Are you on TRACK to purchase your FIRST HOME? You aren't alone.
57% of new homes were purchased by first-time buyers in 2013 according to the Canadian Association of Mortgage Profesionals (CAAMP) releases.php). Two of the key components of becoming a first time home buyer are determining that you have enough money for the down payment and the monthly costs that will be in effect for many years to come, and making sure you are financially prepared to become a homeowner. It will be the largest purchase you ever make!
The minimum down payment for a purchase in Canada is five per cent of the purchase price. A down payment of less than 20 per cent (a high-ratio) mortgage requires mandatory default insurance which protects lenders in case of borrower default. The down payment usually dictates the price range of homes you will be looking at.
A few other considerations to take into account are the BC Property Purchase tax (1% on the first $200,000 and 2% on the balance of the purchase price) which is payable at completion of the Contract..also known as 'the day you pay'. Don't forget monthly utility bills and the annual Property Taxes...... Everything adds up and you don't want to get in over your head!!
Your professional adviser will assist you in making the right choices.