In this guide
First-time buyers in Greater Vancouver should start with a mortgage pre-approval and a clear grasp of the federal stress test, which limits purchasing power by roughly 18–20%. Plan for 5–20% down (20% is mandatory at $1M+), CMHC insurance if under 20%, and an additional 2–4% for closing costs including Property Transfer Tax, legal fees, and inspections. First-time buyers may also qualify for the FHSA and the PTT exemption on homes under $835,000.
Step 1: Get Mortgage Pre-Approval
Before you look at a single property, you need to know what you can afford. A mortgage pre-approval from a lender tells you the maximum you can borrow, locks in an interest rate for 90–120 days, and signals to sellers that you are a serious buyer.
We recommend working with a mortgage broker rather than going directly to your bank. Brokers have access to multiple lenders — often finding better rates and terms than any single institution can offer. The service is typically free; the lender pays the broker’s fee.
The Stress Test
All Canadian mortgage applicants must qualify at the higher of their contract rate plus 2%, or 5.25%. This reduces your maximum purchase price by roughly 18–20% compared to what you might expect. Plan accordingly.
How Much Down Payment Do I Need?
BC follows federal minimum down payment rules:
- Homes under $500,000: 5% minimum
- $500,000 – $999,999: 5% on the first $500K, 10% on the remainder
- $1 million and above: 20% minimum — no exceptions
If your down payment is less than 20%, CMHC mortgage insurance is required — a premium of 2.8%–4.0% of the mortgage amount added to your balance. First-time buyers may also qualify for the First Home Savings Account (FHSA) and the Property Transfer Tax exemption on homes under $835,000.
What Closing Costs Should I Budget For?
Beyond the purchase price, budget an additional 2–4% for closing costs:
Property Transfer Tax
1% on first $200K, 2% on $200K–$2M, 3% above (exemptions may apply for first-time buyers)
Legal / Notary Fees
Typically $1,200–$2,000 for a standard purchase
Home Inspection
$400–$600; strongly recommended even in competitive markets
Strata Move-In Fee
$200–$1,000 if purchasing a condo or townhouse
Title Insurance
$200–$400; protects against defects in title
Property Adjustment
You reimburse the seller for pre-paid property taxes and strata fees on closing
Step 4: Find the Right REALTOR®
In BC, buyer representation costs you nothing — the seller pays the commission. There is no financial reason not to work with an experienced REALTOR®, and every reason to do so. Your agent will help you find properties, evaluate them honestly, write competitive offers, negotiate conditions, and navigate the transaction from accepted offer to completed sale.
Choose someone who specialises in your target area, communicates clearly, and will tell you when to walk away from a property — not just tell you what you want to hear.
Step 5: Making an Offer
When you find the right property, your agent will prepare a Contract of Purchase and Sale. Key elements include the purchase price, completion date, adjustment date, and any subject conditions (subjects to financing, inspection, title review, strata documents). In competitive situations, some subjects may need to be waived — a risk your agent will help you evaluate carefully.
Related Resources
Ready to Start Your Search?
Connect with our team for a free buyer consultation — no obligation.