First-Time Home Buyer Mortgages in Abbotsford and the Fraser Valley
Buying your first home is exciting, and it can also feel like a lot to figure out. How much can you afford? How much do you need for a down payment? What will closing day really cost? I help first-time buyers across Abbotsford, Chilliwack, Mission, and the Fraser Valley answer those questions clearly, so you can shop for your home with confidence.
With more than 20 years in banking and access to a wide range of lenders, I’ll compare your options and find the mortgage that fits your goals. I offer consultations in English, Urdu, Hindi, and Punjabi.
Start with a pre-approval
A pre-approval tells you how much you can borrow before you start looking, so you can focus on homes within your budget and make offers with confidence. Once you send me the required documents, I can usually arrange your pre-approval within 24 to 48 hours.
What first-time buyers in the Fraser Valley are buying
Most of my first-time buyers purchase condos and townhouses, which offer a more affordable way into the market than detached homes. I’ll help you understand how strata fees affect your budget and what you qualify for, so there are no surprises.
Two things most first-time buyers don’t know
1. Your existing debts reduce your purchase price. Car loans, credit card balances, student loans, and lines of credit all count against you when lenders calculate how much you can borrow. Paying down debt before you apply, and avoiding new debt, can noticeably increase the price of the home you can buy.
2. Your family can help with your down payment. Many first-time buyers don’t realize that a gift from close family members can be used toward the down payment. Lenders usually ask for a signed gift letter confirming the money doesn’t need to be repaid.
Programs that help first-time buyers
– First Home Savings Account (FHSA): save up to $8,000 a year (up to $40,000 in total). Contributions are tax-deductible, and withdrawals for your first home are tax-free.
– RRSP Home Buyers’ Plan: withdraw up to $60,000 from your RRSP toward your first home, and repay it over time.
– BC First-Time Home Buyers’ Property Transfer Tax Exemption: see “Budgeting for closing costs” below.
I’ll help you combine these programs to make the most of your savings.
Budgeting for closing costs
Your down payment isn’t the only cost on closing day. Plan for:
– Property Transfer Tax: first-time buyers pay no property transfer tax on homes up to $500,000. For homes up to $835,000, the first $500,000 is exempt, and you only pay tax on the amount above that. A reduced exemption applies up to $860,000.
– Lawyer or notary fees and other costs: budget roughly $2,500.
Frequently asked questions
How much down payment do I need?
You need at least 5% on the first $500,000 of the purchase price and 10% on the portion above that. I’ll show you exactly what applies to the homes you’re considering.
How long does a pre-approval take?
Usually 24 to 48 hours after I receive your documents.
Can my parents help with my down payment?
Yes. A gift from close family members can be used, with a signed gift letter confirming it doesn’t need to be repaid.
Can I use both my FHSA and my RRSP?
Yes. Many first-time buyers combine the FHSA and the Home Buyers’ Plan to build a larger down payment.
Do I have to pay property transfer tax?
If you qualify as a first-time buyer, you pay none on homes up to $500,000 and reduced tax on homes up to $860,000.
Ready to start?
Let’s talk about your first home, with no cost and no obligation. Call me at 604-807-6428 or email faisalwaheed@dominionlending.ca. I meet clients at my office in Abbotsford and by appointment in Surrey.