Buying Your First Home in British Columbia
Buying your first home is exciting, but there is a lot to understand before you make an offer.
Doug will help you understand your budget, down payment, mortgage qualification, closing costs and financing options so that you can move forward with confidence.
Start With a Mortgage Conversation
You do not need to know every mortgage term or have every document ready before speaking with Doug. The first conversation is simply about understanding where you are today and what you hope to buy.
Together, we can estimate a practical purchase range, identify any issues that should be addressed before you make an offer and explain the steps ahead.
Your First-Home Roadmap
1. Review Your FinancesReview income, debts, savings, credit and the monthly payment you would be comfortable carrying. |
2. Get Pre-ApprovedDetermine a realistic mortgage range and understand what the lender will need before you begin shopping seriously. |
3. Find the Right HomeShop within your approved range while considering property taxes, strata fees, heating costs and future repairs. |
4. Complete the PurchaseFinalize financing, satisfy lender conditions, obtain insurance and complete the legal closing. |
How Much Down Payment Do You Need?
The minimum down payment depends on the purchase price, the type of property, the mortgage insurer and the lender’s guidelines.
| Purchase price of $500,000 or less | The minimum down payment generally starts at 5% of the purchase price. |
| Purchase price over $500,000 | The minimum is generally 5% on the first $500,000 and 10% on the portion above $500,000. |
| Down payment below 20% | Mortgage default insurance is normally required, and the insurance premium is generally added to the mortgage. |
| Down payment of 20% or more | Mortgage default insurance is generally not required, although lender qualification rules still apply. |
Eligible down-payment sources may include savings, investments, certain registered-plan withdrawals, proceeds from another asset or a qualifying non-repayable gift from an immediate family member.
Programs That May Help First-Time Buyers
First Home Savings AccountAn FHSA allows an eligible first-time buyer to save toward a qualifying first home. Contributions may be deductible, and qualifying withdrawals can generally be made tax-free. |
RRSP Home Buyers’ PlanEligible buyers may currently withdraw up to $60,000 from their RRSP under the Home Buyers’ Plan, subject to the program’s qualification and repayment requirements. |
B.C. Property Transfer TaxQualifying first-time buyers in British Columbia may be eligible for a full or partial exemption from property transfer tax, depending on the buyer, property and purchase price. |
Could a 30-Year Amortization Be Available?
Eligible first-time buyers may have access to an insured mortgage with an amortization of up to 30 years. A longer amortization may lower the required monthly payment, but it generally increases the total interest paid over the life of the mortgage.
Doug will compare the payment, qualification and long-term cost so that you can decide whether a longer amortization makes sense.
What Lenders Review
Your Financial Profile
✓ Employment and income history |
The Property
✓ Purchase price and appraised value |
Plan for More Than the Down Payment
Your down payment is only one part of the money needed to complete a purchase. Buyers should also budget for closing and moving costs.
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✓ Legal or notary fees ✓ Property transfer tax, if applicable ✓ Home inspection ✓ Appraisal, if required |
✓ Property-tax adjustments ✓ Home insurance ✓ Moving expenses ✓ Immediate repairs or furnishings |
What Does a Pre-Approval Really Mean?
A pre-approval can provide a preliminary borrowing range and may include a rate hold, but it is not a final mortgage approval.
Final approval depends on verifying your information, reviewing the property, confirming the down payment and satisfying the lender and mortgage insurer’s conditions. Keep a financing condition in your offer unless you have received appropriate professional advice to do otherwise.
Common First-Time Buyer Mistakes
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Shopping before understanding your budget A purchase price may technically qualify but still create an uncomfortable monthly payment once taxes, strata fees, utilities and maintenance are included. |
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Using every dollar for the down payment Keep money available for closing costs, moving, repairs and unexpected expenses after possession. |
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Changing jobs or taking on new debt New vehicle loans, credit balances, job changes or co-signing for another borrower can affect mortgage qualification. |
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Removing the financing condition too early A rate hold or preliminary pre-approval does not guarantee that every property and purchase contract will receive final approval. |
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Choosing a mortgage based only on rate Prepayment privileges, penalties, portability, restrictions and flexibility can be just as important as the interest rate. |
Other Options That May Help
Purchase Plus ImprovementsFound the perfect home but it needs a new kitchen, flooring or roof? A Purchase Plus Improvements mortgage may allow qualified buyers to include eligible renovation costs as part of their mortgage financing. |
New to CanadaNewcomers may have access to programs that consider alternative credit and a shorter Canadian financial history. |
Why Work With Doug?
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✓ More than 35 years of mortgage experience ✓ Clear explanations without pressure ✓ Access to a wide range of lenders |
✓ Help from pre-approval through closing ✓ Advice based on the complete mortgage, not only rate ✓ Serving buyers throughout British Columbia |
Ready to Take the First Step?
A conversation does not commit you to anything. Doug will help you understand what may be possible, what documents will be needed and what you can do next.
Call Doug: 604-820-4570
First-Time Home Buyer Advice in Mission and Throughout British Columbia
Doug Lifford Mortgage Services helps first-time buyers in Mission, Abbotsford, Chilliwack, Maple Ridge and communities throughout British Columbia understand mortgage qualification, down payments, mortgage insurance, closing costs, pre-approvals, FHSA savings, the Home Buyers’ Plan and available first-home financing options.
Program rules, mortgage-insurance guidelines, tax exemptions, interest rates and lender policies may change. This page provides general information only. Confirm current eligibility and obtain appropriate mortgage, legal, accounting and tax advice before purchasing a home.