How Much Down Payment Do You Need for a First Home in BC? (2026)

What is the minimum down payment to buy a home in BC in 2026?

Canada's minimum down-payment rules are tiered by purchase price:

• Up to $500,000: 5% minimum down. So a $400,000 condo needs $20,000 down minimum.
• $500,000 to $1,499,999: 5% on the first $500K, plus 10% on the portion above $500K. So a $750,000 home needs $25,000 + $25,000 = $50,000 down.
• $1,500,000 and above: 20% down required. CMHC insurance not available above this price. A $1.6M home needs $320,000 down.

The $1.5M ceiling is new in this decade, it rose from $1M on December 15, 2024 (Department of Finance Canada). Before that change, a $1.1M Surrey detached home required a $220,000 (20%) conventional down payment. Now the same home can close with $85,000 down (5% × $500K = $25,000 plus 10% × $600K = $60,000). That single rule change opened the detached market to a lot more first-time Fraser Valley buyers.

How much down payment do you need in the Fraser Valley?

Real prices on the spectrum of first-time buyer purchases we see in 2026:

$400,000 condo, older 2-bed, Abbotsford or Chilliwack

• Minimum down: $20,000 (5%)
• Insured mortgage: $380,000
• CMHC premium (4.00%): $15,200, added to mortgage
• PTT (with first-time buyer exemption): $0 (under $500K, full exemption applies on the base PTT formula)

$550,000 condo, newer 2-bed, North Surrey or Langley

• Minimum down: $25,000 + $5,000 = $30,000
• Insured mortgage: $520,000
• CMHC premium (4.00%, loan is 94.55% of price): $20,800
• PTT: $2,000 + $7,000 = $9,000; first-time buyer exemption (max $8,000) saves $8,000; pay $1,000 net

$700,000 townhouse, Willoughby (Langley) or Cloverdale

• Minimum down: $25,000 + $20,000 = $45,000 (5/10 stacked)
• Insured mortgage: $655,000
• CMHC premium (4.00%, loan is 93.57% of price): $26,200
• PTT: $12,000; first-time buyer exemption saves $8,000; pay $4,000 net

$900,000 townhouse, newer Langley or South Surrey

• Minimum down: $25,000 + $40,000 = $65,000
• Insured mortgage: $835,000
• CMHC premium (4.00%): $33,400
• PTT: $16,000; first-time buyer exemption phased out above $860K; pay full $16,000 (unless new build, check Newly Built Home Exemption)

$1.2M detached starter, Cloverdale or Maple Ridge

• Minimum down: $25,000 + $70,000 = $95,000
• Insured mortgage: $1,105,000
• CMHC premium (4.00%): $44,200
• PTT: $22,000; no first-time buyer exemption; pay full $22,000

Can you use the FHSA and RRSP Home Buyers' Plan for your down payment?

For a buyer who's been planning ahead, the realistic down-payment stack looks like this:

• FHSA balance (up to $40K per person, tax-free withdrawal)
• HBP withdrawal from RRSP (up to $60K per person, tax-deferred, 15-year repayment)
• Regular savings outside registered accounts
• Gift from parents (with documentation)

A single buyer with both FHSA and HBP maxed could put $100,000 toward a down payment from registered accounts alone. Two buyers stacked: $200,000. On a $700K townhouse, that puts you well above the 20% threshold ($140K), skip CMHC insurance entirely, qualify for a better mortgage rate (most lenders price uninsured mortgages 10 to 25 bps higher than insured, but you avoid the premium itself), and reduce monthly cashflow.

Is a bigger down payment always better in BC?

A question we get from first-time buyers who happen to have inheritance or windfall money: "Should I put all my cash into the down payment, or hold some back?" Our usual advice:

• Keep 3 to 6 months of expenses as an emergency fund. Especially in the first year, appliances break, strata special assessments happen, life happens. Going house-poor is the most common first-year regret we hear.
• Hit 20% if you reasonably can. Avoiding CMHC insurance is real money ($26K on a $700K home at minimum down). The premium is added to the mortgage and you pay interest on it for 25 to 30 years.
• Don't drain RRSPs beyond what HBP allows. Pulling RRSP money outside the HBP triggers full income tax at your marginal rate, usually 30 to 45% in BC. Bad trade.

If you're close to the 20% line and weighing whether to push over it, there's more to the insured-vs-uninsured decision than just the premium. Rate pricing, qualifying rules, and lender availability all shift at that threshold. We break down exactly what changes at 20% down in the Fraser Valley worth reading before you finalize the number.

What can first-time buyers do if their down payment is short?

Most first-time buyers we work with don't have the full down payment when they start. Three honest options:

1. Wait and save more. Open an FHSA immediately, set up automatic contributions. Aim for an 18-month savings sprint with a clear $-target.
2. Buy lower. The price gap between a $700K Langley townhouse and a $450K Chilliwack townhouse is 18 months of qualifying time for most buyers, and the Chilliwack property still builds equity. Not a glamorous answer; it's an honest one.
3. Co-buy with family. A parent or sibling on title shifts the math substantially. If they're not first-time buyers, you may give up part of the PTT exemption but that's often more than offset by qualifying easier.

One more decision that affects every buyer: whether to lock in a fixed or variable mortgage rate. It interacts directly with your down payment size, your insurance premiums, and how much you qualify for. Our fixed vs. variable guide for BC buyers in 2026 walks through the current rate environment and how each option plays out over a 5-year term.

If your income doesn't come from a T4, qualifying works differently. Our self-employed mortgage guide covers what lenders actually want to see. And if you're buying a resale home where the seller still has a low-rate mortgage in place, an assumable mortgage can sometimes be taken over instead of arranging new financing.

This page is general information only and does not constitute financial, mortgage, or tax advice. Down payment minimums, CMHC insurance premiums, and program rules can change. Confirm your down payment strategy and mortgage options with a licensed mortgage broker before making any decisions about your purchase.