It's Your First Time...

The question I get asked the most by people that want to buy their first property is "where do I start?". Most times, i'll answer their question with another question "what have you done so far?". There's no right or wrong way to start your journey, but there is an easy way.

To begin the process of buying your first house, you'll want to consider 2 things. Your budget and your wants/ needs list.

contact

Know your limit

As you know, to get a good mortgage, you need a good credit score. If you're a ways off buying, this is a good thing to focus on. If you can, having more than 1-2 credit cards can help with this. Having a previously financed vehicle can help as well, but don't go out and buy one right now. Having a stable income is also very important, if you're buying alone, try not to change jobs while you're looking for a house. If you're buying with someone, consider who has the better score or more "reliable" income and use their name. Even if one of you only has a part time job, that supplementary income helps.

If you're closer to buying, getting in touch with your bank or a mortgage broker to get a realistic idea of finances is one of the most important first steps. This gives you parameters to shop within.

Wants/Needs

No matter the budget, having a solid wants/needs list will help simplify and streamline this process. Consider how many bedrooms and bathrooms you need, your commute to work, proximity to amenities, storage, ect. Make a list of what is actually valuable to you. Being flexible is important, but don't short yourself to save more, you do still have to live there and be happy!

Helpful Items

There are certain incentives available for first time home buyers, such as the tax deductable FTHB Savings Account.

There is also a tax savings

program

Down Payment

This is where we might have to get creative. Remember, you might not need 10-20% down, but the more you have, the better your offer looks, additionally, the lower amount of interest you will have to pay. Try asking family or friends for help, selling things you never use, and start saving ASAP.

Helpful ways to save are:

- automated deposits into a savings account

- make weekly budgets for frequent expenses like gas and food

- avoid eating out

- do the little things like recycling and making your coffee at home

Canadas new TFSA: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account.html

why use a

REALTOR®

To be a REALTOR®, an agent must be a member of The Canadian Real Estate Association (CREA). This means agents are duty bound to do their absolute best and follow a code. The code is the accepted standard of conduct for all real estate practitioners who are REALTORS®. It’s our guarantee of professional conduct and quality service. Read more at CREA.ca

More about Megan

RESOURCES

Government Incentives First-Time Home Buyers in BC Should Know