Build Your Team
A mortgage broker, realtor, lawyer or notary, and other advisors each play a different role in the purchase.
FIRST-TIME HOME BUYER GUIDE
Your first home, with a clearer plan.
A practical roadmap from building your team and getting pre-approved through making an offer, securing financing and reaching possession day.
START HERE
Four things to understand before you start shopping.
Know Your Budget
A pre-approval helps establish a realistic price range before you begin making offers.
Prepare Your Documents
Income, down payment and credit information are reviewed, with requirements varying by your financial profile.
Plan for Closing Costs
Your cash plan should account for more than the down payment, including taxes, legal costs and other transaction expenses.
THE HOME BUYING PROCESS
Seven steps from planning to possession.
Find your team of specialists
Line up the professionals who will help with financing, the property search, legal completion and financial planning.
Get mortgage pre-approved
Review affordability, income documents and credit so you can shop with a clearer budget.
Start your home search
Define your needs and work with your realtor to identify and view suitable properties.
Make a smart offer
Your realtor can use comparable sales and appropriate contract subjects to structure and negotiate the offer.
Obtain mortgage approval
After an accepted offer, the lender reviews the borrower, property and purchase terms for final approval.
Inspection & insurance
Complete appropriate due diligence before subject removal and arrange the property insurance required for closing.
Final signing, completion & possession
Meet with your lawyer or notary, provide required funds, complete registration and receive possession.
PURCHASE COSTS
Budget beyond the down payment.
Your original guide highlights the major costs buyers should plan for. The exact amount and applicability depend on the property and financing.
01 Minimum Down Payment View cost & tip
In Canada, the minimum down payment depends on the purchase price.
| Up to $500,000 | 5% of the purchase price |
|---|---|
| $500,001 – $1,499,999 | 5% of the first $500,000 + 10% of the portion above $500,000 |
| $1,500,000 or more | 20% of the purchase price |
TIP
If your down payment is less than 20%, mortgage default insurance is typically required. Down payment can also come from eligible savings, gifts or qualifying programs.
02 Mortgage Default Insurance View cost & tip
For insured mortgages, the premium is primarily based on the loan-to-value ratio.
| 90.01% – 95% LTV | 4.00% |
|---|---|
| 85.01% – 90% LTV | 3.10% |
| 80.01% – 85% LTV | 2.80% |
| 75.01% – 80% LTV | 2.40% |
| 65.01% – 75% LTV | 1.70% |
TIP
The premium is calculated on the mortgage amount and can generally be added to the mortgage. Insurer and program rules can vary.
03 Property Transfer / Land Transfer Tax View cost & tip
In British Columbia, Property Transfer Tax is calculated in tiers.
| First $200,000 | 1% |
|---|---|
| $200,001 – $2,000,000 | 2% |
| Amount above $2,000,000 | 3% |
| Residential value above $3,000,000 | Further 2% on the residential portion above $3,000,000 |
TIP
First-time buyers and qualifying newly built homes may be eligible for exemptions. Use our calculator for a transaction-specific estimate.
Open Closing Cost Calculator04 Legal & Conveyancing View cost & tip
Legal or notary costs cover the completion and registration of your purchase.
| Planning allowance | Approximately $2,000 |
|---|---|
| May include | Legal/notary fees, registration and disbursements |
TIP
Actual fees vary by provider, property and transaction complexity. Ask for a quote that clearly shows what is included.
05 Appraisal View cost & tip
A lender may require an appraisal to confirm the property's market value.
| Typical planning range | Several hundred dollars |
|---|---|
| Cost depends on | Property type, location and complexity |
TIP
Not every mortgage requires an appraisal. Your broker or lender can confirm whether one is needed before ordering it.
06 Home Inspection View cost & tip
A professional inspection can help identify material property issues before you remove subjects.
| Typical planning range | Several hundred dollars |
|---|---|
| Cost depends on | Property size, type and inspection scope |
TIP
An inspection may be optional, but it can help you understand potential repairs and future ownership costs.
07 Home Insurance View cost & tip
Lenders generally require proof of appropriate property insurance before funding.
| Cost | Varies by property and coverage |
|---|---|
| Main factors | Location, property type, age, coverage and deductible |
TIP
Obtain a quote early—especially for strata, older, rural or unique properties—to avoid surprises before completion.
08 Optional Protection Planning View cost & tip
Optional protection can be reviewed separately from the mortgage itself.
| Cost | Varies by coverage selected |
|---|---|
| Examples | Life, disability or other protection planning |
TIP
Review existing workplace and personal coverage first, then decide whether additional protection fits your household needs.
FIRST-TIME BUYER ADVANTAGES
Programs that may reduce the cost of buying your first home.
BC First Time Home Buyers’ Program
Eligible buyers may receive a property transfer tax exemption on the first $500,000. The full-exemption property-value threshold is $835,000, with a partial exemption available up to $860,000.
View eligibility requirements
Key eligibility requirements
View official government eligibility
- Canadian citizen or permanent resident when the property is registered.
- Have lived in B.C. for at least one year immediately before registration, or filed at least 2 B.C. income tax returns in the previous 6 taxation years.
- Have never owned a registered interest in a property used as your principal residence anywhere in the world.
- Have never previously received the B.C. first-time home buyers’ exemption or refund.
- Property must be your principal residence, generally be 0.5 hectares or smaller, contain only residential improvements, and meet the applicable fair-market-value limits.
BC Newly Built Home Exemption
A separate B.C. property transfer tax exemption may apply to qualifying newly built principal residences. The full-exemption threshold is $1.1M, with a partial exemption below $1.15M.
View eligibility requirements
Key eligibility requirements
View official government eligibility
- You must be a Canadian citizen or permanent resident.
- The home must qualify as newly built and the transfer must meet the program’s registration requirements.
- Property must be in B.C., used only as your principal residence and generally be 0.5 hectares or smaller.
- For the full exemption, fair market value must generally be $1.1M or less; a partial exemption may apply above $1.1M and below $1.15M.
- You must generally move into the home within 92 days of registration and continue to occupy it as your principal residence for the remainder of the first year.
First-Time Home Buyers’ GST/HST Rebate
Eligible first-time buyers of new or substantially renovated homes may recover up to the full federal GST portion, to a maximum of $50,000 for homes up to $1M, with the rebate phased out to $1.5M.
View eligibility requirements
Key eligibility requirements
View official government eligibility
- Generally, you must be at least 18 and a Canadian citizen or permanent resident.
- You must meet the federal first-time home buyer test, including the applicable current-year and previous-four-calendar-year ownership/occupancy rules.
- The home must be newly built or substantially renovated and intended as your primary place of residence.
- For a builder purchase, the agreement must generally be entered into on or after March 20, 2025 and before 2031; additional construction, completion, ownership and occupancy deadlines apply.
- Neither you nor your spouse/common-law partner can have previously received this first-time buyer GST/HST rebate.
Home Buyers’ Amount
Eligible buyers can claim up to $10,000 as a federal non-refundable tax credit amount.
View eligibility requirements
Key eligibility requirements
View official government eligibility
- You or your spouse/common-law partner must acquire a qualifying home in Canada.
- Generally, you must meet the first-time home buyer test: you did not live in another home owned by you or your spouse/common-law partner in the year of purchase or any of the four preceding years.
- You must intend to occupy the qualifying home as your principal residence no later than one year after acquisition.
- Special rules can apply for a person eligible for the Disability Tax Credit or a related person buying for their benefit.
Home Buyers’ Plan (RRSP)
The current HBP limit is up to $60,000 from your RRSP to buy or build a qualifying home. For first HBP withdrawals made from 2026 through 2028, the start of the 15-year repayment period is temporarily deferred to the fifth year after the withdrawal year.
View eligibility requirements
Key eligibility requirements
View official government eligibility
- You must generally qualify as a first-time home buyer, unless participating for a specified disabled person.
- You need a written agreement to buy or build a qualifying home in Canada; a mortgage pre-approval alone is not enough.
- You must meet the Canadian residency requirements around the withdrawal and acquisition.
- You must intend to occupy the home as your principal residence within one year after buying or building it.
- If you previously used the HBP, your HBP balance generally must be zero on January 1 of the new withdrawal year, along with meeting the other conditions.
First Home Savings Account (FHSA)
An FHSA helps eligible first-time buyers save for a qualifying first home with tax advantages. Participation room starts at $8,000 in the year you open your first FHSA, with a $40,000 lifetime limit; qualifying withdrawals can be made tax-free.
View eligibility requirements
Key eligibility requirements
View official government eligibility
- For a qualifying withdrawal, you must meet the FHSA first-time home buyer test.
- You need a written agreement to buy or build a qualifying home in Canada, with the acquisition or completion date before October 1 of the following year.
- You generally cannot have acquired the home more than 30 days before the withdrawal.
- You must meet the Canadian residency requirement and occupy or intend to occupy the home as your principal residence within one year.
- You must submit Form RC725 to your FHSA issuer for a qualifying withdrawal.
YOUR NEXT STEP
Know your numbers before you start making offers.
A first-time buyer review can bring your affordability, down payment, closing costs and lender options into one plan.