At LoanBox, we make dreams of owning a home a reality for first-time home buyers. Whether it’s a condo, townhouse, or a detached house with a white-picket-fence, there are few perks you are entitled to. As a first-time home buyer in British Columbia, you are entitled to some perks. These perks include, but are not limited to the following:
BC Home Partnership Program
BC introduced a Home Partnership Program effective January 16, 2017 in an effort to help First Time Home Buyers in BC accumulate a larger down payment. Upon qualification, First Time Home Buyers may qualify for a five year interest free loan of up to $37,500 to be used towards down payment. To learn more about the BC Home Partnership Program, click here.
Property Purchase Tax Exemption
You are exempt from the Property Purchase Transfer Tax which is a tax that is calculated at 1% of the first $200,000 and 2% of the remainder of the purchase price, only as long as the property purchase price is below $475,000. As of 2016, BC Budget will allow Property transfer tax to be waived for newly built homes, condos or townhouses under $750,000. That could lead to $13,000 in savings, but only if you are a Canadian or permanent resident and live in the home for at least a year.
Registered Retirement Savings Plan Withdrawal
A second benefit that is available to first-time home buyers in British Columbia is that they are able to withdraw up to $25,000 of their Registered Retirement Savings Plan (RRSP) through the Home Buyer Plan to be used towards the purchase of their first home. This amount will have to be repaid in 15 annual installments after a 1 year grace period from the date of purchase or withdrawal.
Minimum Down Payment Requirements
In Canada, home buyers will be required to put down 10% on the portion of the home’s price above $500,000. Buyers can still put down 5% for homes $500,000 and under. In some instances, you may qualify to purchase a home with no money down! This helps to ensure you are dedicated to making your mortgage payments and keeping your home.
Don’t forget there are also closing costs which include Property Purchase Transfer tax, legal fees, property tax adjustments, GST, utility adjustments, property inspections, appraisal fees, and more. A general rule of thumb is to allocate approximately an additional 1.5 to 2% of the purchase price to cover these closing costs.
Can I qualify for a First-Time Home Buyer Mortgage?
Depending on the credit history, and if you have been previously discharged from a bankruptcy or have been behind on some bills or payments, mortgage financing may still be available to you. Income, down payment, and employment stability are also considered when applying for a first-time home buyer mortgage in BC. Contact us today to find out more.
How Can You Determine How Much of a Mortgage You Qualify For?
Several factors are involved in determining your purchase potential or how much you qualify for. These include, but are not limited to income, credit, job stability, down payment, and other debts outstanding etc. The best way to find out what you qualify for is to contact your Mortgage Professional directly.