For buyers
Buyer's guide to British Columbia
Everything you need to know about down payments, mortgage insurance, the stress test, and first-time buyer programs in BC.
Key numbers for BC buyers
The essential figures you'll need before you start
Minimum down payment
5%
For homes under $500K. Between $500K–$1M, it's 5% on the first $500K and 10% on the rest. Over $1M requires 20%.
Mortgage insurance (CMHC)
2.8–4.0%
Required when your down payment is under 20%. Premium ranges from 2.8% (15% down) to 4.0% (5% down) of your mortgage amount.
Stress test rate
Rate + 2%
All buyers must qualify at their contract rate plus 2%, or the Bank of Canada benchmark — whichever is higher.
Max amortization
25–30 yrs
Standard maximum is 25 years. First-time buyers or new construction buyers may qualify for up to 30 years.
Property taxes
0.5–1.5%
Annual property tax in BC typically ranges from 0.5% to 1.5% of assessed value. The Home Owner Grant can reduce this.
What every BC buyer should know
Mortgages, costs, and programs explained
Down payment rules
In BC, you need a minimum 5% down payment for homes under $500,000. For homes between $500,000 and $1 million, you need 5% on the first $500,000 and 10% on the remainder. Properties over $1 million require 20% down.
Mortgage insurance (CMHC)
If your down payment is less than 20%, you'll need mortgage default insurance (often called CMHC insurance). The premium ranges from 2.8% to 4.0% of your mortgage amount and is added to your loan. This applies to homes purchased for under $1.5 million.
The mortgage stress test
All Canadian homebuyers must qualify at either their contract mortgage rate plus 2% or the Bank of Canada's benchmark rate, whichever is higher. This ensures you can still afford payments if rates increase.
Monthly payment breakdown
Your mortgage payment covers principal and interest. On top of that, budget for property taxes (0.5–1.5% of value annually), home insurance ($75–200/month), and strata fees if buying a condo or townhouse.
Amortization period
A longer amortization (30 years) means lower monthly payments but more total interest. A shorter period (15 years) means higher payments but significant interest savings and faster equity building. Standard max is 25 years; first-time buyers may qualify for 30.
First-time buyer programs in BC
The First Time Home Buyers' Program may exempt you from property transfer tax. The First Home Savings Account (FHSA) lets you save tax-free for your down payment. The Home Owner Grant reduces property taxes by up to $770 annually.
Common buyer questions
Click any question to get an instant answer
How much down payment do I need in Vancouver?
5%, 10%, or 20% — it depends on the price
What is CMHC mortgage insurance?
Required if your down payment is under 20%
What are closing costs in BC?
Property transfer tax, legal fees & more
Do I qualify for the First Time Home Buyers' Program?
Tax exemptions, FHSA & grants
What does the mortgage stress test mean for me?
Qualification rules that affect your budget
How does amortization affect my payments?
15 vs 25 vs 30 years — trade-offs explained
Which neighbourhoods are best for families?
Schools, parks & community
Should I buy a condo or townhouse?
Compare property types & strata fees
How do I find a good agent in Vancouver?
What to look for in a realtor
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