Tips & Tricks for First Time Home Buyers

March 1, 2019

While there are benefits to both owning and renting, by purchasing your home you are investing in yourself and your financial future. While this may seem like a daunting task, we have a few tips & tricks for first-time homebuyers to make it more manageable:

 

  1.     Get Pre-approved

Pre-approval is the best way to stay within budget when you start shopping for your first home. Qualifying for a mortgage is easier than you might think, and many lenders are able to qualify up to 18 months in advance. To get started contact a lender to fill out a mortgage application. This is not a binding contract, it just helps your lender to pre-qualify you for the mortgage you can afford.  All lenders will ask for documentation for things such as proof of down payment, proof of income, income tax receipts, and information on any debt you may have. Once your lender has assessed your situation and has pre-qualified you, the fun can begin, and you can start your house search! Stoni Consolidated Holdings, the Developer of the Highlands, is also able to offer pre-approval for mortgages.

 

  1.     Buy New and Avoid the Worry

Buying a new home means buying piece-of-mind and security. All new homes in British Columbia come with a minimum one-year warranty covering the entire exterior and interior of your new home. With an additional two years of warranty for distribution systems, five years warranty for the building envelop, and ten years for the structural warranty of your home, you can sleep easy in the years following your purchase. To Learn more, visit the BC Housing website:

https://www.bchousing.org/licensing-consumer-services/new-homes/home-warranty-insurance-new-homes

 

  1.     Avoid Strata to Maximize your Buying Power

How much you can afford will depend on a variety of factors including your income, your down payment, your existing debt, and your credit score. Mortgages lenders also look at your Gross Debt Service (GDS). Your GDS considers your monthly housing cost including expenses such as taxes, utilities and Strata fees. For example, the addition of a Strata fee of just $240 per month can make a difference of $10,000 in gross yearly household income required to purchase the home you want.

 

  1.     Use your RRSPs

Down payments can be extremely difficult to save for. It is helpful to use savings you may already have in place. The Home Buyers' Plan (HBP) is designed to assist first-time homebuyers in purchasing their first property. HBP allows you to withdraw up to $25,000 (or up to $50,000 combined, if you’re buying with a partner) from your Registered Retirement Savings Plan (RRSP) to put towards the purchase of your new home. Learn more on the Government of Canada’s website:

https://www.canada.ca/en/revenue -agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan.html

 

Now is your chance to own a Starta-free home starting under $400,000. Call one of our Community Specialist now at 778-807-9699 or email us at [email protected] to take your next step towards your first home!

 

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