Buying a home in B.C. when you're moving from out of province

Buying in B.C. works much like buying in Alberta: you make an offer, usually with conditions ("subjects") such as financing and inspection, and a lawyer or notary handles the closing. The differences are mostly taxes and a few B.C.-specific rules. Here's what newcomers need to know, with links to the official sources.

Property transfer tax

Alberta has no land transfer tax, so this one catches a lot of Albertans off guard. B.C. charges property transfer tax when the title registers in your name:

• 1% on the first $200,000 of fair market value
• 2% on the portion from $200,000 to $2,000,000
• 3% on the portion above $2,000,000
• plus 2% more on the residential portion above $3,000,000

On a home at the August 2026 North Okanagan single-family benchmark of $794,300, that works out to about $13,900.

The first-time buyer exemption (and the catch)

First-time buyers registering since April 1, 2024 pay no tax on a home worth $500,000 or less, get a flat $8,000 off between $500,000 and $835,000, and a shrinking amount up to $860,000. To qualify you must be a Canadian citizen or permanent resident, never have owned a principal residence anywhere in the world, and have lived in B.C. for at least one year before the purchase registers, or filed two income tax returns as a B.C. resident in the last six years. Most people moving straight from Alberta won't meet that last test at first.

Newly built homes

Canadian citizens and permanent residents buying a newly built home get a full exemption up to $1,100,000, phasing out at $1,150,000, if they move in within 92 days and live there for the rest of the first year. If you're a citizen or permanent resident and will live in the home, new construction can be worth a look.

Speculation and vacancy tax

Vernon (except Predator Ridge), Coldstream and Lake Country are speculation and vacancy tax areas, added for the 2024 tax year. In 2026 the rate is 1% of assessed value for Canadian citizens and permanent residents and 3% for foreign owners, rising to 4% for foreign owners in 2027. The tax targets homes left empty; homes you live in as your principal residence are exempt, but every owner in a taxable area must still make a declaration by March 31 each year. If you buy before you move, or keep a home empty while you wait to relocate, read the Province's exemptions carefully.

Short-term rentals

Vernon and Coldstream are on B.C.'s list of communities where the principal-residence requirement applies: short-term rentals are limited to the host's own principal residence plus one secondary suite or accessory dwelling unit. The City of Vernon also requires a short-term rental business licence ($150 application plus $400 a year for a standard licence) and provincial registration. The SilverStar Mountain Resort area is exempt from the provincial principal-residence rule, as are Kelowna, West Kelowna, Armstrong, Spallumcheen and Lumby (list current as of June 1, 2026). If rental income is part of your plan, ask before you buy.

Home flipping tax

Since January 1, 2025, B.C. taxes profit on a home sold within 730 days of buying it: 20% if owned less than 366 days, falling to zero by 730 days. A primary residence deduction of up to $20,000 may apply. It matters if you buy, then need to sell quickly because the move doesn't work out.

Home owner grant and property tax

If you live in the home, you can claim B.C.'s home owner grant to reduce your property tax. The 2026 threshold is $2,075,000 of assessed value. From January 1, 2027 the regular grant is $570 everywhere in B.C., and $845 for seniors 65 and older. City of Vernon property taxes are due on the first working day in July, with a 10% penalty after that.

Federal programs and rules

• Home Buyers' Plan: first-time buyers can withdraw up to $60,000 each from their RRSPs.
• First Home Savings Account: contribute $8,000 a year, up to $40,000 lifetime, tax-deductible going in and tax-free coming out for a qualifying first home.
• Non-Canadian buyers: the federal ban on non-Canadians buying residential property in census metropolitan areas and agglomerations (Vernon is one) was extended to January 1, 2027.

Buying from a distance

You don't have to fly in for every showing. Sean can walk the house, the street and the neighbourhood with you on Zoom or FaceTime, point out what the listing photos don't show, and then you fly in to see the shortlist in person before you commit. More about how that works.

Common questions

Last reviewed October 2, 2026 by Sean Phillips, REALTOR®.