The Number Buyers Ask First
Before neighbourhood searches, before booking showings, the first question is almost always the same: how much do I actually need?
The answer has a few moving parts. Down payment, the stress test, and closing costs all affect what you need on hand and what you can borrow. Here's how each one works in Victoria's market, with real numbers at current price points.
Down Payment Minimums in BC
The federal minimum down payment rules apply across Canada. 5% on the first $500,000 of the purchase price. 10% on the portion between $500,000 and $1,499,999. Homes priced at $1,500,000 or more require a minimum 20% down and do not qualify for CMHC mortgage insurance.
On a $750,000 purchase, the minimum down payment works out to $50,000: 5% of $500,000 is $25,000, plus 10% of the remaining $250,000 is another $25,000. On a $1,200,000 purchase, minimum down is $95,000: 5% on the first $500,000 is $25,000, plus 10% on the remaining $700,000 is $70,000.
Condos and townhouses give buyers more options in Victoria's market. A two-bedroom condo at $650,000 requires a minimum down of $40,000. A townhouse at $850,000 requires $60,000 minimum.
What the Stress Test Means for Your Budget
The mortgage stress test applies to all federally regulated lenders in Canada. You must qualify at the higher of your actual contract rate plus 2%, or 5.25%.
In practical terms: if your lender is offering 4.5%, you qualify based on 6.5%. This reduces your maximum borrowing amount compared to what your contract rate alone would support.
Run your numbers with a broker before you start searching. Knowing your actual ceiling before you book showings saves everyone time, and a full pre-approval carries more weight than a pre-qualification when you're writing an offer.
Closing Costs — What to Budget
Down payment gets most of the attention but closing costs are where buyers are often caught short. In BC, budget 2% to 3% of the purchase price on top of your down payment.
Property Transfer Tax is the largest closing cost for most buyers. 1% on the first $200,000, 2% on $200,000 to $2,000,000, 3% on $2,000,000 to $3,000,000, and 5% on amounts over $3,000,000. On a $700,000 purchase, PTT is $12,000. On an $850,000 purchase, it's $15,000. Current rates are at gov.bc.ca.
First-time buyers may qualify for a full PTT exemption on homes up to $500,000, or a partial exemption on homes between $500,001 and $835,000, saving up to $8,000. To qualify you must be a Canadian citizen or permanent resident, have lived in BC for 12 consecutive months or filed two BC income tax returns in the last six years, never have owned property anywhere in the world, and use the home as your principal residence. There is also a newly built home exemption available to all buyers — not only first-time buyers — providing a full exemption on properties valued at $1,100,000 or less, with a partial exemption available up to $1,150,000.
Legal fees in BC typically run $1,500 to $2,500 for a straightforward purchase. Your lawyer or notary handles title transfer, mortgage registration, and the Statement of Adjustments.
Title insurance runs $200 to $500 and covers defects in title and survey issues. Most lenders require it.
Home inspection costs $400 to $600 for a standard house. Worth every dollar.
Property tax adjustment at completion. If the previous owners have prepaid property tax for part of the year, you reimburse them the pro-rated portion. Typically a few hundred to a couple of thousand dollars depending on completion date.
The First Home Savings Account
The First Home Savings Account is a federal registered account that lets first-time buyers save up to $8,000 per year toward a first home, tax-free, with a $40,000 lifetime contribution limit. Contributions are tax-deductible like an RRSP. Withdrawals for a qualifying home purchase are tax-free like a TFSA. It is the most efficient savings vehicle available to first-time buyers in Canada right now.
You can also withdraw up to $60,000 from your RRSP under the Home Buyers' Plan (Canada.ca), repayable over 15 years. Used together with the FHSA, a couple can bring up to $200,000 in registered savings to a down payment.
The Full Picture at Victoria Price Points
A $700,000 condo. Minimum down payment of $45,000. PTT of $12,000 for most buyers, or $0 to partial exemption for qualifying first-time buyers. Legal fees, inspection, title insurance, and adjustments: approximately $5,000 to $7,000. Total cash needed at minimum down: approximately $62,000 to $64,000.
An $850,000 townhouse. Minimum down payment of $60,000. PTT of $15,000. Closing costs of approximately $6,000 to $8,000. Total: approximately $81,000 to $83,000.
A $1,200,000 house. Minimum down payment of $95,000. PTT of $22,000. Closing costs of approximately $7,000 to $9,000. Total: approximately $124,000 to $126,000.
These are minimums at current price points. Having more cushion than the minimum is always the stronger position when you get to offer night.
Dollar figures are estimates based on rates and thresholds current as of March 2026. Confirm current amounts with your mortgage broker, notary, or the relevant government authority before making any decisions.
Find out if you qualify for the Prepared Buyer Program
Pre-approved and ready to act? The Prepared Buyer Program returns a portion of the commission to qualified buyers at closing. The assessment takes about two minutes.
