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Buying your first home in Surrey in 2026 is more achievable than it has been in years — but only if you know how to use every tool available to you. Between provincial tax exemptions, federal savings accounts, and RRSP withdrawal programs, there are thousands of dollars in savings that most first-time buyers simply do not know about. Some leave $14,700 on the closing table because they did not fill out a single form.
Key Takeaways
- BC's property transfer tax exemption for first-time buyers applies to homes up to $500K (partial up to $525K)
- The federal First-Time Home Buyer Incentive and BC Home Buyer programs can reduce your required down payment
- Minimum 5% down on the first $500K and 10% on the portion above is the standard requirement
- Mortgage default insurance (CMHC/Sagen/Canada Guaranty) is required below 20% down payment
- Surrey offers diverse housing stock — know whether condo, townhome, or freehold fits your lifestyle and budget
- Getting pre-approved before house hunting puts you in a strong negotiating position
- Closing costs typically add 1.5-4% on top of the purchase price
At Kraft Mortgages Canada Inc., we have managed over $5 billion in mortgage originations and spent 18+ years helping first-time buyers across Surrey, the Fraser Valley, and Greater Vancouver navigate the purchase process. We see the same mistakes over and over: buyers who wait too long to get pre-approved, who do not understand the programs available to them, or who think they need a 20% down payment when 5% is enough. This guide covers everything you need to know, step by step, with real numbers for the Surrey market.
The 2026 Market: Why This Year Is Different
Time to read: 2 min
Let us start with the good news. After three years of punishing rate hikes and declining affordability, the 2026 Surrey market has shifted in favour of buyers:
- Prices have corrected to late-2021 levels. The Fraser Valley composite benchmark sits at $895,100 (February 2026) — down 7.7% year-over-year. Surrey condos benchmark at $494,100 and townhomes at $767,000.
- Inventory is elevated. More homes on the market means less competition. Bidding wars, which were the norm in 2021-2022, are now the exception rather than the rule in most Surrey neighbourhoods.
- Rates are stable. The Bank of Canada has held the overnight rate at 2.25% for three consecutive meetings. Five-year fixed rates are around 4.69%, and 30-year amortizations are now available for first-time buyers with insured mortgages.
- Forecast: 3-6% price growth in 2026. Analysts expect prices to start climbing again as immigration-driven demand absorbs the current inventory. The window to buy at corrected prices may be closing.
The bottom line: if you have been waiting for a better time to buy your first home in Surrey, this is it. The combination of lower prices, more inventory, stable rates, and expanded government programs makes 2026 the most favourable environment for first-time buyers in over four years.
Step 1: Understand Your Down Payment Options
Time to read: 2 min
The biggest myth in Canadian real estate is that you need 20% down to buy a home. You do not. Here is what you actually need:
| Home Price | Minimum Down Payment | What This Means |
|---|---|---|
| Up to $500,000 | 5% ($25,000) | Full 5% down |
| $500,001 – $999,999 | 5% on first $500K + 10% on remainder | On a $650K home: $40,000 |
| $1,000,000+ | 20% ($200,000+) | No mortgage insurance below this |
For a typical Surrey townhouse at $750,000, the minimum down payment is $50,000 (5% on the first $500K plus 10% on the remaining $250K). With CMHC mortgage loan insurance added to your mortgage balance, your total mortgage would be approximately $727,000 (including the CMHC premium).
The 30-year amortization advantage: As of late 2024, first-time buyers purchasing newly built homes with insured mortgages can now stretch their amortization to 30 years (up from the standard 25). This can reduce your monthly payment by 10-15% — potentially saving you $300-$500 per month on a $750,000 mortgage. Not all lenders offer this yet, which is another reason to work with a mortgage broker in Surrey who knows which lenders have adopted the policy.
Use our affordability calculator to see exactly how much home you can afford with your current savings.
Step 2: Maximize Every Government Program Available
Time to read: 4 min
This is where most first-time buyers leave money on the table. Here is every program available to you in 2026, with real dollar amounts:
BC First-Time Home Buyer Exemption (Property Transfer Tax)
When you buy a home in BC, you normally pay Property Transfer Tax: 1% on the first $200,000 and 2% on the remainder. On a $750,000 home, that is $13,000. But as a first-time buyer, you may qualify for a full or partial exemption:
- Full exemption: Homes valued up to $835,000 — you pay $0 in PTT. That is $13,000+ saved at closing.
- Partial exemption: Homes between $835,001 and $860,000 — you pay a reduced amount.
- Newly Built Home Exemption: If you are buying a brand-new home (presale or newly completed), the threshold is even higher: full exemption up to $1,100,000, partial up to $1,150,000.
Eligibility requirements: You must be a Canadian citizen or permanent resident, have lived in BC for at least 12 months (or filed 2 BC tax returns in the past 6 years), and must never have owned a principal residence anywhere in the world. The property must be your principal residence within 12 months of registration.
First Home Savings Account (FHSA)
The FHSA is the most powerful savings tool for first-time buyers — and most Canadians still do not know it exists. Think of it as the love child of an RRSP and a TFSA:
- Contribute up to $8,000 per year (lifetime maximum $40,000)
- Contributions are tax-deductible — just like an RRSP. If you earn $80,000, an $8,000 FHSA contribution saves you roughly $1,800 in taxes.
- Withdrawals for a first home are tax-free — just like a TFSA. No repayment required.
- If you do not buy: Transfer to your RRSP or RRIF without penalty.
- Unused room carries forward — max $8,000/year. You can contribute up to $16,000 in year two if you missed year one.
A couple can save up to $80,000 combined through two FHSAs. Combined with the Home Buyers' Plan below, that is potentially $200,000 in total down payment funds for a household.
Home Buyers' Plan (RRSP Withdrawal)
You can withdraw up to $60,000 from your RRSP ($120,000 for a couple) to use as a down payment. The money must have been in your RRSP for at least 90 days before withdrawal. You repay it over 15 years, starting in the fifth year after withdrawal — roughly $333/month on a $60,000 withdrawal.
Strategy: Use the FHSA first (no repayment required), then top up with the HBP if you need more.
Federal First-Time Home Buyer Tax Credit (HBTC)
A non-refundable tax credit of $10,000, which translates to $1,500 in tax savings (at the 15% federal rate) in the year you buy your first home. Claim it on Line 31270 of your T1 return. Every bit helps at closing.
BC Home Owner Grant
Reduces your annual property taxes by up to $570 in Metro Vancouver and the Fraser Valley (up to $770 in rural/northern areas). The grant begins phasing out for homes assessed above $2,175,000. Not exclusive to first-time buyers, but worth knowing about.
Total potential savings for a Surrey first-time buyer:
| Program | Maximum Savings |
|---|---|
| BC PTT Exemption | $14,700 |
| FHSA (individual, 5 years) | $40,000 + tax savings |
| HBP (RRSP withdrawal) | $60,000 (repayable) |
| Federal HBTC | $1,500 |
| BC Home Owner Grant (annual) | $570/year |
Step 3: Get Pre-Approved Before You Start Shopping
Time to read: 2 min
This is the single most important step — and the one most buyers skip or rush. A pre-approval tells you exactly how much a lender will lend you, at what rate, and locks that rate for up to 120 days. Without it, you are shopping blind.
What happens at pre-approval:
- Credit check. The lender pulls your credit score. For insured mortgages (less than 20% down), you typically need a minimum score of 600-640, though some lenders accept 580.
- Income verification. Employment letters, pay stubs, T4s, or tax returns (more documentation if self-employed).
- Debt service ratios. The lender checks that your total housing costs (mortgage + property tax + heating + 50% of strata fees) stay below 39% of your gross income (GDS), and that your total debt (housing + all other debts) stays below 44% (TDS).
- Rate hold. You lock in today's rate for 120 days. If rates drop during that period, most lenders let you capture the lower rate.
Why you should use a broker for pre-approval: A bank will only show you their products. A mortgage broker in Surrey shops 50+ lenders and finds the best rate and product for your specific situation. The difference between the best and worst rate on a $750,000 mortgage can be $200-$400 per month — that is $24,000-$48,000 over a 5-year term.
Get pre-approved today and know your budget before you fall in love with a home you cannot afford.
Step 4: What $600K-$800K Actually Buys in Surrey Right Now
Time to read: 2 min
Based on March 2026 market data, here is what your money gets you across different property types in Surrey:
| Budget | Condo | Townhouse |
|---|---|---|
| $500K-$600K | 1-2 bed, 600-850 sq ft (Guildford, Newton) | 2 bed, 1,000-1,200 sq ft (Newton, Cloverdale) |
| $600K-$700K | 2-3 bed, 800-1,000 sq ft (Guildford, Fleetwood) | 3 bed, 1,200-1,400 sq ft (Cloverdale, Newton) |
| $700K-$800K | 2-3 bed, 900-1,100 sq ft, newer builds | 3-4 bed, 1,400-1,600 sq ft (all neighbourhoods) |
| $800K+ | Premium units, penthouses, waterfront | New build, 1,500+ sq ft, attached garage |
Monthly payment estimates (10% down, 4.49% 5-year fixed, 25-year amortization, including estimated property taxes and strata):
- $550,000 condo: approximately $3,200/month
- $650,000 townhouse: approximately $3,750/month
- $750,000 townhouse: approximately $4,300/month
These numbers assume CMHC insurance and standard closing costs. Use our payment calculator to get precise figures for your situation.
Step 5: The Closing Process — What No One Tells You
Time to read: 2 min
Most first-time buyers focus entirely on getting approved and making an offer, then get blindsided by closing costs. Here is what to budget for beyond your down payment:
- Property Transfer Tax: $0 if you qualify for the first-time buyer exemption (homes up to $835,000). Otherwise, 1% on first $200K + 2% on remainder.
- CMHC Insurance Premium: 2.4-4.0% of the mortgage amount (added to your mortgage, not paid upfront). On a $700,000 mortgage with 5% down, the premium is approximately $27,300.
- Legal/Notary Fees: $1,500-$2,500 for conveyance.
- Property Inspection: $400-$800 for a pre-purchase inspection.
- Title Insurance: $300-$500.
- Home Insurance: $100-$200/month (required before closing).
- Strata Document Review: $200-$350 (for condos/townhouses).
- Adjustments: Property tax and utility adjustments — typically $500-$2,000 depending on when you close.
Total closing costs budget: Expect to spend $3,000-$5,000 beyond your down payment if you qualify for the PTT exemption, or $16,000-$19,000 if you do not. This is why the PTT exemption is so valuable — it can eliminate the single largest closing cost entirely.
Step 6: First-Time Buyer Mistakes That Cost Thousands
Time to read: 2 min
After helping thousands of first-time buyers, here are the mistakes we see repeatedly:
- Not getting pre-approved. Shopping without a pre-approval means you do not know your budget, and sellers may not take your offer seriously. Get pre-approved first — it takes 15 minutes and costs nothing.
- Forgetting about the PTT exemption. We have seen buyers budget $13,000 for PTT when they could have qualified for a full exemption. The form takes 5 minutes to file with your lawyer or notary at closing.
- Not opening an FHSA. Every year you delay costs you $8,000 in contribution room and potential tax savings. Open one today, even if you are not buying for 2-3 years.
- Using all your savings for the down payment. Keep a $5,000-$10,000 emergency fund. Closing always costs more than you expect, and you will want a buffer for moving costs, furniture, and unexpected repairs.
- Ignoring strata documents. For condos and townhouses, review the strata minutes, financial statements, and engineering reports before making an offer. A $500/month special assessment you did not know about can destroy your budget.
- Going with the first lender you talk to. A bank will offer you one rate. A broker will show you 50+. On a $700,000 mortgage, even a 0.2% rate difference saves you $90/month or $5,400 over 5 years.
Broker Field Notes
After helping hundreds of first-time buyers in Surrey over the years, the biggest mistake we see consistently is house-hunting without a firm pre-approval. In Surrey's competitive segments, especially townhomes in Cloverdale and Newton, a firm pre-approval (not just a pre-qualification) is what separates serious buyers from tire-kickers. We also see many clients who don't realize their RRSP can be used tax-free for a down payment (up to $60K per person under the Home Buyers' Plan). At Kraft Mortgages, we build a complete purchase timeline for every first-timer — from pre-approval to possession — so they know exactly what's coming at each stage.
Frequently Asked Questions
I have bad credit. Can I still buy my first home?
It depends on how bad. For CMHC-insured mortgages, the minimum credit score is 600 (some lenders accept 580). If your score is below that, you may need to work with a B-lender or private lender at a higher rate while you rebuild your credit. At Kraft Mortgages, we work with lenders at every tier and can help you create a credit-rebuilding plan that gets you mortgage-ready within 6-12 months.
I am self-employed. What documents do I need?
If you have been self-employed for 2+ years, most A-lenders will want your T1 Generals, Notices of Assessment, and business financial statements. If you have been self-employed for less than 2 years, or if your income is irregular, we work with alternative lenders who accept bank statements or stated income. You have more options than you think — talk to us about self-employed mortgage solutions.
Can I use the FHSA and the Home Buyers' Plan together?
Absolutely. They are separate programs. You can save $40,000 in an FHSA AND withdraw $60,000 from your RRSP through the HBP — a couple can combine both for up to $200,000 in down payment funds.
What if I owned a home outside Canada?
The BC PTT first-time buyer exemption requires that you have never owned a principal residence anywhere in the world. If you previously owned a home in another country, you will not qualify for the exemption — but you may still qualify for the federal HBTC and FHSA, which use different definitions.
How long does the whole process take?
From pre-approval to keys in hand, a typical first-time purchase in Surrey takes 30-90 days. Pre-approval takes 1-3 business days. House hunting can take weeks to months (but with current inventory, homes are sitting longer). Once your offer is accepted, closing typically takes 30-60 days for a resale property, or longer for a presale.
Ready to Start? Let Us Guide You
Buying your first home is one of the most important financial decisions of your life — and it should not be overwhelming. At Kraft Mortgages Canada Inc., we have guided thousands of first-time buyers through the process, from pre-approval to closing and beyond. We are licensed in BC, Alberta, and Ontario, and we work with 50+ lenders to find you the best rate and product for your unique situation.
Your first step is simple:
- See what you can afford: Get Pre-Approved Today
- Talk to an expert: Speak with Varun Chaudhry directly
- Calculate your payments: Payment Calculator
Do not wait for the market to shift again. The programs are generous, the inventory is there, and the rates are stable. Your first home is closer than you think — let us help you get there.
About Varun Chaudhry
Licensed mortgage broker with over 18 years of experience in the Canadian mortgage industry. Specializing in MLI Select, construction financing, and self-employed mortgages across BC, AB, and ON.