FIRST STEPS GUIDE

Buying a home
in B.C., in plain words.

Everything to do before you find the home, what it really costs, and how lenders decide. Made for first-time buyers and newcomers.

Your REALTOR®Andrew OharaOakwyn Realty LTD(604) 537-6353andrew.van.city
1 · Get readyThe checklist, before you look
2 · Know the numbersMonthly, cash to close, what lenders allow
3 · Know your breaksNewcomers and first-time buyers

For estimates and general information only. Not mortgage, financial or legal advice. Andrew Ohara is a REALTOR®, not a licensed mortgage broker, and can refer you to trusted mortgage brokers. Rules as of October 2026.

Andrew Ohara · Oakwyn Realty LTD · (604) 537-6353First Steps Guide · 1
FIRST STEPS GUIDEAndrew Ohara · (604) 537-6353

1Get ready

Most buyers aren't ready when the right home comes up. Do these first, and you can move the day you find it.

2Do the math in your head

The rule of thumb: every $100,000 you borrow costs about this much a month.

RateOver 25 yearsOver 30 years
3.50%$499$448
4.00%$526$476
4.50%$553$504
5.00%$582$534
5.50%$610$564
Example: a $600,000 mortgage at 4.5% over 30 years is about 6 × $504 = $3,024 a month, before strata, property tax and utilities.
Estimates only. Not mortgage or financial advice. Rules as of October 2026.First Steps Guide · 2
FIRST STEPS GUIDEAndrew Ohara · (604) 537-6353

3How lenders check you

Two tests decide how much you can borrow.

The stress test

Lenders check you could still pay at a higher rate: your rate + 2%, or 5.25%, whichever is higher. At 4.29%, they test you at 6.29%.

The two limits

  • Housing costs (mortgage, property tax, heat and half the strata fee): no more than 39% of your income before tax.
  • All your debts together: no more than 44%.
Less than 20% down? You'll need mortgage insurance: 2.80% to 4.00% of the loan, added to your mortgage, not paid up front, on homes under $1.5 million. Taking 30 years (CMHC calls it Home Start) adds 0.20%: 3.00% instead of 2.80% at 15% down.

4Closing costs, explained

The cash you need on top of your down payment. Typical amounts in Metro Vancouver and the Fraser Valley.

Property transfer taxB.C.'s tax when a home changes hands: 1% on the first $200,000, 2% up to $2 million, 3% to $3 million, 5% above. A newly built home you'll live in: none up to $1,100,000 (up to $20,000 off), less up to $1,150,000, for citizens and PRs.
Example: $13,580on $779,000
Lawyer or notaryMoves the title into your name and the money where it needs to go.
$1,200–$2,000
Home inspectionBefore you firm up your offer. Condos cost less, detached houses more.
$400–$800
AdjustmentsProperty tax and strata fees the seller prepaid, settled on the day you take over. Can be a credit or a cost, depending on the date.
Varies
Closing costs usually run 1.5% to 4% of the price. Lenders like to see at least 1.5% set aside, on top of your down payment.
Estimates only. Not mortgage or financial advice. Rules as of October 2026.First Steps Guide · 3
FIRST STEPS GUIDEAndrew Ohara · (604) 537-6353

5New to Canada?

What your status means for buying.

Citizens and permanent residents

You can buy like anyone else. Lenders have programs for newcomers with a short credit history.

On a work permit

You can buy one home if your permit has at least 183 days left on the day you buy (federal rule, in place to January 1, 2027).

Not a citizen or PR

In Metro Vancouver, the Fraser Valley, the Capital Region, Central Okanagan and Nanaimo there's an extra 20% transfer tax, with some exemptions, such as B.C. Provincial Nominees.

Under the federal ban

Most other non-Canadians can't buy a home until January 1, 2027. Talk to Andrew before you start.

6First-time buyer?

The breaks you may get.

Less transfer tax

No tax on the first $500,000: up to $8,000 off on homes up to $835,000, less up to $860,000. For citizens and PRs who've lived in B.C. a year (or filed two B.C. tax returns) and never owned a home anywhere.

30 years to pay

Instead of 25, for a lower monthly payment, if you haven't owned a home in 4 years or the home is newly built. With 20% down, anyone can ask.

No GST on a new home

Buying a newly built home? First-time buyers get the 5% GST back, up to $50,000, on homes up to $1 million, less up to $1.5 million.

Savings you can use

A First Home Savings Account: $8,000 a year ($40,000 in total), tax-free in and out. The RRSP Home Buyers' Plan: borrow up to $60,000 and pay it back over time.

Estimates and general information only. Not mortgage, financial or legal advice. Andrew Ohara is a REALTOR®, not a licensed mortgage broker. Rules as of October 2026.First Steps Guide · 4