First time up to bat? Don't worry, I have all bases covered for your grand slam HOME run!
1. Assess Your Finances. Budget Properly.
What your mortgage broker says you can receive isn’t necessarily what you can afford. Break down your personal numbers one by one. Expenditures such as car payments, cable bills, groceries and any other monthly, daily, weekly or yearly costs should be factored into what you are comfortable to pay every month. Tack on your other monthly costs to your mortgage payment to make sure you are ok with the numbers you see.
2. Plan Ahead.
You will more than likely be getting into your first home simply to get into the market. It might be something that will suit your needs for a couple years, it might even be more permanent. Just make sure you plan ahead when purchasing. Planning to get married or have kids? You might need more space for the future or have schools, parks and shops within close distance. Thinking you may need to expand? Is it possible to renovate or restructure parts of your home down the road? You may live in strata and decide to get pets or rent it out later. Ensure those things are possible.
3. Get the right lender.
Not all realtors work equally and the same can be said about mortgage brokers and lenders. Make sure you are fully comfortable and aware of the information presented to you by your broker and get everything in writing. Verbally promised interest rates and key figures can magically change overnight. Make sure numbers are verified and given to you in writing.
4. First-Time Home Buyer Incentives.
As of May of 2021, updates on BC’s first time home buyers incentives came into effect. This allows a new buyer to receive a contribution of 5-10% from the government towards your down payment. There are also possible property transfer tax exemptions that can be granted. You can also use up to $35,000.00 of your RRSPs without any penalties or taxes. More information regarding these incentives can be found using these links: