Mortgage advice · British Columbia
Your first home: the budget, the down payment and the next step.
For your first home, start with three things: a monthly cost you can manage, the cash needed to close and the income a lender can verify. Our BC mortgage brokers help you connect those pieces, compare mortgage choices and prepare before an offer.
Free initial consultation · Licensed BC brokerage · Fees explained upfront
Three pieces of your first-home budget
Work through all three before settling on a purchase price. A down payment alone does not establish mortgage approval.
| Option | When to consider it | What to check |
|---|---|---|
| Monthly affordability | The full housing cost leaves room for living expenses and savings. | Include property tax, heating, insurance, strata fees and maintenance, not just the mortgage payment. |
| Cash to close | You have documented funds for the down payment and closing costs. | Check deposit timing, legal costs, tax and adjustments. A gift or withdrawal needs supporting records. |
| Lender qualification | Income and existing debts support the proposed mortgage. | Income review, credit history, stress-test requirements and property approval affect the final result. |
How much down payment do you need in Canada?
For an eligible owner-occupied purchase under $1.5 million, the general minimum is 5% on the first $500,000 and 10% on the portion above it. At $1.5 million or more, at least 20% is required. Lenders and property circumstances may require more.
For example, the general minimum on a $750,000 home is $50,000: $25,000 on the first $500,000, plus $25,000 on the rest. Below 20% down, mortgage default insurance is usually required. Budget for that cost separately from your closing cash.
Understand down payment and mortgage insurance →Which first-home programs should you check?
An FHSA and the RRSP Home Buyers’ Plan may help eligible buyers build or use savings. Their account, withdrawal and first-time-buyer rules differ. Check the requirements before relying on the money for a deposit or closing.
BC property transfer tax exemptions and new-home programs also have their own conditions. Being a first-time buyer does not automatically exempt every property or tax. Ask your lawyer or notary to confirm the amount due on your specific purchase.
Explore first-home programs and eligibility →Does pre-approval mean you can remove financing conditions?
No. Pre-approval reviews a borrowing scenario; the lender must still accept the property and complete its conditions. A purchase price, appraisal, property issue or change in your finances can affect final approval.
Before making an offer, discuss the financing timeline with your broker and real estate professional. Know which documents are still needed and what has actually been approved.
Understand the stages of mortgage approval →Make the first conversation useful
What to have handy
- Income records and a list of monthly debt payments
- Savings statements and the source of your down payment
- Any gift, FHSA, RRSP or sale funds you plan to use
- Your comfortable monthly budget and preferred buying timeline
Bring your questions even if you are still saving. Planning early helps you know what to work toward.
Full mortgage document checklist →Send financial documents through our secure application when your broker asks for them.
Try the numbers first
Turn a home price into a starting point.
See the general minimum down payment, then add closing costs and check the full monthly budget. This estimate does not determine approval.
Explore what you could afford →Start with one number
Your down payment, decoded.
5% on the first $500,000, plus 10% on the amount above $500,000.
Owner-occupied purchase illustration. Lenders may require more. Closing costs and mortgage insurance are additional.
Add taxes and closing costs →Common questions
First-time home buyer mortgages, explained.
General Canadian mortgage information. Lender rules and your circumstances determine the options available to you.
Can I buy my first home with 5% down?
Often yes. The exact minimum depends on purchase price, and the file still has to work with mortgage-insurance rules, lender policy, and the full cash-to-close plan.
How much income do I need to buy my first home?
It depends on income, debts, rates, taxes, condo fees, and the mortgage stress test. The practical starting point is your comfortable payment range, then the lender math behind it.
How much cash do I need beyond the down payment?
Usually more than the down payment alone. Deposits, legal fees, closing costs, tax adjustments, insurance-related costs, and moving expenses can all matter before closing day.
What first-time home buyer programs are available in Canada?
Common planning options include the FHSA, RRSP Home Buyers' Plan, the Home Buyers' Amount tax credit, and property-specific relief or rebates. Which ones help depends on the buyer, the property, and the timing.
Can I use FHSA and RRSP Home Buyers' Plan funds together?
Sometimes yes, but they do not work the same way. They should be compared against your savings timeline, tax position, and overall first-home cash plan before you decide how to use them.
Should I get pre-approved before I start looking at homes?
Usually yes. A cleaner pre-approval helps you shop inside the right range and reduces the risk of falling in love with the wrong home or the wrong payment.
Can I use a gift from family for my down payment?
Often yes, but the lender will usually want the gift documented properly. It is much easier to prepare the gift letter, account history, and transfer trail before the offer stage.
Can I qualify with student loans or limited credit history?
Sometimes yes. The answer depends on the rest of the file, the down payment, the income strength, and which lenders fit the scenario best.
What happens after my offer is accepted?
The work usually shifts to lender conditions, underwriting, appraisal, legal, and confirming the real cash needed before closing. That is why first-time buyer support should continue after the offer, not stop at pre-approval.
A clearer decision starts here.
Tell us your situation. We’ll explain the next step and the options worth comparing.