Tips for first-time home buyers to get mortgage benefits

Nothing matches the pleasure of receiving the keys to your first home in Canada. As this is usually said being a first-time home buyer in BC is a thrilling experience, but it can also be difficult if you don’t know where to begin.

 

How much can you afford for a first home? Should you buy your own house or keep renting? If you have questions, we have the answers in our complete guide for first-time home buyers in BC.

You are already aware of the geographical dimensions of Canada and that your choice of residence will have a significant influence on the home-buying decision. The price of a home is much lower in smaller cities and rural parts of Canada than in some of its urban cities.

 

The process of purchasing your first house may be both thrilling and slightly terrifying. However, being in BC, a first-time home buyer may be gratifying if you do some research beforehand. 

Here are some tips which will help you in buying your first home.

Figure out what you can pay comfortably.

It’s quite simple to become emotionally attached to a house. However, you should first check your financial readiness. 

 

Consider the additional expenses of home ownership, such as insurance, taxes, and utility bills, when estimating how much money you will require. Your ability to afford your ideal home can be determined with the Alpha Mortgage House Corp.

First Time Home buyer

Take advantage of first-time home buyer incentives.

The federal government offers several helpful programs to assist Canadians in buying their first houses.

 

  1. First-time homebuyers in BC may withdraw money from their Retirement Savings Plan (RSP) for their first home using the Home Buyer’s Plan.
  2. A $5000 non-refundable income tax credit known as the “Home Buyer’s Amount” may be used to purchase some eligible properties.
  3. First-time homebuyers can lower their monthly mortgage payment without raising their down payment due to the First-Time Home Buyer Incentive. 
  4. Homebuyers who meet the requirements can receive a GST/HST rebate on the cost of their home.

Get a mortgage pre-approval application.

Try to take a methodical approach when purchasing your property. Consider requesting a mortgage pre-approval while consulting with a realtor and examining properties. 

 

It worked as evidence of the applicant’s capacity to pay back the mortgage and also aids in ensuring that the applicant won’t fail on the mortgage. This will give you a better idea of how much a lender might grant you. Once you find a house, it will also enable you to decide on a purchase with more assurance.

Buying a home

For the majority of people, borrowing money is necessary. Additionally, you must invest some of your cash in the acquisition.

What is a down payment requirement?

he sum of money you pay initially put down on a house is called a down payment. The down payment is deducted by your lender from the cost of your home. The remaining cost of the house is covered by your mortgage.

 

The minimal down payment you require is determined by the home’s buying price.

You must get mortgage insurance if your down payment is less than twenty percent of the cost of your home. 

(Get mortgage insurance=  Down payment< 20% of the cost of your home)

Let us understand the down payment requirement with the table given below:

Purchase price of your home Minimum amount of down payment
$ 500,000 or less 5% of the purchase price
$500,000 to $999,999 5% of the first $500,000

10% for a purchase price above $500,000
$1 million or more 20% of the purchase price

Mortgage procedure

Most likely, the largest loan you will ever receive is a home mortgage. You must master the procedure.

 

Make sure to examine your credit report before submitting the application for a mortgage. check your credit report. Before deciding whether or not to approve your mortgage application, a prospective lender will take into account your credit history.

 

Before looking for a mortgage, consider the following:

  • Obtain a copy of your credit history
  • Verify the accuracy of your credit report.

Compare various mortgages

For similar mortgages, lenders may charge different interest rates and have different terms. To obtain the best mortgage for your needs, speak to various lenders.

Who can help you in getting a mortgage?

Mortgage lenders: These companies give you a straight loan. Investigate the various lending options, including banks and credit unions.

 

Mortgage brokers – They don’t give you a personal loan. Mortgage brokers set up deals by locating a lender on your behalf. Brokers may offer you a greater selection of mortgages to choose from because they have access to numerous lenders. There is no expense to you because the lender pays the mortgage brokers a commission.

Get the mortgage that is ideal for you.

When getting a first home mortgage, it’s crucial to consider all of your options. There are numerous types of mortgages:


  • Open or closed mortgages

Both open and closed mortgages provide several prepayment alternatives. You have the freedom to make partial or sporadic prepayments with an open mortgage at no extra cost. Except as provided in its terms, a closed mortgage cannot be repaid, renegotiated, or refinanced before maturity.


  • Fixed interest rates and variable interest rates.

In the case of a fixed-rate mortgage, your interest rate will not change during the loan. With variable rates, the mortgage’s interest rate will also change. Your payment will go more toward the principal if the interest rate decreases. Furthermore, if it rises, more of your payment will go toward interest.


Different features of mortgages are available to suit various purposes. You must comprehend the features and options.

Identify the following parameters by yourself.


  • How lengthy do you want the term to be?
  • How frequently would you wish to make mortgage payments?


As a first-time home buyer in BC, you must pay close attention to ensure that you choose wisely when it comes to a house mortgage. You start by contacting a reputable mortgage broker in your area. If you live in Surrey, Vancouver, Alpha Mortgage House Corp is the company you should choose since they will simplify the difficult mortgage application procedure and increase your chances to be approved as soon as possible as a first-time home buyer.


Whether you have excellent credit or credit that needs adjusting, we are prepared to help you with mortgage lending for house purchases in Surrey, Vancouver, BC. The numerous mortgage plans and programs from different financial institutions fluctuate along with the real estate market, giving you a range of options and making it simpler to buy your new home.

For further details contact us:

+1(604) 501 9837