First Time Home Buyer Mortgage in the Comox Valley, BC
Buying your first home is a big deal. We make sure you go in prepared, not overwhelmed.
Buying your first home on Vancouver Island is one of the most exciting things you will do. It is also one of the most complex financial decisions you will ever make, and most people go into it not knowing what they do not know. That is completely normal. It is also exactly what we are here for.
I have been helping first-time buyers in the Comox Valley get into their first homes since 2008. I will walk you through every step of the process — from figuring out what you can actually afford, to getting pre-approved, to closing day in a way that makes sense and does not leave you guessing.
There are no silly questions here. We would rather you ask everything upfront than sign something you do not fully understand.
How We Help First-Time Buyers
Options for First time home buyers
First Time Home Buyer Programs
What Is Available in BC
There are real programs available to first-time buyers in BC that can meaningfully reduce your upfront costs or increase your buying power. Here is what you need to know about each one.
The First Home Savings Account (FHSA)
The FHSA is the most powerful first-time buyer program introduced in Canada in recent years and it is still underused. You can contribute up to $8,000 per year to a maximum of $40,000 lifetime. Contributions are tax deductible like an RRSP and withdrawals for a qualifying home purchase are completely tax-free like a TFSA.
The most important detail: contribution room accumulates from the date you open the account, not from when you contribute. Open it now even if you cannot put anything in yet.
The RRSP Home Buyers Plan
The Home Buyers Plan allows first-time buyers to withdraw up to $60,000 from their RRSP for a qualifying home purchase tax-free at the time of withdrawal. You repay the amount into your RRSP over 15 years. If you and your partner both qualify, you can each withdraw up to $60,000 for a combined total of $120,000.
The RRSP Home Buyers Plan and FHSA can be used together on the same purchase.
BC Property Transfer Tax Exemption
You may be fully or partially exempt from paying the standard 1% to 2% PTT on your home's purchase price.
The BC First-Time Home Buyers' Program can significantly reduce your closing costs by exempting eligible buyers from paying Property Transfer Tax. A full exemption is available on homes valued up to $500,000, with a partial exemption available on homes valued between $500,000 and $860,000. To qualify, you must generally be a Canadian citizen or permanent resident, have never owned a principal residence anywhere in the world, meet BC residency requirements, and intend to occupy the home as your principal residence. If you're unsure whether you qualify, I'd be happy to help you determine your eligibility and estimate your potential savings before you buy.
First-Time Home Buyer Tax Credit:
When you file your taxes for the year you purchased your home, you can claim a $10,000 amount on Line 31270 of your income tax return. The credit is calculated at 15%, the lowest federal tax rate, which works out to a maximum savings of $1,500.
It's a non-refundable credit, meaning it reduces the income tax you owe. If your tax bill is less than $1,500, the credit brings it down to zero, but you won't receive the difference as a refund.
First-Time Home Buyer GST Rebate: Eligible first-time home buyers purchasing, building, or substantially renovating a new home may qualify for a rebate of up to $50,000 on the GST. The home must be your primary residence. Homes priced at $1 million or less qualify for the full rebate, while the rebate is gradually reduced for homes priced between $1 million and $1.5 million. Homes priced at $1.5 million or more are not eligible.
The First-Time Buyer Checklist
Here is exactly what the process looks like from start to finish. Use this as your roadmap.
Before You Start Looking
☑ Open an FHSA as soon as possible to start accumulating contribution room
☑ Check your credit score — you want to know where you stand before a lender does
☑ Start saving your down payment — minimum 5% for homes under $500,000
☑ Gather your documents — T4s, NOAs, recent pay stubs, bank statements
☑ Book a free consultation with us to understand your real qualifying number
Getting Pre-Approved
☑ Submit your documents for a full pre-approval
☑ Receive your pre-approval letter and rate hold (up to 120 days)
☑ Understand your maximum purchase price and what your monthly payment looks like
☑ Confirm your down payment source is acceptable to the lender
☑ Know whether you qualify for CMHC-insured financing (under 20% down) or conventional
Making an Offer
☑ Work with your realtor to find the right property within your budget
☑ Include a subject to financing condition in your offer so you have time to finalize
☑ Let us know the accepted offer price and property details immediately
☑ We submit the full mortgage application to the lender
☑ Conditions are reviewed and satisfied — typically within 5 to 7 business days
Before Closing
☑ Get a home inspection — always, no exceptions
☑ Confirm your closing date with your lawyer or notary
☑ Arrange title insurance
☑ Confirm your down payment funds are accessible and properly sourced
☑ Do a final walkthrough of the property before closing day
Closing Day
☑ Sign mortgage documents with your lawyer or notary
☑ Pay closing costs — budget 1.5% to 4% of the purchase price on top of your down payment
☑ Receive the keys
FAQs
Common First-Time Buyer Questions
How much do I need for a down payment in BC?
For homes under $500,000 the minimum is 5%. For homes between $500,000 and $999,999 it is 5% on the first $500,000 and 10% on the remainder. For homes over $1,000,000 the minimum is 20%. If your down payment is less than 20% you will pay CMHC mortgage insurance which is added to your mortgage balance.
What is the mortgage stress test and how does it affect me?
The stress test requires you to qualify at the greater of your contract rate plus 2% or 5.25%. This determines your maximum purchase amount. We run this calculation upfront so you know your real qualifying position before you start making offers.
Should I get a fixed or variable rate as a first-time buyer?
There is no single right answer. Fixed rates offer payment certainty which many first-time buyers value. Variable rates have historically been lower over time but carry more payment risk. We walk through the tradeoffs based on your specific situation and comfort level.
How much are closing costs on Vancouver Island?
Budget at least 1.5% to 2% of the purchase price on top of your your down payment. This covers legal fees, title insurance, home inspection, and property tax adjustments. If you qualify for the BC property transfer tax exemption that reduces your closing costs significantly.
How long does the mortgage process take for a first-time buyer?
From pre-approval to funded mortgage, it typically takes 4 weeks, depending on the lender and your documentation. We manage the whole process and keep you updated at every step.
Do you help first-time buyers across all of Vancouver Island?
Yes. We work with first-time buyers throughout the Comox Valley and across all of Vancouver Island and BC. Most of our work is done by phone and video call so wherever you are on the Island, we can help.
Mortgage resources about homeownership
4 Signs You’re Ready for Homeownership
If you’ve got at least 5% saved up for a downpayment, if you’ve established your credit profile, and you have the income to support mortgage payments, the best place to start the home buying process is with a preapproval. Learn more about the path to homeownership here.
Unsure About The Housing Market? Let's Talk.
There’s no doubt that buying your first home can be stressful, but it doesn’t have to be. Having a plan in place is the best course of action to help you make good decisions and alleviate that stress.
Learn more about getting credit to buy your first home
How to Establish New Credit
If you’re new to managing personal finance and you want to learn about credit, you’ve come to the right place. Establishing credit is simple when you have a plan to follow. Learn more here.
Will Collections Impact Your Mortgage?
Did you know that over 20% of credit reports contain some level of inaccuracy? If you have a collection account outstanding, even if it’s an error, your mortgage application will be held up until the problem is solved. Learn more here.
Learn more about your downpayment
How to save money for a downpayment
The key to saving money is getting clarity - clarity around your income and your expenses, developing and following a clear plan, and seeking help from professionals who can help you see the big picture as well as the details.
Downpayment Options
If you’re looking to buy a property, you’ll be required to come up with at least 5% of the property value for the downpayment. There are several ways you can come up with the funds. Learn more about your downpayment options here.
Difference Between Deposit and Downpayment
Do you know the difference between the deposit and downpayment? Learn more about these terms as they relate to the home buying process.
Getting the mortgage process started
Protect Yourself with a Pre-approval
One of the biggest mistakes when shopping for property is falling in love with something you can’t afford. Learn more about how a pre-approval can protect you.
Costs Associated with Buying Property
When purchasing property, in addition to the downpayment, you’ll be required to come up with the money to cover closing costs. There’s a lot to consider. Learn more about the costs associated with buying property.
