FIRST TIME HOME BUYERS LOAN IN SURREY, VANCOUVER, BC
Services
First Time Home Buyers
Buying your first home in Surrey, Vancouver BC is quite an exciting proposition but before you can know whether home ownership is right for you, its important to know what is involved. Alpha Mortgage would like to make your experience of first time home buyer loan in Surrey, Vancouver BC very simple and easy and at the same time educational.
There are essentially two main types of home mortgages in Surrey BC:
A high ratio mortgage and a conventional mortgage.
High ratio mortgages are mortgages that have to be insured by the lenders through one of the three mortgage insurance companies in Canada which include Canada Mortgage Housing Corporation (CMHC), Genworth Financial & Canada Guarantee Company.
Conventional mortgages are mortgages that are not insured by the lenders. Any mortgage with less than a 20% down payment is considered a high ratio mortgage and any mortgage with 20% down payment or more is considered a conventional mortgage.
Since high ratio mortgages are insured, borrowers have to pay an insurance premium which gets added/financed into the mortgage amount. The lower the down payment, the higher the premium. A minimum down payment of 5% is required when purchasing a principal residence and a minimum down payment of 20% is required when purchasing a rental or investment property.
Qualifying for first time home buyers mortgage:
Some of the key factors lenders lookto qualify you for a first time home mortgage in Surrey, Vancouver BC include your an nual income, down payment and your credit history to qualify for a mortgage. Since every borrower’s situation may be different, we advise you to contact us so that we may be able to discuss the options you may have and match you with a product that best fits your needs and lifestyle. Alpha Mortgage Housing Corp. helps you in pre-approving for first time home buyers loan in Surrey, Vancouver BC.
Mortgage Loan type:
The two most popular mortgage options are – Fixed rate or Variable rate.
A Fixed rate mortgage is a mortgage loan that carries a guaranteed fixed interest rate and payments throughout the life of the loan. A Variable rate mortgage loan, also referred to as an Adjustable Rate, is a mortgage where the interest rate is adjusted, generally monthly, based on fluctuations in the prime lending rate.
The fixed rate option provides stability, but has historically cost more in interest than the variable rate option. The fixed rate mortgage is based on changes in the bond market, while the variable rate mortgage fluctuates along with the prime lending rate
Making the decision on whether to choose a fixed rate mortgage or a variable rate mortgage for first time home buyers in Surrey, Vancouver BC depends on your tolerance to changes in your payment amount throughout the term of your mortgage. Once again, we can help you make that decision and provide you with all the pros and cons specific to your situation.
The worst mistake you can make as a new homeowner is to get a mortgage for buying a house in Surrey, Vancouver BC that ends up over-extending you financially. The key is to make sure that you can comfortably afford the mortgage payment and other monthly expenses that come with homeownership.
Closing costs:
Some of the most common closing costs involved in purchasing a home include:
FAQs
First-time home buyers are individuals or families purchasing their first primary residence. They may qualify for special mortgage programs, government incentives and tax benefits designed to make homeownership more accessible. These programs can help reduce upfront costs and provide financial support during the home-buying journey.
Not necessarily. Many first-time home buyers in Canada can purchase a home with a down payment as low as 5%, depending on the property's purchase price and lender requirements. A larger down payment may reduce borrowing costs, lower monthly mortgage payments and improve overall mortgage affordability.
Canada offers several programs for first-time home buyers, including the Home Buyers’ Plan (HBP), First Home Savings Account (FHSA) and various tax credits. These initiatives can help buyers save for a down payment, reduce taxes and make the transition into homeownership more affordable and financially manageable.
Mortgage pre-approval helps first-time buyers understand how much they can borrow before beginning their home search. It provides a clear budget, strengthens purchase offers and demonstrates financial readiness to sellers. Pre-approval can also lock in an interest rate for a specified period.
Yes, mortgage brokers help first-time home buyers compare mortgage options from multiple lenders and find competitive rates. They explain financing options, assist with paperwork and guide buyers through every step of the mortgage process. Their expertise can simplify decision-making and improve financing opportunities.
While requirements vary by lender, a higher credit score generally improves mortgage approval chances and access to better interest rates. Lenders review credit history, debt levels and payment habits when assessing applications. Maintaining strong credit can make homeownership more affordable and financially beneficial.
Mortgage affordability depends on income, existing debts, credit profile, down payment amount and current interest rates. Lenders use financial ratios to determine borrowing capacity. Obtaining mortgage pre-approval provides a realistic understanding of your budget and helps narrow your search to suitable properties.
In addition to the down payment, buyers should budget for closing costs, legal fees, land transfer taxes, home inspections, insurance and moving expenses. Understanding these additional costs in advance helps avoid financial surprises and ensures a smoother and more confident home-buying experience.
