Last updated: November 4, 2026
Buying your first home comes with a lot of numbers. Most of them only matter once. Here are the ones that actually decide what you can buy and what it costs.
1. Your down payment
The minimum depends on the price. It's 5% on the first $500,000 and 10% on anything above that. At $1,500,000 or more you need 20%.
If you put down less than 20%, you'll pay mortgage default insurance. It protects the lender, not you, but it's what makes a small down payment possible. The premium gets added to your mortgage, and BC doesn't charge sales tax on it.
Minimum down payment
5%
5% on the first $500,000, 10% on the part above that, and 20% on homes of $1,500,000 or more.
Source: CMHC, Home Start (minimum equity 5% of the first $500,000 and 10% of the rest, price below $1.5M, 30-year premium table, first-time buyer definition). Checked Nov 3, 2026.
Under 20% down
2.8% to 4%
Mortgage default insurance is required. CMHC's premium is a share of the mortgage, added to the loan. There's no sales tax on it in BC. The home must cost less than $1,500,000.
Source: CMHC, Premium information for homeowner and small rental loans. Checked Nov 3, 2026.
Longest insured amortization
30 years
For first-time buyers and newly built homes. Everyone else with under 20% down is capped at 25 years. Going past 25 adds 0.2% to the premium.
Source: Department of Finance, mortgage reforms (30-year amortization, $1.5M cap, from Dec 15, 2024). Checked Nov 3, 2026.
2. The stress test
Lenders don't just check whether you can afford your payment. They check whether you could afford it at a higher rate. It's a safety check, and it's the main thing that sets your budget. The affordability calculator runs it for you.
3. Property transfer tax
BC charges a tax when you buy. First-time buyers can skip it on homes up to $500,000, with a smaller break up to $860,000. You have to be a Canadian citizen or permanent resident, have lived in BC for a year (or filed two BC tax returns in the last six years), and never have owned a principal residence anywhere.
First-time buyer tax break
Up to $8,000
BC waives property transfer tax on homes up to $500,000 for eligible first-time buyers, with a partial break up to $860,000.
Source: gov.bc.ca, First time home buyers' exemption, current amount (updated 2025-12-03). Checked Nov 3, 2026.
Newly built home exemption
Up to $1,100,000
No property transfer tax on a qualifying new home you'll live in, up to $1,100,000, with a partial break to $1,150,000.
Source: gov.bc.ca, Newly built home exemption amounts (updated 2025-12-03). Checked Nov 3, 2026.
4. Closing costs
On top of the down payment, you'll need cash for legal fees, an inspection, any property transfer tax and a few adjustments. CMHC's rule of thumb is 1.5% to 4% of the price. The closing costs estimator adds up yours.
Where to start
Get pre-approved before you look. It tells you your real budget and it makes your offer stronger. Book a 15-minute call and I'll walk you through it.
This is general information from Ryan Grafton, Mortgage Broker, not advice for your situation. Estimates only. This isn't advice, a rate quote or a pre-approval. Your real numbers depend on your lender and your approval. Rules as checked on November 4, 2026.
Sources
- CMHC, Home Start: minimum down payment and the price limit, checked November 4, 2026
- CMHC, Premium information: the premium added to the loan, and which provinces charge sales tax on it, checked November 4, 2026
- OSFI, Minimum qualifying rate for uninsured mortgages, checked November 4, 2026
- Government of BC, First time home buyers' exemption: who qualifies, checked November 4, 2026
- Government of BC, First time home buyers' exemption: current amount, checked November 4, 2026
- CMHC, General requirements: closing costs, checked November 4, 2026