{"id":25662,"date":"2021-12-15T09:51:16","date_gmt":"2021-12-15T14:51:16","guid":{"rendered":"https:\/\/www.moneysense.ca\/?p=253388"},"modified":"2021-12-15T09:51:16","modified_gmt":"2021-12-15T14:51:16","slug":"how-to-benefit-from-being-a-first-time-home-buyer-in-b-c","status":"publish","type":"post","link":"https:\/\/www.moneysense.ca\/spend\/real-estate\/how-to-benefit-from-being-a-first-time-home-buyer-in-b-c\/","title":{"rendered":"How to benefit from being a first-time home buyer in B.C."},"content":{"rendered":"
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If you\u2019re a regular reader of housing news and trends, you might be under the impression that it\u2019s impossible<\/em> to become a homeowner in B.C., but that\u2019s a misconception. Just look at Sarah, a public employee, and her partner, who bought a three-bedroom, two-bathroom townhouse in Victoria, B.C., last year. The couple knew that buying a home anywhere in B.C. would be a challenge, so they set about the process of becoming first-time home buyers with a methodical determination.<\/p>\n

For many first-time home buyers, especially those located outside of Metro Vancouver, homeownership is still within reach. It just takes careful planning and forethought, and sometimes a little help from the government. <\/p>\n

Step 1: <\/strong>Create a personal savings plan <\/h2>\n

Real estate prices in B.C. are famously high, and first-time home buyers who haven\u2019t been able to capitalize on market growth face steep entry barriers. The average price of a home in B.C. rose 19% year-over-year in October 2021, and record-low number of houses on the market means buyers must compete for the few properties available.<\/p>\n

To overcome this challenge, Sarah and her partner started saving for their down payment well in advance. \u201cWe started in 2018,\u201d Sarah says, citing their original plan of purchasing property in the United Kingdom before adjusting course and moving back to her home province of B.C. \u201cI opened an account on a whim and started an auto-deposit. It wasn\u2019t much per month, but seeing the funds grow convinced my spouse to do the same thing.\u201d Over time, Sarah realized that their small contributions were adding up, and homeownership was a viable option.<\/p>\n

This is where first-time home buyers often get stuck, says Romana King, author of House Poor No More<\/em>: 9 Steps That Grow the Value of Your Home and Net Worth<\/em>. \u201cI love that this couple started to save even a little bit. That habit is the hardest to start and the most important link in the homeownership and financial freedom chain.\u201d<\/p>\n

Step 2: Consider your options for a down payment<\/strong><\/h2>\n

In Sarah\u2019s case, those saving habits paid off. The couple was able to put down a 6.5% down payment on a $580,000 townhome in Victoria. In addition to their own substantial savings, a $20,000 family gift helped boost their down payment. That\u2019s not an option for everyone; however, it has become more common recently. Last year, around 30% of first-time home buyers received a gift from their families to put towards the purchase. <\/p>\n

Still, Sarah and her partner could have taken advantage of government programs like the Home Buyers\u2019 Plan (HBP), which lets first-time home buyers borrow from their registered retirement savings plan<\/a> (RRSP<\/a>) in order to buy or build a home. <\/p>\n

Forgoing government assistance programs could have been a mistake, says King. \u201cI think they missed out on a great financial tool that makes homeownership (and mortgage<\/a> repayment) more manageable and less costly.\u201d <\/p>\n

Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

You\u2019re 2 minutes away from getting the best mortgage rates in CanadaAnswer a few quick questions to get a personalized rate quoteYou will be leaving MoneySense. Just close the tab to return. If you\u2019re...<\/p>\n","protected":false},"author":1,"featured_media":25664,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[10,11],"tags":[],"_links":{"self":[{"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/posts\/25662"}],"collection":[{"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/comments?post=25662"}],"version-history":[{"count":0,"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/posts\/25662\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/media?parent=25662"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/categories?post=25662"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/tags?post=25662"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}