Buying your first home in British Columbia is exciting, but it can also feel overwhelming. Between mortgage approval, the down payment, the deposit, closing costs, inspections, and government programs, there is a lot to understand before you begin viewing properties.

This guide explains the main programs and practical steps that can help first-time buyers prepare for a purchase in South Surrey, White Rock, Langley, Cloverdale, and communities throughout the Lower Mainland.

What Counts as a First-Time Home Buyer?

The definition of a first-time buyer is not identical for every program. Some programs consider whether you have ever owned a principal residence anywhere in the world, while others use a specific look-back period. A spouse or common-law partner’s ownership history may also affect eligibility.

Do not assume that qualifying for one program automatically means you qualify for every other program. Confirm the rules separately with your mortgage professional, lawyer or notary, and tax adviser.

1. BC First-Time Home Buyers’ Property Transfer Tax Program

Qualified buyers may reduce the Property Transfer Tax payable when their purchase is registered. For registrations on or after April 1, 2024, the home must generally:

• Be used as your principal residence

• Have a fair market value of $835,000 or less for the regular exemption, with a partial exemption potentially available from $835,000 to $860,000

• Be 0.5 hectares (1.24 acres) or smaller

• Contain only residential improvements

The exemption covers the Property Transfer Tax calculated on the first $500,000 for a qualifying purchase. This means a buyer purchasing above $500,000 may still owe some tax even when eligible.

Buyers must meet the program’s citizenship or permanent-residency, BC residency, and previous-home-ownership requirements. For an existing home, the buyer generally must move in within 92 days of registration and continue occupying it as a principal residence during the required first-year period.

Check the official BC First-Time Home Buyers’ Program

2. First Home Savings Account

The First Home Savings Account, or FHSA, lets eligible first-time buyers save for a qualifying home. Contributions are generally tax-deductible, and qualifying withdrawals—including investment growth—can be tax-free.

• Annual participation room begins at $8,000 in the year you open your first FHSA

• The lifetime contribution limit is $40,000

• Unused participation room may be carried forward, subject to the program rules

FHSA room only begins after the account is opened, so buyers who expect to purchase in future years may want to discuss opening one with a qualified financial professional even if they are not ready to buy today.

Learn about FHSAs from the Canada Revenue Agency

3. Home Buyers’ Plan

The federal Home Buyers’ Plan may allow an eligible buyer to withdraw up to $60,000 from an RRSP to buy or build a qualifying home. Unlike a qualifying FHSA withdrawal, money withdrawn under the Home Buyers’ Plan must generally be repaid to the RRSP over a period of up to 15 years.

Eligible buyers can use both the FHSA and the Home Buyers’ Plan for the same qualifying home, provided all requirements are satisfied. Special timing rules apply, including rules involving recent RRSP contributions, so speak with your financial or tax adviser before withdrawing funds.

Review the Home Buyers’ Plan

4. Federal Home Buyers’ Amount

Eligible purchasers may be able to claim the federal Home Buyers’ Amount on their income tax return. This is a non-refundable tax credit that may reduce federal income tax owing by up to $1,500. If two eligible people purchase together, the claim may be shared, but the combined claim cannot exceed the program limit.

Review the federal Home Buyers’ Amount

How Much Down Payment Do You Need?

The federal minimum down payment depends on the purchase price:

• $500,000 or less: at least 5% of the purchase price

• More than $500,000 but less than $1.5 million: 5% on the first $500,000, plus 10% on the portion above $500,000

• $1.5 million or more: at least 20% of the purchase price

For example, the minimum down payment on an $800,000 home is $55,000: $25,000 on the first $500,000, plus $30,000 on the remaining $300,000.

A down payment below 20% normally requires mortgage loan insurance. The insurance protects the lender, and its premium is generally added to the mortgage balance.

Review federal down-payment guidance

Your Deposit Is Not the Same as Your Down Payment

The deposit is money delivered after an accepted offer according to the contract terms. It shows the buyer’s commitment to complete the purchase and normally forms part of the total down payment at completion.

In BC, there is no single mandatory deposit amount for every transaction. The amount, due date, and holder of the funds are written into the Contract of Purchase and Sale. Buyers need to know where their deposit money will come from and how quickly it can be transferred before writing an offer.

Get Fully Pre-Approved Before Shopping

A quick online estimate is not the same as a detailed mortgage review. Before viewing homes seriously, speak with a mortgage professional and provide the requested income, debt, employment, credit, and down-payment documents.

A strong pre-approval helps establish a realistic price range, but final financing still depends on the lender approving both the buyer and the specific property. Condos with insurance concerns, unusual properties, leaseholds, rural homes, and properties with major condition issues may require additional review.

Budget for Closing Costs

Your down payment is only one part of the cash required. Buyers should also plan for expenses such as:

• Property Transfer Tax, if no full exemption applies

• Legal or notary fees and title insurance

• Home inspection and specialized inspections when needed

• Property tax, utility, and strata-fee adjustments

• Moving costs and immediate repairs

• GST when applicable, particularly with some new-construction purchases

As a broad planning guideline, the Financial Consumer Agency of Canada recommends preparing for upfront or closing costs of approximately 1.5% to 4% of the purchase price. Your actual costs will depend on the property and transaction.

A Practical First-Time Buyer Roadmap

1. Review your income, debts, credit, savings, and monthly comfort level.

2. Speak with a mortgage professional and obtain a detailed pre-approval.

3. Identify your down payment, deposit funds, and closing-cost reserve.

4. Choose neighbourhoods and property types that match your priorities.

5. Tour homes and compare recent sales with your REALTOR®.

6. Prepare an offer with appropriate price, dates, terms, and conditions.

7. Complete financing, inspection, strata-document, insurance, and legal due diligence.

8. Remove conditions only when you are satisfied and professionally advised.

9. Arrange the remaining funds and sign completion documents with your lawyer or notary.

10. Complete the purchase and receive possession according to the contract.

Buying Your First Home in the Lower Mainland?

The right preparation can make your first purchase more manageable and protect you from expensive surprises. I help first-time buyers understand each step, compare homes, review neighbourhood considerations, prepare offers, and coordinate with mortgage and legal professionals.

If you are planning to buy in South Surrey, White Rock, Langley, Cloverdale, Surrey, or elsewhere in the Lower Mainland, I would be happy to help you build a clear buying plan.

Ilona Crane, REALTOR®
Royal LePage Wolstencroft Realty
Cell: 604-377-9209
Email: soldbyilona@gmail.com
Website: soldbyilona.com

This article provides general information only and is not mortgage, legal, tax, or accounting advice. Program rules, limits, and eligibility requirements can change. Confirm current information and your personal eligibility with the appropriate government department and qualified mortgage, legal, and tax professionals before making financial or contractual decisions.