Guide to buying your first home.
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Should I rent or buy?

How do I save for my down payment?

How much home can I afford?

What do I need to get a pre-approval?

How do I pick a mortgage type?

What happens after I make an offer?

What’s next?

LIMITED TIME RATES

Rates as low as 4.09%* when you pre-qualify or apply for a new insured mortgage today. Terms of 3 to 5 years available. Terms & conditions apply.

Get this rate

What’s my home buying power?*

Step 1: Get started

Determine your budget.

Maybe you already know you want: 1 bed, 1 bath, by a Skytrain. Your realtor may then ask about your price range. To get a rough idea, start with entering your income, down payment, and other information in the mortgage calculator.

Helpful read if you’re stuck:

Ask a specialist instead

Calculate your home buying power.*

Calculate:

     

    Go to full mortgage calculator

    Step 1: Get started

    Find out how much home you can afford.

    Maybe you already know you want: 1 bed, 1 bath, by a Skytrain. Your realtor may then ask about your price range. To get a rough idea, start with entering your income, down payment, and other information in the mortgage calculator*.

    Helpful read if you’re stuck:

    Ask a specialist instead

    Step 2: Manage your down payment

    A down payment can be as low as 5% of the purchase price.

    If you have less than 20% down payment, then you must get an insured mortgage. Sometimes, the interest rate on an insured mortgage can be lower. What costs less overall depends on a few factors. Leave the guess work out and get pre-approved.

    Get pre-approved

    Besides saving for your down payment, you should set aside money for other one-time expenses at the time of purchase, and future homeowner expenses.

    Step 3: Estimate

    You might be able to afford a home valued at:

    This is only a rough estimate based on high-level numbers entered in the calculator*. If you’re ready to start house-hunting, it might be time to get pre-approved. You’ll know the maximum amount you can borrow and the interest rate you’ll pay on a mortgage.

    Get pre-approved

    Step 4: Other considerations

    Also take into account:

    • Your debt service ratio
      If your debt and future mortgage payments are greater than 44% of your income, it could be more difficult to qualify.
    • Costs other than the mortgage
      One time costs to complete the purchase and future monthly costs that should be considered in your budget.
    • Government incentives
      Use programs offered to lighten your load.
    • Appraisal value
      The market value of your home determined through an appraisal that’s ordered by the lender as part of the loan approval process.
    Meet with a specialist

    Other affordability factors

    Back to calculator

    Talk to a specialist

    How to estimate your debt service ratio.

    Your total debt service ratio is the ratio of your debt to gross income. It's one of the ways you can understand how much you can afford for a new home, while making sure that live within your means and don't take on too much debt or financial risk.

    Keep in mind that this is only an estimate. To understand what you're qualified for, reach out to one of our Mobile Mortgage Specialists.

    Monthly mortgage payments

    Use our mortgage calculator to get an idea of what your payments could be.

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    Monthly housing-related costs

    Include condo fees, property taxes, mortgage insurance and heating costs. Read our break down of additional housing costs for a full list.

    +
    Debt payments

    Consider credit card debt, car loans and student loans.

    =
    The total should not be more than 40% of your gross monthly income.

    To find this number, multiply your gross income by 0.4. Our budget calculator is an easy way to do the math.

    For example

    If your gross income is $4,000, your monthly obligations shouldn't be more than $1,600.

    Your down payment options.

    The size of your down payment will affect your monthly payments and may also come with additional costs. To estimate how much you could put down, use our mortgage calculator

    High-ratio down payment

    When you put down less than 20% of the home's purchase price, your mortgage is considered a high-ratio mortgage. This means you'll need:

    • A mortgage amortization period that's no longer than 30 years
    • Mortgage default insurance to protect your lender in case you can't make a payment

    You can use our mortgage calculator to estimate the cost of insurance premiums, which are based on the size of your down payment. You can choose to pay in a lump sum on closing or installments over the length of your mortgage.

    Learn more about how to build your down payment

    Conventional down payment

    When you put down 20% or more of the home's purchase price, your mortgage is considered a conventional mortgage. This means you:

    • Can choose to have an amortization period of up to 30 years
    • Don't have to pay for additional mortgage default insurance

    Learn more about how to build your down payment

    Are you a newcomer to Canada?

    Non-permanent residents must make a minimum down payment of 10% of the purchase price. Permanent residents can make a minimum down payment of 5% of the first $500,000 of lending value and 10% of the remainder of the lending value up to a maximum value of $1 million. The CMHC has a newcomer program that can help with finding affordable housing.

    Additional buying and housing costs.

    On top of your down payment and your monthly mortgage payments, here are other costs you should be aware of in your home-buying journey.

    You won't have to include these costs when calculating your total debt service ratio, because you'll only pay them once, but keep them in mind when figuring our your budget.

    Purchase fees

    • Home inspection fees
      Although it's not required, you may want to have the home inspected by a certified inspector.

    Closing costs

    • Legal fees
      You'll need a lawyer or notary to register the mortgage and complete the legal documents.
    • GST/PST
      If the home is new and has never been sold before, you'll be charged sales tax on the purchase.
    • Property transfer tax
      You may need to pay tax of 1% on the first $200,000 of the home's purchase price and 2% on the balance. Check the Government of BC's First-Time Home Buyers' program to see if you are exempt from this fee.
    • Appraisal fees
      The appraisal determines the value of the home you plan to buy.

    Optional costs

    • Renovations
      Is your house move-in ready or a fixer upper? Consider any renovations you plan to do in the near or far future.
    • Moving costs
      Whether you're hiring professional or leaning on friends, factor in the costs of transferring your belongings to your new home.

    Insurance

    • Home insurance
      Home insurance protects your home and its personal contents.
    • Payment protection insurance
      To make sure your mortgage balance is paid in case of unexpected events, like death, disability, illness or job loss, Vancity's insurance coverage is highly recommended.

    Other fees

    • Strata fees
      Maintenance fees must be paid monthly on the purchase of a townhome or condominium. The fees are based on the size of your unit and set by your strata council.
    • Property tax
      This must be paid annually on any home you own in BC directly to your municipality. If you'd like help budgeting or saving for this payment, speak to one of our Mobile Mortgage Specialists.
    • Utilities
      Depending on the services available in your area, you may need to pay separate bills for heating, electricity, water and other services.

    Government programs for first-time home buyers.

    First Home Savings Account (FHSA)

    A tax-free account that lets you grow your savings through market and interest-earning investments while you save up for your down payment.

    First-time home buyers' program

    The First-Time Home Buyers' Program is a provincial program that reduces or eliminates the amount of property transfer tax you pay when you buy your first home.

    Home buyers' plan

    The Home Buyers' Plan (HBP) is a federal program that allows you to withdraw funds from your Registered Retirement Savings Plans (RRSPs) to buy or build your first home.

    Take the next step.

    Find a specialist near you

    Interested in a new mortgage or refinancing? Browse our mortgage specialists to connect with someone in your area.

    Browse our directory

    Talk through your questions

    For general mortgage inquiries or help with renewing your mortgage, book a time that works for you and we’ll give you a call back.

    Book a phone appointment