Shirin Teimoory
Mortgage Broker · Vancouver / Tri-Cities
First-Time Buyer Checklist for British Columbia (2026)
A no-fluff guide written by a licensed BC mortgage broker. Use it once and refer back any time.
1. Six Months Before You Buy
- Pull your credit report (free at Equifax & TransUnion). Aim for 680+ for the best rates.
- Stop opening new credit cards, financing furniture, or co-signing for anyone.
- Save your most recent 3 months of pay stubs, T4s, and Notice of Assessment.
- Calculate your real monthly take-home and decide a max housing payment you'd be comfortable with — not the one a bank will approve you for.
2. Three Months Before — Get Pre-Approved
- Talk to a mortgage broker (not just your bank — brokers shop 30+ lenders for you).
- Get a written pre-approval with rate hold (usually 90–120 days).
- Confirm your maximum purchase price after CMHC insurance and the BC stress test.
- Choose a real estate agent who knows your target neighbourhood.
3. Down Payment Rules in Canada
| Home Price | Minimum Down Payment |
|---|
| Up to $500,000 | 5% |
| $500,001 – $1,500,000 | 5% on first $500K + 10% on the rest |
| Over $1,500,000 | 20% (no CMHC insurance available) |
Example: $800,000 home → 5% × $500K + 10% × $300K = $25,000 + $30,000 = $55,000 minimum down payment.
4. CMHC Mortgage Default Insurance
Required when your down payment is less than 20%. Premium is added to your mortgage.
| Down Payment | CMHC Premium (% of mortgage) |
|---|
| 5% – 9.99% | 4.00% |
| 10% – 14.99% | 3.10% |
| 15% – 19.99% | 2.80% |
| 20% + | None |
5. The Mortgage Stress Test
Every federally regulated lender must qualify you at the higher of (a) your contract rate + 2%, or (b) the Bank of Canada benchmark rate. This is true for fixed and variable, insured and uninsured mortgages.
- Affects how much you can borrow — not what you'll actually pay.
- If you fail the stress test, options include a larger down payment, paying off other debts, or adding a co-signer.
6. Closing Costs to Budget For (1.5%–4% of price)
- BC Property Transfer Tax (1% on first $200K + 2% on rest, up to $2M).
- Legal/notary fees: $1,200–$2,000.
- Home inspection: $400–$700.
- Property appraisal (if required): $300–$500.
- Title insurance: $200–$400.
- Adjustments (property tax, strata fees) prepaid by seller.
- Moving costs: $500–$3,000.
7. BC First-Time Buyer Incentives & Rebates
- BC First-Time Home Buyers' Program — full PTT exemption on homes up to $835,000 (partial up to $860,000).
- Newly Built Home Exemption — PTT exemption on new builds up to $1,100,000.
- Federal First Home Savings Account (FHSA) — contribute up to $8K/year, $40K lifetime; tax-deductible & tax-free withdrawal for a home purchase.
- RRSP Home Buyers' Plan — withdraw up to $60,000 tax-free toward a first home.
- First-Time Home Buyers' Tax Credit — $1,500 federal tax credit when you file.
8. Documents Every Lender Will Ask For
- Government photo ID for all applicants.
- Last 2 years of T4s and Notice of Assessment.
- Most recent 30 days of pay stubs.
- Letter of employment (with salary, position, start date).
- 3 months of bank statements showing down payment savings.
- Gift letter (if any of the down payment is gifted).
- For self-employed: 2 years of T1 Generals + business financials.
- Purchase contract & MLS listing once you have an accepted offer.
9. Red Flags to Avoid Between Pre-Approval and Closing
- Don't change jobs, even for a raise — unless you've already closed.
- Don't make any large unexplained deposits to your bank account.
- Don't finance a car, furniture, appliances, or anything on credit.
- Don't apply for new credit cards or take cash advances.
- Don't miss any minimum payments on existing debt.
Bottom line: Pre-approval is conditional. Lenders re-verify everything 3–5 days before closing. Keep your finances boring until the keys are in your hand.