First-Time Home Buyers – How Our Vancouver, BC Mortgage Brokers Can Help
Purchasing a home is a huge decision and ensuring that you get off to a stable start is essential to secure your home and finances in the future. Before jumping into the world of real estate, consider consulting our Vancouver mortgage brokers in order to avoid the common mistakes that many first-time buyers make.
Saving for a Down Payment
One of the most important things to do as a first-timer homebuyer is save for a down payment. This is easier than it sounds and creating a reasonable timeframe that will help you build up enough savings to put you in the ideal position for purchasing for home is essential. With our wide range of lender connections, we can help you find a mortgage down payment option that suits your financial situation.
Down Payment Qualifications
Lenders will require that down payment be from your own resources, which include family gifts. Additionally, you will need to demonstrate a 90-day history of the accumulation of these funds in order to meet Canada’s anti-money laundering laws.
There are plenty of benefits that you can take advantage of as a first-time homebuyer and our mortgage specialists can educate you on these benefits and ensure that you get the most out of them.
First-Time Home Buyers’ Tax Credit (HBTC)
The HBTC was implemented as a part of Canada’s Economic Action Plan to help individuals purchase their first home. The HBTC helps first-time homebuyers with many of the costs associated with home purchases including legal fees, land transfer taxes and disbursements. These factors are a burden for first-time buyers in particular as they are also saving for a down payment. The current maximum HBTC is $750.
Property Transfer Tax
In British Columbia, first-time homebuyers are exempt from paying property tax for prices of $475,000 and below. There is a partial exemption for prices between $475,000- 500,000.
First-time homebuyers are eligible to take up to $25,000 from their RRSP and use this amount as their down payment without withholding tax.
Homebuyers have the opportunity to use up to 38% of their gross documentable income to cover their housing costs.
The best Vancouver mortgage brokers can ensure that your first-time purchase is as painless as possible and help you get all of the assistance and support that you need. With our commitment to customer service, you can rest assured that you will get the best Vancouver mortgage broker and strategy that you need. For more information or further questions, contact us at the numbers listed above.