5 Crucial Things to Check Before Buying a Condo in Vancouver

Buying a condo in Vancouver can be both exciting and daunting. Whether you’re a first-time home buyer or a seasoned investor, the stakes are high in one of Canada’s priciest real estate markets – even a condo (typically more affordable than a house) is a major purchase. To avoid costly surprises, it’s essential to do thorough due diligence. Here are 5 crucial things you should check before buying a Vancouver condo. Following this checklist will help you protect your interests and ensure the property is the right fit for your needs and budget.

1. Vancouver Real Estate Market Conditions and Pricing

Before you start condo hunting, get a clear picture of the current housing market. Vancouver’s real estate landscape in 2025 is notably different from the frenzy of a few years ago. After a period of soaring demand and prices, the market has cooled and shifted in favor of buyers. As of early 2025 the Metro Vancouver market is considered a buyer’s market, with a sales-to-listings ratio well under 40%. Prices have pulled back slightly from recent record highs – the average sale price of a condo in Vancouver in spring 2025 is about $770,000, roughly 0.5–1% lower than a year prior. This small dip indicates a stabilization of condo prices after years of rapid growth.

Why check this? Knowing the state of the market helps you strategize your purchase. In a buyer’s market, you have more room to negotiate on price and conditions because there are more listings and fewer competing buyers. Indeed, the number of properties for sale is at the highest level seen in almost a decade in Vancouver, giving buyers plenty of options. Meanwhile, demand has cooled – home sales in early 2025 are well below the 10-year average. One industry expert noted that buyers hadn’t seen such favorable conditions in years, with prices easing, interest rates relatively low, and the most plentiful supply of listings in a decade.

For you, this means it could be an opportune time to buy. However, keep an eye on upcoming trends – if interest rates continue to fall and more people re-enter the market, competition could heat up later in 2025, firming up property values. Take note of the market’s direction and research recent sale comparables for the specific building or neighborhood you’re interested in. Understanding the broader market context will help you decide on a competitive offer that still fits your budget.

2. Your Budget, Mortgage and Financing Details

The next crucial step is to check your finances and mortgage options. Vancouver condos come with a hefty price tag, so it’s vital to know exactly what you can afford. Start by getting a mortgage pre-approval from a lender – this will clarify your maximum purchase price and lock in an interest rate for a period of time. Lenders will assess your income, debts, and credit rating; a strong credit score will help secure a favorable rate. In today’s market, interest rates have begun to ease off their peak. The Bank of Canada raised rates aggressively in 2022–2023 (reaching a 22-year high of 5% in mid-2023), but by early 2025 it reversed course with a series of cuts, bringing its benchmark rate down to about 2.75%. Thanks to this shift, mortgage rates have come down from their highs – five-year fixed interest rates are now around 3.8–4%, the lowest level since 2022. Lower rates mean a lower monthly payment, which boosts your buying power.

Key financing checks:

Mortgage Pre-Approval & Budget: Verify how large a loan you qualify for and at what rate. This guides your search so you only look at condos in your price range. Also, factor in all monthly ownership costs when budgeting. Besides the mortgage payment, include strata fees (maintenance fees), an estimate of property tax, and home insurance. Adding up these costs will give you a realistic monthly payment. Make sure the total won’t overstretch your income – you want a financial cushion for other expenses.
Down Payment & Mortgage Insurance: Determine your down payment and understand the implications. In Canada, if your down payment is less than 20%, mortgage default insurance is mandatory. This insurance (through CMHC or other providers) protects the lender and allows you to buy with as little as 5% down, but it adds a premium to your mortgage. As of 2025, there are new federal changes to help buyers in high-priced markets: insured mortgages are now available for homes up to $1.5 million (up from the previous $1M cap), and first-time buyers can access 30-year amortizations on insured loans. These changes mean you might be able to purchase a more expensive condo with a smaller down payment than before. Still, a larger down payment will save you money in the long run by reducing your loan amount and avoiding the insurance premium.

By checking your financing early, you’ll know your limits and won’t waste time shopping above your budget. A pre-approval also makes you a more confident and credible buyer when you’re ready to make an offer.

3. Location and Neighborhood Factors

In real estate, they say “location is everything,” and this holds true in a city like Vancouver. Before buying a condo, take a close look at the neighborhood and surrounding areas. Vancouver is a city of distinct neighborhoods, each with its own character, amenities, and price levels. Consider what location best suits your lifestyle or investment goals:

Local Amenities and Lifestyle: Check what’s in the vicinity of the condo. Is there a grocery store, pharmacy, or gym nearby? How about cafes, restaurants, parks, or schools? Easy access to daily conveniences and services will make living there comfortable and help preserve the condo’s value. Also consider transportation – proximity to a SkyTrain station or bus lines can be a big plus, especially if you commute. If you prefer a lively urban atmosphere, a downtown location offers entertainment and nightlife, whereas a more residential neighborhood offers peace and quiet. Ensure the community and nearby amenities align with your daily needs and preferences.
Street Environment and Safety: Visit the building at different times of day to gauge the environment. Is the building on a quiet residential street, or a busy road with lots of traffic and noise? The immediate surroundings will affect your daily comfort. Check for noise levels (traffic hum, construction, nightlife) and observe the general upkeep of the street and property. Also look into safety – talk to locals or consult Vancouver crime maps to ensure you feel secure in the area, day or night. A building in a well-lit, well-maintained area with a strong community feel can be a better long-term investment in terms of desirability.
Future Development and Value: Research the area’s trajectory. Are there any major developments planned or underway nearby? New condo towers, infrastructure projects, or transit expansions can significantly impact property values. For instance, the upcoming Broadway Subway extension will add new transit stations – buying near a future station could boost your condo’s value over time. On the other hand, prolonged construction next door could mean noise and disruption. Check city planning websites or do an online search for recent news about the neighborhood. Also, if you’re buying as an investment property, consider the rental demand in that location (areas near downtown offices or campuses often have strong rental markets). Understanding both the current appeal and future outlook of the area will help ensure you choose a location with solid long-term prospects.

4. Building Quality and Strata Health

When buying a condo, you’re also buying into a building and a strata (homeowners’ association). It’s crucial to check the building’s condition and the strata’s health before you commit. A beautiful unit in a poorly managed or deteriorating building can become a nightmare. Focus on these aspects:

Building Condition and Maintenance: Find out what year the building was constructed and note its age. If the building is older, you’ll want to see a history of proper maintenance. Check if major components have been replaced or updated as needed – for example, roof, plumbing, elevators, or the exterior façade. If available, review any depreciation report or engineering report that outlines the building’s condition and upcoming maintenance needs. It’s also wise to get a professional home inspection, even for a condo. An inspector can evaluate the unit and some common areas, and provide a report on any issues or repairs to anticipate. This can alert you to problems that might not be obvious during a casual viewing.
Strata Finances and Fees: Review the strata’s financial documents (your realtor can obtain these during the due diligence period). Key things to look at are the contingency reserve fund (the savings for future repairs) and the recent budgets. Ensure the strata has a healthy reserve fund to cover upcoming repairs – the depreciation report will indicate if the current reserve is adequate. Also check if any special assessments (one-time fees charged to owners for major projects) have been proposed or recently levied. For example, if the strata knows the roof or elevators need replacement, they might plan a special levy to fund it – you want to know about such extra costs in advance. Read the strata meeting minutes from the past year or two, which can reveal discussions about maintenance issues or projects on the horizon. Also note the monthly strata fee and whether it’s been rising significantly. A well-run strata will budget properly and maintain a solid reserve, whereas a struggling one may have low reserves or frequent surprise fees.
Bylaws and Restrictions: Obtain and read the strata bylaws and rules. These will tell you what you can and cannot do as an owner. Pay attention to rules about pets (e.g. whether dogs or cats are allowed, and any size limits), rentals (most stratas can no longer forbid long-term rentals due to recent law changes, but short-term rentals like Airbnb are typically prohibited), age restrictions (some buildings are 55+ only), and renovation policies. If you have a pet or plan to rent out the unit at any point, ensure the bylaws align with your plans. Also see if there are any noise or usage restrictions (for example, quiet hours or no smoking areas). Reading these documents also gives you a sense of the strata’s culture (strict versus easygoing), which should match your comfort level.

Doing your homework on the building and strata is one of the most important parts of condo due diligence. You are buying into a shared property, and the building’s condition and management will directly affect your living experience and potentially the future value of your unit. Don’t hesitate to ask questions or seek clarification on any issues that come up in the documents. It’s far better to uncover red flags now than to be surprised later.

5. Insurance and Other Ownership Costs

The last major thing to check is the ongoing costs of ownership – especially insurance requirements and other expenses beyond the purchase price. These factors will affect your monthly budget and peace of mind.

Condo Insurance Requirements: The strata corporation carries insurance for the building as a whole (covering common property and the structure), but as a condo owner you will need your own insurance policy for your unit. Mortgage lenders require you to have home insurance, so make sure you can obtain a condo insurance policy for the unit at a reasonable cost. Your policy should cover your personal contents, any interior improvements, and liability, as well as any gaps or deductibles in the strata’s insurance coverage. For example, check the strata’s insurance deductible for water damage or earthquakes – if it’s high, ensure your policy can cover that amount. Lenders will want to see that your coverage is sufficient to protect the property (their collateral). It’s wise to get an insurance quote during your subject removal period so you know the premium. Condo insurance premiums in B.C. have been higher in recent years due to past claims and rising replacement costs, so budget a few hundred dollars (or more, depending on coverage) per year for this.
Property Tax and Other Costs: Remember that you’ll pay property taxes on your condo each year to the city, typically based on its assessed value. Check the current annual property tax for the unit and factor that into your ongoing expenses. Additionally, consider utilities: some condos include certain utilities in the strata fee (e.g. water or heating), while others you pay separately (electricity, internet, etc.). If parking or storage lockers cost extra, include those in your budget. Take notes of all these costs so you have a full picture of what owning the condo will cost each month and each year.
Maintenance and Contingencies: While your strata fees cover shared building maintenance, you should still be prepared for unexpected expenses. Special assessments can occur if the strata needs extra funds for a major repair. Also, you are responsible for upkeep inside your unit – if an appliance breaks or a plumbing leak occurs within your unit, you’ll need to fix it (sometimes with help of your insurance). It’s prudent to set aside an emergency fund for home repairs or unexpected expenses. If you’re buying the condo as an investment property, also account for potential periods of vacancy or minor repairs between tenants when crunching the numbers. Being prepared for these contingencies will help you avoid financial strain down the road.

By understanding the insurance obligations and ongoing costs of condo ownership, you can avoid surprises after you’ve moved in. Before finalizing the purchase, make sure you’ve arranged any required insurance and have a clear plan for handling all the monthly expenses associated with the condo.

Conclusion

Purchasing a condo in Vancouver is a significant investment, but if you check these five key areas – the market conditions, your financing, the location, the building’s health, and the insurance and costs – you’ll be well prepared to make an informed decision. Vancouver’s 2025 real estate scene offers opportunities for savvy buyers who do their homework. By being diligent and consulting professionals as needed, you can confidently navigate the condo-buying process. In the end you’ll secure a home that suits your needs and will be a valuable asset for years to come.

Need help making sense of the Vancouver condo market? Reach out to Adam Chahl and the PLACE Real Estate Team at Oakwyn Realty. As award-winning REALTORS® with deep knowledge of Vancouver’s neighborhoods, buildings, and pricing strategies, we’re here to make your condo buying journey smooth, informed, and successful.

Posted by Adam Chahl on May 6th, 2025