Buying Your First Home in Surrey: A Step-by-Step Guide

Buying a first home in the Lower Mainland is a substantial undertaking. What follows is the sequence as it actually happens, with the costs that tend to surprise people flagged where they arise.

Step 1 — Establish what you can afford

Before viewing anything, work out two numbers: the maximum you would qualify for, and the maximum you are comfortable paying each month. They are rarely the same, and the second one matters more.

Remember the stress test: you will be assessed on a payment noticeably larger than the one you will make.

Step 2 — Get a real pre-approval

A genuine pre-approval means a lender has reviewed your documents and credit, not just accepted figures you typed into a form. It typically holds a rate for 90 to 120 days, which protects you while you search.

Have ready: photo ID, two recent pay stubs, a letter of employment, two years of T4s or Notices of Assessment, and proof of your down payment.

Step 3 — Assemble the down payment

Canada's minimum is tiered — five per cent up to $500,000, ten per cent on the portion from $500,000 to $1.5M, and twenty per cent above that. On a $700,000 home, the minimum is $45,000.

Lenders want the funds seasoned, usually 90 days. Gifted money from an immediate family member is acceptable with a signed gift letter.

Step 4 — Budget for closing costs

This is where first-time buyers most often get caught out. Set aside roughly 1.5% to 4% of the purchase price on top of the down payment:

• Property Transfer Tax — BC charges this on completion. First-time buyers may qualify for a full or partial exemption depending on the price; thresholds are revised periodically, so confirm the current ones.
• Legal fees and disbursements — commonly $1,000 to $2,000
• Home inspection — commonly $400 to $700, and worth every dollar
• Appraisal — if the lender requires one
• Title insurance — a few hundred dollars
• PST on mortgage insurance — if your down payment is under twenty per cent, the premium can be financed but the tax on it cannot
• Moving, utility connections and immediate repairs

Step 5 — Make an offer

Keep a financing condition in the offer unless you have a compelling reason not to. It gives your lender time to review the specific property — pre-approval covers you, not the home. In competitive situations buyers are sometimes pushed to waive it; understand precisely what you are taking on if you do.

Step 6 — Final approval

Once an offer is accepted, the lender assesses the property itself. An appraisal may be ordered. If it comes in below the purchase price, you cover the difference in cash — a real risk in fast-moving markets.

Step 7 — Completion

Your lawyer or notary handles the transfer, registers the mortgage, and disburses funds. You will sign documents a few days before completion and provide the balance of your down payment and closing costs by certified funds or wire.

A worked example

A $700,000 home with $70,000 down, at an illustrative 4.89% over 25 years:

Property tax, home insurance, utilities and any strata fees sit on top of that payment. Include them when you assess affordability.

Programmes worth checking

• Home Buyers' Plan — withdraw from an RRSP toward a first home, repayable over fifteen years
• First Home Savings Account — contributions are deductible and qualifying withdrawals are tax-free
• BC Property Transfer Tax exemption — for first-time buyers within the current price thresholds
• Federal first-time home buyers' tax credit — claimed on your return for the year of purchase

Eligibility rules and thresholds for all of these change. Confirm current details before relying on any of them.

Figures in this article are illustrative and calculated using Canadian semi-annual compounding. Rates shown are examples, not offers. Government programme thresholds and insurance premiums are revised periodically — confirm current numbers before making a decision.

Buying your first home in Surrey? Book a free, no-obligation consultation.