How Much Down Payment Do I Need for a Home in BC in 2025?

Buying a home in British Columbia has always required strategic planning, but with the 2025 mortgage rule changes, navigating down payments has become even more important—especially for first-time buyers, families, and real estate investors. If you’re wondering, “How much down payment do I need for a home in BC in 2025?” you’re not alone.

This guide covers everything you need to know: minimum down payment rules, recent policy changes, average home prices, CMHC insurance thresholds, and expert strategies to help you buy smarter in today’s competitive housing market.

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Minimum Down Payment Requirements in 2025

The Canada Mortgage and Housing Corporation (CMHC) and federal regulations still dictate the minimum down payments as follows:

• 5% for homes priced up to $500,000
• 10% on the portion of homes priced between $500,000 and $999,999
• 20% for homes priced $1 million or more (no CMHC insurance available)

Example:

If you’re buying a $700,000 condo in Vancouver:

• 5% on the first $500,000 = $25,000
• 10% on the next $200,000 = $20,000
• Total minimum down payment: $45,000

“Most first-time buyers still aim for 5–10% down, but we’re seeing more parents helping kids hit 20% to avoid mortgage insurance,” says Karen Yuen, a mortgage advisor with DLC Origin Mortgages in Vancouver.

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New Mortgage Rules in 2025: What’s Changed?

In response to housing affordability pressures, the federal government introduced 2025 adjustments to insured mortgage caps and amortization periods:

• Amortization period extended to 30 years for insured mortgages under $1 million (for first-time buyers only)
• RRSP Home Buyers’ Plan limit increased from $35,000 to $60,000
• CMHC premiums adjusted slightly higher for loans with less than 10% down

Why It Matters:

These changes help improve monthly affordability but make it more important to evaluate long-term interest costs.

“With the new 30-year option, your monthly payment drops, but you’ll pay tens of thousands more in interest over time,” warns David Lee, CFA, financial planner at MoneyTree Advisory.

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BC Home Price Snapshot: 2025 Averages

Based on MLS® data from the Real Estate Board of Greater Vancouver (REBGV) and Fraser Valley Real Estate Board (FVREB):

City	Average Detached Home	Average Condo
Vancouver (Westside)	$2.9M	$920K
Vancouver (Eastside)	$1.85M	$775K
Burnaby	$1.7M	$720K
Surrey	$1.45M	$630K
Langley	$1.3M	$590K

What This Means for Down Payments:

• In Vancouver, most homes will require at least 20% down due to prices over $1 million
• In areas like Langley or Surrey, you may still qualify for CMHC-insured mortgages with 5–10% down, depending on purchase price

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Down Payment Saving Tips (From BC Mortgage Experts)

1. Use the New RRSP Home Buyers’ Plan

• Withdraw up to $60,000 tax-free from your RRSP
• Must be repaid over 15 years

2. Tap into the First Home Savings Account (FHSA)

• Save up to $8,000 per year (max $40,000 lifetime)
• Combines RRSP-style tax deduction with TFSA-style withdrawal

3. Leverage Family Gifts or Co-Ownership

• Use a gift letter to support your down payment (must be from an immediate family member)
• Consider co-buying with friends or siblings to split the burden

4. Government Assistance for First-Time Buyers

• BC First-Time Home Buyers’ Program: Offers property transfer tax exemptions up to $500,000
• Federal First-Time Home Buyer Incentive: Government shares equity stake (though some limitations apply)

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Common Mistakes to Avoid

1. Underestimating Closing Costs
   • Budget an extra 3–5% of your purchase price for legal fees, inspection, and taxes
2. Overstretching Your Budget
   • Don’t base your down payment on your maximum pre-approval
3. Not Getting Pre-Approved Before Shopping
   • Pre-approvals lock in your rate and clarify your budget
4. Not Comparing Mortgage Rates Across Brokers and Banks
   • A 0.25% difference in rate can mean $10,000+ in savings over your term

Read more: Top Areas in Vancouver to Rent While You Save for a Down Payment

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Expert Take: How Much Should You Put Down?

While the minimum is 5–10%, many experts recommend going for 20% down if you can afford it to avoid CMHC premiums, reduce your monthly payments, and improve your approval odds.

“In today’s competitive Vancouver market, a higher down payment also makes your offer stronger against competing buyers,” says Andrea Wu, Realtor at Oakwyn Realty.

That said, for many first-time buyers, getting into the market sooner with a smaller down payment can make more sense than waiting years to save up 20%.

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Summary: How Much Do You Really Need?

Home Price	Minimum Down Payment
$500,000	$25,000 (5%)
$700,000	$45,000 (6.4%)
$999,999	$75,000 (7.5%)
$1,000,000+	$200,000+ (20%)

Your exact down payment will depend on:

• The price of the home
• Whether you are a first-time buyer
• Whether you are using insured or conventional financing
• The location (as prices vary widely across BC)

Read more: How Much Down Payment Do You Really Need to Buy in Vancouver?

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Final Thoughts

In 2025, understanding how much down payment you need in BC depends on far more than just percentages. With new mortgage rules, evolving affordability programs, and regional pricing trends, buyers must take a strategic approach. Use all available tools—including the new FHSA, increased RRSP withdrawal, and 30-year amortization options—to position yourself for long-term success.

Need help making sense of your mortgage options? Speak to a local mortgage advisor or Realtor who understands the BC market nuances.

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Sources:

• CMHC Mortgage Guidelines 2025
• Government of Canada: Home Buyers’ Plan (2025 Update)
• Real Estate Board of Greater Vancouver (REBGV), June 2025
• Interview with Karen Yuen, DLC Origin Mortgages
• Interview with David Lee, CFA
• Interview with Andrea Wu, Oakwyn Realty

Written by Vancouver Home Hub — providing clear, data-driven real estate advice for buyers, sellers, and investors across BC.