Buying a Home in Surrey as a Newcomer: The Transfer Tax Rules That Change Your Closing Cash

A family moves from Calgary to Surrey. They find a townhouse at $800,000, they have their down payment saved, and the mortgage looks fine. Then the lawyer sends the closing numbers, and there is a line for $14,000 they never planned for.

That line is British Columbia's Property Transfer Tax. Alberta doesn't have one. If you are buying a home in Surrey, it is part of your closing cash, and for newcomers the amount depends a lot on your immigration status. The same home can cost one buyer $6,000 in tax and another buyer $174,000.

Here is how the tax works, who can get out of part of it, and how it fits with your mortgage.

What Property Transfer Tax Costs When You Buy a Home in Surrey

Every buyer in BC pays Property Transfer Tax (PTT) when the home is registered in their name, unless they qualify for an exemption. As of 2026, the Province of British Columbia sets the general rates like this:

• 1% on the first $200,000 of the home's fair market value
• 2% on the part from $200,000 up to $2,000,000
• 3% on the part above $2,000,000
• An extra 2% on the residential part above $3,000,000

So on an $800,000 townhouse, the tax is $2,000 on the first $200,000, plus $12,000 on the next $600,000. That is $14,000. On a $1,400,000 detached home it is $26,000.

The tax is due on the day the transfer is registered at the Land Title Office. Your lawyer or notary files the return and pays it for you from the money you give them. In practice, that means it has to be in your lawyer's trust account before closing, along with your down payment.

The First-Time Buyer Exemption: Who Qualifies and Who Doesn't

BC has a first-time home buyers' exemption. If you qualify and the home is worth $835,000 or less, you don't pay PTT on the first $500,000. On our $800,000 townhouse, that saves $8,000, so the tax drops from $14,000 to $6,000. There is a partial exemption for homes between $835,000 and $860,000. Above that, you get nothing.

This is where many newcomers get caught. To qualify, all of these have to be true:

• You are a Canadian citizen or permanent resident on the day the home is registered. A work permit is not enough.
• You have lived in BC for at least one year right before the purchase, or you filed at least two income tax returns as a BC resident in the last six years. A family who just moved from Alberta or from overseas often doesn't meet this yet.
• You have never owned a home you lived in, anywhere in the world. This one surprises people. If you owned and lived in a house in Punjab before you came to Canada, you generally don't count as a first-time buyer for this exemption.
• You have never had this exemption or refund before.
• The home is your principal residence, on 0.5 hectares or less. You need to move in within 92 days and live there until at least the first anniversary of the registration.

If you buy with a spouse, each person's share is looked at on its own. One of you may qualify and the other may not. Ask your lawyer to check both of you before you count on the savings.

Buying a Newly Built Home in Surrey

Surrey has a lot of new townhouses and condos. For these, there is a separate newly built home exemption, and it is often worth more.

As of 2026, a newly built home worth $1,100,000 or less can be fully exempt from PTT. There is a partial exemption between $1,100,000 and $1,150,000. You don't have to be a first-time buyer. You do have to be a Canadian citizen or permanent resident, use it as your principal residence, move in within 92 days, and live there for the rest of the first year.

On a $1,000,000 new townhouse, the normal tax would be $18,000. With this exemption, it can be zero. If you move out early, you may owe part of the tax back.

On a Work Permit? The 20% Tax You Need to Know About

BC also has an additional property transfer tax for foreign buyers. It is 20% of the home's value, and it is charged on top of the normal PTT. It applies in Metro Vancouver, which includes Surrey, as well as the Fraser Valley, the Capital Region, Central Okanagan and Nanaimo.

For this tax, a "foreign national" is anyone who is not a Canadian citizen or permanent resident. That includes many people living and working here on a work permit. On our $800,000 townhouse, the math looks like this:

• Normal PTT: $14,000
• Additional 20% tax: $160,000
• Total tax at closing: $174,000

There are two ways this can change:

• BC Provincial Nominee exemption. If you have been confirmed as a nominee under the BC Provincial Nominee Program when the home is registered, and it will be your principal residence, you may not have to pay the 20%. This can only be used once, and it covers the nominee, not other family members on title.
• Refund if you get PR within a year. If you become a permanent resident or citizen within one year of registration, moved in within 92 days, and lived there as your principal residence for the full first year, you can apply for a refund. You apply after the first anniversary and within 18 months. You still need the money up front, though.

Before any of this, there is also the federal ban on non-Canadians buying homes, which has a carve-out for many work permit holders. We cover that test step by step in our guide to buying a home on a work permit. Always have a BC lawyer confirm your status and these rules before you write an offer.

How Transfer Tax Fits With Your Mortgage

When you are buying a home in Surrey, transfer tax is not part of your down payment, and in most cases it can't be added to your mortgage. Lenders treat it as a closing cost you pay from your own money. Many lenders want to see that you have about 1.5% of the price set aside for closing costs on top of your down payment. In Surrey, PTT alone can be more than that, so plan for the real number.

Here is a quick picture for a citizen or PR buying an $800,000 resale townhouse with the minimum down payment:

• Minimum down payment: 5% of the first $500,000 plus 10% of the rest, which is $55,000
• PTT with no exemption: $14,000 (or $6,000 if you qualify as a first-time buyer)
• Legal fees, title insurance, inspection and adjustments on top

Where the money comes from matters too. Lenders usually want 90 days of history on the account holding your funds. If family is helping, you will need a signed gift letter and a clear trail showing the money arriving in your Canadian account. Money sent from India or another country is fine, but it needs a paper trail from the sending account to yours. Start moving it early. Our step-by-step newcomer mortgage guide covers building credit and the down payment in more detail.

On the lending side, you have more than one path. Many A-lenders (banks, credit unions and monolines) have insured newcomer programs, sometimes with as little as 5% down depending on your status and credit. If your file doesn't fit those rules, B-lenders can be more flexible on credit and income, and depending on the whole file some go below a 600 credit score and allow debt ratios up to roughly 50% GDS and TDS. They usually want about 20% down and charge a lender fee. Private lenders focus on the property and equity, generally want 20 to 25% down or more, and cost more. The right fit depends on your status, income, credit and how much cash you will have left after the tax.

How Gold Lion Mortgages Can Help

Surinderpal Singh works with many newcomer and first-time buyer families, and a lot of them are Punjabi-speaking. We can talk it through in Punjabi, Hindi or English, whichever is easier for your family.

Before you make an offer in Surrey, we will look at your status, your down payment, and the home you are thinking about. Then we work out your likely closing cash, including transfer tax, so there are no surprises from the lawyer. From there, we look across A, B and private lenders to find the option that fits your file. Your BC lawyer or notary confirms the exemption forms, and we make sure the mortgage side is ready for them.

Learn more about our mortgage services in Surrey, or call (587) 740-0048 or visit goldlionmortgages.com/apply.

Frequently Asked Questions

How much is property transfer tax on a house in Surrey?

As of 2026, it is 1% on the first $200,000, 2% from $200,000 to $2 million, and 3% above that, with an extra 2% on homes over $3 million. On an $800,000 home that works out to $14,000. Exemptions can lower it for eligible first-time buyers and newly built homes.

Can newcomers get the BC first-time home buyer exemption?

Only if you are a Canadian citizen or permanent resident and you meet the BC residency rule. That means living in BC for one year before buying, or filing two BC tax returns in the last six years. You also must never have owned a home you lived in, anywhere in the world.

Do work permit holders pay the 20% foreign buyer tax in Surrey?

Generally yes, because the tax applies to anyone who is not a citizen or permanent resident, and Surrey is in a taxable area. Confirmed BC Provincial Nominees may be exempt. If you become a permanent resident within a year and meet the living-in rules, you can apply for a refund.

Can I add property transfer tax to my mortgage in BC?

In most cases, no. Lenders treat transfer tax as a closing cost you pay from your own funds, separate from your down payment. Your lawyer pays it when the home is registered, so the money needs to be with them before closing.

If I owned a house in India, am I still a first-time buyer in BC?

Not for the BC transfer tax exemption, if you lived in that house. The rule says you can never have owned a principal residence anywhere in the world. You may still count as a first-time buyer for some mortgage programs, which use different rules, so ask your broker.

Transfer tax is one of the biggest costs in a Surrey purchase, and it is the one people plan for least. Call Gold Lion Mortgages at (587) 740-0048 or apply online at goldlionmortgages.com/apply, and we will help you get the full number right before buying a home in Surrey.

Published: September 17, 2026. Mortgage guidelines, lender programs, and qualifying requirements change. Contact Gold Lion Mortgages to confirm current requirements for your file.

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