7 – Get a home inspection
A home inspection can uncover any issues with the property before you make an offer. This can save you money and headaches down the road.
To understand more about why this step is so important, see my blog on this topic – Click HERE
8 – Don’t rush
Buying a home is a big decision. Don’t feel pressured to make an offer on the first home you see.
Take your time and make sure you’re comfortable with your decision.
9 – Consider closing costs
In addition to your down payment and mortgage payments, there are other costs associated with buying a home, such as legal fees, title insurance, and property transfer tax (see tip 11).
10 – Be prepared for the unexpected
Unexpected expenses can arise during the home buying process, so make sure you have some extra funds set aside just in case.
Discuss this item with your mortgage broker to discover a variety of sources for down payment and other closing funds.
11 – The BC Property Transfer Tax (PTT)
The PTT is a tax (expensive money grab by the government) that is payable by anyone who purchases or acquires an interest in a property in British Columbia, Canada.
The PTT is calculated as a percentage of the fair market value of the property being transferred.
- 1% on the first $200,000
- 2% on $200,001 – $2,000,000
- 3% anything over $3,000,000
For first-time homebuyers, the BC government offers a partial exemption from the PTT. The exemption is available to individuals who are Canadian citizens or permanent residents and who have never owned a property anywhere in the world.
As of 2021, the exemption applies to properties with a fair market value of up to $500,000. For properties with a fair market value between $500,000 and $525,000, a partial exemption is available. The amount of the exemption decreases as the fair market value of the property increases and is completely phased out for properties with a fair market value over $525,000.
To claim the exemption, the buyer must be a first-time homebuyer, the property must be used as the buyer’s principal residence, and the buyer must move into the property within 92 days of the registration date.
It’s important to note that the PTT exemption is not automatic and must be claimed by the buyer or their legal representative at the time of registration. If the exemption is not claimed, the full PTT is payable.
Overall, the PTT exemption for first-time homebuyers in BC is a helpful program that can provide some financial relief to those looking to purchase their first home.
Conclusions and Further Thoughts
Please First Time Home Buyers! Reach out and ask me questions before trying to purchase your first property. My services can help you understand the process and get you better prepared to negotiate your best deal.
For more information, please check out my First Time Home Buyer eBook below!
First Time Home Buyer eBook – HERE
PS – One of my hobbies is blogging about mortgages, debt and government policy. During the day I’m a MORTGAGE BROKER in Kelowna, BC!
Check out the Huber Mortgage Home Buyers Guide HERE