Are you exploring a West Vancouver home from abroad and wondering how to finance it? The rules are complex, and the cash needed can be higher than you expect. You want a clear path that respects Canadian regulations, fits your timeline, and protects your capital. In this guide, you’ll learn the current rules, typical lender expectations, key taxes, and a step-by-step path to move forward with confidence. Let’s dive in.
What the rules allow today
Federal foreign-buyer prohibition
If you are a non-Canadian buyer, the federal prohibition on many residential purchases in urban areas, including Metro Vancouver, remains in effect. The ban has been extended to January 1, 2027, with limited exemptions for specific groups. Review the details of the extension to 2027 before planning financing.
BC’s 20% additional transfer tax
In Metro Vancouver, most foreign buyers face an additional 20% property transfer tax on their share of a residential purchase price. This is on top of the standard provincial transfer tax. See the Province’s rules on BC’s 20% additional property transfer tax.
Speculation and Vacancy Tax in West Vancouver
West Vancouver is within the provincial Speculation and Vacancy Tax area. Tax rates vary by owner type and are scheduled to increase for the 2026 tax year. If you plan seasonal or occasional use, confirm whether the SVT applies in West Vancouver and how it affects your holding costs.
How non-residents typically get financed
Bank mortgages and down payments
Major banks do lend to some non-residents and temporary residents, but underwriting is conservative. Many programs expect large down payments, and a common planning number is about 35 percent for non-resident borrowers. See broker guidance on why many bank programs require about 35 percent down.
Newcomer and insured options
If you hold certain immigration statuses and plan to live in the home, some lenders and default insurers offer “new to Canada” programs. Eligibility, price caps, and documentation vary. Ask lenders about insured options that can lower down payment requirements if you qualify.
Credit unions and private lenders
Select credit unions may consider applicants with local ties and strong documentation. When conventional financing is not available, alternative and private lenders in BC can provide short-term solutions at higher rates and fees.
The stress test and borrowing power
Federally regulated lenders must qualify you using a minimum qualifying rate, often higher than your contract rate. Review OSFI’s minimum qualifying rate to understand how it may reduce your maximum loan amount.
What to budget beyond the down payment
Transfer taxes and closing costs
In addition to the 20% additional transfer tax where it applies, all buyers pay provincial Property Transfer Tax at standard rates, plus legal fees, title insurance, and other closing costs. If you might qualify for an exemption on certain property types, review the Province’s guidance for first-time home buyer exemptions.
Renting your West Vancouver home
If you are a non-resident earning rent, the payer must generally withhold 25 percent of gross rent and remit it to CRA. You can elect to be taxed on net rent and reduce monthly withholding after CRA approval. Learn about the Section 216 election and NR6 process in CRA’s guide to non-resident rental withholding.
Selling later as a non-resident
On sale, a non-resident seller faces purchaser withholding unless they obtain a Certificate of Compliance from CRA. Timing matters, and the withholding can affect cash at closing. See CRA guidance on dispositions by non-residents and T2062.
Step-by-step path to a viable purchase
1) Confirm your eligibility
- Verify whether the federal prohibition applies to you and whether you fit an exemption. Start with the government’s 2027 extension notice.
- Check if the 20% additional PTT applies to your situation and the property’s location in Metro Vancouver: BC additional PTT rules.
- If the home may be vacant part of the year, review the SVT taxable area and rules.
2) Get pre-approved and compare lenders
- Ask a broker to price options across banks, credit unions, and private lenders.
- Model your affordability using OSFI’s qualifying rate rules.
3) Prepare documentation early
- Identification and status: passport plus Canadian status documents if applicable.
- Income and credit: employment letter, pay stubs, tax filings, and international credit report or bank reference.
- Down payment and reserves: many lenders require proof of funds in a Canadian account for about 90 days. Large gifts may not be permitted for non-residents.
4) Plan closing and post-purchase compliance
- Engage a Canadian real estate lawyer to handle title, transfer taxes, and closing funds.
- If renting out, set up monthly withholding or the Section 216 election using CRA’s rental income guidance.
- If you plan a future sale, understand the T2062 compliance process and expected timing.
Quick scenarios
You live abroad and want a West Vancouver vacation home. First, confirm if the federal prohibition applies to you. If an exemption does not fit, you cannot proceed. If eligible, budget for the 20% additional PTT and a larger down payment, often around 35 percent with mainstream lenders.
You are on a Canadian work permit and plan to live in the home. Some lenders and insurer-backed programs may allow lower down payments if you meet program criteria. Confirm eligibility, employment history requirements, and whether the federal rules permit your purchase.
You plan to buy and rent the property. Budget for CRA withholding on rent and set up the Section 216 election to improve cash flow once approved.
Work with a concierge advisor
A successful non-resident purchase in West Vancouver starts with clear rules, a realistic budget, and a lender who understands your profile. If you want a discreet, white-glove process tailored to luxury homes on the North Shore, connect with Amir Miri for guidance from first conversation to closing.
FAQs
Can a non-Canadian buy a home in West Vancouver right now?
- Many non-Canadians are currently prohibited from purchasing residential property in Metro Vancouver, with limited exemptions, under a federal measure extended to January 1, 2027.
How much down payment do non-residents usually need for a mortgage?
- Bank programs often expect about 35 percent down for non-resident borrowers, while private lenders may allow different loan-to-value ratios at higher costs.
What is the 20 percent foreign buyer tax in BC?
- In Metro Vancouver, foreign buyers typically pay an additional 20 percent property transfer tax on their share of the purchase price at closing, separate from the standard transfer tax.
Does the Speculation and Vacancy Tax apply in West Vancouver?
- Yes, West Vancouver is a taxable area for the provincial SVT, with rates that vary by owner status and increases scheduled for the 2026 tax year.
How are non-residents taxed on rental income from a West Vancouver home?
- The payer must generally withhold 25 percent of gross rent and remit it to CRA; you can elect under Section 216 to be taxed on net rent and potentially reduce monthly withholding after approval.
What happens when a non-resident sells a Canadian property?
- The seller must follow CRA’s compliance process, often obtaining a Certificate of Compliance to avoid large purchaser withholding at closing; timing and documentation are critical.