Last updated on October 23, 2025.

Here’s a topic close to every renter’s heart: homeownership. Specifically, condo ownership. Which, for many of us renters, is the logical first step owning a home.  

“There’s no question it feels better to pay down your own mortgage instead of a landlord’s. Owning your home means your money works for you and leads to greater financial security,” says Ryan McKinley, Senior Mortgage Development Manager at Vancity.  

It’s too easy to hop on Zillow and start imagining your life in a multi-million-dollar home. But take it from us, a Point Grey mansion isn’t a starter home. Your first step is to get a handle on the financial pathway to buying a condo.  

And here’s some good news: The average price of a Vancouver condo has decreased by 0.7 per cent in the past year. At $805,000, it’s still a hefty sticker price, but hey, a drop is a drop. When you think about your strata fees, buyer taxes, and homeownership hidden costs, even a 0.7 per cent saving is welcome.  

Condo ownership isn’t as complicated as you might think. We’re here to talk through it, with advice from Ryan McKinley, Senior Mortgage Development Manager at Vancity.

How much condo can you afford?

It’s better to be real about what you can afford right off the bat. Otherwise, you could fall in love with some house with a big yard and pool way out of your price range. It’s tough to reel yourself back into reality once you start dreaming out of your budget. 

It’s better to be real about what you can afford right off the bat. Otherwise, you could fall in love with some house with a big yard and pool way out of your price range.

The first step in your condo-buying journey is to figure out how much you can afford. The pre-approval process will make this clear. Pre-approval involves taking a close look at your income, expenses, savings, and yes, debts. 

You don’t want to be “house poor,” which just means you’re spending so much on your monthly housing costs (like your mortgage payments, taxes, and insurance) that you’re not left with enough for your living expenses.  

“Homeownership is meant to provide you with mental and financial stability,” says Ryan. “It defeats the purpose if you find yourself staying up at night worrying about your next mortgage payment.” 

A general rule is that your monthly housing costs (including mortgage payments, taxes, and insurance) should sit around 30 per cent of your gross monthly income. You can use an online mortgage calculator to help estimate your costs. But, sitting down with an expert—like a Vancity financial advisor—can give you insights you might not get online. And it always helps to speak to a real human being.  

“You can have two people with the same amount of money: one’s an avid saver, and the other eats out every night,” says Ryan. “The approval for them is the same, but the mortgage becomes affordable for one and not the other. With the help of your mortgage specialist, you can figure out how to live comfortably with your mortgage payment.” 

What’s the difference between mortgage pre-qualification vs. mortgage pre-approval

Getting pre-qualified isn’t as serious as getting pre-approved for a mortgage.  

• Pre-qualification is a casual estimate of what you’ll be able to borrow. It’s like an educated friend looking at your finances and saying, “You’ll probably be able to get an $800k mortgage, so look for condos around that price.” 

• Pre-approval is a formal process where a lender commits to lending you a certain amount of money for your mortgage. You’ll need to jump through some hoops, like getting a hard credit check and showing you’ve got a down payment in the bank. Then, once you pass, the lender will give you a set number of days (often 90 or 120 days) to find a place before you have to get pre-approved all over again. 

A word of advice on pre-approvals? “The lender may have some flexibility, so feel free to ask them to match or beat another lender’s offer,” says Ryan.  but don’t stop there. Make sure to ask about other key details in the pre-approval so you can compare apples to apples. For example, 

• Are there cashback options and what are the eligibility criteria?  

• What payment frequencies are available – weekly, bi-weekly or monthly? 

• What strategies can help you save on your mortgage, like making lump sum payments or increasing your regular payments? 

Saving for a down payment.

One of the things that gives new homebuyers anxiety is the dreaded down payment.  

The more you can save for a down payment, the better. A bigger down payment means you’ll need to borrow less, you can avoid paying mortgage insurance, and you may have more flexibility to get a mortgage that fits your needs. But it’s not feasible for everyone to save 20 per cent of the purchase price.  

Start saving early and explore programs designed to help first-time homebuyers, like the First Home Savings Account (FHSA).  

Start saving early and explore programs designed to help first-time homebuyers, like the First Home Savings Account (FHSA).  

“Recognizing that the down payment is often the largest hurdle to homeownership, the Government of Canada has implemented a number of programs to assist people,” says Ryan. “Making use of programs such as the FHSA and Tax-Free Savings Account (TFSA) will help you own your home sooner. The FHSA allows you to save up to $40,000 towards your first home. And contributions are tax-deductible and withdrawals are tax-free.” There’s an annual contribution limit of $8,000, up to a lifetime maximum of $40,000. 

This handy table shows first-time home buyers in BC what the minimum down payment required is, based on purchase price:  

Planning for costs beyond the purchase price

While it’s the biggest up-front cost, the down payment isn’t going to be your only cost when you’re buying a condo.  

Typically, your monthly costs will include:  

• Mortgage payments: Principal and interest based on your loan terms. 

• Strata fees or homeowner association (HOA) fees: These cover the cost of maintaining common areas or amenities.  

• Utilities: Electricity, internet, and anything else you need to live comfortably.  

• Maintenance: Regular upkeep and any necessary repairs. 

• Savings for special levies: Major repairs, such as a new roof or water heater for your building.  

• Municipal property taxes: Though these aren’t billed monthly, it’s smart to put aside some money every month for the annual bill.  

• Insurance: Typically billed annually, you’ll want to insure your condo and belongings in case of an emergency. Even if it feels like another cost, it can save you thousands if something unexpected happens. The good news? You can get a quote for free to see what coverage might cost and compare options. 

A note on the special levies: If you’re in a strata or HOA, you’re obligated to pay a levy (in addition to your monthly strata fees) for things the strata deems necessary, like major repairs. So, if a shared retaining wall fails, you could be on the hook for a few thousand dollars. 

Usually, owners will vote on when to pay for these major repairs. But you should know the majority rule—if you vote to put off a repair but the majority of owners in the building votes to do it, you’ll have to follow suit. Setting aside savings for unexpected expenses will save your bacon in the long run.  

Besides your monthly costs, you’ll also have a few one-off expenses you’ll want to budget for:  

• Closing costs: Typically two – five per cent of the purchase price, covering fees like appraisal, title insurance, and attorney fees. 

• Moving expenses: Don’t forget to account for the cost of moving your belongings to your new home. It could be a stack of pizzas for your generous friends, or the price of a moving company.  

• Home inspection fees: Get a condo inspection to uncover potential issues before you ink those papers. 

A note on taxes: As a first-time home buyer, you might be exempt from certain tax costs, like property transfer taxes. Or, if your condo isn’t new, you can expect to avoid the five per cent new home tax. Ditto for the BC speculation and vacancy tax if you’re living in your condo full time. Speak to your mortgage specialist about what to expect with taxes.  

Understanding your financing options

Listen, you don’t need to know everything about mortgages. It’s overwhelming. Frankly, you’re not going to become an expert overnight, and that’s okay.  

The best thing you can do is get a grasp on the basics and then speak to a mortgage specialist. They can answer any questions you might have and make sure you’re making educated decisions.  

Types of mortgages

There are two types of mortgages you can look into, each with its pros and cons: 

• Conventional mortgages require a minimum down payment of 20 per cent or more of the property purchase price and offer greater flexibility. But they require a significant chunk of savings, which just isn’t a reality for most of us.  

• Insured (or high-ratio) mortgages allow for a down payment as low as five per cent. Although having less equity means you’ll be paying more in interest over the long term, the smaller down payment makes it easier for more people to become homeowners. 

There are two types of interest rates: Fixed vs. Variable.

• Fixed-rate mortgages lock in your interest rate for the term, offering predictability and stability in your monthly payments. 

• Variable-rate mortgages often start with lower rates, but they can fluctuate with market conditions.

Interest rates can also significantly impact your monthly mortgage payments and the total amount you pay over the life of the loan. We’re talking tens of thousands of dollars here. Even a small difference in your rate can add up to a massive amount in the lifetime of your loan.  

Keep an eye on market trends and the Bank of Canada’s policy rate, to lock in a good rate. It may save you a lot of money over the long-term. You can see Vancity’s current mortgage rates here. 

How your financial health and credit affect condo ownership.

You wouldn’t want to lend money to someone who has a bad reputation for paying their friends back. It’s the same for the bank. They want to know you’ve got a healthy financial situation to fall back on before they give you thousands and thousands of dollars.  

As you’d expect, a higher income, credit score, and down payment will raise your budget while higher debts, interest rates, and closing costs will lower it. 

One of the ways the bank checks you out is by your credit score. “A higher credit score shows you’re a stronger candidate and can help you get a better mortgage,” says Ryan. “Your financial advisor can review your score and suggest how to strengthen it.” 

Take a look at your current credit report by requesting a free copy through Equifax. It will give you details on things like your accounts and payments. Then, take any steps you can (like paying your debts and making timely payments) to improve your score, if you need to. 

How to legally and financially protect yours

Knowing what to do if things go south and making the right choices will help you protect yourself. But you don’t have to do it alone. Having the right team in your corner can go a long way. A financial advisor will help you figure out how condo ownership will fit into your financial plan and budget. And a real estate lawyer can clarify your purchase agreement and spot potential issues. 

Understand your condo purchase agreement and strata documents

A condo purchase agreement will include details like the purchase price, closing date, and contingencies. Strata documents, if available, will give you an idea of how your condo has been run, including its financial health.  

You’re going to want to review these documents with your real estate attorney. They can point out your rights and obligations and make note of any red flags.  

A real estate attorney can help you negotiate terms and ensure the transaction complies with all legal requirements. Your financial advisor will help you make sure you don’t go broke doing it. When it comes to big, complex transactions, you’re going to want an expert opinion.  

Choosing the right lender or mortgage broker

Choosing a lender or mortgage broker is key to getting a competitive rate. But a good rate isn’t the only thing you’ll want to look out for. Clear communication and a reputation for good customer service are always a bonus.  

You can ask for recommendations from your family or friends, or check out online reviews to find someone with a good reputation. Grab quotes and compare offers from a few different lenders, and try to choose one you can see yourself having a long-term relationship with.  

Multiplexes could open up new options for first-time condo buyers.

It’s tough to get into the housing market for first-time buyers, and BC knows it. In 2024, the provincial government mandated that larger municipalities allow more residential units to be built. Now, lots that can support single-family homes and duplexes are allowed to build small-scale multiplexes. 

So, you can expect to see fourplexes or sixplexes popping up in residential neighbourhoods. It’s something that will take a bit of time to come to fruition—building new homes or renovating old ones isn’t done in a day. 

What does this mean for first-time condo buyers? “This policy will allow for a new kind of missing middle housing to be built,” says Ryan. In the (close) future, first-time buyers will see more options on the market. Individually owned multiplex units can be more affordable than detached homes. And they’ll be found in residential neighbourhoods. 

With time and diligence, buying a condo is, indeed, possible.

With the right knowledge and support from a mortgage specialist, you can turn the dream of owning a condo into reality.  

“There’s no question that it feels better to pay down your own mortgage instead of a landlord’s,” says Ryan. “Owning your home means your money works for you and leads to greater financial security.” 

Want to work with a Mortgage Specialist, like Ryan, to help you go from renter to owner? Find the right fit for you:  Mobile mortgage specialist – Vancity