Step-by-Step Buying Guide

Overview

Metro Vancouver’s real‑estate market changes quickly—new regulations, shifting interest rates, and evolving buyer protections are just a few factors to track. This guide distills the entire journey into clear, actionable steps tailored to British Columbia law and local conventions. Whether you’re a first‑time buyer or returning to the market after a few years, you’ll learn how to budget accurately, assemble a trusted team, navigate offers, and close without surprises.

Key Takeaways

• Plan for the Property Transfer Tax (PTT): 1 % on the first $200 k, 2 % up to $2 million, and 3 % above that.
• The First‑Time Home Buyer PTT exemption now offers a full exemption on homes up to $500 k and a partial exemption up to $835 k (rising to $860 k on April 1 2024).
• You must qualify under the mortgage stress test: the higher of the contract rate + 2 % or 5.25 % for uninsured mortgages.
• BC’s Home Buyer Rescission Period gives you three business days to back out of most resale contracts.

1. Set Your Budget & Build Your Team

Start with a realistic budget. Besides your down payment, factor in closing costs (typically 3‑5 % of the purchase price) and the PTT. A condo at $750 k, for example, attracts $13,000 in tax under the general PTT formula. Use the provincial PTT calculator.

Assemble professionals early: a mortgage broker or banker, a REALTOR® who knows your neighbourhoods, and a real‑estate lawyer/notary. Interview at least two candidates for each role; look for transparent fee structures and local references.

Mortgage Pre‑Approval

Pre‑approval locks in a rate for up to 120 days and shows sellers you’re serious. Lenders will test your finances against the federal Minimum Qualifying Rate (the “stress test”). If you’re putting less than 20 % down, budget for CMHC mortgage‑insurance premiums, which start at 4.00 % of the loan amount for a 5 % down payment.

2. Home Search & Viewings

Create a needs‑vs‑wants list. Proximity to rapid transit, seismic construction standards, and strata bylaws often trump cosmetic finishes in Vancouver. Your REALTOR® can set up an auto‑search on the MLS so new listings meet your criteria.

During showings: walk the neighbourhood at different times of day, review the strata minutes for condos, and ask about upcoming special assessments. Bring a !INSERT LINK: Home Viewing Checklist! so you don’t forget small but costly details like window seals or aging appliances.

3. Making an Offer

Your agent will prepare a Contract of Purchase and Sale (CPS). Typical subjects include financing, inspection, review of strata documents, and insurance. In competitive markets, you may shorten subject periods—but never waive due diligence lightly. Remember, the Home Buyer Rescission Period Regulation allows rescission within three business days, but you forfeit 0.25 % of the purchase price if you walk away.

Deposits

A deposit (often 5 % of the price) is due within 24 hours of offer acceptance and held in the brokerage trust account. It forms part of your down payment at closing.

4. Due Diligence & Subject Removal

Home inspection: A qualified inspector will highlight structural, electrical, and plumbing issues. Budget $500–$800 for a detached home.

Financing approval: Submit the accepted CPS, MLS feature sheet, and property disclosure statements to your lender so they can finalize underwriting.

Strata review: Examine the Form B, AGM minutes, depreciation report, and insurance certificate. Look for red flags like low contingency funds or large deductible increases.

Once all subjects are satisfied, you’ll sign a Subject Removal addendum and the deal becomes firm.

5. Closing & Possession

Legal work: Your lawyer/notary will conduct a title search, prepare mortgage documents, and transfer funds. Legal fees range from $1,200 to $1,800 plus GST.

Final funds: You’ll receive a Statement of Adjustments detailing purchase price, PTT, CMHC premium (if applicable), and credits such as property taxes paid by the seller. Ensure you wire funds at least one business day before completion.

Completion Day: The title registers in your name at the Land Title Office. Possession traditionally follows at 12:01 p.m. the next day unless otherwise negotiated.

6. Move‑in & Aftercare

Book elevators early for condos, update utility accounts (BC Hydro, FortisBC, internet), and switch your driver’s licence address within 10 days. Keep copies of closing documents for tax time—the CRA may ask for proof of principal‑residence status when you sell.

FAQs

Q: How much should I set aside for closing costs?
A: Plan for 3–5 % of the purchase price, which covers PTT, legal fees, appraisal, and insurance.

Q: Can I use my RRSP under the Home Buyers’ Plan?
A: Yes—you can withdraw up to $60 k tax‑free (repay over 15 years) to boost your down payment.

Q: What if the inspection finds major issues?
A: You can renegotiate price or repairs, extend the subject period, or walk away within your rescission or subject terms.

Next Steps

Download our printable !INSERT LINK: Mortgage Application Checklist! and !INSERT LINK: Tour Checklist! to stay organized. Need personalised advice? Reach out any time.

This guide provides general information only and may not reflect the latest regulations or market conditions. It is not legal or financial advice. Always verify details and consult qualified real-estate, mortgage, and legal professionals before making decisions.