How much cash do you really need to buy?

Common questions about the cash to buy

• How much money do I really need to buy a home in the Lower Mainland?+

  More than just the down payment — that’s the honest headline. Beyond the down payment you’ll need Property Transfer Tax, legal or notary fees, title insurance, an inspection, and (if you put less than 20% down) PST on the mortgage insurance. As a rough guide, on an $850,000 townhouse a first-time buyer needs about $78,000 all-in with the minimum down payment, or roughly $186,000 with 20% down. The exact number depends on the price, your down payment, and which first-time-buyer programs you qualify for — which is exactly what we’d map out together before you start looking.
• What is the minimum down payment in BC?+

  With mortgage default insurance, the minimum is 5% on the first $500,000 of the price, plus 10% on the portion from $500,000 up to $1,500,000. On an $850,000 home that’s 5% of $500,000 ($25,000) plus 10% of $350,000 ($35,000) — a $60,000 minimum. At $1,500,000 and above, insurance isn’t available, so you need 20% down. The $1,500,000 insured cap was raised from $1,000,000 on December 15, 2024.

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  Mortgage default insurance (from CMHC, Sagen, or Canada Guaranty) lets a buyer purchase with less than 20% down by insuring the lender against default. The premium is a percentage of the mortgage that rises as your down payment shrinks — roughly 4.00% of the loan at 5%–9.99% down, 3.10% at 10%–14.99%, and 2.80% at 15%–19.99% (confirm current rates with CMHC). The premium is added to your mortgage rather than paid in cash — but BC charges 7% PST on that premium, and the PST is payable in cash at completion. Above the $1,500,000 cap, no insurer will cover the loan, so a 20% down payment is required.
• What costs land at completion besides the down payment?+

  The biggest is usually Property Transfer Tax — 1% on the first $200,000, 2% to $2,000,000, and 3% above that (a first-time-buyer or newly-built exemption can erase or reduce it under the price thresholds). Then legal or notary fees ($1,500–$2,500), title insurance ($300–$500), a home inspection ($500–$800), the 7% PST on mortgage insurance if you put down less than 20%, and prepaid property-tax and utility adjustments. Plan for roughly $5,000–$15,000 of these on top of your down payment, and on a new home, GST as well (with the first-time-buyer rebate often removing it).
• Does the down payment include closing costs?+

  No — and this is the single most common surprise for first-time buyers. The down payment is your equity in the home; closing costs (Property Transfer Tax, legal fees, the PST on insurance, adjustments) are a separate pile of cash due on completion day. We always plan for the all-in number from the start, so the closing-day total never catches you off guard. The closing-day cash calculator adds it all up for a specific purchase.
• What can reduce the cash I need?+

  Quite a lot, if you’re a first-time buyer. The BC first-time-buyer PTT exemption can erase the Property Transfer Tax below the price thresholds; on a new home, the new First-Time Home Buyers’ GST Rebate removes the full 5% GST up to $1,000,000; and the FHSA and Home Buyers’ Plan let you build and draw your down payment with real tax advantages. Using all of them together can change what you can comfortably afford — we make sure you don’t leave any on the table.
• Do I need more cash to buy a new or presale home?+

  Sometimes — because new homes carry 5% GST that resale homes don’t. The good news is that for a qualifying first-time buyer, the new GST rebate removes the full 5% on a new home up to $1,000,000 (a reduced rebate to $1,500,000). Presales also have their own deposit structure (often staged over the construction period) rather than a single down payment at completion. It’s worth modelling a new build and a resale side by side before you decide — the cash timing is quite different.