The housing market does not stand still for long, so you’ll want to be aware of the recent buyer-friendly changes, especially if you’re a first-time buyer looking to get into the market.

• Mortgage rates: After a spell of higher interest rates, we’ve seen interest rates slowly ticking down, which may have you feeling ready to make your move. The latest rate when you close your purchase will impact the mortgage rate and, in turn, the value of your mortgage for the term.
• Increased price caps: The official price cap for insured mortgages has moved from $1 million to $1.5 million to help more Canadians buy a home. This means more people can qualify for a mortgage with a down payment of less than 20%. This is a boost for first-time buyers, who can get on to the ladder by paying a smaller down payment.
• Changes to the maximum amortization from 25 years to 30 years: To help more Canadians buy a home, this longer amortization will spark more offers from first-time buyers and people who buy new builds.

Before you start viewing homes, make sure you have gathered your financial paperwork. It’s advisable to:

• Set a budget: Your budget should allow for your down payment, closing costs and expenses such as inspections, legal fees, taxes, moving expenses and insurance. Here’s a closing cost calculator for buying homes in BC, as well as guidance on how to set a budget for buying your first home.
  
  


• Team up with a mortgage broker: Explore your options beyond your regular bank for the best possible rate on a mortgage. For such a large purchase, you may want to recruit the help of a mortgage broker. At no charge to you, your broker will work with local banks and credit unions to find you the best deals on mortgage interest rates based on your situation and the home you are looking for. Here are some of the advantages of working with a mortgage broker and where to find a registered mortgage broker in BC.
• Get a mortgage pre-approval: Once you’re settled on a financial institution to help with your mortgage, you need to get mortgage pre-approval. This is a (short and simple) letter from a bank or lending institution that will give you the ability to move quickly on an offer if and when you find your dream home. It confirms you qualify for a mortgage and specifies a term, interest rate, principal amount and your monthly payments.
  
  You can get pre-approvals from more than one financial institution to give you more options. Market conditions may mean it makes sense to explore fixed and variable mortgages. A pre-approval letter holds your mortgage interest rate for a set period of time, which helps provide more clarity on your costs when you make an offer on a home. Banks and credit unions offer this service free of charge, but keep in mind, getting one can impact your credit score. To get pre-approved, you'll need to provide your lending institution with your:
  
  
  • Identification, e.g., driver’s license, passport, BC Services Card.
  • Proof of employment
  • Proof of income
  • Proof of other assets or mortgages
  • Info on other debts
  • Proof you can pay the down payment and closing costs
  Here’s more info on getting a pre-approval for a mortgage in Canada.

Itching to start your search? Do this preparation first to really help you narrow down what you want to buy.

• Team up with a realtor: Find a realtor you really connect with and who understands the area and market where you're looking for a home. A good realtor is crucial in helping you find homes that fit your wish list, negotiate prices and complete the paperwork. Here are some tips on how to choose a realtor when buying your home.
• Decide if you want a strata, new build or resale home: What kind of home are you in the market for? Do you want a strata home (e.g. a condo or townhouse)? Do you want a brand-new home that’s never been lived in? Or are you seeking an already-built home, or a fixer upper, that’s move-in ready or can be renovated and transformed into your dream home? There are pros and cons to each. Narrow down your search to help your realtor guide you to homes within your budget.
• Make your list of must-haves and deal breakers: Does your new place need to have two bedrooms? Office space? A mortgage helper, like a rentable suite? Are you looking for a quiet location? Need to be near a school? Write down all your must-haves and deal-breakers so you won’t get distracted by homes that are beautiful but don’t serve your needs.
• Review comparables: A good realtor will show you comparables (a.k.a. comps) for local homes that have recently sold in your preferred neighbourhood and budget range. You can do this research, too. Look for Canadian home sales history at HouseSigma and REW’s Insights to see what similar homes have been selling for in BC.

Found a home you love and would like to call your own? Before you put an offer together, your realtor will help you:

• Check out the builder: Make sure they’re licensed with BC Housing.
• Know the home’s warranty provider, if applicable: Find out by asking your builder, look for a sticker on the electrical box or visit BC Housing’s New Homes Registry. The warranty provider issues a home warranty insurance policy when the home is completed or occupied.
• Get a home inspection: Before you commit to a property, pay for a thorough home inspection to uncover any hidden issues that could be costly down the road.
• If there’s a strata, get the paperwork: This will include minutes for strata council meetings, AGM and SGM, the strata corporation’s bylaws and rules, financial statements, any special levies coming up, and info on repairs and maintenance. Strata costs can be really important to understand as strata-managed properties often have additional monthly fees you'll need to pay. For example, special levies can result in larger costs to each strata member that you'll need to plan for outside of your regular mortgage payments.
• Find a real estate lawyer or notary public: It’s important to get an expert to review the paperwork before you sign. You need to understand the process and fees associated with buying a property beyond the down payment and your mortgage repayments. This includes closing fees, which can easily be missed and become an unwelcome surprise before completion. Here’s where to find a real estate lawyer or notary who specializes in BC real estate.

In BC, buyers use a standard contract to make an offer. A realtor can help you complete and understand it. This contract is legally binding if accepted, requiring both parties to fulfil their obligations. Failing to do so could lead to legal issues, such as losing your deposit or facing court action.

Make your offer stand out to sellers by:

• Include a mortgage pre-approval letter: This reassures the seller that you have financing in place.
• Make a strong down payment: This signals your commitment and reduces concerns the buyer could walk away.
• Write a personalized letter to the seller: Showing how much you appreciate the home can help get your offer accepted, especially in competitive situations.
• Minimize the number of conditions: An offer with reasonable terms and fewer conditions can increase your chance of acceptance.
• Open with a solid purchase price: Low-ball offers may be dismissed as unserious or opportunistic. State your intentions with a compelling opening offer.

A home is likely the biggest purchase of your life, so it’s important to protect your investment with customized insurance coverage that suits your needs. Have confidence your property is protected when you choose BCAA knowing we paid out over 95% of claims related to fire, water, weather and theft*. BCAA Members save up to 20%**. You can also save an additional 5% in your first year, if you buy online. Speak to one of our advisors by phone or get a quote online today.

A good realtor is a huge help for your selling success. Find a registered realtor who is experienced in your local market and has a track record of selling homes like yours. For example, some realtors specialize in detached houses, while others specialize in downtown lofts and condos. Interview multiple candidates and ask for referrals, check reviews, ask about their knowledge on comparable sales in your area, how they like to stage a home and their strategy for arranging showings.

Work with your realtor to establish your pricing strategy for your home. Will you list it at a below-market rate to spark multiple offers? Or will you set the price high to establish a smaller pool of dedicated buyers? Your real estate agent will analyze the market and recent comps to advise you on the best pricing strategy for your needs.

Before you list your home, ask your realtor to educate you on the common conditions or ‘subjects’ that buyers may include in their offer, such as:

• Appraisal: the buyer may include a condition that the property must be appraised by a licensed appraiser before the sale can be finalized.
• Inspection of the home by a licensed BC home inspector.
• Review of strata documents like bylaws and meeting minutes.
• Property disclosure statement outlining the seller’s disclosure regarding any known property defects.
• Financing: this means the buyer's ability to complete the purchase depends on them securing a suitable mortgage or other financing.
• Current home sale: this means the sale is subject to the buyer selling their current home first.
• Title search: this verifies the seller is the legal owner of the property and there are no outstanding claims against it.

First impressions matter and your real estate listing is the very first thing that buyers will see. To make your listing stand out, we recommend you:

• Declutter and clean up your home: Sell stuff, recycle stuff, give stuff away, fix what needs fixing. Clear dust and vents from skirting boards and wash all your walls and windows. You might even want to consider using a professional cleaning service to help give your home a deep clean and make it shine for potential buyers.
• Replace any dim or broken light bulbs: Good lighting can help illuminate your space. Lights will be turned on for listing photos and open houses and help provide a homely feel.
• Give your space a new coat of paint: Hire pro painters to transform your place into a home that feels new again. Your realtor will likely recommend you paint in neutral tones (i.e., White Meadow rather than Pink Explosion) to appeal to more buyers.
  Pro tip: BCAA Members save 25% on Cloverdale Paint and Dulux Paint.
• Ask for advice on upgrades: Ask a real estate expert to give you a list of quick renovations that may help increase your home’s value. Here are some smart home renovation tips designed to give you return on your investment.
• Stage your home to highlight its best features: How you present your home can have a big effect on potential buyers. Here are the dos and don’ts of staging your home.

For more advice on getting your home ready for market, here are our budget-friendly tips to increase your home’s value.

Once you’ve received offers on your home, you’ll want to evaluate them each to review the financial elements and any conditions attached.

Financial elements

• Offer price: Compare their offer amount with your home’s appraised value and your realtor’s comparative market analysis.
• Your financial goals and needs: How does this offer meet your financial goals and needs? Don’t just focus on the sale price. Look at the net proceeds from the sale after you subtract closing costs, plus any outstanding mortgage payments or liens on the home.
• Buyer’s commitment: The buyer’s deposit reflects their commitment to the deal. A larger down payment typically means a serious buyer and reduces the risk of the deal falling through. Some buyers may even include a deposit cheque or a personal letter to show that they are just as interested in buying your home as you are in selling it.

Conditions
Analyzing the conditions within an offer is a crucial step, as these stipulations can significantly impact the progress and finalization of the transaction. Conditions are clauses within the offer that must be fulfilled for the sale to proceed. They often include aspects related to financing, inspections and additional terms that can be deal-makers or deal-breakers, such as:

• The buyer’s pre-approval and financing stability: Evaluate the buyer’s financial preparedness. A buyer who has a mortgage pre-approval is typically more reliable. Look at the stability of the buyer’s financing, including the down payment amount, type of loan and their lender’s reputation.
• Home inspection conditions: Home inspection conditions are standard and can find potential issues like necessary repairs or system upgrades. Be ready to address these concerns by negotiating a price adjustment or agreeing to do those repairs before closing.
• Closing date: See if the proposed closing date matches your relocation plans, giving you enough time to pack up and move to your new residence. A quicker closing date can be tempting, but you want to balance convenience with practicality. You may want a more flexible timeline that reduces stress and allows for unforeseen delays or complications.

You have three choices for every offer you receive:

• Accepting the offer: If the best offer meets your expectations and needs, communicate your acceptance clearly. Your realtor can ensure that your acceptance is documented in accordance with local and BC regulations. Here’s when you hire a real estate lawyer (your realtor can often recommend a good lawyer or notary) to manage the Contract of Purchase and Sale, title search and manage the transfer of funds.
  
  Pro tip: If you’re selling a strata unit, the lawyer or notary can also support you with the Form B: Information Certificate. Your realtor will supply you with a Property Condition Disclosure Statement that discloses the condition of your property to a buyer, including any known defects, repairs or issues that may impact the property’s value or safety.
• Writing a counteroffer: If some parts of the offer aren’t satisfactory, spell out the areas for negotiation. Be clear about your needs and what edits to the offer will help you reach an agreement, whether it’s the closing date, price or edits to the conditions.
• Rejecting the offer: If the offer falls a lot short of your expectations and there isn’t room for compromise, you may need to simply reject it. Diplomatically reply with your decision and give clear reasons why you rejected it. You can give the buyer guidance on what would make you accept their offer.

You accepted the offer? Congratulations! This is a momentous moment for both a buyer and seller. Your realtor, banker and lawyer or notary public will arrange for:

• Transfer of funds: This is how, when and where the money goes into your bank account and what bills or debts, if any, should be paid out.
• Transfer of sale: When you accepted the offer, you signed the Contract of Purchase and Sale, which will state the completion day for the sale of your home. On that day, the legal ownership of your property transfers from you to the buyer.