Steps to buying your first home

Congratulations on taking the first steps towards buying a home! This is a very exciting time and with experienced professionals helping you along the way, buying your first home is within reach.

There are unique programs available to first time homebuyers that can make buying your first home easier and more affordable:

Buy your first home with the HBP program. The HBP program is an effective way to help first time home buyers access funds for a down payment. The plan allows for withdrawals of up to $20,000 per person (or $40,000 per couple) from registered retirement savings plans (RRSP’s) to aid in buying or building a qualifying home.

The objective of 5% Down Payment Mortgages is to assist those with good credit and steady incomes to purchase a home. 5%  down payment mortgages can be ideal for:

• Current renters who often worry they won’t be able to afford a home or save enough money for a down payment
• Professionals starting their careers or may have large student loans
• These mortgages can go as high as a 35-year amortization

All or part of the minimum equity requirement (5% for down payment plus 1.5% for closing costs) may be provided by way of a financial gift as long as all of the following conditions are met:

• The lender has verified that the funds are in the recipient's possession at least 15 days prior to closing
• The lender is satisfied that the money is a genuine gift
• The giftor is an immediate relative of the recipient

Homebuyers can receive down payment from borrowed sources that include:

• Lender cash back incentives
• Personal loans, lines of credit or credit cards
• Unsubstantiated gifts

Please Note: When using a borrowed down payment there are higher credit criteria and also increased insurance premiums.

Consider a mortgage that can help buy the home you want by covering excess costs with a 3% cash back option. The 3% cash back can be used for expenses such as legal fees, land transfer costs, moving expenses, furniture, appliances, or to pay off other high interest debt such as credit cards. The 3% cash back option will apply if credit is in good condition.

BC Government Announces New Changes to First Time Home Buyer Policy

First Time Home Buyers now purchase up to $425,000 home without paying property transfer tax. This is great news with rising house prices. 
 
The BC Government has issued amended First Time Home Buyers requirements.
 
The qualifications for the exemption are as follows:  A first time home buyer can now qualify for a full exemption with a purchase price of less than $425,000.00 (previously $375,000.00).
 
A partial exemption is available if the purchase price is more than $425,000.00 but less than $450,000.00.
 
For more information, go to 
http://www.sbr.gov.bc.ca/documents_library/bulletins/PTT_004.pdf  

Below is an overview of the process of arranging financing for buying your first home:

Arranging a pre-approval at a competitive rate is the most important step for being prepared to buy your new home. It protects you in the event of an interest rate hike and provides you and your realtor with a maximum house purchase price, based on your financial situation, so you can shop with confidence.

Step 2: Go House Hunting

This is where the right realtor makes all the difference. He or she will help you find a property that suits your needs and ensure any contract- to- purchase protects you. With such an important decision, expert guidance is a critical element.

Step 3: Subject Removal

Subject removal happens once you have received confirmation that your mortgage is approved.

Step 4: Mortgage Completion

You now own your own home. We will be available to answer any questions or financing needs you may have in the future.

Dreyer Group Mortgages is here to help you along the way with all of your financing needs when buying your first home and beyond.