For First-time home buyers | 3 most common mistakes in B.C.

Let’s become a successful First-time home buyer

Welcome to our blog! We are a professional expert real estate agent called The Prime Group. We have been active in Vancouver, North Vancouver, and West Vancouver, in British Columbia with years of experience. We are here to give you the best experience of buying and selling a home.

We fully comprehend that becoming First-time home buyers can be very stressful and hectic. There are so many complicated processes as well as endless research. This is why we are here to make your journey better.

In this blog, we are explaining what top 3 most common mistakes in British Columbia. We hope this content helps you understand better how you as First-time home buyers can be successful without feeling stressed too much.

1. Not getting a mortgage pre-approval

Competition for real estate in British Columbia is becoming more and more intense every year, and the reality is that sellers are very careful in deciding who the right buyer is for their property. The first and foremost thing a seller will do to determine if you are a suitable buyer is to check whether or not you are getting a mortgage pre-approved. If they are not certain that you can get a loan to purchase the property, they will reject your offer.

Getting pre-approved for a mortgage loan can prove to buyers how serious you are about their purchase. Knowing the maximum amount you can afford to purchase a home also has the added benefit of allowing you to narrow your search for a property within your price range.

Get a fully underwritten pre-approval before falling in love with a dream home you can’t afford.

2. Not researching additional costs 

Many first-time home buyers tend to focus solely on the purchase expense of the property and overlook other additional costs. With a pre-approved mortgage, you will have a complete picture of the costs associated with real estate purchases and home ownership.

Some of the additional costs to consider include:

• Property taxes
• Insurance (such as mortgage insurance, title insurance, fire insurance, etc.)
• Home inspections
• Strata forms
• Strata fees
• Move-in fees
• Maintenance
• Repairs and renovations
• Utilities

As you may know, the most important expense is the cost of purchasing the property. That is not an easy process to be done by a first home buyer, meaning you need the assistance of a real estate lawyer. Since these costs are not very familiar to us, here are some tips on how we can find the right real estate lawyer. Registering your mortgage with the bank or credit union, transferring the land title into your name, and covering your legal fees are part of the additional costs related to moving and buying real property, which can range anywhere between $5,000 to $15,000, or 1 percent to 3 percent of the home’s purchase price.

3. Not being aware of property transfer tax 

British Columbia home buyers pay a tax on the transfer of real estate property, aptly called Property Transfer Tax, which is based on the property’s fair market value (or purchase price). 

In B.C., the tax rate is calculated at 

• 1% on the first $200,000
• 2% on beyond $200,000 up to $2,000,000
• 3% on beyond $2,000,000 up to $3,000,000
• 5% on over $3,000,000

Did you know there is a program that many of you as first-time home buyers could take advantage of a property transfer tax exemption? Even though this is such a great chance for new homeowners, they are now aware of this. 

To be eligible for this program, you must meet the criteria of all of the conditions of the first-time home buyers’ program including having not had their name on a title on any property anywhere in the world, having lived in B.C. for a full year before the purchase date of their home, and having a property with a fair market value of less than $500,000. 

Thank you for reading this and We are here to assist you!

Purchasing a first home can be stressful and hectic, but being well-armed with knowledge can make a huge difference. We are not here for you just to help, but also to give you the best journey of being a first-home buyer while utilizing our exclusive marketing methods and variety of connections.

If you have any questions about real estate in Vancouver, North Vancouver, West Vancouver, etc, we are happy to assist you! 

We promise that We give you “the prime living experience.”

Contact us for Free Consultation without any hesitations from the contact form below.