28 Nov

7 Tips for Buying a First Home in BC

General

Posted by: Kelly Hudson

Down-To-Earth Advice & Tips on Your Next Mortgage in BC 

 

As a licensed Mortgage Broker, I am often asked “what do I need to know when buying my first home in BC?”

Everyone has their own aims and objects when buying their first home. As a Mortgage Broker, I specialize in making sure your financing is in order to facilitate your dreams of owning a home.

Buying your first home is very exciting, but it can easily be overwhelming. Being prepared is the first step. The decision to purchase your first home can be a huge, life-changing event and you need to know exactly what you are getting into.

To get you prepared with the knowledge you need, here are my 7 tips to consider when you buy your first home in BC.

1.  Strengthen your credit rating

It’s pretty simple: the higher your credit score, the lower your mortgage rate will be.

Spend the time now to improve your credit. Check your credit report. Many credit reports have errors, so you need to ensure that your credit bureau is current and correct.

ALWAYS pay every single one of your bills on time. Set up automatic payments if you have had any late payments over the last couple of years.

Stop applying for any new credit a year before you are considering buying and continue until you sign the closing papers on your home. Spend only 10-30% of credit limits on credit cards.

2.  Find a Mortgage Broker and figure out how much you can afford to spend

The home buyer’s mantra: Get a home that’s financially comfortable.

Contact me, your Mortgage Professional. I work with you up to a year in advance to analyze your situation, and tell you how much mortgage and monthly payments you can afford.

Lenders like to see that you spend

  • no more than 30% of your Gross income on mortgage payments & taxes
  • no more than 40% of your Gross Income on all debts
    • Including: mortgage & taxes, credit cards, maintenance payments, auto loans, additional financing etc.

1 year+ prior to going home shopping, calculate the mortgage payment for the home in your intended price range, along with the increased expenses (such as taxes, insurance and utilities). Then bank the difference between the home payments and what you’re paying now. Not only will that simulate ownership, it also helps you save for your down payment!

When you are ready to start shopping for your home, as your Mortgage Broker, I gather all your financial documentation that the lender requires, in order to figure out much you can afford to spend. Then I work with you to get a preapproval and lock in a low interest rate to protect you in case rates rise between now and the time you by your new home.

3.  How long will you live in your new home?

The transaction costs of buying and selling a house are substantial including: real estate fees, legal fees, Property Transfer Tax, selling in a down market, moving, etc.

If you don’t plan to live in your new home for at least 3-5 years, you may not gain enough equity to make selling worthwhile.

Short-term home ownership can be a pretty expensive proposition. If that is the case, holding off on purchasing could be your best option.

4.  How much house you need?

Buying a cheaper, smaller home might sound like a good place to start, but could end up costing you more if you need to move due to changes in your lifestyle, including a growing family. Then again, buying more house than you currently need will cost you more with higher mortgage payments, higher maintenance, energy and tax costs.

Prioritize your housing wish list. They say that the 3 most important things to think about when buying are home are location, location, location. In Greater Vancouver your first choice for location i.e. Kitsilano or Yaletown may not be within your means. You also need to think about how the new home space will be used and whether it will fit your lifestyle now and in the future.

5.  Build a savings account

Start now to build a healthy savings account. To avoid paying CMHC Mortgage Default Insurance you need to prove you have a 20% down payment.

Building your savings account, over and above the money you will require for the down payment and closing costs. Lenders want to see that you’re not living paycheck to paycheck. If you have three to five months’ worth of mortgage payments in your savings, that makes you a much better loan candidate.

6.  Remember closing costs.

While you’re saving your down payment, you need to save for closing costs too. They’re typically 1% to 3% of the purchase price and due on the completion date.

In BC you need to also pay Property Transfer Tax (PPT). The amount of tax you pay is based on the fair market value of the land and improvements (e.g. buildings) on the date of registration unless you purchase a pre-sold strata unit. The tax is charged at a rate of 1% for the first $200,000 and 2% for the portion of the fair market value that is greater than $200,000.

7.  Shop for a Realtor that has your best interests in mind

Interview at least three Realtors. Get referrals from people you trust who have recently bought or sold, including me, your mortgage broker. I work with a lot of realtors, some of whom are outstanding in their field. Once you’ve decided which Realtor is the best fit for you, they can help you focus your search to find your perfect home. There is no cost for the Realtor for the home buyer since the home seller pays the commission.

Besides the 7 tips I’ve listed above, there are many other things you should need to be aware of prior to buying your first home.

Let’s meet over coffee or chat via conference call to discuss your next steps.

Kelly Hudson
Mortgage Broker
Dominion Lending Centres – Aegis Mortgage Services

Mobile 604-312-5009

ON THE WEB

13 Nov

Kelly’s Weekly Rate Minder with Dominion Lending – Aegis

General

Posted by: Kelly Hudson

Kelly Hudson
Mortgage Professional
Dominion Lending Centres Aegis Mortgage Services
Phone: 604-312-5009
Cell:
Email: kellyhudsonmortgages@gmail.com
http://www.kellyhudsonmortgages.com



This edition of the Weekly Rate Minder has the latest, best rates for Canadian mortgages. At Dominion Lending Centres, we work on your behalf to find the mortgage that suits your needs. Best of all — our service is free.* It’s the selected lender that pays us and YOU get the best rate. *(O.A.C., E.&O.E.)

• Our Best National Rates
• Explore Mortgage Scenarios with Helpful Calculators on http://www.kellyhudsonmortgages.com

Terms Bank Rates Our Rates
6 Month 4.00% 3.95%
1 YEAR 3.09% 2.69%
2 YEARS 3.04%

2.59%

3 YEARS 3.44% 2.69%
4 YEARS 3.94% 2.87%
5 YEARS 4.79% 2.89%
7 YEARS 6.04% 3.79%
10 YEARS 6.50% 4.39%
Rates are subject to change without notice. *OAC E&OE
Prime Rate is 3.00%
Variable rate mortgages from as low as Prime minus 0.65%

 Please note that rates shown above are subject to change without notice. The rates shown are  posted rates and the actual rate you receive may be different, depending upon your personal financial situation. “Some conditions may apply. Rates may vary from Province to Province. Rates subject to change without notice. *O.A.C. E.& O.E.” Check with your Dominion Lending Centres Mortgage Professional for full details and to determine what rate will be available for you.

*O.A.C., E.& O.E.

 

  • We are Canada’s largest and fastest-growing mortgage brokerage!
  • We have more than 2,200 Mortgage Professionals from more than 350 locations across the country!
  • Our Mortgage Professionals are Experts in their field and many are ranked among the best nationally.
  • We work for you, not the lenders, so your best interests will always be our number one priority.
  • We have more than 100 mortgage programs, making it easy to choose the best fit for your unique situation.
  • We close loans in all 10 provinces and 3 territories.
  • We can process your mortgage in as few as 7 days.
  • We are the preferred mortgage lender for several of Canada’s top companies.
  • Dominion Lending Centres’ Mortgage Professionals are available anytime, anywhere, evenings and weekends – and we’ll even come to you!
4 Nov

Mortgage Minute – November 2014 DLC Newsletter

General

Posted by: Kelly Hudson

The November 2014 DLC Newsletter is now available and contains the following articles:

 

Click on image above to view the complete newsletter!

If you would like to receive the DLC Monthly Newsletter automatically, please email me with you preferred email address and I will add you to my monthly mailing list.

For any questions relating to mortgages or your mortgage plans, feel free to contact me at any time as I am always here to help!

Have a great week everyone.

Bestest

Kelly Hudson