10 ESSENTIAL TIPS EVERY FIRST-TIME HOME BUYER SHOULD KNOW

1. Get Pre-Approved for a Mortgage

Before you start browsing listings, get pre-approved by a lender. It tells you how much you can afford, locks in an interest rate, and shows sellers that you’re serious.

Tip: Compare offers from different lenders or mortgage brokers even a 0.25% rate difference can save you thousands over time.

2. Understand the Full Cost of Buying

The purchase price isn’t the whole story. You’ll also pay for:

• Property transfer tax (PTT)

• Legal fees

• Home inspection

• Appraisal

• Title insurance

Budget an extra 2–5% of the purchase price to cover these closing costs.

3. Know Your Down Payment Options

In Canada:

• Minimum 5% down for homes under $500,000

• 10% on the portion between $500,000–$999,999

• 20% for homes over $1M

If you’re a first-time buyer, explore the Home Buyers’ Plan (HBP) or First Home Savings Account (FHSA) to boost your down payment with tax advantages.

4. Take Advantage of First-Time Buyer Incentives

BC and the federal government offer several programs:

• First-Time Home Buyers’ Program (PTT exemption)

• First Home Savings Account (FHSA)

• Home Buyers’ Plan (HBP)

• First-Time Home Buyer Incentive (shared-equity program)

These can save you thousands upfront.

5. Research Neighbourhoods Thoroughly

Beyond price, think about schools, transit, safety, commute, and future developments. Visit potential areas at different times of day, and chat with locals if possible.

6. Never Skip the Home Inspection

A home inspection can reveal costly issues like roof damage, mold, or foundation problems. Spending $400–$600 now could save you tens of thousands later.

7. Plan for Future Rate Changes

Interest rates fluctuate, make sure your budget can handle a possible increase when your mortgage term renews.

Tip: Use a mortgage stress test calculator to see if you’d still qualify at a higher rate.

8. Review the Strata Documents (If Buying a Condo or Townhouse)

In BC, strata ownership comes with shared responsibilities. Carefully review:

• Depreciation report

• Bylaws

• Meeting minutes

• Reserve fund health

You don’t want to be surprised by special assessments or rule restrictions later.

9. Understand the Closing Process

After your offer is accepted:

1. Finalize your mortgage approval

2. Complete inspections and appraisals

3. Sign legal documents

4. Pay your down payment and closing costs

5. Get your keys on Completion Day!

Having a trusted real estate lawyer or notary is essential here.

10. Think Long-Term

Buy a home that fits your future lifestyle, not just your current one. Whether it’s space for a growing family or proximity to work, plan for at least 5–10 years of living there to maximize your investment.

Buying your first home in BC is a huge milestone and a big financial decision. With preparation, research, and the right support team, you can avoid common pitfalls and make confident, informed choices.