Many buyers can purchase a home with as little as 5% down, although a larger down payment can reduce borrowing costs and may eliminate the need for mortgage insurance. While every situation is different, many buyers aim for a 20% down payment when possible.

• $600,000 home

• 5% down: $30,000

• 20% down: $120,000

• $1,000,000 home

• 5% down: $50,000

• 20% down: $200,000

• $2,000,000 home

• 20% down: $400,000

The amount you need will depend on the purchase price, your financing options, and your individual circumstances. Check with a mortgage professional.

Yes. Getting pre-approved before you start house hunting helps you understand your budget and avoid falling in love with a home that may be outside your price range.

A pre-approval also strengthens your position when making an offer. Sellers are more likely to take your offer seriously when your financing is already in place. Without a pre-approval, your offer may require longer subject periods and can be less competitive if multiple offers are being considered.

While the early stages of buying a home can feel slow, things often move very quickly once you find the right property. Having your financing organized in advance allows you to act confidently when the right opportunity comes along.

In addition to your down payment, buyers should budget for closing costs. These are expenses associated with completing the purchase of a home and can vary depending on the property and your situation.

Common closing costs may include:

• B.C. Property Transfer Tax

• GST on newly constructed homes

• Lawyer or notary fees

• Property tax adjustments

• Strata fee adjustments (for condos and strata titled property)

Some buyers may qualify for exemptions, rebates, or first-time home buyer incentives. Because these programs and eligibility requirements can change over time, this guide does not attempt to list specific programs. Your mortgage professional and real estate agent can help you understand which incentives may apply to your situation.

An insured mortgage is a mortgage where the down payment is less than 20% of the purchase price. In these situations, mortgage insurance is typically required and the cost is added to the mortgage.

While an insured mortgage does increase borrowing costs, it can also help buyers enter the market sooner. For many first-time buyers, saving a 5% down payment is far more achievable than saving 20%.

For example, a buyer with $40,000 saved today may be able to purchase a home now, while waiting to save $160,000 could take years. During that time, home prices may also change. Every situation is different, but many homeowners enter the market with less than 20% down and begin building equity sooner.

A mortgage professional can help you compare the costs and benefits of each option based on your financial situation.

Yes. Depending on your situation, there may be exemptions, rebates, tax credits, savings plans, and other incentives available to help first-time home buyers purchase a home.

In some cases, these programs can save buyers thousands or even tens of thousands of dollars. Those savings may help reduce upfront costs, increase your purchasing power, or make it possible to consider a newer home that may have otherwise been outside your budget.

Because these programs, eligibility requirements, and benefit amounts can change over time, this guide does not attempt to list specific programs. Before purchasing a home, speak with your mortgage professional and real estate agent to learn which incentives may apply to your situation.