First-Time Home Buyer
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FIRST-TIME HOME BUYER
First-Time HOMEBUYERS Mortgage
Experts in securing mortgages for first time buyers.
If you are looking for buy your first home we are here to walk with you every step of the way. We understand how overwhelming the buying process can feel from the endless offers of low rates and mortgage terms, to the confusing mortgage language. I'm sure you have lots of questions about your down payment options, interest rates, first time home buyer incentives, and affordability. Our goal as your broker is to secure a mortgage that makes sense for you, all so you can enjoy the journey of buying your first home.
Why you need a MORTGAGE BROKER when you are a first time home buyer.
We simplify the home buying process.
One of the first questions homebuyers ask is, where do I begin? A mortgage broker at Allegro Mortgages is here to be your personal guide from helping you make a home buyers plan to signing your mortgage contract. We do the shopping for you, set up appointments when and where it works for you, and have everything available online for your convenience. We will also direct you to any resources that will save you money.
We save you time and money.
Home ownership is a very big step in life. You have likely saved for your down payment for years, and are about to borrow a lot of money. We make sure you spend as little as you have to on extras you don't need. A financial institution may offer you something assuming you'll take the first offer, but we will find you the best offer.
We have options and flexibility.
The biggest advantage with working with a broker is the flexibility and options we have at our disposal. We have many lender and product options available to us so we are able to pivot if for any reasons.
Applying process for a First Time Home Buyer
STEP 1
A Conversation
We'll have a conversation and ask for proof of income, debts, other monthly expenses. We’ll also discuss the mortgage payment amount you're comfortable with. We will also go over any first time home buyer incentive programs the government may have available to you.
STEP 2
Pre-approval
We will calculate what you qualify for using the current interest rate, and the total costs, which is the closing costs and the purchase price.
STEP 3
House Hunting
With that number in mind, you begin to look for your perfect home with a realtor you trust.
STEP 4
Approval process
Once you have a purchase agreement in place, we will find you the best option and begin the mortgage approval process.
STEP 5
Notary/Lawyer
Once the bank is satisfied, our job is done and it's up to the notary/lawyer you have chosen to complete the file. If you still have questions or concerns we are always here to help.
Ready to start the approval process?
First Time Buyer Incentive Programs
30 year amortization on an insured mortgage
As a first time home buyer you can get a 30 year amortization on a home valued under $1.5M in order to keep your payments affordable
Home buyers plan
You can use the Home Buyers’ Plan (HBP), if you are eligible, to make a tax-free withdrawal from your registered retirement savings account (RRSP) to buy or build a home.
Tax-Free First Home Savings Account (FHSA)
The FHSA is a new registered account that will provide you tax-free savings for the purchase of a first home.
First time home buyers' program in BC
The first time home buyers' program reduces or eliminates the amount of property transfer tax you pay when you purchase your first home.
FAQ’S
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There are certain requirements a bank looks for when deciding to loan someone money. They look at your employment, your credit history, and your debt/assets. You will also need a down payment. Often the trickiest part about securing residential mortgages, is figuring out how to pay for the down payment. If you have a registered retirement savings plan (RRSP) there may be some benefit to pull money tax free to put towards your DP. If you have cash saved away, using it for a larger down payment or to put towards some debt will also help you qualify for more.
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Along with being a Canadian Citizen or Permanent Resident, you must have lived in BC for the year proceeding your registration of your property considered as your principal residence for the first time home buyers exemption. You can only apply once for the property transfer tax exemption so if you have owned a home or held interest in a home anywhere in the world, this isn't an option.
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The minimum down payment is calculated based on your purchase price. The percentages range from as low as 5% upwards depending on what you're buying and what financial institution is lending you money. The total cost of purchasing a home however is above and beyond the down payment. There are extra closing costs and moving costs associated with every purchase. To help you afford purchasing a home, there are a few incentives for first time homebuyers.
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First and foremost, you need a credit score. If you don't have one or aren't sure if you do, come talk to us. Generally speaking, you want your score around 700. The higher your score, the better options you have.
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above and beyond your mortgage payments there are a handful of other costs. If you do not have 20% saved for your down payment, you will be required to purchase mortgage default insurance. This can be added to the mortgage amount. Property taxes is another cost of being a homeowner that you'll have to budget for. You will also need to pay for utilities and insurance.
Not sure where to begin?
Let’s have a pressure free chat