Step 1: Know Your Down Payment
Your down payment is the single biggest factor in determining what you can afford, what programs you qualify for, and whether you need mortgage default insurance.
Your down payment must be verified with 90 days of bank statements. See our Document Guide for bank-by-bank instructions.
Step 2: Mortgage Default Insurance
If your down payment is less than 20%, you need mortgage default insurance. It protects the lender (not you) and the premium is added to your mortgage.
Insurance is from CMHC, Sagen, or Canada Guaranty at identical rates. First-time buyers may qualify for 30-year amortization (+0.20% surcharge). Use our Calculator for exact costs.
Step 3: Get Pre-Approved
Before applying, make sure your credit is in the best shape possible. Read our guide: Why Prudent Credit Management Matters.
A pre-approval tells you how much you can borrow, locks in a rate for 90-120 days, and shows sellers you are serious. The stress test requires qualifying at the greater of your rate + 2% or the 5.25% benchmark floor.
Buying in Victoria: What to Expect
Victoria's housing market has its own character. Understanding the local landscape will help you set realistic expectations and make better decisions.
What Different Budgets Buy in Victoria
$400K–$550K: A condo or smaller apartment in areas like Langford, Colwood, View Royal, or older buildings in Victoria proper. This is the entry point for most first-time buyers on the Island.
$550K–$750K: Larger condos in desirable locations (James Bay, Fairfield), older townhomes, or detached homes in the West Shore communities (Langford, Colwood, Sooke).
$750K–$1M: Townhomes in Saanich or Oak Bay, older single-family homes in Vic West, Esquimalt, or the West Shore. Some homes in this range will have legal suites — ask us about how rental offsets can help you qualify.
$1M+: Single-family homes in established neighbourhoods like Oak Bay, Fairfield, Gonzales, Gordon Head, and parts of Saanich. At this price point you'll need a minimum 20% down payment if the property exceeds $1.5M.
Victoria-Specific Tips
Strata considerations: Many Victoria condos and townhomes are strata-titled. Lenders will review the strata's financial health — depreciation reports, contingency fund balance, and any special levies. We help you assess strata risk before you commit.
Heritage and character homes: Victoria has many older homes with character but also potential issues. Knob-and-tube wiring, oil tanks, and older roofing can affect both insurance and mortgage qualification. A thorough home inspection is essential.
Rental suites: Many Victoria homes have legal or non-conforming basement suites. If the property has rental income potential, the lender you choose matters enormously — read our article on rental offsets vs. add-backs.
BC Home Owner Grant: Victoria falls within the Metro Vancouver / Capital Regional District zone. You qualify for up to $570/year in property tax reduction if your assessed value is under $2.175M.
What Can I Afford?
Enter your income and monthly debts to see a rough maximum purchase price. This uses standard GDS/TDS ratios with the stress test rate.
Estimated maximum purchase price
$580,000
Based on 5.25% stress test, 25-year amortization
Step 4: BC Programs
Property Transfer Tax Exemption
First-time buyers pay no PTT on the first $500,000 of the purchase price for homes under $835,000. Partial exemption available up to $860,000. Saves up to $8,000. Must be a Canadian citizen/PR and have lived in BC 12+ months.
First Home Savings Account (FHSA)
Tax-deductible contributions, tax-free withdrawals for a home. $8,000/year, $40,000 lifetime max.
Home Buyers' Plan (HBP)
Withdraw up to $60,000 from RRSP tax-free. Repay over 15 years. Can combine with FHSA.
GST Rebate for First-Time Buyers (Bill C-4)
As of March 2026, eligible first-time buyers of newly constructed homes pay no GST on homes up to $1,000,000. For homes priced between $1M and $1.5M, a partial rebate applies on a sliding scale — up to a maximum savings of $50,000. This applies only to new builds (not resale homes), and the purchase agreement must be signed on or after May 27, 2025. Bill C-4 received Royal Assent on March 12, 2026.
Note: The existing GST/HST New Housing Rebate (up to $6,300 for homes under $450,000) also still applies to all buyers of new homes, not just first-time buyers.
Home Buyers' Tax Credit
Federal $10,000 credit providing up to $1,500 in tax savings the year you buy.
Step 5: Closing Costs
Use our closing cost calculator to estimate exactly how much cash you need. Also see the BC Property Transfer Tax calculator for exemption details.
Closing costs typically run 1.5-4% of the purchase price on top of your down payment.
Step 6: The Buying Process
Get Pre-Approved
Know your budget before you start looking.
Find a Realtor
A buyer's agent represents your interests.
House Hunt
View properties, open houses, research neighbourhoods.
Make an Offer
Written offer with conditions (financing, inspection).
Remove Subjects
Complete financing, inspection, other conditions.
Hire a Lawyer/Notary
They handle legal transfer and title registration.
Completion Day
Funds transfer, keys released — the home is yours.
Step 7: Documents You Need
Start gathering early. See our Document Guide for step-by-step bank statement instructions.
Ready to Get Started?
Not sure if you qualify? Try our quick self-qualification check first.
We are more than happy to sit down and walk through every step with you in person. That's the opposite of a bank.
Contact Us or call 250.388.9473