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BC First-Time Home Buyers’ Programs & Mortgage Options

couple looking to get on a first-time home buyer program in bc

Becoming a first-time home buyer is a truly exhilarating experience regardless of your age or how long you’ve waited to get here. It’s an important milestone that needs to be celebrated properly! However, if you’re about to buy a home in BC and have started prospecting the market, you’ve probably seen how ruthless the housing market can be. 

This is because buying a home is no stroll in the park, and the financial toll can be considerable, no matter how you choose to pay.

Other than that, the Canadian housing market is quite prohibitive for those looking to buy a home. This is due to real estate rising costs, as well as a decreasing market supply.

Moreover, banks are more rigid than ever when it comes to approving loans, causing people to turn to alternative lending and the help of mortgage brokers for pertinent advice. British Columbia is not the exception to this trend.

This article is for you if you’re a first-time home buyer in BC and are looking to find a first-time home buyers program that can finance you through this very important step of becoming a legitimate home buyer.

 

Is Buying A House In BC Only For The Rich?

Buying a house in BC is not an impossible endeavour and definitely not something that only the rich can afford. That’s because there are plenty of home buyer incentive programs that can help you go through with the purchase, and many types of lenders that can get your name signed on your dream home’s papers. 

Even if your bank in BC has turned your application for a first-time home buyer loan down due to an imperfect credit score, or low household income, we have plenty of alternative mortgage solutions for you to choose from. 

Our mortgage financing transactions range from $30,000 to $1,500,000 or more, so you can rest assured your financing needs are met.

 

How Much Do First-Time Home Buyers Have To Put Down In BC?

Wondering what the down payment requirement in BC is for a first-time home buyer?  

  • When working with the banks, you’re looking at a minimum of 5% for a home that’s less than $500,000. This percentage will thus increase in proportion to the market value of the home you’ve set your eyes on. So, for example, if the home’s purchase price is between $500,000 and $1 million, you’ll need 10% on the amount. For properties over $1 million, the minimum down payment is 20%.
  • When working with private lenders you’ll need to provide a minimum of 20%- 25% from the property’s total value to be approved. 

No matter what type of lender you choose to go with, the higher the down payment you can afford the better. A larger down payment shows your affordability and builds trust with lenders, but will also lower your mortgage monthly payments.

 

Do First-Time Home Buyers Pay Property Transfer Tax in BC?

Thankfully, the government of Canada has instituted three programs that are meant to assist those looking to become first-time home owners: the Home Buyers Plan (HBP), the First-Time Home Buyer Incentive, and the Home Buyer’s Amount tax credit. 

The first-time home buyer RRSP offered through the HBP program enables potential buyers to withdraw up to $35,000 from their RRSPs to use for purchasing a home.

Additionally, most provincial governments in Canada have instituted a local tax exemption program that’s geared specifically towards first-time home buyers, and which targets the property transfer tax. The amount of property transfer tax you’ll need to pay when signing for your home is typically between 0.5% and 2.0% of the home’s property value.

This is why, if you’re looking to find out what types of first-time home buyer programs created by the government are available for you in BC, you should know that you may be eligible to receive a rebate on your transfer tax.

Who Qualifies As a First-Time Home Buyer In BC?

To become a first-time home buyer in BC, Canada, you need to be a Canadian citizen, a permanent resident, or a non-permanent resident authorized to work in Canada. In addition, you must earn less than $120,000 and have the minimum qualifying down payment.

Even if you don’t meet these requirements, but have recently divorced, or were part of a common-law partnership, during which you did not occupy a home that you or your partner owned in the last 4 years, you are eligible to become a BC first-time home buyer.

 

Alternative Lending Options For Potential Home Buyers

As a potential home buyer, you have many alternative lending options. In other words, if you don’t have all the money needed to buy a home, or you don’t qualify for getting a mortgage from A-lenders, there are always alternative lending options you can choose from. 

Private lending can support you in buying your first home without undergoing significant financial hurdles, losing precious time, or getting turned down by banks.

A reputable mortgage broker can help you get a first-time home buyer private lending program in BC that can support you in purchasing a newly constructed home, refinancing your property, consolidating debt, or buying a new investment property.

First-time home buyers will find that working with private lenders provides them with a quicker, higher-approval funding process than when working with banks. 

Here at yourequity.ca, we offer a wide variety of mortgage options in BC, and we’ll certainly have one to cover your needs as well.

 

An Overview Of Our Lending Programs

If you’re looking to become a property owner you might be interested to know that our lending programs include the following:

  • Home Equity Loan – Regardless of low income or credit scores.
  • Stated Income –  Works well for those who are self-employed. 
  • Second Mortgage – Enabling you to receive additional funds without the need to refinance your first mortgage.
  • Stop Foreclosure – Financing that enables you to reinstate or refinance your mortgage.
  • Bad Credit Mortgage – A loan based on your home’s equity, that doesn’t take into account a bad credit score.
  • No Income Mortgage – If you’ve lost your job, you can still apply for a mortgage. We’re here to help.
  • Half Interest – A loan program enabling you to borrow on your half of a jointly owned home.
  • Mobile Home – Specifically designed for both leased and owned land, and is oriented at mobile home buyers.
  • Construction & Commercial – This type of funding has many moving parts, all being creative options offered by alternative mortgage lenders.

If you find any of these lending programs suits your needs, don’t hesitate to reach out to us. Fill in the form on the website, leave us your phone number or email address, and we’ll get back to you with the best solution for you to become a first-time home buyer in BC.

 

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