The first step is to ASK
If you're like most first-time home buyers, you probably don't even realize how qualified you are! The majority of first-time home buyers are surprised to hear how affordable mortgage payments can be (in comparison to their rent) and how much they can qualify for. Without inquiring, you will never know.
5% may be all you need
Many people are surprised to hear that 5% is the minimum down payment amount required to purchase a home, in most cases. If you will be living in the home, if you have good credit, if you earn a good income, and if you will be purchasing a home under $500,000, 5% is all you need!
As of February 15, 2016, if you purchase a home over $500,000, the minimum down payment is 5% on the first $500,000 and 10% on the remaining purchase price, up to a purchase price of $999,999.
If you are purchasing a home over $1,000,000, please note that the minimum down payment is 20%.
Click here for more information about your down payment
As of February 15, 2016, if you purchase a home over $500,000, the minimum down payment is 5% on the first $500,000 and 10% on the remaining purchase price, up to a purchase price of $999,999.
If you are purchasing a home over $1,000,000, please note that the minimum down payment is 20%.
Click here for more information about your down payment
A Few Key Documents
In many cases, lenders only need to see a few key documents:
- A Letter of Employment from your employer & a Recent Paystub
- Notice of Assessments or T4s from the past 2 years
- A 90-day history of your savings/investments (for your down payment)
Closing Costs can be affordable for First-Time Home Buyers
Many people think that Closing Costs (the money that you have to pay to a lawyer/notary public to complete a home purchase) are expensive.
However, in British Columbia, First-Time Home Buyers may qualify for a Property Transfer Tax exemption if the property that is being purchased is under $500,000.00. There is also a partial exemption, based on a sliding scale, for purchases between $500,000 to $860,000.00 (as of April 1st, 2024). Without property transfer tax to pay at closing, closing costs can be quite minimal. I have seen many transactions where my clients' closing costs have been between $2000 to $4000.
Click here for more information about the BC Government's First Time Home Buyers' Program
However, in British Columbia, First-Time Home Buyers may qualify for a Property Transfer Tax exemption if the property that is being purchased is under $500,000.00. There is also a partial exemption, based on a sliding scale, for purchases between $500,000 to $860,000.00 (as of April 1st, 2024). Without property transfer tax to pay at closing, closing costs can be quite minimal. I have seen many transactions where my clients' closing costs have been between $2000 to $4000.
Click here for more information about the BC Government's First Time Home Buyers' Program
It's never too early to inquire
Even if you are years away from being ready to buy your first home, I always encourage first-time home buyers to contact me for an initial consultation. Meeting with me in advance to discuss your goals will help you understand what will be required for the future. Without knowledge of the process and what will be needed, it is nearly impossible to strive towards achieving your goal of home ownership.