Are you trying to figure out how much you need for a down payment to buy in Comox or the wider Comox Valley? You are not alone. Between BC closing costs, mortgage insurance, and different property types, it can feel confusing fast. In this guide, you will learn the BC down payment rules, how insured and uninsured mortgages work, ways to use gifts or RRSPs, and what to consider for condos, townhomes, and single-family homes in Comox. Let’s dive in.
How BC down payments work
In Canada, your minimum down payment depends on the purchase price. For a home priced up to $500,000, the minimum is 5%. For the portion between $500,001 and $1,000,000, the minimum is 10% on that portion. For homes over $1,000,000, the minimum is 20%, and mortgage default insurance is not available.
Here are simple examples:
- $400,000 condo: 5% down equals $20,000.
- $700,000 townhome: 5% on the first $500,000 ($25,000) plus 10% on the next $200,000 ($20,000) equals $45,000 total.
- $1,100,000 single-family home: minimum 20% equals $220,000.
These are minimums. Your lender may ask for more depending on the property and your profile. Also keep in mind closing costs, which are separate from the down payment.
Deposit vs. down payment
Your offer typically includes a deposit that is held in trust. In the Comox Valley, deposits often land in the 1% to 5% range of the purchase price, depending on market conditions. That deposit becomes part of your down payment at closing, and you bring the rest of the funds then. Plan for the deposit to be immediately accessible when you write an offer.
Insured vs. uninsured mortgages
If your down payment is less than 20%, your mortgage is usually insured by CMHC or a private insurer. The insurance protects the lender if the mortgage defaults, and you pay a premium that is typically added to your mortgage. Insured mortgages help buyers with smaller down payments, but the premium increases your overall cost.
If your down payment is 20% or more, your mortgage is typically uninsured. There is no default insurance premium. Mortgages on properties priced above $1,000,000 are not eligible for mortgage insurance, which is why those purchases require at least 20% down.
All buyers must also qualify under lender and regulatory rules, including a “stress test” that uses a qualifying rate, which can be higher than your contract rate. This affects your purchasing power, so a pre-approval may not be final approval on a specific property.
Options to build your down payment
You can combine sources to reach your down payment goal:
- Personal savings and the sale of assets.
- Gifted funds from family members, often used by first-time buyers.
- RRSP Home Buyers’ Plan (HBP), which lets eligible buyers withdraw up to a set amount from RRSPs for a qualifying purchase, with repayment over time.
- Proceeds from the sale of an existing property or bridge financing, if you are buying before you sell.
Using gifted funds the right way
Lenders require clear documentation for gifts. Plan for the following:
- A signed gift letter from the lender’s template stating the relationship, the amount, that it is a gift, and no repayment is expected.
- Bank statements from the donor showing the transfer and source.
- Donor ID in some cases.
Most lenders prefer gifts from immediate family, but policies vary. Funds from the seller cannot be used as a gift. If a donor expects repayment, a lender may treat that as debt, which can affect your qualifying. Always talk to your lender or broker before you accept or use a gift so your documentation matches their requirements.
Timing your funds
If you plan to use gifted money or an HBP withdrawal, confirm timelines early so the funds clear before closing. Keep clean records and avoid last-minute transfers that are hard to document.
Closing costs in BC to budget
Closing costs are separate from your down payment and can include:
- Property Transfer Tax (PTT): Generally 1% on the first $200,000, 2% on the portion from $200,001 to $2,000,000, 3% above $2,000,000, and an additional 2% on the portion above $3,000,000 for residential property. First-time buyer exemptions or partial exemptions may apply if you qualify.
- Legal fees and disbursements.
- Title insurance (optional but common) and property insurance required by lenders.
- Home inspection if you choose to conduct one.
- GST on new construction; resale homes are generally exempt.
- Adjustments for property taxes and utilities to the closing date.
Build these into your budget so you are not caught off guard on completion day.
Comox property types and what they mean
Condos (strata units)
Condos often have lower purchase prices, so the absolute down payment dollars are lower. Lenders also review the strata’s health. They will look at bylaws, contingency reserve funds, recent minutes, special levies, and rental or short-term rental restrictions. Some lenders may be more cautious with stratas that have limited reserves or restrictive bylaws.
Strata inventory in Comox can be limited at times. When a well-priced unit comes up, competition can increase deposits and shorten conditions, so you will want your deposit and documents ready.
Townhomes
Townhomes can bridge the gap between condos and detached homes. Many are strata properties with similar document reviews as condos. They can be a practical option if you want more space and a small yard while keeping your down payment lower than a detached home.
Single-family homes
Detached homes often have higher prices in the Comox area, which means larger down payments in dollar terms. If the price is above $1,000,000, the minimum down payment becomes 20% and default insurance is not available. Also factor in higher PTT as the price rises, and consider GST if you are looking at new builds.
Local market conditions vary between Comox, Courtenay, and Cumberland. Inventory, pricing, and buyer demand can change how fast you need to act and how you structure your offer.
Strengthening your offer beyond pre-approval
A pre-approval helps, but it is often not enough to stand out. Consider these options and trade-offs:
- Larger deposit: A higher-than-typical deposit signals commitment. It is credited to your down payment at closing. The deposit is held in trust and could be at risk if you breach an unconditional contract, so review terms with your agent and lawyer.
- Shorter financing condition: Tighten timelines rather than removing financing altogether. Shorter periods can carry risk if documents take longer to process.
- Mortgage commitment letter: Ask your lender for a property-specific commitment or conditional approval that goes beyond a general pre-approval. Confirm whether it is still subject to appraisal and verification of funds.
- Proof of funds: Provide statements that show your down payment is ready and sourced. If you are using a gift, include the gift letter and proof of transfer.
- Adjust other conditions: You can narrow inspection scopes or shorten timelines to be more competitive. Waiving conditions increases risk and should be considered carefully.
- Flexible dates: Match the seller’s preferred completion and possession dates when possible.
- Escalation clause: In a competitive situation, an escalation clause can raise your offer up to a set cap. Clear drafting is important and some sellers prefer simple offers.
Bridge financing and a larger down payment can also help your position with lenders. Even with a strong offer, the lender’s final approval will still hinge on appraisal, title review, insurance, and standard verifications.
Quick planning checklist for Comox buyers
- Map your price range using the BC down payment rules and your pre-approval.
- Set aside a deposit that can be transferred quickly at offer time.
- Budget for BC closing costs, including PTT, legal fees, insurance, and inspection.
- If using a gift, gather the gift letter and donor statements early.
- If using the HBP, confirm eligibility and timing for withdrawals.
- For condos or townhomes, review strata minutes, bylaws, and reserves early.
- Ask your lender for a property-specific commitment when competing.
- Align your preferred dates with typical local timelines and seller needs.
Next steps
Buying in the Comox Valley can be smooth when you understand how down payments, insurance, and closing costs fit together. With the right plan, you can compare condos, townhomes, and detached homes with confidence and write a strong offer when the right place hits the market.
If you want help tailoring these steps to your move, especially if you are relocating or on a tight timeline, let’s connect. Start your move today. Book a Home Hunting Trip with Stevie Cauvier to plan your purchase in Comox with a clear, step-by-step approach.
FAQs
What is the minimum down payment to buy a home in BC?
- In Canada, it is 5% up to $500,000, 10% on the portion from $500,001 to $1,000,000, and 20% for homes priced above $1,000,000.
How do insured vs. uninsured mortgages affect Comox buyers?
- With less than 20% down, you will usually need mortgage default insurance, which adds a premium; with 20% or more down, no default insurance is required, and homes over $1,000,000 are not insurable.
Can I use a family gift for my down payment in the Comox Valley?
- Yes, many lenders accept family gifts, but you will need a signed gift letter and proof of the funds’ source and transfer; confirm your lender’s specific documentation.
What closing costs should I expect in BC besides the down payment?
- Budget for Property Transfer Tax, legal fees, title and property insurance, inspection, possible GST on new builds, and prorated tax and utility adjustments.
Do condos and townhomes in Comox change lender requirements?
- Lenders review strata health, including bylaws, reserves, and minutes; certain restrictions or low reserves may limit lender options or require extra scrutiny.
How can I make my offer stronger after getting pre-approved?
- Consider a larger deposit, a shorter financing condition, a property-specific lender commitment, clear proof of funds, flexible dates, and carefully tailored conditions.
