First-Time Home Buyer in Surrey BC? Here's Exactly What to Expect
First-time home buyers in Surrey, BC need a minimum 5% down payment for homes under $500,000, a mortgage pre-approval from a licensed broker or lender, and access to programs like the First Home Savings Account (FHSA) and the BC Property Transfer Tax exemption. Open Doors Mortgage in Surrey guides first-time buyers through every step of the process.
Buying your first home is one of the most significant financial decisions of your life — and it can feel overwhelming before you've done it before. At Open Doors Mortgage, we walk first-time buyers across Surrey, Langley, Burnaby, Richmond, and the Lower Mainland through the full process every single day.
Here's what you can actually expect, step by step.
Step 1 — Figure Out What You Can Afford
Before you start looking at homes, you need to understand your budget — not just what you wish you could spend, but what lenders will actually approve based on your income, debt, and credit. The two key ratios lenders use are your Gross Debt Service (GDS) ratio and your Total Debt Service (TDS) ratio. We explain both of these in plain language during your first consultation.
A quick rule of thumb: most lenders want your total housing costs (mortgage, property tax, heat, strata if applicable) to be no more than 32–39% of your gross monthly income.
Step 2 — Get Pre-Approved
A mortgage pre-approval is a conditional commitment from a lender that they'll lend you up to a specified amount. It locks in your interest rate for 90–120 days while you shop, and it tells sellers you're a serious buyer. Open Doors Mortgage can often complete a pre-approval within 24–48 hours once we have your documents.
Documents typically needed: T4s and NOA for the last 2 years, recent pay stubs, 90 days of bank statements, and down payment confirmation.
Step 3 — Use Every First-Time Buyer Program Available to You
There are several programs designed specifically for first-time buyers in BC that can meaningfully reduce your costs:
- First Home Savings Account (FHSA): Save up to $40,000 tax-free toward a home purchase. Contributions are tax-deductible; withdrawals for a qualifying purchase are tax-free.
- BC Property Transfer Tax Exemption: First-time buyers in BC may be exempt from the Property Transfer Tax on homes priced under $835,000.
- RRSP Home Buyers' Plan: Withdraw up to $35,000 from your RRSP tax-free toward a first home purchase (to be repaid over 15 years).
- CMHC Mortgage Loan Insurance: If your down payment is less than 20%, mortgage default insurance is required — but it also allows you to buy with as little as 5% down.
Step 4 — Make an Offer and Finalize Your Mortgage
Once you've found a home and your offer is accepted, your mortgage moves from pre-approval to full approval. Your lender will want to verify the property value (usually through an appraisal), confirm your employment and income haven't changed, and finalize the mortgage documents. We manage all of this on your behalf and keep you updated throughout.
What First-Time Buyers in Surrey Often Get Wrong
- Forgetting to budget for closing costs (typically 1.5–4% of purchase price on top of your down payment)
- Making a large purchase or new credit application after pre-approval — this can change your qualifying ratios
- Going directly to their bank instead of working with a broker who can access 30+ lenders
- Not taking advantage of the FHSA before making an offer
The most important thing: Start the conversation before you're ready to buy. Getting pre-approved and understanding your budget early means no surprises — and often a faster, smoother process when you do find the right home.
Questions about buying your first home in Surrey?
Book a free consultation with Open Doors Mortgage Team — we'll walk you through every step.
