First Time Buyers

A home is one of the biggest purchases of your life and you have a lot of questions about the home buying process. The amount of new information in the marketplace can seem overwhelming. Here are just a few of the things you need to consider as a first time homebuyer here in BC:

• Can I qualify for a mortgage?
• How much can I afford to borrow? See Mortgage Qualifier
• Where can I get the best mortgage rates? (Us!)
• What mortgage term is right for me?
• What other costs should I expect?  See Mortgage Closing Costs
• Can I use my RRSP funds for a down payment?
• What do I need to know about payment options, mortgage portability and other conditions.

As a first time home buyer in BC and Canada, there are opportunities available only to you that are unavailable to repeat purchasers:

• The Province of BC offers Property Purchase Tax exemptions for first time buyers of qualifying properties (includes a price cap).  BC Property Transfer Tax
• RRSP Home Buyers Plan.  Canada Revenue Agency RRSP Homebuyers Program
• 100% financing and other low down payment mortagage products

100% financing and other low down payment programs have been expanded and it is now possible for a broader group of Canadians to qualify for their first home mortgage. Whenever the down payment is lower than 20%, most lenders are required by law to insure the mortgage against default. This default insurance is provided by three main institutions in Canada: CMHC, a Federal Crown Corporation, and Genworth Financial Canada and AIG, private insurers. The insurance premium is a one time amount which is normally included in the mortgage. Because the risk to the lender increases as the down payment gets smaller, the insurance percentage gets larger accordingly.

As an alternative to default insurance (or in combination with), RRSP Home Buyers Plans can be used to withdraw funds tax free from your existing RRSP to use as a downpayment. This can help you to reduce or eliminate the potential default insurance premiums, and can also help you obtain more purchasing power by combining your RRSP funds with the maximum mortgage you can afford.

Our mortgage brokers can guide you through the available programs that best suit your needs. To find a mortgage broker, click Our Brokers or Contact Us for more information.

See The Mortgage Process for more details on what to expect from the time you come to us for Mortgage Pre-Approval to the time you take possession of your new home.

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