The Complete Guide to Buying Your First Home

Buying your first home in the Fraser Valley is one of the biggest financial decisions you’ll ever make. Whether you’re looking at a starter condo in Abbotsford, a family home in Chilliwack, or a townhouse in Langley, the process can feel overwhelming without the right guidance.

The Fraser Valley offers incredible opportunities for first-time buyers. You get more space for your money compared to Vancouver, strong community connections, and excellent access to both urban amenities and outdoor recreation. But you also face unique challenges: a competitive market, rising prices, and mortgage qualification requirements that have become more complex in recent years.

This guide walks you through the essential steps of buying your first Fraser Valley home, from determining your readiness to closing day and beyond.

Are You Ready to Buy?

Before you start browsing listings, take an honest look at your financial situation and personal readiness.

Financial Readiness Essentials

Your finances need to support not just the purchase price, but ongoing homeownership costs:

Stable Income: You should have consistent employment for at least two years. If you’re self-employed, you’ll typically need three years of tax returns showing stable income.

Emergency Fund: Plan for 3-6 months of expenses beyond your down payment and closing costs. Homeownership brings unexpected expenses.

Credit Score: Most lenders want to see a credit score of at least 600 for insured mortgages. For better rates, aim for 680 or higher.

Debt Management: Your total debt payments, including your new mortgage, shouldn’t exceed 42-44% of your gross monthly income.

Understanding Your Budget

Fraser Valley lenders use two key ratios:

Gross Debt Service (GDS): Your housing costs shouldn’t exceed 32% of your gross monthly income.

Total Debt Service (TDS): All monthly debt payments shouldn’t exceed 42% of your gross monthly income.

Consider the 28% rule for better financial flexibility – keeping housing costs below 28% of gross income. Factor in Fraser Valley specifics like commuting costs if you work in Vancouver, which can add $300-500 monthly to your expenses.

Down Payment and Financing Options

Your down payment amount affects your mortgage insurance requirements and monthly costs:

Down Payment Requirements

5% Down: Minimum for homes under $500,000. You’ll pay mortgage default insurance (2.8% to 4.0% of mortgage amount).

10% Down: Required for the portion between $500,000-$999,999. Slightly lower insurance premium.

20% Down: No mortgage insurance required, saving hundreds monthly. Access to more lender options and better rates.

Government Programs and Assistance

First Home Savings Account (FHSA): Contribute up to $8,000 annually ($40,000 lifetime). Tax-deductible contributions with tax-free withdrawals for qualifying purchases.

Gifted Down Payments: Family can help, but donors must provide gift letters and show fund sources. You typically need 5% from your own resources.

BC Programs: Property transfer tax exemption for first-time buyers on homes up to $500,000, plus federal tax credits and RRSP Home Buyers’ Plan options.

Getting Pre-Approved

Pre-approval is essential in Fraser Valley’s competitive market. Unlike pre-qualification, it involves income verification, credit checks, and document review, resulting in a formal lender commitment.

Required Documents

• Recent pay stubs and employment letter
• Tax returns and Notice of Assessment
• Bank statements (90 days)
• Investment statements
• Debt information and gift documentation

Fixed vs. Variable Rates

Fixed Rates: Payment certainty but typically higher initial rates. Good for first-time buyers who need predictable budgeting.

Variable Rates: Often start lower but carry interest rate risk. Better if you can handle payment fluctuations.

Terms: Most buyers choose 5-year terms balancing rate competitiveness with renewal frequency. First-time buyers can now access 30-year amortizations for lower payments.

Choosing Your Fraser Valley Community

Each Fraser Valley community offers distinct advantages:

Abbotsford: Largest city with urban amenities and suburban feel. Home to University of Fraser Valley. Mid-range pricing with cultural diversity.

Chilliwack: More affordable with strong recreational opportunities. Growing rapidly with new developments. Longer Vancouver commute but larger properties.

Mission: Small-town feel with Vancouver proximity. Beautiful natural setting. More affordable than western communities with strong community connections.

Langley: Higher prices but excellent Vancouver access. SkyTrain extension coming 2028. Strong job market and established amenities.

Consider school districts, commute patterns, and future development when choosing. Your realtor should provide detailed community comparisons based on your priorities.

The Purchase Process

Working with Professionals

Realtor Selection: Choose agents with Fraser Valley expertise and first-time buyer experience. Look for local knowledge, good communication, and recent transaction history in your price range.

Mortgage Broker: Your broker’s involvement extends beyond pre-approval to ongoing rate monitoring, property-specific guidance, and final approval coordination.

Making Competitive Offers

Structure offers that protect your interests while remaining competitive:

Subject Clauses: Include financing (3-7 days), inspection (3-5 days), and insurance conditions. For condos, add document review periods.

Market Conditions: In competitive markets, shorter condition periods make offers more attractive but increase your risk.

After Subject Removal

Once conditions are removed, you’re legally committed to purchase:

• Finalize mortgage approval and insurance
• Complete legal process with your lawyer
• Arrange utilities and moving services
• Conduct final walk-through before possession

Setting Yourself Up for Success

Building Equity

Payment Strategies: Consider bi-weekly payments or additional principal payments to reduce amortization and save interest.

Strategic Improvements: Kitchen and bathroom updates, energy efficiency improvements, and additional living space typically provide good returns.

Planning for Renewal

Start reviewing options 4-6 months before renewal. Don’t automatically accept your current lender’s offer – shop around for better terms.

Ongoing Costs

Budget for property taxes, insurance, utilities, and maintenance (1-3% of home value annually). Costs vary significantly between Fraser Valley municipalities.

Next Steps

Buying your first Fraser Valley home is achievable with proper planning and professional support. The key is starting with honest financial assessment, getting pre-approved early, and working with experienced local professionals.

Focus on finding a property and community that aligns with your lifestyle goals and future plans. The Fraser Valley’s diverse communities offer excellent opportunities for first-time buyers who approach the process strategically.

Ready to start your journey?

Contact our experienced Fraser Valley mortgage team:

Abbotsford Office: 604-850-5877
Chilliwack Office: 604-795-2933

We’ll guide you through every step, from pre-approval to your first renewal and beyond.