Information key for first-time buyers

Buying your first home is an exciting time, but one that can be fraught with questions and emotions

Oak Bay realtor Eli Mavrikos recommends first-time homebuyers ensure they find professionals they can communicate well with throughout the purchase process.

Buying your first home is an exciting time, but one that can be fraught with questions and emotions.

Add today’s current hot market into the equation, and getting the information you need before you start the search is more than a good idea; it’s essential.

It starts with building a good relationship with your realtor, not only exploring what you’re looking for in a home, but also the myriad steps and costs that will come up during the process.

While for first-time buyers, “the biggest thing is coming up with the downpayment … it’s (also) understanding the process, understanding the amount of money down needed and potential cosigners – some have just a few years of income (history),” said Oak Bay realtor Eli Mavrikos, of the Mavrikos Collective with Pemberton Holmes.

And then there’s the other costs that accompany a home purchase. For example, in addition to the purchase price, home buyers will need to consider the legal fees (around $1,000) property inspection (about $400 to $500), the Property Transfer Tax (one per cent on the first $200,000 and two per cent on the balance) and for those with a downpayment of less than 20 per cent, a CMHC fee.

Earlier this month, Canada Mortgage and Housing Corporation released its 2015 First-Time Homebuyers Survey, coinciding with the fifth anniversary of Financial Literacy Month, recognizing that for most Canadians, buying their first home is the single, largest purchase they have ever made.

“CMHC’s survey results reiterate the central role that mortgage professionals play in providing first-time homebuyers with the information they need to manage their money and debt wisely,” said Jane Rooney, Canada’s Financial Literacy Leader.

“The more we understand the financial literacy needs of Canadians, the better we can be at providing the right information at the right time to help them build their financial knowledge, skills and confidence.”

In addition to the basic financials involved with buying a house, the older nature of homes in Oak Bay means many offers will also include a perimeter drain scope and oil tank inspection, to ensure the property is free of buried oil tanks. Asbestos is another issue that can arise during a home inspection. All areas are negotiable, but prospective buyers should be prepared.

“It’s really finding that comfort level for the buyer,” Mavrikos said. “Communication from Day 1 is huge for this and educating the buyer throughout the process.”

Because first-time buyers are often buying properties that need some work, Mavrikos suggests working with your mortgage professional to get the funds for the mortgage and improvements, allowing you to do some of the work now.

Be sure you have spoken to your bank or mortgage broker to obtain pre-approvals, and ensure there’s good communication between all involved as decisions in this market often need to be made quickly.

“In this market, if someone wants to see something you have to go that day, if you wait a day or two, it will be gone,” Mavrikos says.

At the end of the day, perspective is key. “Find that number your happy to lost it for and the number you’re happy to get it for,” and at the end of the day, “if it didn’t happen, it didn’t happen for a reason,” Mavrikos said.  “Emotions are pretty key. Try not to get too invested or emotional (about a particular home),” he added. “There’s many ways to get a positive transaction I find, and it’s not always price,” he said, pointing to factors such as adjustable possession dates and even being telling your story about being first-time home-buyers.

For more information on the First-Time Homebuyers survey visit cmhc.ca/FirstTimeBuyers

 

 

Just Posted

420 celebrations turn over new leaf at B.C. legislature

Cannabis is legal for the first time in the 21-year existence of the 420 event in Victoria

VIDEO: ‘Stewie the Starfish’ mascot revealed at Premier League kickoff party

Pacific FC kickoff party scores in Victoria Inner Harbour

Victoria cannabis dispensaries are busy in their first days of legal operation

The Cloud Nine Collective and The Original FARM opened their doors on April 15

Report calls on Saanich to expand multicultural programming at recreation facilities

Report also notes that Saanich could do more for sexual minorities.

WATCH: Movie star and PACE alum Calum Worthy talks musical theatre and his career

“American Vandal” and “Austin and Ally” actor has been returning to the program for over 20 years

POLL: How often does your family use BC Ferries?

Navigating the lineups for BC Ferries is a way of life for… Continue reading

Crime Stoppers most wanted for Greater Victoria for the week of April 16

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

Waste not: Kootenay brewery leftovers feed the local food chain

Spent grains from the Trail Beer Refinery are donated to local farmers and growers, none go to waste

Deck collapses in Langley during celebration, 35 people injured

Emergency responders rushed to the Langley home

B.C. mom wages battle to get back four kids taken from her in Egypt

Sara Lessing of Mission has help from Abbotsford law firm

VIDEO: Fire guts Peachland home

Crews are still on scene pumping water onto the blaze in the Okanagan neighbourhood

$6K raised in one day’s time for family of woman gunned down in Penticton

GoFundMe launched for family of Darlene Knippelberg, to pay for funeral costs and other expenses

B.C. mountain biker sent home from hospital twice, despite broken vertebrae

Released in Maple Ridge to go home with three fractured vertebrae

Most Read