Steps to Buying a House: Complete Guide for BC Buyers

Buying a house in British Columbia is one of the most significant financial decisions you'll make in your lifetime. Understanding the steps to buying a house in BC is essential to navigating the process successfully, avoiding costly mistakes, and ensuring you end up in a home you love within your budget. While the home buying journey can seem overwhelming, especially for first-time buyers, breaking it down into clear, manageable steps makes the process more approachable and less stressful.

At the Rob Visnjak Real Estate Group, we guide buyers through every stage of the home purchasing process throughout the Fraser Valley. British Columbia has specific regulations, documents, and procedures that differ from other provinces, including the Contract of Purchase and Sale, subject removal timelines, BC Property Transfer Tax, and the involvement of notaries or lawyers in the closing process. Understanding these BC-specific elements is crucial to a smooth transaction.

This comprehensive guide walks you through the complete home buying process in British Columbia from start to finish. From determining your budget and getting pre-approved for a mortgage to making an offer, navigating subject removals, and completing the final closing, we cover everything BC buyers need to know. Whether you're purchasing in Langley, Surrey, or elsewhere in the Fraser Valley, these steps provide your roadmap to homeownership success.

Key Takeaways

• Get Pre-Approved First: Mortgage pre-approval confirms your buying power and strengthens your offers.

• Work With a BC Realtor: Buyers typically don't pay their agent—the seller covers the commission.

• Understand Subject Clauses: BC contracts include conditions you must satisfy within specific timelines.

• Budget for All Costs: Down payment, BC Property Transfer Tax, legal fees, and moving costs add up.

• Use a Notary or Lawyer: BC requires legal representation to complete property transfers.

Step 1: Determine Your Budget

Before you start looking at homes in BC, establish a clear budget by considering your financial situation including your income, savings, existing debts, and monthly expenses. Use a mortgage calculator to estimate how much you can afford in monthly payments. Remember to account for additional costs beyond the mortgage such as property taxes, home insurance, strata fees (for condos or townhouses), utilities and maintenance, and moving expenses.

A good rule of thumb is that your total housing costs should not exceed 32% of your gross household income (this is called the Gross Debt Service ratio), and your total debt payments including housing costs should not exceed 40-44% of your gross income (Total Debt Service ratio). These are the standards Canadian lenders use to determine how much they'll lend you.

Calculate your available down payment. In Canada, the minimum down payment is 5% for homes up to $500,000, 10% for the portion between $500,000 and $1 million, and 20% for homes over $1 million. However, putting down at least 20% allows you to avoid mortgage default insurance premiums. Understanding your budget realistically prevents falling in love with homes you can't afford and positions you to move quickly when you find the right property.

Step 2: Get Pre-Approved for a Mortgage

Before you start house hunting in BC, get pre-approved for a mortgage to confirm your borrowing capacity and lock in an interest rate for 90-120 days. Mortgage pre-approval proves to sellers that you're a credible buyer, increases your negotiating power, and gives you an advantage over buyers who aren't pre-approved.

Shop around with different lenders including major banks, credit unions, and mortgage brokers to get the best terms and rates. To get pre-approved, you'll need to provide proof of income (pay stubs, employment letter), credit check authorization, proof of down payment (bank statements, investment accounts), and information about your assets and liabilities.

Many BC banks offer newcomer mortgage programs that consider international credit history or offer more flexibility if you have a larger down payment (35% or more). If you're new to Canada, explore these specialized programs. Understanding mortgage basics through resources like the home buying process helps you approach lenders with confidence.

Step 3: Find a Real Estate Agent

Engaging a qualified BC real estate agent can significantly simplify the home-buying process. Look for an agent with experience in your target market who understands your needs and preferences. In British Columbia, buyers don't usually have to pay anything for their own agent's services—the seller pays their own agent a commission from the sale proceeds, which is then split with the buyer's agent.

Your agent helps you navigate listings, schedule viewings, provide market insights about neighborhoods, prepare and present offers, negotiate on your behalf, and coordinate the closing process. Choose an agent who knows your target area well, whether that's Langley, Surrey, or other Fraser Valley communities. They should understand local market conditions, pricing trends, and neighborhood characteristics.

If you're working with a seller who isn't using an agent (For Sale By Owner), ask your agent upfront how they will be paid, as this may need to be negotiated as part of the purchase agreement.​

Step 4: Start House Hunting

With your budget and agent in place, begin searching for homes that meet your criteria. Consider factors such as location and neighborhood characteristics, home size and layout, condition and age of the property, proximity to schools and transit, commute to work, and future resale potential.

Attend open houses and schedule private showings to get a feel for properties. Your agent can set up MLS searches that automatically notify you when new listings matching your criteria hit the market. Keep an open mind during your search—you may need to prioritize which features are essential versus nice-to-have.

Take notes and photos during viewings to help you remember properties later. Pay attention to both the home's condition and the neighborhood's character. Drive through areas at different times of day to understand traffic patterns, noise levels, and neighborhood activity.​

Step 5: Make an Offer

When you find a home you want to buy, you make an offer to purchase. In BC, buyers typically make offers using a standard Contract of Purchase and Sale. Your realtor will help you prepare this document, which outlines the terms on which you're prepared to buy the property. It's important to understand your rights, the commitments you're making, and the strict deadlines you must meet.

Your offer should include negotiable terms such as the purchase price you're willing to pay, the deposit amount (usually 5% of the purchase price), subject conditions (financing approval, home inspection, etc.), closing and possession dates, and items included with the home (appliances, window coverings, etc.).

Work with your agent to determine an appropriate offer price based on recent comparable sales in the area. A realtor who knows the local market can help you put in an offer that's competitive but not overpriced. The seller can choose to accept, reject, or propose changes to your offer, leading to negotiations.

Step 6: Conduct Home Inspection

Include a home inspection subject clause (condition) in your offer that allows you time to have the property professionally inspected. A qualified home inspector will examine the property's condition including structural integrity, electrical systems, plumbing, heating and cooling systems, roof condition, foundation, moisture issues, and potential code violations.

The inspection typically occurs within 5-7 days of offer acceptance (the exact timeline is specified in your contract). Review the inspection report carefully with your agent. If significant issues are discovered, you have several options: request that the seller make repairs before closing, negotiate a price reduction to account for needed repairs, or remove your subject and walk away if problems are too severe.

Never waive the inspection condition to make your offer more competitive unless you're extremely knowledgeable about construction and willing to accept unknown risks. The few hundred dollars spent on inspection can save you tens of thousands in unexpected repairs.​

Step 7: Remove Subject Clauses

BC purchase contracts typically include subject clauses (conditions) that must be satisfied before the contract becomes binding. Common subjects include subject to satisfactory home inspection, subject to financing approval, subject to review of strata documents (for condos/townhouses), and subject to property disclosure statement review.

You must remove these subjects by the deadlines specified in your contract, typically 3-7 days from offer acceptance. During this period, you'll finalize your mortgage financing by providing your lender with the signed offer, property details, home inspection report, and any additional documentation they require.

Once you're satisfied with the inspection results, have your financing confirmed, and have reviewed all necessary documents, your agent will prepare a subject removal notice to formally remove the conditions. After subject removal, the contract becomes firm and legally binding—you cannot back out without significant financial penalties.

Step 8: Hire a Notary or Lawyer

In British Columbia, you must hire a notary public or real estate lawyer to handle the legal aspects of your property purchase. Your notary or lawyer will conduct a title search at the BC Land Title Office to ensure clear ownership, review the Contract of Purchase and Sale, calculate and arrange payment of BC Property Transfer Tax, prepare transfer documents, coordinate with your lender on mortgage registration, and ensure all legal requirements are met.

BC Property Transfer Tax (PTT) is calculated based on the home's purchase price: 1% on the first $200,000, 2% on the portion between $200,000 and $2 million, 3% on the portion between $2 million and $3 million, and 5% on amounts above $3 million. First-time homebuyers may qualify for a PTT exemption if the purchase price is below certain thresholds and other conditions are met.

Contact your notary or lawyer soon after your offer is accepted to ensure there's adequate time to complete all necessary work before closing. Discuss all fees and timelines upfront to avoid surprises. Your legal professional is your advocate in ensuring the transaction is completed correctly.

Step 9: Secure Final Financing

After removing subjects, finalize your mortgage financing. Your lender will require final documentation including the firm purchase contract, home inspection report, appraisal (if required), proof of homeowner's insurance, and confirmation of down payment funds. Provide any additional documentation promptly to avoid delays.

The lender will issue a mortgage commitment outlining the approved loan amount, interest rate, amortization period, payment schedule, and any special terms or conditions. Review this document carefully to ensure it matches your understanding and expectations.

Ensure your homeowner's insurance is in place effective from the possession date. Lenders require proof of insurance before releasing mortgage funds. Shop around for the best rates and coverage that adequately protects your investment.​

Step 10: Close the Deal and Take Possession

The final step is closing the deal and taking possession of your new BC home. Your notary or lawyer will coordinate the closing process, which involves signing transfer documents, registering the property transfer with the BC Land Title Office, transferring mortgage funds from your lender, transferring your down payment funds, paying BC Property Transfer Tax and legal fees, and receiving the keys to your new home.

On the completion date (closing date), ownership officially transfers to you, and you or your lawyer transfers the remaining funds to the seller. On the possession date (which may be the same as or different from the completion date), you actually receive the keys and can move into your home.

Before possession, conduct a final walk-through of the property to ensure it's in the agreed-upon condition, all included items are present, and any agreed-upon repairs have been completed. Your notary will provide you with copies of all closing documents including the registered title showing you as the new owner.

Additional Considerations for BC Buyers

First-Time Home Buyer Programs

British Columbians purchasing their first home may be able to reduce or eliminate the Property Transfer Tax through the First-Time Home Buyers' Program. Additionally, the federal government offers the Home Buyers' Plan, allowing you to withdraw up to $60,000 from your RRSP (up to $120,000 per couple) to use toward your down payment, which you repay over 15 years.

Strata Properties

If you're buying a condo or townhouse in BC, you'll be purchasing a strata property. Include a subject clause allowing time to review strata documents including bylaws, rules, financial statements, depreciation reports, and meeting minutes. These documents reveal important information about the strata corporation's financial health, upcoming assessments, and rules you'll need to follow.

Foreign Buyer Considerations

BC imposes additional restrictions and taxes on foreign buyers in certain areas. If you're not a Canadian citizen or permanent resident, research whether these apply to your situation and factor additional costs into your budget.​

Frequently Asked Questions (FAQ)

1. How much do I need for a down payment in BC?
Minimum 5% for homes up to $500,000, 10% for the portion between $500,000-$1M, and 20% for homes over $1 million.

2. Do I have to pay my real estate agent in BC?
No, buyers typically don't pay their agent—the seller pays both agents' commissions from the sale proceeds.

3. What is BC Property Transfer Tax?
A tax paid when purchasing property in BC, calculated as 1-5% of purchase price depending on value. First-time buyers may qualify for exemption.

4. How long does subject removal take in BC?
Typically 3-7 days from offer acceptance, depending on what's specified in your contract.

5. Do I need a lawyer or notary in BC?
Yes, BC requires a notary public or real estate lawyer to complete the legal aspects of property transfers.

6. What's included in closing costs in BC?
Legal fees, Property Transfer Tax, title insurance, home insurance, property tax adjustments, and moving costs.

7. How long does the home buying process take in BC?
Typically 30-60 days from offer acceptance to possession, though it can be shorter or longer depending on circumstances.

8. Can I back out after removing subjects?
No, once subjects are removed the contract is legally binding. Backing out results in forfeiture of your deposit and potential legal action.

Conclusion

Buying a house in British Columbia involves multiple steps, specific legal requirements, and careful financial planning, but understanding the process makes it manageable and even exciting. By following these steps—from determining your budget and getting pre-approved through to removing subjects and completing the closing—you position yourself for a successful home purchase. Working with experienced professionals including a knowledgeable real estate agent and qualified notary or lawyer ensures you navigate BC's specific requirements correctly.

The Rob Visnjak Real Estate Group has guided countless buyers through the home purchasing process throughout the Fraser Valley. We understand BC's unique market conditions, legal requirements, and local neighborhoods, and we're committed to making your home buying journey as smooth and successful as possible. If you're ready to start your home buying journey in Langley, Surrey, or anywhere in the Fraser Valley, we invite you to connect with us today. Let us help you find your perfect BC home and navigate every step of the process with confidence.