Is the First-Time Home Buyer in BC Struggling to Buy
It’s no secret that over the last 5 years, housing prices across Canada have soared to new heights. Although prices have pulled back from the mid-pandemic peak in 2022, they have remained higher than pre-pandemic levels. The national average home price stands at $673,000 in July 20251, 30% higher than the pre-pandemic average of $517,000. In a market where being a BC first-time home buyer was already challenging, the post-peak price decrease has not been enough to remove financial barriers for them.
BC Housing Price Trends
For the first time home buyer in BC, Canada, the situation is similar; the British Columbia real estate market has shown a slight downward trend. The average housing price in BC decreased by 5.2% from July 2022 to July 2025, including a month-over-month decrease of 0.54% from June 2025.2. However, with the average price at $1,169,4002, the BC first-time home buyer is still struggling to afford a house of their own.
BC First-Time Home Buyer Migration
Because of population migration to smaller cities and rural areas, the first-time homebuyer in BC is struggling to afford a home even if they go far afield.
Increasingly, home buyers in BC are searching for real estate using search engines like Google. Marshall Self, Managing Director, Finance & B2B Google Canada, states, “What we’re seeing is more and more Canadians are moving outside of the city and looking for different living spaces, larger living spaces overall.”
Four cities in British Columbia are included in the top ten increases in real estate search results across Canada: Surrey, Port Moody, Abbotsford, and Langley, all of which are much smaller than large urban centres like Vancouver. This trend indicates that many a prospective first time home buyer in BC is considering moving to less-populated areas in hopes of buying a home.
High demand in rural areas is pushing average housing prices up. Typically, in more remote or rural areas, housing prices are considerably less when compared to more densely populated urban areas. However, the influx of people looking to relocate from urban to rural areas has spiked housing prices in these less expensive markets, pushing first-time buyers further away from their homeownership goals.
Challenges for the First Time Home Buyer in BC
High average home prices are one factor discouraging new homebuyers from getting into the market, but it’s not the only one.
High Interest Rates
For the first time homebuyer in BC, the biggest challenge is still interest rates. Despite significant decreases from the June 2024 peak of 5%, the Bank of Canada policy rate is still fairly high at 2.75%.3 With variable-rate mortgages sitting at about 2% over the BofC policy rate, that puts average mortgage rates at 4.75%, high enough to make home ownership unaffordable for the first time home buyer in BC.
Tougher Qualification Standards
To qualify for a mortgage from a federally regulated lender, you must pass a stress test. The current federal stress test for new mortgages uses a rate of 5.25% or your mortgage rate plus 2%, whichever is higher. This means that if your mortgage rate is 4%, this stress test will use a rate of 6% to determine if you qualify for the mortgage.
There was a change to the regulations in 2024but it only applies to borrowers who are switching lenders. This change does not help a first-time home buyer in BC.
Higher Rents
Vacancies are low on the BC rental market, and rents have risen considerably.4 How does that affect a first-time home buyer in BC? It makes it harder for them to save for a down payment while they’re renting.
Options for the First-Time Home Buyer in BC
It doesn’t look like the high interest rates will soon go down in the near future, so what can first-time home buyers do to afford a home?
Wait It Out
It might be a good time to wait and work on other debt. Pay down loans and credit cards as much as possible since less debt will mean a lower interest rate down the line.
This strategy comes with the risk of higher home prices in the future, so stay flexible and keep an eye on national and regional trends.
Once you decide to get into the market, look for buyer’s market conditions, when supply outpaces demand. In a buyer’s market, you’ll have more choice and more room to negotiate a price that works for you.
Use the BC First Time Home Buyer Tax Exemption
The BC property transfer tax first-time home buyer program reduces or removes the property transfer tax for qualified applicants. Qualified purchasers are exempt from property transfer tax on the 1st $500,000 of the property they buy.
Who Qualifies as a First-Time Home Buyer in BC?
If you’re wondering who qualifies as a first-time home buyer in BC, these are the criteria:
- Canadian citizenship or permanent residency.
- Residency in BC for at least a year.
- Be a true first-time buyer in BC, having never owned a property that was your principal residence anywhere in the world.
To qualify, the home must be your principal residence, must have a fair market value of $835,000 as of April 1st, 2024, and the property must be 0.5 hectares or smaller.5
Look into a Longer Amortization
As a first-time home buyer in BC, Canada, you may be able to get a 30-year amortization, which can lower your monthly payments enough to make a home purchase affordable.
BC First Time Home Buyers
Being a first-time home buyer in BC is particularly challenging in 2025, but with the right strategy and good advisors, you can find ways to make it happen for you.
The best advice for first-time home buyers within BC and country-wide: align yourself with a trusted REALTOR® to help you navigate this new red-hot real estate standard. Deals can be found; you just have to know where to look!
2 https://www.gvrealtors.ca/market-watch/MLS-HPI-home-price-comparison.hpi.all.all.all.2025-7-1.html
3 https://www.bankofcanada.ca/2025/07/fad-press-release-2025-07-30/
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