Buying Your First Home in BC: What to Know
Researched and updated 24 October 2026. Monetary examples use Canadian dollars.
Before buying your first BC home, establish three separate amounts: what a lender may approve, what your household can sustain each month, and the cash you need to complete the purchase. They are not the same number.
Minimum down payment is only the starting point
| Hypothetical purchase price | Federal minimum down-payment calculation |
|---|---|
| $600,000 | $25,000 on the first $500,000 + $10,000 on the next $100,000 = $35,000. |
| $1,000,000 | $25,000 + $50,000 = $75,000. |
| $1,500,000 | At this threshold, at least 20% of the whole price = $300,000. |
For homes below $1.5 million, the federal minimum is 5% on the first $500,000 and 10% on the remainder. At $1.5 million or more, it is 20%. Lenders can require more, and mortgage default insurance generally applies below 20%, subject to eligibility. Obtain a current lender assessment.
Build a completion-cash worksheet
- Down payment and any financing-related cash requirements.
- Property transfer tax after any exemption for which you qualify.
- Legal or notary work, inspection and relevant property-document review.
- Adjustments for prepaid property costs and applicable purchase taxes.
- Moving, setup and a reserve remaining after completion.
Understand the first-time buyer tax benefit
BC’s first-time home buyers’ property transfer tax program has eligibility conditions. For qualifying purchases up to $500,000, the ordinary tax can be fully exempt. Above $500,000 and up to $835,000, the exemption applies to the first $500,000—a benefit of $8,000—not automatically to the entire purchase price. A partial benefit applies above $835,000 and below $860,000. Check current criteria and your ownership and residency history.
Approval does not prove comfort
OSFI’s minimum qualifying rate for uninsured mortgages is generally the higher of the contract rate plus two percentage points and 5.25%, with specific exceptions. Passing qualification does not budget for your childcare, debt, maintenance or savings. Use the property’s strata fees, tax, insurance and anticipated repairs in a separate household plan.
Keep due diligence before commitment
Review the offer and conditions with qualified professionals. BC’s home buyer rescission period applies to certain residential purchases and has exceptions; the usual three-business-day right carries a 0.25% rescission fee. It does not replace financing, inspection or document review. Confirm what applies to the specific transaction before relying on it.
Frequently asked questions
Is a home priced at $835,000 entirely free of transfer tax for every first-time buyer?
No. Eligibility matters, and the current benefit at that price generally exempts tax on the first $500,000 rather than the whole price.
Is the down payment all the cash I need?
No. Add closing costs, adjustments, moving and a reserve.
Is lender approval my household budget?
No. Test complete running costs against your actual take-home pay and commitments.