How to Buy a Home: A Step-by-Step Guide

Tim Lyon • March 3, 2025

Buying a home is one of the biggest financial decisions you’ll ever make. Whether it’s your first home or your next one, the process can feel overwhelming without a clear roadmap. This guide breaks down each step so you know what to expect, who’s involved, and how to prepare.


What Does Buying a Home Involve?

At its core, buying a home means matching your budget with the right property, securing financing, and completing all the legal steps to make it yours. The journey usually takes 3–6 months from start to possession, though it can be quicker or longer depending on the market and your situation.


The Home Buying Timeline

Here’s how the process typically unfolds:

  1. Pre-Approval – Meet with a mortgage broker to review your income, down payment, and debts. A pre-approval shows what you can afford and locks in a rate if needed.
  2. Initial Consultation with Your Realtor – Define your search criteria, including location, size, and must-have features.
  3. House Hunting (1–3 months) – Tour properties with your Realtor. Share potential homes with your broker to ensure they fit lending guidelines.
  4. Making an Offer – Your Realtor helps draft and negotiate the offer, including important conditions (“subjects”) like financing and inspection.
  5. Subject Removal (7–10 days) – Work with your mortgage broker, inspector, and lawyer to complete due diligence. Once you remove subjects and provide your deposit, the home is officially SOLD.
  6. Preparation for Closing (2–6 weeks) – Arrange insurance, utilities, moving details, and gather your down payment and closing costs.
  7. Closing (3–5 days before possession) – Meet with your lawyer/notary to sign documents and pay the balance of your down payment.
  8. Possession Day – Final walkthrough and key handoff. Time to move in!


Who Are the Key Players?

You’ll interact with several professionals during this process:

  • You, the Buyer – Deciding what you want and what you can afford.
  • Realtors – The listing agent represents the seller; your buyer’s agent represents you, negotiates on your behalf, and is paid by the seller.
  • Mortgage Broker – Helps secure financing, compare lenders, and structure your mortgage.
  • Lender – The bank or credit union providing your mortgage loan.
  • Lawyer/Notary – Handles the legal transfer of funds and property title.
  • Home Inspector – Checks for issues with the property.
  • Appraiser – Confirms the property’s market value for the lender.


Costs to Budget For

Beyond your down payment, you’ll need cash set aside for closing costs:

  • Legal Fees: $1,400–$2,200
  • BC Property Transfer Tax (PTT):
  • 1% on the first $200,000 of the property’s market value
  • 2% on the portion between $200,000 and $2,000,000
  • 3% on the portion between $2,000,000 and $3,000,000
  • 5% on any amount above $3,000,000
  • There are exemptions for first-time buyers and for those purchasing newly built homes. Use my Property Transfer Tax Calculator to estimate your costs.
  • Appraisal: Around $400
  • Home Inspection: Around $500
  • Insurance & Moving Costs: Variable


You can also use my Closing Cost Calculator to create a personalized budget.


Rule of thumb: budget 1.5% of the purchase price for closing costs. First-time buyers may need less due to property transfer tax exemptions.


Quick Summary

  • Step 1: Get pre-approved so you know your budget
  • Step 2: Work with the right team (Realtor, broker, lawyer, inspector)
  • Step 3: Budget for both down payment and closing costs
  • Step 4: Follow the process—offer, subjects, closing, possession
  • Step 5: Enjoy your new home with confidence!


Next Steps

If you’re thinking about buying your first home—or it’s just been a while since your last purchase—the best place to start is a conversation. Let’s walk through your numbers and get a plan in place. Book a consultation or call 778-988-8409.


Mortgage Term Glossary

Amortization: Length of time to fully pay off your mortgage (commonly 25–30 years).
Appraisal: Professional estimate of your home’s market value, often required by lenders.
Deposit: Money you pay when your offer becomes firm; goes toward your down payment.
Down Payment: Your initial contribution toward the home’s purchase price.
Equity: The difference between your home’s value and what you owe on the mortgage.
Fixed Rate: Mortgage rate that stays the same for your term.
Mortgage Term: The length of your mortgage contract (1–5 years).
Pre-Approval: A budget put together by your mortgage broker to show what you can afford.
Stress Test: Rule requiring buyers to qualify at a higher interest rate than their actual rate.
Variable Rate: Mortgage rate that can fluctuate with the lender’s prime rate.


Tim Lyon

Mortgage Consultant

25 Year vs 30 Year Amortization: A Practical Guide

By Tim Lyon • January 25, 2026
Trying to choose between a 25 and 30 year mortgage amortization? Learn how each affects your payments, interest, and flexibility so you can decide with confidence.

How Rental Income Impacts Your Mortgage Approval (And Why Lender Choice Matters)

By Tim Lyon • January 20, 2026
If you are buying a home with a suite, keeping your current home as a rental, or already own a rental property, mortgage qualification can get confusing fast. The frustrating part is that you can do everything “right” and still get very different answers depending on which lender you talk to. Here’s a simple breakdown so you understand it and don’t miss out. What are Debt Service Ratios? In Canada, lenders qualify you using two main ratios: Gross Debt Service (GDS) This looks at housing costs only , typically: Mortgage payment Property taxes Heating 50% of strata fees (if applicable) GDS typically needs to be 39% or less of your gross income. Total Debt Service (TDS) This includes everything in GDS , plus other debts like: Car loans Credit cards Lines of credit Student loans TDS typically needs to be 44% or less of your gross income. These ratios are the foundation. If they do not work, the lender will not approve the mortgage, even with strong credit and a solid down payment. How Lenders Treat Rental Income Most people assume lenders look at rental properties based on simple cash flow (rent minus mortgage payment). In reality, most lenders use one of two methods: 1) Addback A percentage of the rental income is added to your gross income for qualification purposes. 2)Offset A percentage of the rental income is subtracted from the mortgage payment tied to the rental property. Different lenders use different percentages and different worksheets. That is why the same borrower can qualify with one lender and fail with another. Benefits of Understanding Lender Methods When you understand how rental income is calculated, you can: Avoid being under-qualified by a lender with conservative rules Get a more accurate picture of your real purchasing power Choose a lender that fits your situation (instead of forcing your situation to fit the lender) Important Considerations A few key points to keep in mind: Rental income is rarely counted at 100% , but some lenders are more generous than others. The method matters just as much as the percentage (addback vs offset). If you own multiple properties, lender worksheets can change the result dramatically. Your lender choice is a strategy decision , not just a rate decision. Real-World Example: Same Clients, Two Very Different Outcomes Here’s an example comparing lenders Scotiabank and Strive, using a fictitious couple: Scenario Household income: $160,000 Existing townhome: $800,000 value with a $525,000 mortgage ( $2,500/month payment) Market rent for the townhome: $3,400/month New purchase: property with a rental suite generating $1,800/month Down payment: 10% Other debts: student loan $165/month , car loan $500/month How Scotiabank viewed it For the townhome rental, they counted half the rent and subtracted the mortgage payment, leaving an $800/month shortfall that gets added into the debt ratios. For the new purchase, 50% of the suite income gets added to income. Max mortgage : $650,700 Max purchase price : $723,000 How Strive viewed it For the townhome rental, Strive used a rental worksheet and calculated $5.20/month of income that can be added to the application. For the new purchase, 100% of the suite income gets added to income, and they did not need to include taxes or heat. Max mortgage : $878,400 Max purchase price : $976,000 The result That’s a $253,000 difference in purchasing power , with the same clients, same income, same debts, and same properties. The difference was lender policy. Quick Summary GDS and TDS ratios are the backbone of mortgage qualification. Rental income is usually counted using Addback or Offset , and each lender handles this differently. Two lenders can produce wildly different results, even with the exact same file. In the example above, lender choice created a $253,000 swing in purchasing power. Next Steps If you are planning to: Buy a home with a suite Keep your current home and convert it to a rental Use rental income to qualify Reach out and I will run the numbers across multiple lenders so you see what you actually qualify for, not just what one lender will allow. Need help with your mortgage? Book a consultation or call 778-988-8409 . Glossary Addback : A method where a lender adds a percentage of rental income to your gross income for qualification. Gross Debt Service (GDS) : The ratio that measures housing costs as a percentage of gross income. Offset : A method where a lender subtracts a percentage of rental income from the rental property’s mortgage payment for qualification. Total Debt Service (TDS) : The ratio that measures housing costs plus other debts as a percentage of gross income.