Buying your first home in British Columbia? You could be eligible for thousands of dollars in savings.

Purchasing your first home is an exciting milestone, but with property prices across Richmond and Metro Vancouver, saving enough for a down payment and covering closing costs can feel overwhelming.

The good news? There are several government programs, tax incentives, and mortgage options designed to make homeownership more accessible.

Whether you're just starting to save or already browsing properties, understanding these benefits could make a significant difference in your homebuying journey.

Here are seven programs every first-time homebuyer in BC should know about.

1. Save Up to $50,000 in GST on a Newly Built Home

If you're considering purchasing a brand-new home, this could be one of the biggest financial incentives available to you.

The federal First-Time Home Buyers' GST/HST Rebate is designed to reduce the cost of purchasing a qualifying new or substantially renovated home.

Eligible buyers may receive:

• A full GST rebate on qualifying homes priced at $1 million or less, with potential savings of up to $50,000.

• A partial GST rebate on qualifying homes priced between $1 million and $1.5 million.

This benefit can apply to certain new construction purchases, pre-sale properties, and owner-built homes, provided the eligibility requirements are met.

For buyers considering a new condo or townhome in Richmond, this incentive could substantially reduce the overall purchase cost.

Keep in mind that purchase agreement dates, construction timelines, and occupancy requirements can affect eligibility.

2. Reduce Your Property Transfer Tax When Buying Your First Home

One expense that sometimes surprises first-time buyers is BC's Property Transfer Tax (PTT).

This tax is generally paid when ownership of a property is transferred, and depending on the purchase price, it can add thousands of dollars to your closing costs.

Fortunately, BC offers a First Time Home Buyers' Program that may reduce or eliminate this expense.

Qualifying buyers may receive:

• Homes priced at $500,000 or less: A full Property Transfer Tax exemption.

• Homes priced between $500,000 and $835,000: An exemption on the first $500,000 of the property's value, potentially saving up to $8,000.

• Homes priced between $835,000 and $860,000: A reduced exemption that gradually phases out.

To qualify, buyers must meet specific requirements regarding residency, previous homeownership, and their intention to use the property as their principal residence.

With many first-time buyers looking at condos and townhomes throughout Richmond and the Lower Mainland, understanding this exemption before making an offer can help you budget more accurately.

3. Buying a Brand-New Home? There's Another Tax Exemption Worth Knowing About

Even if you don't qualify for the regular First Time Home Buyers' Property Transfer Tax exemption, you may still be eligible for savings when purchasing a newly built property.

BC's Newly Built Home Exemption provides qualifying purchasers with:

• A full Property Transfer Tax exemption on eligible new homes valued at $1.1 million or less.

• A partial exemption on eligible properties valued between $1.1 million and $1.15 million.

Unlike the First Time Home Buyers' Program, this exemption isn't limited to people purchasing their first home.

This makes it particularly appealing to buyers considering newly constructed condos, townhomes, or other qualifying properties.

One important distinction: you cannot combine both BC Property Transfer Tax exemptions on the same purchase. Your lawyer or notary can help determine which exemption is most beneficial.

4. Grow Your Down Payment Faster With a First Home Savings Account (FHSA)

Saving for a down payment is often one of the biggest challenges for first-time buyers.

The First Home Savings Account, or FHSA, is designed to help eligible Canadians save for their first home while receiving valuable tax advantages.

Here's how it works:

• Contribute up to $8,000 annually, subject to your available contribution room.

• Save up to $40,000 in lifetime contributions.

• Claim eligible contributions as deductions against taxable income.

• Allow investments within the account to grow tax-free.

• Withdraw funds tax-free when purchasing a qualifying first home.

For couples who both qualify, that could mean contributing a combined $80,000 toward their first property, plus any investment growth.

A helpful tip: FHSA contribution room begins accumulating once you open your first account. Even if purchasing a home is still a few years away, opening an FHSA early may be worth considering.

5. Use Your RRSP Savings Toward Your First Home

Did you know that you may be able to use money from your Registered Retirement Savings Plan (RRSP) to help purchase your first home?

Through the federal Home Buyers' Plan (HBP), eligible buyers can withdraw up to $60,000 from their RRSP to purchase or build a qualifying home.

For a couple where both individuals qualify, that's potentially $120,000 available toward a home purchase.

You may also be able to use the Home Buyers' Plan alongside your FHSA, giving you additional flexibility when assembling your down payment.

However, there is an important difference between these programs.

While qualifying FHSA withdrawals generally don't need to be repaid, RRSP withdrawals through the Home Buyers' Plan must generally be repaid over a specified period.

Before using retirement savings, it's worth speaking with a financial advisor to understand how the withdrawal and repayment requirements may affect your long-term financial goals.

6. Claim a Federal Tax Credit After Purchasing Your First Home

The costs of buying a home don't end with the down payment.

Legal fees, inspections, moving expenses, and other closing costs can add up quickly.

The federal Home Buyers' Amount is another incentive that can help eligible first-time purchasers offset some of these expenses.

Qualifying buyers can claim up to $10,000 on their federal income tax return.

For the 2026 tax year, this may translate into a non-refundable federal tax credit worth approximately $1,400, depending on your tax situation.

Although this isn't a direct payment of $10,000, it can provide welcome tax savings after your purchase.

7. Lower Your Monthly Payments With More Flexible Mortgage Options

Affordability isn't just about saving for a down payment. It's also about making sure your monthly mortgage payments fit comfortably within your budget.

Recent changes to Canada's insured mortgage rules have introduced additional flexibility for qualifying homebuyers.

Eligible first-time buyers may be able to choose a 30-year mortgage amortization instead of the traditional 25-year option.

Spreading your mortgage over a longer period generally means lower monthly payments, which may help with affordability and mortgage qualification.

However, it's important to understand that a longer amortization typically results in paying more interest over the life of the mortgage.

Additionally, eligible buyers purchasing a home for less than $1.5 million may qualify for an insured mortgage with less than 20% down.

The minimum down payment is generally calculated as follows:

• 5% on the first $500,000 of the purchase price.

• 10% on the portion above $500,000 for eligible homes priced below $1.5 million.

• 20% down for homes priced at $1.5 million or more.

These options can help buyers enter the market sooner without necessarily having to save a full 20% down payment.

Can You Combine These First-Time Homebuyer Benefits?

In many cases, yes!

One of the biggest advantages of understanding these programs is that several may be used together.

For example, an eligible first-time buyer purchasing a newly built home may be able to take advantage of a federal GST rebate, a BC Property Transfer Tax exemption, savings from an FHSA, and an RRSP Home Buyers' Plan withdrawal.

They may also qualify for the federal Home Buyers' Amount and a 30-year insured mortgage amortization.

When used strategically, these programs could make a meaningful difference in both your upfront purchasing costs and your ongoing monthly expenses.

Of course, every buyer's situation is different. Eligibility requirements vary between programs, and not all incentives apply to every property or purchaser.

Your First Home Might Be More Attainable Than You Think

Buying your first home is a major financial decision, especially in a competitive real estate market like Richmond and Metro Vancouver.

But you don't have to figure everything out on your own.

Understanding the financial incentives available to you, knowing what you can comfortably afford, and having the right professionals guiding you can make the entire process much easier.

Whether you're considering a condo in Richmond, a townhome in South Surrey, or your first property elsewhere in the Lower Mainland, having a clear plan is the best place to start.

Ready to Take the First Step Toward Homeownership?

From exploring neighbourhoods and finding the right property to connecting you with trusted mortgage, legal, and financial professionals, my goal is to make your first home purchase as smooth and informed as possible.

Thinking about buying your first home in Richmond or Greater Vancouver? Contact me today. Let's explore your options and help you take the next step toward homeownership.

Disclaimer: Government programs, tax credits, mortgage rules, and eligibility requirements are subject to change. Each incentive has its own qualification criteria, including requirements relating to residency, previous property ownership, purchase price, occupancy, and applicable dates. Buyers should confirm current program details with the relevant government agencies and consult qualified mortgage, legal, and tax professionals before making financial decisions.

Thinking about selling your home in Richmond, BC? Here are 10 common mistakes that could cost you thousands when it's time to sell.

Your home is likely one of your biggest financial investments, so naturally, you want to get the best possible price when it's time to sell.

Whether you own a detached house in Steveston, a townhouse in Terra Nova, or a condo in Richmond City Centre, there are certain things that can negatively affect your home's resale value.

The good news? Many of these issues are preventable, and some can be fixed without spending a fortune.

As a Richmond REALTOR®, I've seen how small details can make a big difference in how buyers perceive a property.

Here are 10 things that could hurt your home's resale value and what you can do to protect your investment.

1. Poor Home Maintenance

One of the biggest factors that can negatively affect your home's value is a lack of regular maintenance.

Small issues like a leaking faucet, cracked caulking, peeling paint, or damaged flooring might seem insignificant. However, when buyers notice several maintenance problems, they may start wondering what other issues have been neglected.

Common maintenance problems include:

• Leaky faucets and plumbing fixtures

• Water stains on ceilings or walls

• Cracked or damaged flooring

• Peeling exterior paint

• Broken appliances or fixtures

• Dirty or clogged gutters

What you can do: Stay on top of regular home maintenance. Fix small problems before they become expensive repairs, and address visible issues before listing your property.

A well-maintained home gives buyers confidence that the property has been properly cared for.

2. Outdated Kitchens and Bathrooms

Kitchens and bathrooms are two of the most important areas buyers look at when evaluating a home.

An outdated kitchen with worn countertops, aging cabinets, or old appliances can make an otherwise beautiful property feel tired.

The same applies to bathrooms with dated tiles, worn fixtures, or damaged vanities.

However, you don't necessarily need a complete renovation to improve your home's appeal.

What you can do:

• Replace outdated cabinet hardware

• Update faucets and light fixtures

• Repaint cabinets where appropriate

• Refresh caulking and grout

• Replace damaged countertops or fixtures

• Give everything a thorough cleaning

Sometimes, a few affordable cosmetic updates can make a significant difference.

Before investing in a major renovation, speak with a local REALTOR® to determine whether the potential increase in resale value justifies the cost.

3. Unpermitted Renovations

Renovations can add value to your home, but renovations completed without the necessary permits can create complications when selling.

In Richmond, certain renovations and alterations require permits from the City of Richmond.

Examples may include:

• Structural modifications

• Removing or altering load-bearing walls

• Significant plumbing or electrical changes

• Adding secondary suites

• Building additions or extensions

Unpermitted work can raise concerns about safety, insurance, financing, and whether the improvements comply with applicable regulations.

Buyers may request additional documentation, inspections, or repairs before proceeding with a purchase.

What you can do: Before starting a renovation, confirm whether permits are required. If you've already completed renovations without permits, investigate your options before listing your home.

Having the proper documentation can help buyers feel more comfortable and confident about their purchase.

4. Water Damage, Moisture, and Mould

Water damage is a major concern for homebuyers, particularly in a region like Metro Vancouver, where we experience significant rainfall throughout the year.

Even minor signs of moisture can make buyers nervous about potentially expensive repairs.

Warning signs include:

• Water stains on ceilings

• Bubbling or peeling paint

• Musty odours

• Visible mould

• Damp basements or crawl spaces

• Water pooling near the foundation

For Richmond homeowners, proper drainage, roof maintenance, and moisture management are especially important.

What you can do: Investigate moisture issues as soon as they appear. Repair the underlying cause rather than simply covering up the damage.

Keeping records of professional inspections and completed repairs can also help reassure potential buyers.

5. Too Much Personalization

Your home should reflect your personality and lifestyle. However, when it comes time to sell, highly personalized design choices can sometimes limit its appeal.

For example:

• Bright or unusual paint colours

• Bold wallpaper throughout the home

• Unconventional room conversions

• Unique flooring or decorative finishes

• Family photos throughout the home 

While you might love these features, potential buyers may see them as additional expenses they'll need to address after moving in.

What you can do: Consider neutral colours and timeless finishes when preparing your home for sale.

The goal isn't to remove all personality from your home. It's to help buyers imagine themselves living there.

A fresh coat of neutral paint can be one of the most cost-effective ways to refresh a property.

6. Poor Curb Appeal

First impressions matter!

Before buyers even step through your front door, they're already forming opinions about your property.

An overgrown yard, dirty driveway, damaged fencing, or neglected exterior can create a negative impression.

This is especially important for detached homes in Richmond neighbourhoods such as Steveston, Westwind, Broadmoor, Seafair, and Terra Nova.

What you can do:

• Keep lawns and landscaping tidy

• Trim overgrown trees and shrubs

• Pressure wash walkways and driveways

• Clean exterior windows

• Repair damaged fencing

• Remove clutter from the yard

You don't need expensive landscaping to create a welcoming first impression.

A clean, well-maintained exterior can go a long way toward attracting buyers.

7. Poor DIY Renovations

DIY renovations can save money, but poorly executed projects can actually reduce your home's appeal.

Buyers often notice uneven flooring, crooked tiles, sloppy paintwork, poorly installed trim, and unfinished projects.

Even if these issues are primarily cosmetic, they can raise concerns about the quality of other improvements throughout the home.

What you can do: Be realistic about which projects you can complete yourself and which ones require professional expertise.

For major renovations involving electrical, plumbing, or structural work, hiring qualified professionals is particularly important.

Quality workmanship can help protect your home's long-term value.

8. Unpleasant Odours and Poor Cleanliness

You might not notice certain smells in your own home because you've become accustomed to them.

However, buyers often notice them immediately.

Common concerns include:

• Pet odours

• Cigarette smoke

• Strong cooking smells

• Musty carpets

• Garbage or food odours

• Poor ventilation

Strong odours can distract buyers from your home's positive features and may suggest that additional cleaning or remediation will be required.

What you can do: Deep clean your home before listing, including carpets, upholstery, walls, and ventilation areas where appropriate.

Avoid using strong air fresheners to mask odours. Instead, identify and eliminate the source.

A clean, fresh-smelling home creates a much more welcoming environment during showings.

9. Poor Layout or Removing Bedrooms

Not every renovation adds value.

Sometimes, homeowners make changes that work perfectly for their lifestyle but may not appeal to future buyers.

For example, converting a three-bedroom home into a two-bedroom home with an oversized walk-in closet might make sense for you, but it could reduce the number of interested buyers.

Similarly, eliminating storage space, or creating an awkward floor plan may negatively affect resale potential.

In Richmond, where many buyers are families looking for functional living spaces, bedroom count and practical layouts can be important selling features.

What you can do: Before making major layout changes, consider how the renovation might affect future resale value.

Whenever possible, prioritize flexibility and functionality.

If you're converting a garage into a flex room, for example, consider keeping the space easy to convert back into a garage.

10. Overpricing Your Home

This last one is especially important.

Even a beautifully maintained home can struggle to sell if it's priced incorrectly.

Some sellers believe that starting with a higher asking price gives them more room to negotiate.

Unfortunately, overpricing can sometimes have the opposite effect.

When a property is listed significantly above market expectations, buyers may overlook it entirely.

As the listing sits on the market, potential buyers may begin to wonder why it hasn't sold.

Eventually, price reductions may become necessary, and the property could lose some of its initial momentum.

What you can do: Work with an experienced Richmond REALTOR® who understands local market conditions, recent comparable sales, and buyer expectations.

A strategic listing price should consider:

• Recent sales of comparable properties

• Current competing listings

• Neighbourhood trends

• Your home's condition and upgrades

• Property size, layout, and location

• Current buyer demand

The right pricing strategy can help attract qualified buyers and position your home competitively from the beginning.

Bonus: What About Things Outside Your Control?

Not everything that affects your home's resale value is something you can change.

Factors such as location, nearby traffic, surrounding developments, school catchments, and overall market conditions can also influence what buyers are willing to pay.

For example, two similar homes in Richmond may sell for different prices because one is located on a quiet residential street while the other backs onto a busy road.

You may not be able to change these factors, but understanding how they affect your property's market value is important when developing a selling strategy.

This is where local real estate knowledge becomes particularly valuable.

How Can You Protect Your Richmond Home's Resale Value?

The good news is that protecting your home's value doesn't always require expensive renovations.

In many cases, it's about making smart decisions, keeping up with maintenance, and understanding what today's buyers are looking for.

Here are a few simple habits that can make a difference:

Stay on top of maintenance. Address minor issues before they become major problems.

Choose renovations carefully. Focus on improvements that enhance functionality and appeal to a broad range of buyers.

Keep records. Save receipts, warranties, permits, and documentation for major repairs or upgrades.

Think about resale. Before making significant changes, consider how they might affect future buyers.

Get professional advice. A knowledgeable local REALTOR® can help identify which improvements are worth making and which ones may not provide a worthwhile return.

Remember, the goal isn't necessarily to have the most expensive or renovated home in your neighbourhood.

It's to have a property that is well-maintained, attractive, functional, and appropriately priced for the market.

Thinking About Selling Your Home in Richmond?

Whether you're planning to sell in the next few months or simply thinking ahead, understanding what affects your home's resale value can help you make better decisions today.

Every home is different, and not every renovation or improvement will provide the same return on investment.

As a Richmond REALTOR®, I'm happy to help you evaluate your property's current market value and identify improvements that could make the biggest difference when it's time to sell.

Before spending thousands on renovations, let's have a conversation about what buyers in your neighbourhood are actually looking for.

Contact Alisa Sakamoto today for a personalized home evaluation and expert advice on preparing your Richmond property for sale.

Alisa Sakamoto | Richmond REALTOR®

Buying a home is exciting, but figuring out how to finance that purchase can sometimes feel like one of the most complicated parts of the process.

How much can you afford? How much do you need for a down payment? Should you choose a fixed or variable mortgage? Which lender has the best rate? And what happens if you're self-employed or your financial situation isn't quite straightforward?

This is where a mortgage broker can be a valuable part of your home-buying team.

If you're thinking about buying a home in Richmond, BC, here's what a mortgage broker does and how they can help you navigate the financing side of your purchase.

What Is a Mortgage Broker?

A mortgage broker acts as an intermediary between you and potential mortgage lenders.

Instead of approaching one bank and being limited to the mortgage products that particular bank offers, a mortgage broker can help you explore mortgage options from multiple lenders.

In British Columbia, individuals and companies conducting mortgage broker activities must be registered with the Registrar of Mortgage Brokers. The BC Financial Services Authority (BCFSA) recommends that consumers work with registered mortgage brokers, who are subject to regulatory and educational standards.

A broker will look at your financial situation, including your income, down payment, credit, debts and home-buying goals, and help determine which mortgage products may be appropriate for you.

1. They Can Help You Understand How Much Home You Can Afford

Before you start seriously looking at homes, it's important to have a realistic idea of your budget.

This is especially important in a market like Richmond, where prices can vary considerably depending on whether you're looking for a condo, townhouse or detached home — and even from one neighbourhood to another.

A mortgage broker can review your finances and help you understand approximately how much you may be able to borrow.

That gives you a much clearer price range before you start touring properties.

It can also prevent the disappointment of falling in love with a home only to discover later that the financing doesn't work.

2. They Can Help You Get Pre-Approved

One of the first steps I recommend to buyers is getting your financing organized before we start seriously shopping for a home.

A mortgage pre-approval can give you an idea of:

• How much you may be able to borrow

• What your estimated monthly payments could look like

• The mortgage rate available to you

• How different down-payment amounts affect your mortgage

• What price range you should be considering

Having your financing prepared can also make the process much smoother when we find the right home and you're ready to write an offer.

Just remember that a mortgage pre-approval isn't the same as final mortgage approval. The lender will still need to approve the property and verify your financial information before funding the mortgage.

3. They Can Shop Around for Different Mortgage Options

One of the biggest advantages of working with a mortgage broker is access to different lenders and mortgage products.

The lowest advertised interest rate isn't necessarily the best mortgage.

A good broker can help you compare things like fixed versus variable rates, prepayment privileges, penalties for breaking the mortgage, portability, amortization periods and other terms.

Those details can become very important later.

For example, if you think there's a possibility that you'll sell your Richmond condo and move into a larger townhouse or detached home within a few years, the flexibility of your mortgage may be just as important as getting the lowest possible rate today.

4. They Can Help If Your Financial Situation Is More Complicated

Not every buyer fits perfectly into a traditional lending box.

You might be self-employed, own a business, receive commission or bonus income, have recently changed jobs or have multiple sources of income.

A mortgage broker can help you understand what documentation lenders may require and which lenders may be better suited to your particular situation.

This can be especially helpful if you've already spoken with one bank and weren't happy with the options you were given.

5. They Can Help You Understand Your Down Payment

Your down payment has a significant impact on your mortgage.

Under current Canadian rules, the minimum down payment generally starts at 5%. For homes priced above $500,000 and below $1.5 million, the minimum is 5% on the first $500,000 and 10% on the portion above $500,000. Homes priced at $1.5 million or more require at least 20% down.

If your down payment is less than 20%, you'll generally require mortgage default insurance.

This becomes particularly relevant in Richmond, where many properties can be well above the $500,000 mark.

A mortgage broker can run different scenarios to show you how putting 5%, 10%, 15% or 20% down could affect your mortgage amount, insurance premiums and monthly payments.

6. They Can Help You Budget Beyond the Purchase Price

One of the most common mistakes first-time buyers make is focusing entirely on the down payment.

There are other costs involved in purchasing a home.

Depending on the property and your circumstances, these can include legal or notary fees, property transfer tax, inspection costs, adjustments, moving expenses and other closing costs.

CMHC recommends buyers plan for closing costs and notes that they can amount to roughly 1.5% to 4% of a home's purchase price.

If you're a first-time buyer, you may also qualify for BC's First Time Home Buyers' Program, which can reduce the Property Transfer Tax you have to pay. For qualifying purchases, BC currently provides a full exemption on eligible properties valued at $500,000 or less, an $8,000 exemption for properties over $500,000 up to $835,000, and a gradually reduced exemption between $835,000 and $860,000.

A mortgage broker can help you understand how much cash you should have available so you aren't putting every dollar you have toward your down payment.

7. Your Mortgage Broker and Realtor Work Together

Buying a home is a team effort.

As your Realtor, my job is to help you understand the Richmond market, find suitable properties, evaluate their value, write and negotiate your offer and guide you through the purchase.

Your mortgage broker focuses on the financing side.

When everyone communicates, the process can be much smoother.

For example, before we write an offer, we want to understand your financing conditions and timelines. Once you have an accepted offer, your broker will typically need information about the property so the lender can review and approve the mortgage.

Having an experienced Realtor and mortgage professional working together can help keep everything moving toward your completion date.

Do You Need a Mortgage Broker to Buy a Home?

No. You're free to arrange your mortgage directly through a bank or other lender.

However, a mortgage broker can be especially helpful if you want to compare multiple lenders, aren't sure which mortgage is right for you or have a more complicated financial situation.

Even if you've been with the same bank for years, it can be worthwhile to understand what other options are available before committing to what may be one of the largest financial decisions you'll ever make.

Thinking About Buying a Home in Richmond?

If you're considering buying a condo, townhouse or detached home in Richmond, getting your financing organized is a great place to start.

Once you understand your budget and have your mortgage pre-approval in place, we can focus on finding a home that works for both your lifestyle and your finances.

I've helped buyers throughout Richmond navigate everything from their first condo purchase to moving into a larger family home, and I'm always happy to help explain the process and connect you with trusted professionals along the way.

Thinking about buying a home in Richmond? Let's talk. I'd be happy to recommend some of my trusted mortgage brokers to you.

Alisa Sakamoto PREC
RE/MAX Westcoast
604 644-1044
sold@alisasakamoto.com 

Buying a home in Richmond is a big financial step, and one of the most common questions I hear from buyers is:

“How much money do I actually need to buy a home?”

The answer isn't quite as simple as looking at the down payment.

You'll need money for your down payment, closing costs, Property Transfer Tax, legal fees, inspections and other expenses that come with purchasing a home.

And with Richmond home prices varying significantly between condos, townhomes and detached houses, the amount you'll need can look very different depending on what you're buying.

Let's break it down.

First, How Much Do Homes Cost in Richmond?

Richmond offers everything from smaller condos to luxury detached homes, so there isn't one price that represents the entire market.

As of July 2026, Greater Vancouver REALTORS® reported the benchmark price of a Richmond apartment at approximately $639,700, while the overall residential benchmark price in Richmond was approximately $1.102 million.

Detached homes are considerably more expensive. For perspective, the benchmark price for a Richmond detached home was approximately $1.911 million in July 2026.

Remember that a benchmark price isn't necessarily what your home will cost. There are properties available above and below these numbers depending on the neighbourhood, age, size, condition and type of home.

But they give us a useful starting point.

How Much Down Payment Do You Need?

This is where many buyers are surprised.

You don't necessarily need a 20% down payment to buy a home.

For homes eligible for an insured mortgage, Canada's minimum down payment requirements are:

• 5% on the first $500,000

• 10% on the portion between $500,000 and $1.5 million

• Homes priced at $1.5 million or more generally require at least 20% down for a conventional mortgage.

The federal government increased the insured-mortgage price cap from $1 million to $1.5 million in December 2024, making it possible for more buyers in higher-priced markets such as Richmond to purchase with less than 20% down.

So what does that actually look like?

$650,000 Richmond Condo

Minimum down payment:

5% of the first $500,000 = $25,000

10% of the remaining $150,000 = $15,000

Minimum down payment: $40,000

That's approximately 6.2% of the purchase price.

$900,000 Home

5% of the first $500,000 = $25,000

10% of the remaining $400,000 = $40,000

Minimum down payment: $65,000

$1.2 Million Home

5% of the first $500,000 = $25,000

10% of the remaining $700,000 = $70,000

Minimum down payment: $95,000

$2 Million Detached Home

At this price point, you should generally be planning for at least a 20% down payment.

20% down payment: $400,000

Of course, qualifying for the mortgage is another matter. Just because you have the minimum down payment doesn't necessarily mean a lender will approve you for the remaining mortgage.

Your income, existing debts, credit history, interest rates and other factors will all affect how much you can borrow.

Don't Forget About Property Transfer Tax

This is one of the biggest expenses buyers sometimes forget to budget for.

When you purchase property in BC, you generally pay Property Transfer Tax (PTT).

The general rates are:

1% on the first $200,000
2% on the portion between $200,000 and $2 million
3% on the portion above $2 million

Additional rules can apply to residential properties over $3 million.

For example, ignoring any exemptions:

$650,000 purchase: approximately $11,000

$900,000 purchase: approximately $16,000

$1.2 million purchase: approximately $22,000

$2 million purchase: approximately $38,000

That's money you'll need in addition to your down payment.

Are You a First-Time Home Buyer?

If you're buying your first home, you may be able to reduce some of these costs.

Under BC's First Time Home Buyers' Program, qualifying buyers purchasing a property with a fair market value of $835,000 or less can receive an exemption from Property Transfer Tax on the first $500,000 of the home's value.

A partial exemption is available for qualifying homes valued between $835,000 and $860,000.

That can make a meaningful difference for someone purchasing a Richmond condo.

There are eligibility requirements, so don't assume that simply being a first-time buyer automatically qualifies you for every exemption. Your lawyer, notary or mortgage professional can help determine what applies to your particular purchase.

What About Mortgage Insurance?

If you're purchasing an eligible home with less than 20% down, you'll generally need mortgage default insurance.

One important distinction is that the insurance premium is typically added to your mortgage rather than requiring you to come up with the entire premium in cash at closing.

However, it still increases the amount you're borrowing.

This is why it's worth comparing scenarios.

Sometimes putting more money down can significantly reduce your mortgage and insurance costs. Other times, keeping additional cash available for renovations, emergencies or other expenses may make more sense.

There's no one-size-fits-all answer.

Other Closing Costs You Should Budget For

Your down payment and Property Transfer Tax are the big ones, but they're not the only expenses.

Depending on the property and your situation, you may also need to budget for:

Lawyer or notary fees
You'll need someone to handle the legal transfer of the property and mortgage documents.

Home inspection
I always recommend having a professional inspection performed on any property you plan to purchase. It's a relatively inexpensive cost for peace of mind.

Appraisal
Your lender may require an appraisal of the property.

Strata documents
If you're buying a Richmond condo or townhouse, reviewing the strata's financials, minutes, depreciation report and other documents is extremely important.

Property tax adjustments
Depending on when you complete your purchase, you may owe the seller for a portion of property taxes they've already paid.

Moving expenses
Movers, storage, furniture and all the little expenses associated with moving can add up quickly.

Immediate repairs or renovations
Even if the home is move-in ready, it's a good idea to have some money left over after completion.

So, How Much Cash Should You Actually Have?

Let's use a hypothetical $650,000 Richmond condo.

Your minimum down payment would be approximately:

$40,000

Property Transfer Tax would normally be approximately:

$11,000

Then you'll need to account for legal fees, inspection costs, adjustments and other closing expenses.

So you shouldn't approach a $650,000 purchase thinking:

"I have $40,000, so I'm ready to buy."

I'd much rather see buyers go into a purchase with some breathing room.

And if you're a qualifying first-time home buyer, your Property Transfer Tax could potentially be substantially reduced, which changes the calculation.

Having a Down Payment Doesn't Necessarily Mean You Can Afford the Home

This is probably the most important point.

There are really two different questions:

1. How much cash do I need to buy the home?

and

2. How expensive of a home can I actually afford?

They're not the same thing.

You might have $100,000 sitting in the bank for a down payment, but your income may not qualify you for a $1.2 million mortgage.

On the other hand, someone with a high household income might easily qualify for the mortgage but hasn't saved enough for the down payment and closing costs.

That's why I recommend talking to a mortgage professional before you seriously start looking at homes.

Knowing your actual purchasing power makes the entire home search much easier.

Don't Spend Every Dollar on Your Down Payment

Just because you can put every dollar you have toward your home doesn't necessarily mean you should.

After buying, you may suddenly need money for:

• Furniture

• Appliances

• Repairs

• Renovations

• Strata fees

• Moving

• Property taxes

• Home insurance

• Unexpected expenses

Homeownership is much more enjoyable when an unexpected repair doesn't completely drain your bank account.

I generally encourage buyers to think about their total financial picture, rather than simply trying to maximize their purchase price.

Start With a Budget, Not a Listing

It's easy to start browsing listings online and fall in love with a home before knowing whether the numbers work.

I recommend doing it the other way around.

Figure out:

How much cash do you have available?

How much do you want to put down?

What mortgage can you comfortably afford each month?

How much money do you want left over after the purchase?

Once we know those numbers, we can start looking at what your budget can realistically buy in Richmond.

And you might be surprised by the options available.

Thinking About Buying a Home in Richmond?

Whether you're looking for your first Richmond condo, moving into a townhouse, or searching for a detached family home, understanding the numbers before you begin can make the buying process much less stressful.

I've helped buyers navigate Richmond's real estate market through different neighbourhoods, property types and price ranges, and I'm always happy to help you understand what your budget might realistically get you.

If you're thinking about buying a home in Richmond, let's chat.

We can talk about your budget, what you're looking for, and which Richmond neighbourhoods and properties may be the best fit for you.