Doing anything for the first time can be scary, especially when it’s something as big as buying a house! As a First Time Home Buyer the process can be overwhelming, but don’t worry, we will explain all your options and recommend financing solutions to get your mortgage approved at the lowest rate and best terms possible for you. The first step is getting pre-approved for a mortgage before you start shopping for a home.
How to Qualify for a Mortgage
A full time permanent employment position with no probation period is required in most cases but if you have worked in a part time position for at least two years we can also use that income to qualify. Income that includes over time, commission, bonuses or self employed earnings must have a minimum 2 year history in order to be used for qualification.
Your employment income determines how much you can afford to spend. The banks use a percentage of your gross annual income to determine your spending limit. You can use income from salaried and full time hourly earnings and income that includes over time, commission, bonuses or self employed earnings that have a minimum 2 year history.
Your credit rating is determined by how well you manage and pay credit cards, loans, and lines of credit. If you have late payments, collections, or other bad debts this will affect your application. The lenders like to see a minimum 2 year history of credit with good repayment history. The higher your credit score, the smaller the down payment is required.
A down payment is required when buying a home. If you have good credit it is still possible to purchase a home with as little as 5% down payment. If you have poor credit a much larger down payment could be required from 20% to 50%. With a good credit rating, a minimum 5% down payment is needed and will allow you to qualify for best interest rates.
Lowest First Time Home Buyer Mortgage Rates in British Columbia
We guarantee to get you the lowest mortgage rate from over 40 lenders across Canada!
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***Rates are subject to change at anytime and restrictions may apply. Contact a mortgage broker for the most up-to-date rates.***
We Find You Canada’s Lowest Mortgage Rates by Comparing Every Major Lender
RRSP Home Buyers Plan (HBP)
The Home Buyers’ Plan (HBP) is a government program that allows first time home buyers to withdraw up to $25,000 from their registered retirement savings plan (RRSPs) to buy or build a home. The home must be used as a principle residence, and all funds must be withdrawn from the RRSP within 30 days of the property’s closing date.
Your RRSP contributions must remain in the RRSP for at least 90 days before you can withdraw them under the HBP, or they may not be deductible for any year.
Generally, you have to repay all withdrawals to your RRSPs within a period of no more than 15 years. You will have to repay an amount to your RRSPs each year until your HBP balance is zero. If you do not repay the amount due for a year, it will have to be included in your income for that year.
First-Time Home Buyers’ Tax Credit (HBTC)
The HBTC is a new non-refundable tax credit, based on an amount of $5,000, for certain home buyers that acquire a qualifying home after January 27, 2009. 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. However, if the total of your non-refundable tax credits is more than your federal income tax, you will not receive a refund for the HBTC.
Top 5 Reasons to Get Pre-Approved
Find Out How Much You Qualify to Spend
Lock in Today’s Best Interest Rates
Get an Official Pre-Approval Letter for Your Realtor
Understand All the Costs Associated with a Real Estate Purchase
Shop with Confidence and be Ready to Write an Offer!
Mortgage Pre-Approval Product Options
Rate Hold: Lock in a Rate for Up to 120 Days
Down Payment: Minimum 5% of Your Purchase Price
Products: 1, 2, 3, 4, 5, 7 and 10 Year Fixed and 3 & 5 Year Variable
FREE Mortgage Inquiry Find Out What You Qualify For!
Get a Mortgage Pre-Approval in 5 Minutes!
Click Apply Now below to open a secure online mortgage application to safely and securely submit an application for your mortgage pre-approval. Our British Columbia mortgage team will review your information and contact you to complete your official mortgage pre-approval!