Your Step-by-Step Guide to Buying a Home in 2025

Buying a home is a big milestone—exciting, but also full of details to navigate. This guide simplifies the process so you know what to expect at every step.

Step 1: Define Your Must-Haves

Before diving into listings, get clear on what you need versus what’s nice to have.

• Neighborhood: Proximity to work, schools, transit, parks, or amenities?
• Size & Layout: How many bedrooms, bathrooms, and key features do you need?
• Special Requirements: Accessibility, outdoor space, rental potential?

Pro Tip: Looking online first can set unrealistic expectations. Start with your priorities before falling for a home that may not meet your needs.

Step 2: Get Your Finances in Order

A strong financial foundation gives you more options when buying.

Credit Score Matters

Lenders use it to determine your mortgage rate. Improve yours by paying off debt and avoiding new credit applications.

Updated Down Payment Requirements (Effective December 15, 2024)

The federal government has increased the price cap for insured mortgages from $1 million to $1.5 million, allowing lower down payments on higher-priced homes.

• For homes priced up to $500,000: Minimum down payment is 5% of the purchase price.
• For homes priced between $500,000 and $1.5 million: Minimum down payment is 5% of the first $500,000 and 10% of the portion above $500,000.
• For homes priced over $1.5 million: Minimum down payment is 20% of the purchase price.

If your down payment is less than 20%, you'll need mortgage default insurance, which protects the lender in case you can't make your payments.

Budget for Closing Costs

Save an extra 1.5%–4% of the purchase price for legal fees, inspections, and taxes.

Step 3: Get Pre-Approved (Not Just Pre-Qualified!)

A pre-approval is essential—it shows sellers you’re serious and gives you a firm budget.

• Pre-Qualification: A quick estimate, but not verified by lenders.
• Pre-Approval: A detailed review of your income, debts, and credit to confirm your mortgage amount.

Pro Tip: A mortgage broker can shop around for the best rates and terms.

Step 4: Start Your Home Search

Now the fun begins!

• Browse listings that match your price range and must-haves.
• Be realistic—don’t max out your budget. Factor in future expenses.
• Stay open-minded—some hidden gems may be outside your initial search area.

🔎 Understanding the Market:

• Buyer’s Market: More homes than buyers = lower prices, more choices.
• Seller’s Market: More demand = higher prices, bidding wars, and faster sales.

Step 5: Work with the Right Realtor

A good real estate agent isn’t just a door-opener—they help you:
✔ Find properties that fit your goals
✔ Write winning offers and negotiate the best terms
✔ Navigate inspections, financing, and legal steps

Choosing an Agent:

• Pick someone knowledgeable, honest, and responsive.
• Avoid the busiest agents if they can’t give you enough attention.
• Ask about local market trends and negotiation strategies.

Step 6: Viewing Homes—What to Watch For

When touring properties, keep these in mind:
✅ Big-Picture Elements: Layout, natural light, potential, location.
❌ Red Flags: Water damage, mold, foundation cracks, old wiring.
📏 Practicality: Will your furniture fit? What’s the storage like?

Tip: Take notes and photos to compare homes later—details blur after multiple showings!

Step 7: Making an Offer & Negotiating

Found "the one"? Time to submit a strong offer.

• Your agent will advise on price, conditions, and terms.
• The seller may accept, reject, or counter-offer.
• Common conditions:
  • Financing: Approval confirmation from your lender.
  • Inspection: Ensures the home is in good condition.
  • Strata Review (if buying a condo): Examines the building’s financial health.

In a hot market? Be prepared for multiple offers and a fast decision process.

Step 8: Closing the Deal

Once your offer is accepted, there are a few final steps:
📌 Secure Financing: Finalize your mortgage with your lender.
📌 Legal Work: Your lawyer/notary will review contracts and handle ownership transfer.
📌 Final Walkthrough: Ensure everything is as agreed before closing.

Costs to Expect Before Move-In:
✔ Home Inspection ($400+)
✔ Lawyer or Notary fees (1,500+) 
✔ Land Transfer Tax (varies by price)

Step 9: Welcome Home!

On closing day:

• You’ll sign final documents.
• Your mortgage funds are transferred.
• You get the keys to your new home!

🏡 Congrats, You’re a Homeowner!

Now it’s time to settle in, make it your own, and enjoy the benefits of owning real estate in Vancouver.

Ready to Start? Let’s Talk!

Buying a home should be exciting, not stressful. If you have questions or want to start the process, let’s chat about your goals.

👉 Contact Me to get started!