First Time Home Buyers

First-Time Home Buyer in BC? Your Simple Guide to Mortgage Success

Congratulations! Buying your first home is one of life's most exciting milestones. It can also feel overwhelming, but you don’t have to figure it out alone. As a mortgage broker, my job is to make the process simple, clear, and stress-free for you. Let’s break down how you can turn your dream of homeownership into a reality.

Why Use a Mortgage Broker as a First-Time Buyer?

• Expert Guidance: I explain every step in plain language.

• One-Stop Shopping: I compare dozens of mortgage options from banks, credit unions, and private lenders to find you the best rate and terms.

• Your Advocate: I negotiate on your behalf and handle the complex paperwork.

• Access to More Options: Even if you have student debt, a new job, or a smaller down payment, I have solutions that banks might not offer you directly.

Your First-Time Buyer Mortgage Options

You have more paths to homeownership than you might think. Here are the most common ways I help first-time buyers get their keys.

1. The Traditional Bank Mortgage (CMHC-Insured)

This is the most common route, offering the lowest interest rates in the market.

• Minimum Down Payment:

  • 5% for properties under $500,000.

  • 5% on the first $500,000 + 10% on the portion above $500,000 for properties up to $1,500,000.

• Mortgage Default Insurance: If your down payment is less than 20%, you will require mortgage insurance (from CMHC, Sagen, or Canada Guaranty). This protects the lender and allows you to buy with a lower down payment. This cost is added to your mortgage.

• What You Need: Good credit (a score of 650+), stable employment, and verifiable income (T4s, pay stubs).

2. The Family Plan (Using a Gift or a Co-Signer or Guarantor)

Many first-time buyers get a helping hand from their family.

• Gifted Down Payment: Families can gift you the money for your down payment. We just need a signed gift letter.

• Co-Signer: A parent or family member can add their income and credit to your application to help you qualify for a larger mortgage.

3. Alternative Solutions (When the Bank Says "Not Yet")

Don't worry if your situation isn't "perfect." I specialize in finding solutions.

• Stated Income Programs: If you're self-employed or have bonus income that's hard to prove, we can use bank statements instead of tax returns.

• Credit Challenges? Past credit issues don't have to stop you. We have private mortgage options to get you into a home now, with a plan to refinance to a better rate in a year or two once you've built more equity.

First-Time Buyer Programs & Incentives

You may be eligible for valuable programs that make buying easier:

• FHSA (First Home Savings Account): This is the newest and most powerful tool for first-time buyers. Contributions are tax-deductible, growth is tax-free, and withdrawals for a down payment are tax-free. You can contribute up to $8,000 per year (lifetime limit of $40,000).

• BC Property Transfer Tax (PTT) Exemption: You could be exempt from paying the PTT on homes up to $500,000 (a savings of up to $8,000).

• Home Buyer's Amount: A federal tax credit that can get you back $1,500 on your tax return.

• RRSP Home Buyers' Plan (HBP): Withdraw up to $35,000 ($70,000 for a couple) from your RRSPs tax-free to use for your down payment (amounts must be repaid over 15 years).

Your Simple 5-Step Home Buying Journey

1. Get Pre-Approved: This is your first step! I’ll get you a pre-approval to lock in a rate and know exactly what you can afford.

2. Find Your Home: Work with a realtor to find a home within your budget.

3. Get Final Mortgage Approval: Send me the purchase agreement, and I’ll get your mortgage fully approved.

4. Work with a Lawyer: They handle the legal paperwork and property transfer.

5. Get Your Keys! Congratulations, you’re a homeowner!

Common First-Time Buyer Questions

Q: How much do I really need for a down payment?
A: As little as 5% for homes under $500,000. But remember, you also need to budget for closing costs (like legal fees and appraisals), which are typically 1.5-2% of the purchase price.

Q: My credit isn't excellent. Can I still buy a home?
A: Yes! While traditional banks have strict rules, I work with alternative lenders who look at your entire situation. We can often find a way.

Q: How much does it cost to use a mortgage broker?
A: Nothing! My services are free for you. I am paid by the lender once your mortgage funds.

Let's Make It Happen

Your first home is within reach. I'll help you navigate every step, from understanding your options to unlocking first-time buyer incentives like the FHSA.

Contact me today for a free, no-obligation consultation. Let's get you pre-approved!