Are you tired of lining your landlord's pockets with monthly rental payments? Do you think that you're ready to maintain your own property? Then it's the perfect time to start thinking about buying a home in BC.
BC is a gorgeous province that's full of beautiful living spaces, ranging from strata units to detached homes. The wide array of living spaces, along with a number of other beneficial factors, make BC the ideal place to start a family or career.
However, if you're planning on buying a house in BC, the last thing that you want to do is rush into a final decision. You need to do your fair share of research if you want to find the right home anywhere, including BC.
If you're short on time, that's ok!
We've put together the ultimate guide for buying a house in BC. After reading today's guide, you'll know exactly what you need to do in order to find and purchase your dream home in BC.
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Three questions that you should ask yourself before buying property in BC
Be sure to ask yourself these questions before you start looking for a home in BC:
- Do you want to buy a previously-built home or a brand-new home?
- Can you cover the cost of a down payment (based on the provincial average)?
- Do you need to hire a professional real estate agent, or should you consider buying a home privately in BC?
After taking the time to ask yourself these questions, you'll have a better idea as to what type of home you can afford and how you wish to go about buying it.
How to buy a house in BC — An in-depth guide for homebuyers
Now that you have a better understanding of your wants and needs, it's time to start looking for a house in BC.
If you don't know where to start, we've got you covered. Here's a quick list of the steps to buying a house in BC:
#1 — Save up for a down payment
In BC, the minimum down payment that you need to make on a home is influenced by the purchase value of the property. Here's a quick rundown of the minimum down payments in BC:
- Properties with a purchase price of less than $500,000 — 5% of the purchase price
- Properties with a purchase price between $500,000 and $999,999 — 5% of the first $500,000 and 10% of the remainder of the purchase price
- Properties with a purchase price of $1,000,000 (or more) — 20% of the purchase price
So, how much can you expect to pay if you intended to make a down payment on an averagely-priced home in BC?
Let's do some basic calculations:
The average price of a home in BC (at the time this article was written) is roughly $933,000. So, if you need to pay 5% of the first $500,000 and 10% on the remainder, you can expect to pay $68,000 for an averagely-priced home in BC.
That being said, most real estate experts urge buyers to make a 20% down payment, regardless of how much the home is worth. This is due to the fact that making a 20% down payment gives the buyer additional equity in the home and makes their mortgage payments much more manageable. Be sure to keep this in mind before making a final decision while buying a home in BC.
#2 — Get pre-approved for a mortgage
Whether it's your first time buying a house in BC or your fifth time purchasing a property, you should always consider getting pre-approved for a mortgage.
Getting pre-approved for a mortgage indicates that you're actively searching for a home. Whatsmore, getting pre-approved for a mortgage also allows you to take advantage of a pre-set interest rate for a predetermined amount of time.
Bonus tip — For those that don't know, mortgage lenders generally require buyers to purchase home insurance. Make sure that you can cover the required insurance expenses before moving forward with your decision.
#3 — Make an offer on a home
After a little bit of research and a lot of house hunting, it's finally time to put in an offer on a home!
While making an offer on a home, make sure to include the following negotiable items:
- The purchase price of the home
- A time limit for the seller to accept your offer
- The deposit amount
- Your preferred possession date and completion date
- List of household fixtures
#4 — Finalize the sale and move into your new home!
Once the seller has received your payment from your real estate lawyer, you've officially purchased your new home!
However, the process isn't done yet; you still need to move into your new home. Contact a reliable moving company to help you safely relocate your belongings. Although you can move some small items by yourself, we suggest hiring a moving company for large, awkward items like:
- One-piece tables
- Large furniture, tools and equipment
- Bulky electronics
- Large mirrors and other delicate items
After everything is moved in and put in place, you can start to enjoy your new living space. If you want to financially protect your home and belongings from unexpected risks and perils, be sure to get a high-quality insurance quote from a reputable insurance brokerage like our team at Surex.
Save up to 25% when you bundle multiple insurance policies with a Surex insurance provider
As mentioned earlier, if you’re buying a house in BC and need a mortgage, you’ll need to invest in a quality home insurance policy.
At Surex, our number one goal is to make it easier for Canadians to get the best insurance. We do this by offering quick, quality quotes from Canada's top-rated home insurance providers, like Aviva.
Contact your personal Surex insurance advisor today to get started. We can provide you with the best insurance quotes in BC in ten minutes or less!
While you're comparing home insurance quotes with your Surex insurance advisor, don't hesitate to ask about the benefits of bundling multiple policies with one of our providers! Bundling multiple policies gives you access to incredible savings, sometimes as high as 25%.
