1. The Big, One-Time "Upfront" Costs (Closing Day)

For buyers in Metro Vancouver, the upfront costs are substantial due to high property values. Prepare for these fees, which are due before you get the keys.

• Property Transfer Tax (PTT): This is the largest closing cost.

  • In BC, it's 1% on the first $200,000 and 2% on the remaining value up to $2,000,000 (with higher rates above that).

  • Local Tip: First-Time Buyer Exemption: You may be exempt from PTT if you are a Canadian citizen or permanent resident, have lived in BC for at least 12 consecutive months, and the property's fair market value is $500,000 or less (with a proportional exemption up to $525,000). Given the average price of a home in Burnaby or Coquitlam, this exemption is most commonly used for condos in the area.

• Legal Fees & Disbursements: Typically range from $1,200$ to $2,000, plus GST, for your lawyer or notary to finalize the title transfer and mortgage.

• Property Tax and Utility Adjustments: You will reimburse the seller for any prepaid taxes, water, or garbage fees. Expect a few hundred to a couple of thousand dollars depending on the closing date.

2. The Recurring Monthly Costs (The "P.I.T.I. + M&M" Formula)

Your real monthly payment is more than just Principal and Interest. Think of it as P.I.T.I. + M&M (Principal, Interest, Taxes, Insurance, plus Maintenance and Mortage Insurance).

3. The Unpredictable Costs (The Tri-Cities Emergency Fund)

Set up a dedicated fund for home maintenance. Relying on an old-school budget is dangerous when facing the high costs of Metro Vancouver service calls.

• The 1.5% Annual Maintenance Rule: Budget 1.5% of the home's value annually. For a $1,000,000 home, that's $15,000 per year, or $1,250 per month, set aside for repairs and replacements.

• High-Cost Replacements:

  • Roofs & Furnaces: A new roof in BC can cost $15,000 to $30,000. A high-efficiency furnace or heat pump replacement can be $5,000 to over $15,000.

  • Appliance Failures: In a hot market, you may inherit older appliances that fail in the first year.

• Local Maintenance Considerations:

  • Gutter Cleaning: Essential due to the heavy rain and dense tree cover in areas like Port Moody's Heritage Mountain and parts of North Burnaby. Expect to pay $150-$300 per cleaning twice a year.

  • Drain Tile Inspection: Older homes in the region are prone to clogged perimeter drain tiles. This can lead to basement flooding and costly repairs if not maintained or replaced.

🔑 Conclusion: Affordability in the Tri-Cities

Buying a home in Burnaby, Coquitlam, or Port Moody means entering a competitive market. Ensure you have a six-month emergency cash buffer in addition to your closing cost funds. Knowing the true cost, beyond P.I.T.I., is the key to enjoying your home without financial stress.

You’ve mastered the condo life. For 5-10 years, your unit has been your home base in the Lower Mainland. But now, the dream is shifting: more space, a private yard, and perhaps fewer shared walls.

The great news is that your condo has likely been hard at work for you. The significant equity you’ve built—from paying down your mortgage and from market appreciation—is your powerful down payment engine. This “move-up” strategy is the smart way to graduate from condo living to a more spacious townhome or a self-managed duplex right here in Greater Vancouver or the Fraser Valley.

The Equity Advantage: Your $300,000 Launchpad

Let's model the next step using a common scenario in our local market: selling your appreciated condo provides a substantial down payment on your next, larger property.

For this breakdown, we'll assume a $1,000,000 target purchase price for your new home and a $300,000 down payment sourced from your condo's sale.

To give you the clearest picture, we'll use a competitive rate of 3.99% (on approved credit) amortized over 25 years.

Option 1: The Townhouse Dream (Strata Living) 🏡

Townhouses are part of a Strata Corporation in British Columbia, meaning you pay monthly Strata Fees to maintain common property.

✨ The Upgrade: What You Get with a Townhouse

Moving from a condo tower to a stacked townhome isn't just a financial transaction—it’s a massive lifestyle upgrade, especially for families or anyone craving more elbow room.

• Serious Space: Most townhouses offer between 2 to 4 full bedrooms, often spread over two or three levels. This vertical living eliminates the condo feeling and gives every family member their own private retreat.

• Ensuites and bathrooms: Say goodbye to shared bathrooms! It’s common to find multi-level townhomes with two or three full bathrooms, often featuring private ensuites for the primary and secondary bedrooms.

• Private Parking & Storage: Forget the high-rise parking elevator. A townhouse often includes a single or double garage (or a dedicated carport), providing secure parking and critical space for bikes, tools, and sports gear.

• Your Own Grass: You finally get a small slice of the outdoors—a fenced patio or modest lawn area. Perfect for summer barbecues, letting the dog out, or watching the kids play, all without leaving your property.

• No Elevators, Ever: You'll use your own stairs instead of waiting for a high-rise lift. This gives you a true sense of coming home without having to share hallways with hundreds of other residents.

💡 The Local Strata Reality Check:

While Strata Fees increase your monthly carrying cost, they provide predictability. You pay into a Contingency Reserve Fund (CRF), so you aren't hit with a massive, unexpected bill for a new roof or siding repair—the Strata manages the budgeting and repairs for you.

Option 2: The Duplex Delight (No Strata Fee) ✌️

A duplex (or half-duplex) is increasingly popular across Metro Vancouver as it offers a more house-like experience with greater autonomy. Many are built with a simple legal agreement that avoids forming a formal Strata, meaning there is no monthly Strata Fee.

Using the exact same purchase and mortgage numbers:

💡 The Duplex Ownership Reality Check:

You save the $300–$550+ per month in Strata Fees, but you must personally budget for all big repairs. When the roof needs replacing or the furnace goes, you are solely or jointly (with your duplex neighbour) responsible for the full cost. You trade a monthly fee for full control and the need for rigorous personal savings.

Ready to find out exactly how much equity you can unlock from your condo? Let's chart your move-up plan!

It’s an exciting time for first-time buyers! With recent shifts in the market, appealing prices for townhouses and condos, and helpful government incentives, your dream of homeownership in beautiful British Columbia is more achievable than ever.

You’ve saved your down payment, you’ve found the perfect place, and your offer has been accepted. Congratulations! But before you get the keys, there's one final financial hurdle to clear: closing costs. These are the extra, one-time fees paid on your closing day that are in addition to your down payment and mortgage.

To ensure a smooth journey to ownership, here is a breakdown of what you need to budget for. A general rule of thumb in B.C. is to budget 1.5% to 4% of the purchase price for these costs.

Key Closing Costs to Budget For in Coquitlam

1. The Big One: Property Transfer Tax (PTT)

The PTT is a provincial tax charged on all property transfers in B.C. For most buyers, this is one of the most significant costs.

• Standard Rate:

  • 1% on the first $200,000 of the purchase price.

  • 2% on the portion from $200,000 up to $2,000,000.

  • 3% on the portion over $2,000,000.

• The Good News: First-Time Home Buyer Exemption You may qualify for a full or partial exemption from the PTT! This can save you thousands.

  • Full Exemption: For homes valued at $835,000 or less (as of April 1, 2024, subject to change).

  • Partial Exemption: Available for homes between $835,000 and $860,000.

  • To Qualify: You must be a Canadian citizen or permanent resident, have lived in B.C. for a minimum period, and have never owned a principal residence anywhere in the world.

2. Legal Fees & Disbursements

You'll need a notary public or a lawyer to handle the legal transfer of the property, register the mortgage, and prepare documents.

• Cost: Typically ranges from $1,000 to $2,500 plus GST.

• Disbursements: These are additional out-of-pocket expenses your lawyer/notary pays on your behalf, such as land title registration fees, title searches, and for condos/townhouses, fees for getting the necessary strata documents (e.g., Form B).

3. Mortgage-Related Costs (If Applicable)

• CMHC/Mortgage Default Insurance: If your down payment is less than 20% of the purchase price, you must pay for mortgage insurance. This premium can be substantial but is typically rolled into your mortgage balance, meaning you don't pay it as an upfront closing cost. Note: You must pay the provincial sales tax (PST) on the premium upfront.

• Appraisal Fee: Your lender will often require an appraisal to confirm the property's market value. ($300 - $500).

4. Pre-Paid Adjustments

On closing day, you may need to reimburse the seller for expenses they have pre-paid for the year, such as property taxes and strata fees. This amount will be prorated (adjusted) to cover the period you will own the home.

5. Inspection & Insurance

• Home Inspection: Highly recommended, even for newer condos/townhouses. An inspector checks the condition of the home and common property (if accessible). ($400 - $800).

• Property/Fire Insurance: Your lender will require you to have home insurance (sometimes called fire insurance) in place on closing day. For a condo, this covers the contents of your unit, and for a townhouse, it generally covers the building and contents. The strata corporation covers the main building structure insurance.

Leveraging Government Incentives & Savings Plans

The current market environment offers additional relief for first-timers:

• First Home Savings Account (FHSA): A fantastic, new tool that combines the tax-deductible contributions of an RRSP with the tax-free withdrawals of a TFSA—perfect for saving your down payment!

• Home Buyers' Plan (HBP): Allows you to withdraw up to $60,000 tax-free from your RRSP to put toward your home purchase. This must be repaid over a 15-year period.

• GST/HST New Housing Rebate: If you are buying a newly built condo or townhouse, you may be eligible for a rebate of part of the GST/HST paid.

Final Word of Caution

While the market offers fantastic opportunities, the closing process can be complex. The key to a stress-free closing is to be prepared and understand your budget for all of these costs.

Ready to take the next step or have specific questions about how these costs and incentives apply to your situation? Please contact me—I’m here to help you navigate the fine print!

There's a myth about buying your first home: that it's this incredibly complex, impossibly difficult feat reserved for the wealthy. I'm here to tell you that it's not that hard. The process itself—the paperwork, the inspections, the closing—is straightforward. The real hurdle? It's exactly what you think it is: saving the down payment.

But even that is a goal that can be broken down into an achievable, disciplined plan.

The Down Payment: Your Launchpad

Let's look at the numbers. They aren't meant to be discouraging; they're meant to be motivating.

1. If you're living at home and can eliminate rent entirely: Saving $1,600 a month is tough, but it's your fastest track.

   $1,600 per month×12 months×5 years=$96,000

   In five years, you have nearly $100,000 saved.

2. If you have a partner who does the same: You're looking at close to $200,000 saved in the same timeframe.

3. If you're currently renting: This is where discipline truly comes in. Don't rent for convenience or luxury. Rent the cheapest basement suite you can possibly find. Every dollar you save on rent is a dollar that gets you closer to owning. It’s a temporary sacrifice for a massive long-term gain.

Your Starter Home Is Within Reach

Why is $100,000 such a magic number? Because with that down payment, your homeownership dreams become a reality.

• A buyer with a $100,000 down payment and a gross annual income of $63,000 could typically qualify for a home around $450,000 (and sometimes more, depending on rates and lender products).

That $450,000 might not buy you a detached house, but it will get you a one-bedroom condo in a desirable area like Coquitlam. This isn't your forever home—it's your starter home.

The Real Secret: Building Equity

The true genius of this plan is what happens next. You aren't just paying a mortgage; you are using the property as a wealth-building machine.

Over the next 5 to 10 years, you will build equity in that starter condo. This is money that you are essentially forcing yourself to save and invest. When you decide to move up, you use that built-up equity—plus any additional savings—as the down payment for your next place, perhaps a townhouse.

Then, you repeat the process, using the townhouse's equity to purchase the eventual detached house.

This path isn't easy, but it is simple. It takes discipline to live frugally and save aggressively, but that discipline is the absolute easiest path to becoming a homeowner and building generational wealth.

Stop seeing homeownership as a faraway fantasy. See it as a simple, powerful equation: Sacrifice + Discipline = Down Payment + Equity = Your Dream Home.

The Vancouver real estate market has been a story of unrelenting growth for over a decade. But with recent shifts, including rising interest rates and a more cautious economy, we're starting to see a trend that was once a rarity: a significant increase in foreclosure listings.

If you're keeping an eye on the market, you've likely noticed it too. While the number of foreclosures in Metro Vancouver is far from the highs we saw in previous downturns, the current list of over 140 properties is a notable change from the "seldom-seen" days of the early 2020s.

A Look Back: From Abundance to Scarcity and Back Again

For those who have been in the Vancouver market for a while, this isn't the first time we've seen an influx of court-ordered sales. About 10 to 15 years ago, foreclosures were a much more common feature of the real estate landscape. As the market took off, driven by low interest rates and high demand, the number of foreclosed properties dwindled to almost zero. The robust market provided homeowners with a safety net, allowing them to sell their property privately and pay off their debt long before the foreclosure process could reach a court-ordered sale.

Now, with a different economic climate, we're seeing this trend reverse. For some homeowners, the rapid increase in interest rates has made their mortgage payments unsustainable, leading to defaults and, eventually, a court-ordered sale.

Why Foreclosures Are a Double-Edged Sword for Buyers

For many buyers, the term "foreclosure" conjures images of a deep discount—a hidden gem in a market that rarely offers a bargain. And in some cases, a court-ordered sale can indeed be a great opportunity. However, it's not a transaction for the faint of heart.

The Challenges and Risks:

• Strict Timelines: Foreclosure sales often come with very rigid timelines. Court dates are set, and offers must be unconditional, which can be difficult for buyers who need time for a home inspection or to finalize financing. If you can't meet these dates, you'll miss the opportunity entirely.

• "As Is, Where Is" Condition: Unlike a standard sale, a court-ordered property is sold "as is." This means the lender and the court make no guarantees about its condition. The home you view might not be the home you get on possession day. We've seen cases where appliances are missing, fixtures are damaged, or the property is in a general state of disrepair since the initial viewing. This adds a layer of risk that's simply not present in a conventional sale.

• The Court Process: The process itself can be intimidating. Even if your offer is the highest, it must be approved by the court, and other bidders can appear on the day of the hearing to submit a new, higher offer. This can lead to a bidding war in a courtroom, which is a stressful and uncertain process for a buyer.

The Opportunity:

Despite the risks, foreclosures can present a unique opportunity for the prepared and patient buyer. The strict conditions and potential for uncertainty can deter a large number of buyers, reducing competition. For those who are financially ready and willing to take on the risks, a court-ordered sale can lead to acquiring a property at a price below its true market value.

Final Thoughts for Today's Buyer

The return of a more active foreclosure market in Vancouver is a clear sign of a changing economic environment. It’s an interesting development for anyone involved in real estate, from savvy investors looking for a new type of opportunity to first-time buyers who are curious about all their options.

However, it is crucial to approach these properties with caution and an understanding of the legal and financial complexities involved. If you're considering a foreclosure, ensure you have a team of experienced professionals—an agent who understands the court-ordered process and a lawyer who can guide you through the legal requirements. This will help you navigate the risks and, with a bit of luck, turn a challenging situation into a rewarding investment.