Is It All Doom and Gloom for First Time Home Buyers?
Housing prices are definitely not what they used to be. The British Columbia Real Estate Association (BCREA) reports that a record 124,854 residential unit sales were recorded by the Multiple Listing Service (MLS) in 2021, a 32.8% increase from 2020 sales. The average MLS residential price was $927,877, an increase of 18.7% from the previous year.
2019 Stats Canada states the average median income for families is $90,000, $96,720 for couples, and $49,910 for single-parent families.
If you are entering the real estate market, combining those two numbers together cannot only be scary, but gives the sense that home ownership may never be a possibility.
With any big purchase in life, planning is essential.
You will see a financial advisor when planning for your retirement.
You will see a mechanic for maintenance on your vehicle.
You will see a real estate agent when it is time to make the biggest, most important purchase of your life.
How can a renter become a homeowner? Robbing a bank is out of the question. Your lender wants to know how you will acquire your down payment.
Find a mortgage broker you trust and respect BEFORE you look at properties. You may find that you’re closer to homeownership than you think, and if not, that’s okay!
A qualified mortgage broker will help you put a plan in place to get you the keys to home ownership.
This plan should involve:
- Seeking what you can comfortably afford.
- How to deal with existing debt –(those student loans aren't affecting you the way you may think.)
- How to use First-Time Home Buyer incentives/programs to your benefit.
- Educate you on the costs of purchasing a home - what your minimum down payment will be.
- Apply for a mortgage pre-approval with the ability to lock in your interest rate so you can shop for your new home with confidence.
