website and submit it to claim the exemption.

Other closing costs and taxes to budget for

Land transfer tax is not the only cost at closing. You will also pay legal fees (typically $800–$1,500), title insurance, property inspection, appraisal (if required by your lender), and any municipal or property taxes for the period after closing. If you are purchasing a newly constructed home, GST or HST applies to the purchase price, though you may claim a new housing rebate that can recover a portion of the sales tax.

What you need before you buy

To apply for a mortgage and finalize your purchase, you will need a Social Insurance Number (SIN). If you are a newly landed PR, you can apply for a SIN at a Service Canada office or online through a partner office. Most lenders require a SIN to process your mortgage application. You will also need to provide proof of income, employment letter(s), and other documentation your mortgage broker or bank requests. Having these in order before you start house-hunting will speed up the process.

Key steps when making an offer

1. Inform your real estate agent or lawyer that you are a PR (not a non-resident) to ensure they do not accidentally flag your transaction as subject to foreign-buyer taxes or the foreign-buyer ban.
2. Work with a real estate lawyer licensed in your province. They will prepare purchase documents, search the title, arrange title insurance, and calculate all closing costs including land transfer tax and any applicable rebates.
3. If you are a first-time buyer, tell your lawyer explicitly. They can prepare the necessary affidavit or declaration to claim your land transfer tax rebate at closing.
4. Budget for closing costs of 1.5%–4% of the purchase price, depending on your province. In Toronto, costs are higher due to the double land transfer tax; in Alberta, they are much lower.

Summary: what you pay, what you don't

• Federal foreign-buyer ban: Does NOT apply to you.
• Ontario or BC foreign-buyer tax (NRST, APTT): Does NOT apply to you.
• Underused Housing Tax (if you own directly): Does NOT apply to you.
• Land transfer tax: DOES apply. Amount varies sharply by province (0% in Alberta, up to 2.5%+ in Ontario and BC).
• First-time-buyer rebates: Available in Ontario, BC, PEI, and Toronto. Can save $4,000–$8,475 depending on location and property price.

Buying a home as a PR removes several major cost barriers that non-resident foreign buyers face. Your main expense at closing is land transfer tax, which is determined by your province. If you qualify as a first-time buyer, provincial and municipal rebates can reduce or eliminate that cost on homes under a certain value. Consult with a real estate lawyer early in your house-hunting process to understand your exact obligations and opportunities to save.