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 "where are you at?". 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 3 things.The first is your credit, then your budget, then your wants and needs.

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Credit Score

This is a good place to start.

As you know, to get a good mortgage, you need a good credit score. This means you need credit. 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.

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://liberal.ca/housing/afford-a-downpayment-faster/

Wants/Needs

Yes, you do actually get to search for things you desire in a house, even with a small budget. Consider how many bedrooms and bathrooms you need, your commute to work, proximity to amenities, ext. 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!

Fine Print

There are a few extra things to know. One being that you may qualify for a reduction in your down payment. You may also be able to get lower taxes, to learn more, reach out or visit the link at the bottom. There are also fees you may not have considered, such as Attorney fees, insurance for the mortgage and house, home inspection ext.

gov.bc link

five programs available for first time home buyers

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

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RESOURCES

The Home Buyers’ Plan (HBP). This federal program through the Canadian Revenue Agency lets you withdraw up to $35,000 tax-free from your registered retirement savings plan (RRSP) as a loan to build or buy your first home.
GST/HST new housing rebate. Targeted specifically at Canadians buying a new construction property, the GST/HST new housing rebate allows you to recoup some of your tax expenses.
The First-Time Home Buyer Incentive. Overseen by the Canada Mortgage and Housing Corporation (CMHC), this new buyer incentive program aims to reduce monthly payments with a shared-equity mortgage with the federal government.
The Home Buyers’ Tax Credit (HBTC). If you’re a first-time home buyer with a qualifying home you could receive up to $5,000 of the purchase from the Home Buyers’ Tax Credit (HBTC).
Land Transfer Tax Rebates. Land transfer taxes are paid when the transaction closes, and are based on the purchase price. In British Columbia, buyers can receive $8,000 in rebates, earning the full amount up to a $500,000 maximum purchase price. Between $500,001 and $524,999, only a partial rebate is given, and there is no rebate for prices above $525,000.