First Time Home Buyers

First Time Home Buyers Vancouver - The process of buying a new home may feel overwhelming, but we will guide you through everything you need to know and do. After meeting with us, you will have better understanding of all that is involved in buying a home, and you will feel more comfortable making decisions.

When purchasing your first home there are several things you must consider before you start looking at real estate including the following:
 

• How much your down payment will be
• How much you will qualify to borrow
• And, how much you can ultimately afford

Your down payment can be as little as 5 per cent of the total purchase amount and increase to any amount beyond that. With most lenders, down payments of less than 20 per cent are considered high ratio and they will require mortgage insurance to be purchased. This insurance is provided by CMHC, Glenworth, or Canada Guarantee, and it protects the lender in the event the borrower defaults on the loan. The insurance premium represents a percentage of the total mortgage and is added to the total loan—simply, the smaller the down payment, the higher the premiums.

However, if your down payment is 20 per cent or more, then the mortgage is classified as a conventional mortgage and there is no associated mortgage insurance cost.

You may decide to go with a larger down payment so you can save on the insurance premium, but you may want to keep some cash on hand to use for other purchase related expenses such as legal costs, property transfer taxes, moving costs, renovations, or new furniture purchases. Always discuss your options with your mortgage consultant. 

When determining your qualifying borrowing amount and interest rate, lenders will factor in the following:

• Credit score
• Income
• Financial history
• Unsecured loan amounts (lines of credit and credit cards)
• Assets (other properties, RSPs, stocks and bonds, savings) 

Helping our clients sort through their options is one of the most valuable services the Lending Experts provide. We have extensive experience guiding our clients through the various programs available for first time homebuyers such as the RRSP First Time Home Buyers Plan and the Property Transfer Taxes Exemption.  We also work with our clients to better their understanding of the many special offers and promotions still available with some lenders, including zero-down financing through cash back, or borrow-down payment options.

With our expertise in finance and investment, we are able to help you determine how much you can afford, which special programs and offers best suit your needs, and then work with you to set a budget based on the mortgage amount you qualify for. We understand that buying a home is a big commitment and that the choices you make today will impact your future plans as well. Our services go beyond the mortgage process to help you make the best decision for your future goals.

Please contact us to get more information and let us help you navigate your way through the options and the involved paperwork.