Do you need to have permanent residence (PR) to buy a home?

The answer to the question of whether you need to be a permanent resident (PR) of Canada to purchase real estate in Calgary is unequivocal: no, PR is not required to buy a home. Canadian and provincial legislation does not impose immigration status requirements on the right to own real estate: Canadian citizens, permanent residents, and foreigners have equal rights to purchase a house, apartment, or land. However, there are some nuances to be aware of before making this investment.

Legal status of real estate ownership in Canada

Canadian provinces and territories do not impose restrictions based on the immigration status of the buyer: land law is purely property law and is based on the principles of private property rights. In Alberta, where Calgary is located, there are no additional regulations prohibiting foreigners from buying real estate, unlike some other countries where foreigners may face special restrictions on the number or type of properties they can purchase.

Impact of immigration status on mortgage lending

Not being able to prove PR does not prevent you from getting a mortgage, but lenders' requirements may vary in each case. In Calgary, banks and other financial institutions evaluate mortgage applications primarily based on the following criteria:

  1. Stable income. Lenders require proof of income, regardless of whether you are a permanent resident, a foreigner with a work visa, or a citizen.

  2. Credit history. The length of your stay in Canada may affect your credit history. If you are a recent arrival and have not had time to establish a Canadian credit profile, the bank may ask for additional guarantees or a short-term joint loan with a sponsor.

  3. Down payment. Foreign borrowers usually make a larger down payment — sometimes up to 35% of the home's value — while Canadian citizens and PRs can get away with a minimum down payment of 5% to 20%.

  4. Length of visa or status. A long-term temporary visa (such as a work permit for several years) or a residence permit can give the lender confidence in your ability to repay the mortgage for the entire term.

Thus, although PR is not required to purchase real estate, your immigration status may affect your lending terms.

Taxes and insurance for foreigners

The Canadian government and the province of Alberta do not impose separate taxes on the purchase of homes by foreigners in Calgary. The only direct federal tax is property tax, which is paid by the property owner regardless of citizenship or PR status. In 2025, the average property tax rate in Calgary is approximately 0.74% of the assessed value of the property.

For foreigners, the only additional expense may be the need for a higher down payment and a potentially higher mortgage insurance rate under CMHC programs if the down payment is less than 20%. Mortgage loan insurance protects the lender and is required for anyone making less than a 20% down payment.

Step-by-step strategy for foreign investors

To invest in real estate in Calgary, a foreigner should:

  1. Determine your budget and available funds. Estimate how much you can put into the down payment—if the down payment exceeds 20%, you will avoid additional mortgage insurance costs.

  2. Establish a credit history or find a sponsor. If you are new to Canada, it is helpful to start by opening a credit card and making timely payments to build your credit score. Alternatively, the lender may require guarantees from a co-borrower (sponsor) with a stable credit history.

  3. Pre-qualify for a mortgage. Contact a bank or mortgage broker for pre-approval to find out the maximum loan amount you can get.

  4. Find out about tax implications. At the local level, property tax is the same for all owners. It is also worth consulting a tax advisor about non-residency and possible reporting requirements in your country of residence.

  5. Use the services of professionals. A mortgage broker, lawyer, or notary can help with paperwork, finding a lender, and legal formalities.

Tips for citizens and permanent residents

For those who already have PR or are Canadian citizens, the process is simplified:

  • Minimum down payment of 5% to 20%, depending on the cost, with no additional mortgage insurance required for a down payment of 20% or more.

  • Better access to CMHC mortgage insurance with lower premiums if the down payment is less than 20%.

  • Faster credit history building and lower interest rates thanks to better credit standing.

  • Programs for first-time home buyers that offer subsidized loans, first-time home buyer tax credits, and the ability to withdraw funds from RRSPs without penalties.

Conclusion

In conclusion, permanent residence (PR) is not a legal requirement for purchasing a home in Calgary, as Alberta law does not restrict property ownership based on immigration status. However, PR or Canadian citizenship significantly simplifies the mortgage process, reduces the down payment and interest rates, and opens up additional support programs for first-time buyers. For foreigners with temporary status or citizenship of other countries, it is important to consider additional requirements from lenders and potentially higher mortgage insurance costs. In any case, preparing documents and understanding the market will help you successfully purchase a home in this dynamic and promising city.