In BC (and across Canada), the minimum down payment depends on the price of the home:

5% for homes up to $500,000
10% on the portion between $500,000 and $1,500,000
20% for homes over $1,500,000
If your down payment is under 20%, mortgage default insurance is usually required.

Pre-Qualification vs. Pre-Approval

Pre-Qualification is the first step. It’s usually a quick estimate of what you may be able to afford, based on information you provide about your income, debt, and assets. There’s no credit check or verification, so it’s more of a guideline than a guarantee.

Pre-Approval is more official. The lender reviews your documents (income, employment, credit history, etc.) and gives you a written confirmation of how much they’re willing to lend. Having a pre-approval strengthens your offer when buying, because sellers know you’re serious and financially ready.

Your credit score plays a big role in how much you’ll pay for your mortgage. A higher score shows lenders that you’re responsible with credit, which often means:

Lower interest rates → saving you money over the life of your mortgage.
More mortgage options → easier approval and flexibility with terms.
A lower score doesn’t mean you can’t get a mortgage, but you may face:

Higher interest rates (costing more each month and long term).
Stricter conditions or larger down payment requirements.

In short: the stronger your credit score, the better your borrowing power.

Closing costs are the fees and expenses you pay when finalizing the purchase of a home, in addition to your down payment. These can include:

Legal fees for your lawyer or notary
Property transfer taxes (varies by province)
Home inspection and appraisal fees
Title insurance and registration fees
Mortgage-related fees (like lender fees or mortgage insurance if applicable)
How much should you expect to pay?

First-time home buyers may benefit from rebates or exemptions (for example, the BC First-Time Home Buyers’ Program), which can reduce property transfer taxes.
Typical range: 1.5% to 4% of the home’s purchase price.
For example:

Buying a $500,000 home could mean closing costs of roughly $7,500 to $20,000 depending on your situation.

The timeline can vary, but a typical home purchase in BC looks like this:

Getting pre-approved & house hunting: 1–6 weeks (sometimes longer depending on the market and your preferences)
Making an offer and negotiating: 1-2 days
Mortgage approval, inspections, and legal work: 7-15 days
Closing (finalizing the purchase): 1 day
Typical total: about  3-6 weeks from starting your search to moving in, though it can be faster or slower depending on the market, your financing, and your schedule.

Being self-employed or having irregular income doesn’t stop you from buying a home. Lenders typically ask for 2–3 years of tax returns and proof of consistent income. With the right preparation, you can still get a mortgage and achieve your homeownership goals.

Your monthly mortgage payment usually covers several key components:

Principal: The portion that reduces the amount you owe on your home.
Interest: The cost of borrowing from your lender.
Property taxes: Paid to your municipality, often included in your mortgage payment.
Home insurance: Protects your home and belongings, sometimes bundled with your payment.
Mortgage insurance (if applicable): Required if your down payment is less than 20%.
Tip: Always check your mortgage statement so you know exactly what’s included.

A 2-1 buydown is a mortgage financing option that temporarily lowers your interest rate for the first two years of your loan:

Year 1: Interest rate is 2% lower than your standard rate.
Year 2: Interest rate is 1% lower than your standard rate.
Year 3 and beyond: Interest rate returns to your full mortgage rate for the remainder of the loan.
How it works: The seller, builder, or borrower pays upfront to “buy down” the interest rate, giving you lower monthly payments at the start. This can make your first few years of homeownership more affordable.

The cost of a 2-1 buydown is usually paid upfront and can come from different sources:

Seller: Often in new home sales, the builder or seller may cover the cost to make the home more attractive.
Buyer: You can choose to pay for it yourself at closing to lower your initial monthly payments.
Lender: Some lenders may offer promotions or options to cover part of the cost, but it’s less common.
Essentially, someone pays upfront so the borrower enjoys lower interest rates during the first two years of the mortgage.

The amount you can borrow for a home depends on your income, debts, credit score, and down payment. Lenders use two main ratios to decide:

Gross Debt Service (GDS) Ratio: How much of your income goes toward housing costs (mortgage, taxes, insurance). Usually, lenders like this to be no more than 32–35% of your gross income.
Total Debt Service (TDS) Ratio: How much of your income goes toward all debts, including credit cards, car loans, and your mortgage. Usually, lenders like this to be no more than 40–44%.
Tip: Use online mortgage calculators to get an estimate, but a lender pre-approval will give you a more accurate number based on your personal finances.