First Time Home Buyer BC, Canada

Are You Ready For Home Ownership?

Owning a home may be your dream, but in order for the purchase to be the happy and satisfying experience it was meant to be, you need to ensure that you are financially and mentally prepared for the responsibilities that come with it.

Some people have a notion that home ownership is like renting, but with the power to have pets and paint the walls whatever color you like. However, while these privileges are available to homeowners in most municipalities, they come with the responsibilities of a mortgage, taxes and home maintenance. Preparing for home ownership requires you to take critical stock of your finances and your expectations.

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Questions for Prospective Homeowners in BC

Are you ready to buy?

Owning your own home is about more than just being able to decorate any way you like; it's about being prepared to maintain your home over the years, realizing that part of your income and time will go towards repairs and maintenance. It's about being willing to take the risks of home ownership with a realistic expectation of the rewards.

How much can you afford?

It can be discouraging to find that your salary won't stretch as far as the home you want to own. However, sacrificing a huge part of your income just to pay the mortgage can very quickly make home ownership a burden rather than a point of pride. It's better to buy a modest home now and look at purchasing your "dream home" in a few years.

What is your debt-to-income ratio?

This is something that lenders take very seriously. Your overall debt should not be more than 40% of your income, and your housing debt should not be more than 32%. What 32% of your income will buy depends on where you want to live. In rural or downtrodden areas for example, it can buy a very comfortable residence and ample acreage. In highly sought-after urban areas however, it may not even buy a 400 square foot bachelor suite.

What do you want?

Do you like the idea of cleaning your own gutters? Do you shudder at the thought of lawn care? Would you rather just pay a fee every month and have everything done for you? Would obeying rules about when you can have your garbage cans out bother you, or do you want to live in a neighborhood where everything is 'just so'? The answers to these questions can help you narrow down the search for the right type of property for you.

We Can Help

You need a good agent who will work hard for you. Our real estate team is dedicated to helping you find the right home, at the best price. We want you to find a home that will make you happy and successful in real estate ownership.

When you hire us to help you buy your first home, we want to know what you want and how much you can afford. Then we'll find a way to merge these two priorities and find a residence that you'll enjoy owning.

Finding the Right Home

Keep your objectives in mind when visiting a home. Sometimes the idea of owning a home can overwhelm your practical sense, so keep your feelings in check. Keep a list handy of the features that you need and want in a home, and judge each home by the list instead of by details that could distract you from your goal. When you're alone with your agent, you can go over the pros and cons of each home. We can help you stay on track while still keeping our eyes out for a great property.

Engage the services of a good real estate lawyer. We can recommend several lawyers in the area who might be a good fit for you. Interview them to ensure that you get someone you can work with. The legalities of transferring land ownership can be dodgy, and a lawyer can be your best defense against future legal troubles. A good lawyer can charge several hundred to over a thousand dollars for their services, but the thousands of dollars saved in legal fees later on makes this a good expense.

From Offer to Closing

Make the offer. This can be a maze of "buyer", "seller", "chattels", "deposit", and "completion". We'll be happy to prepare the paperwork and go through it with you before submitting it. Remember, the seller may reject or counter your offer, so even at this late date, avoid setting your heart on the home you hope to own. You'll probably have to write a deposit check to the seller's broker that proves the seriousness of your offer.

Get all necessary inspections done. A home inspector will check for signs of harmful materials like asbestos, lead paint and mold. They'll also check for evidence of pests, faulty wiring and leaks. This is a crucial part of the home purchase. Not getting an inspection done means that you could be stuck in a home with a bad case of black mold and no recourse other than to pay for its removal. Inspections will cost a few hundred dollars, but again, this is more than worth it in the end. There are several inspectors in the area that we'd be happy to recommend.

Do a final walkthrough before closing the deal. We'd be happy to do this with you to make sure that everything agreed upon is completed prior to the final signing.

Become a British Columbia First Time Home Buyer With Kelowna Homes

From the first interview that determines your requirements to the moment that you receive the keys, we can help you with the complicated process of buying a home. Don't hesitate to contact us to find out more about how we can make the home buying process easier.

Contact us for more information about first time home purchasing.

First Time Home Buyer British Columbia FAQs

Who is eligible for the first time home buyer grant in BC?

There is no general first time home buyer grant in BC. Instead, eligible first time buyers may qualify for a full or partial exemption under the First Time Home Buyers’ Program on property transfer tax PTT for a home they will use as their principal residence, provided they are a Canadian citizen or permanent resident and the property meets the fair market value limits.

How much do first time home buyers have to put down in BC?

First time homebuyers in BC usually need at least 5% down on the first $500,000 of the home's purchase price and 10% on the portion above that up to $1.5 million. For homes priced at $1.5 million or more, the minimum down payment is generally 20%, so we factor that in early to keep the mortgage payment and monthly payments realistic.

What is the $10000 tax credit for first time home buyers in Canada?

The $10,000 amount is the federal government’s Home Buyers’ Tax Credit (HBTC), and it can provide up to $1,500 in tax relief on your return. We clarify that early because it helps offset legal fees and other similar closing costs, but it is not cash back at closing.

What is BC's first time home buyer program?

BC's first time home buyer program is the provincial home buyers exemption that can reduce or eliminate property transfer tax on an eligible purchase. It is separate from the BC home owner grant, and it is also different from the newly built home exemption and the federal GST new housing rebate, which is a separate tax rebate that may apply to a newly built or substantially renovated property.

What is the best type of investment savings account for first time home buyers to use?

For most first time home buyers, the First Home Savings Account (FHSA) is usually the strongest place to begin because eligible contributions are deductible and qualifying withdrawals are tax free. We may also suggest comparing it with the Home Buyers' Plan (HBP) through a Registered Retirement Savings Plan (RRSP) and reviewing both with a mortgage broker, since the right mix depends on your timeline and the federal government programs you plan to use.