first time home buyers

Whether you’ve been paying rent, living at home, away at school or traveling, turning the key to a place you can call yours after a long day feels good.

This page is designed to offer tips and tricks to first time home buyers, but does not by any means replace the one-on-one coaching and guidance you will receive when working with Jim. Have a read through the info below, and then visit the contact page to schedule an appointment with Jim.

Did you know?

1. Getting ‘pre-approved’ for a mortgage is the best way to start your home search. It allows you to know exactly how much you can afford, and shows Sellers that you are a serious Buyer when it comes time to make an offer.
2. Evaluating your ‘wants’ and ‘needs’ prior to beginning your home search will benefit you greatly in the long run. The key point here is realizing that those are two separate lists. Separate and prioritize them and you’ll be checking those boxes in no time.
3. Having a knowledgeable Realtor is an important aspect of buying your first home. Your agent must have a solid understanding of your needs, and keep an open line of communication with you as those needs evolve so as to not waste valuable time. You want to work with someone you trust, feel comfortable with, and who has your best interests at heart.
4. CMHC (Canadian Mortgage and Housing Corp.) is a government agency that provides mortgage loan insurance, mortgage-backed securities, housing policy and programs, and housing research. If you plan on purchasing your home with less than 20% down, expect to know this name in the near future.
5. For 2009 and subsequent years, The Canada Revenue Agency is offering a new, non-refundable First Time Home Buyer Tax Credit. The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the credit will be $750.
6. The Home Buyers' Plan (HBP) is a program through the Canada Revenue Agency that allows you to withdraw up to $25,000 from your RRSPs to buy or build a qualifying home for yourself or for a related person with a disability .

7. You may qualify for an exemption from Property Transfer Tax if certain requirements are met. Some of those requirements are:
   
   1. you are a Canadian Citizen, or a permanent resident as determined by Immigration Canada,
   2. you have lived in British Columbia for 12 consecutive months immediately before the date
   3. you register the property, or you have filed 2 income tax returns as a British Columbia resident during the 6 years before the date you register the property,
   4. you have never owned an interest in a principal residence anywhere in the world at anytime, and
   5. you have never received a first time home buyers’ exemption or refund.
   6. the fair market value of the property is not more than the current threshold of $425,000,
   7. the land is 0.5 hectares (1.24 acres) or smaller, and
   8. the property will only be used as your principal residence.

If the property does not meet all of these requirements, you may still qualify for a partial exemption. 

8. The minimum down payment required by law in Canada is 5%. In recent years, lenders have modified qualification rules and have developed programs designed to help more people qualify, including many who have credit or employment history problems.

Important Links for 1^st Timers:

• Property Transfer Tax and the First Time Home Buyers Program
• Home Buyers Plan (RRSPs)
• First Time Home Buyers Tax Credit
• Canadian Mortgage and Housing Corporation