Complete Guide to Buy a Home in British Columbia

Buy a Home in British Columbia

How do we define a self-created lifestyle? Owning a handsome bank balance and, of course, becoming a first time home buyer in BC . But do we all reached that level we have dream of? No right. Some of us still wonder how to buy a house in British Columbia since this whole thing is a long process that requires patience and budget-fitting references. 

But do we know if it is the right time for us to jump into this deal or not? We potentially don’t, which is why some attention flags are to be focused on before you execute your house purchasing plan.  Let’s focus on the important facts to track before Buying a first time Home in British Columbia:

Localities like Vancouver have reached a great height in price brackets available for new homes. Whether an apartment or an independent house, the affordability has gone far for commoners. Also, you must have come across the thought that if you can buy it at once, do check when it is your time to become a homeowner. 

Here are some useful resources that may assist you in making a better decision:

    • Consult with a real estate broker or even a mortgage agent
    • Check potential properties rate on rent or property calculator
    • Discuss the plan with close friends or family who own a house already

How to Buy Your Dream House in British Columbia?

first time Home buyer in British Columbia

The above are just the minimal but precise significant steps for first time home in British Columbia. But the journey is larger and longer than it looks. You must go through multiple steps to own a dream abode you worked so hard for. Let us introduce you to certain ways with statistical understanding for you to end up deserving a potential property. 

  • Gear Up for Down Payment

down payment for first time home buyer in british columbia

Down payment is a huge amount of money that helps you initiate the first time home in British Columbia. As per the current housing market, one may have a 20% availability of at least a property of $1,000,000. Considering Vancouver, the average price range of a house is estimated to be $1,150,000. At this cost figure, one has to ensure a down payment of $230,000. Though, purchasing a house above the range of $500,000 property will relieve you with only 5% of the down payment with a 10% increase on every $5000000 to $999999. 

For first time home buyer in BC, one has to be sure not to exceed more than 20% of the down payment compared to the sale rate, as one also has to look for mortgage insurance. 

There is a halfway idea over mortgage down payment ratio that one may have to consider. In contrast, the home buying process in BC: 

    • Mortgage amount of 4 per cent for 5 per cent to 9.99 per cent down payments
    • Mortgage amount of 3.10 per cent for 10 per cent to 14.99 per cent down payment
    • Mortgage amount of 2.8 per cent for 15 per cent to 19.99 per cent down payments 

For effective planning beforehand, it is advisable to take the assistance of a down payment calculator that will clear your doubts about particular properties within a fraction of minutes. 

  • Take the Help of Government Housing Schemes

Government Housing Schemes in BC

When purchasing a home becomes crucial, we lack enough funds and back-hand support. In such cases, few schemes function for first time home buyer in BC, which takes over the financial burden from the commoners. These can be First Time Home Buyers Incentive which allows you to get up to $25000 with home shared equity allotted from the Government of Canada for properties that range up to $722000. 

Another scheme is the Home Buyers Plan, where you may avail service through your RRSP savings at the highest amount of $35000 tax-free for a home down payment. And lastly, British Columbia Property Transfer Tax Rebates, where home owners have conception on taxable benefits on houses ranging upto $ 525000. In addition, for properties up to $500000, owners can transfer their property tax-free! 

  • Self Analysis on Purchase Calibre

Self Analysis on Purchase Calibre for first time home buyer in british columbia
Credit – Big Dog Growlers

If you are a young buyer who has just started your career and has a decent bank balance, there are alternatives to support your plan of buying an abode. But one has to be ready thoroughly with all the ups and downs of the scenarios. No one better than you knows how much money you are making. The basic decision for first time home in British Columbia must rely on a self-examination of affordability. 

In this, some terminologies such as necessary debt services ratio limits, down payment, and credit score will often be vocabs of your discussion. Additionally, the monthly expenses and other luxuries must be compromised from your regular life. Therefore, strict budgeting can be your well-wisher, which you cannot ditch at any cost. 

  • Stable Money In-flow and a High Credit Score

financial CMHC for first home buyer in British Columbia
Credit – Sterling Homes Edmonton

Obviously, engaging oneself in a home buying process in BC is not a simple task. It may ask you to atleast be constant in earning and be stable with your monthly financial balance. This is important in determining whether you can go through the process effectively or have financial loans and problems. 

Besides this, a good credit score can be the key assistant that can allow you to show yourself credit worthy in front of any financial institute. The benefit can be extended to ask from the CMHC, which also provides mortgage insurance to purchasers who need less than $1000000 with a 20% down payment. Remember, your low credit score can ruin your complete strategy of lending money externally and owning a house in British Columbia. 

  • Find Potential Places to Invest 

Find Potential Places to Invest for first home buyer in british columbia
Credit – CTV News Vancouver

First time home in British Columbia should look for sites that can bring them long-term benefits. This will be done only with prominent research on the real estate market and consulting independent agents. This is all because when you invest, you cannot settle with the location for a lifetime. Finding a property site where you can have a home on a friendly budget becomes tougher. But life does change with prosperity, and your prestige depends on where you live. You are left with only an option of focused investment to keep competitive benefits in hand. 

There are some potential steps you are suggested to follow to take a wise decision on how to buy a house in British Columbia: 

    • Performing neighbourhood drive-bys to analyse the actuality,
    • Researching educational institutes on the property’s site,
    • Decide the distance to commute and the duration also public transportation feasibility
    • Perform research on the neighbourhood to check the security aspect of the locality.
  • Consider Closing 

Consider Closing For Time Home Buyer In British Columbia

First time home in British Columbia takes a drawback if the closing cost is not considered at the start of the purchase for the owner. This is because the sale price can be lenient, but the close price may add more unexpected expenses to your budget. Here, subjects such as property transfer tax become crucial as it is taxed and configured as per the marginal value of the property in British Columbia. Thus, analysis of closing costs beforehand will save the owner from further financial shocks so you can lead your life comfortably. 

Here is the percentage a first time home buyer BC can refer to for in-depth understanding: 

Purchase Rate Property’s Transfer Marginal Rate Tax-Fee
Starting with $200000 1.0 per cent
$200000 – $200000 2.0 per cent
$2000000 – $3000000 3.0 per cent
Ends with $3000000 5.0 per cent

Besides this, other involvement that impact closing costs in home buying processing in BC may have:

    • Lawyer and Legal Charges,
    • Property Survey Charges,
    • Home Inspection Charges,
    • Appraisal of Property Charges,
    • Insurance for Title
    • Government Registration Charges
    • Estoppel Certificate Charges
  • Hire a Credible Real Estate Agent

Real Estate Agent

We all wonder how to buy a first time home in British Columbia, right? The real essence comes from the broker or real estate agent you consult regarding any property. They are responsible for discovering the most astonishing property under your budget, which is what they are specialised in. But that does not mean any agent can be worthy of trust. The hidden secret is that these agents are given some targets to fulfill at the end of their tenure. This pressures them to sell some ineffective or worst properties to buyers unaware of these frauds. In such instances, the financial loss can make you a forever loser. 

It is important to be alert to such actions and unwanted surprises. The journey of first time home buyer in BC can be easier, approachable and simpler if your agents are true to you. Here are a few qualities we expect you to know about a professional real estate agent to bring the fruitful result that you deserve: 

    • Provides Reality Check 
    • Gives Moral Support
    • Plan Strategies for Buyers
    • Constant Engagement to Find Properties’ Sites
    • Disclose Neighbourhood Suggestions
    • Quick Drafting and Home Buying Process in BC with Paperwork

We know it is convenient to say that you must find a potential real estate agent. But amidst millions of agencies operating in the market with fake propaganda, the true gems are not yet found easily. One helpful tool in this digital era is the internet, which you depend on for almost everything. Reach out to such websites with impressive ratings and look at genuine feedback of customers who have availed the services from the provider. This can effectively safeguard you from massive mistakes that you may make while home buying processing in BC. 

  • Always Research around Estimated Budget

budget for first home buyer in BC
Credit – Lumina Homes

Wasting time on over-budget properties will get you nowhere. You should always ask your agent to suggest properties in your range. Of course, brokers are no less than the salesman who will give their best manipulative efforts to convince you to expand your budget bracket. But you should not listen to more things than your pocket potential. 

We often get into the trap where extra looks attractive, and we forget the budget and try to enrich our financial planning. Though this is the most disastrous way to overwhelm yourself, this greed has to be controlled while visiting the property sites. Hence, consider only the major needs of your type of property with efficiency. Here are some common checklists you should go through before starting your market research for properties: 

    • Number of bedrooms
    • Number of bathrooms
    • Separate Kitchen Structure
    • Basic location
    • Type of property: Flat/ independent house
    • Type of Architecture 
    • Additional rooms or lobby area
    • Landscape View 
    • Smart Equipment 
  • Wrap Your Belongings with Closing Cost Payment

Closing Cost Payment
Credit – Fortune builders

Finally, you have reached the moment of moving to a new self-owned home from your old one. After that, you have made a comparison and a payment on your new property; you also have to pay a closing amount. But this will not be a tough job if you sincerely planned your overall budget when ready for a house buying process in BC. 

Closing cost is nothing but the expenses that have to be paid to the broker, a lawyer or any other party after finishing the home buying process in BC. This is not a small amount cumulatively but can be a non-harmful task if you are ready in the initial steps of the home purchase. 

End Thoughts

First time home in British Columbia are in an active status and are tons in number. But there are least well-aware about how to buy a house in British Columbia. Multiple times, some of us lag on trustworthy resources and become victims of real estate frauds or unworthy house purchases. 

Hence, it is always good to check whether you are in the right direction and with the right company or not. A pro tip for first time home buyer in BC can be researching property rates, loan institutes, the agents, and the locality by yourself. Visit the site and ask neighbours about how the locality is in the aspect of house purchase and prerequisite facilities. And there you are, geared up to take a step towards your upgraded life with your beloved ones.

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Frequently Asked Question (FAQs)

Why are houses so expensive in BC?

Over the past decades, property price has seen an impactful jump due to the growing population and higher housing demands. This is the major cause behind the expensive houses in BC, though with low tax rates and other related benefits for owners.

What is the best place to live in British Columbia?

West Vancouver is the most choosable and fruitful investment spot for house buying processing in BC.

Is B.C. more expensive than Ontario?

In British Columbia, the average lifestyle can cost around $1814 to $4275 for a bachelor or a 4-people family, respectively, apart from renting costs. Whereas Ontario has an average costing up to $4266 for a family living. This comparison can clearly show that BC is more expensive than Ontario.

Is it better to live in Alberta or British Columbia?

Compared to Alberta, British Columbia scores more employment opportunities and great environmental benefits that cherish a better life there.

Shreya Pandey Shreya knows the art of engaging the readers with interactive write-ups and innovative information. Her writings are thoroughly researched, creative and focused on the subject of discourse. It helps her create consistency in reading that a reader loves to embrace. Her style of clarifying people’s curiosity into words is pretty convenient and makes it effectively convincing.
Shreya Pandey Shreya knows the art of engaging the readers with interactive write-ups and innovative information. Her writings are thoroughly researched, creative and focused on the subject of discourse. It helps her create consistency in reading that a reader loves to embrace. Her style of clarifying people’s curiosity into words is pretty convenient and makes it effectively convincing.