Often your first home is not your “dream home” but the path that’s leads you to your dream home.
Author of "The Automatic Millionaire," David Bach writes:
"As a renter, you can easily spend half a million dollars or more on rent over the years ($1,500 a month for 30 years comes to $540,000), and in the end wind up just where you started — owning nothing. Or you can buy a house and spend the same amount paying down a mortgage, and in the end wind up owning your own home free and clear!"
The BC Government has many programs to help with this process.
1. First Time Home Buyers' Program
The First Time Home Buyers' Program reduces or eliminates the amount of property transfer tax you pay when you purchase your first home.
2. Home Buyers' Plan
The Home Buyers' Plan (HBP) is a program that allows you to withdraw up to $25,000 in a calendar year from your registered retirement savings plans (RRSPs) to buy or build a home.
3. B.C. Home Owner Mortgage and Equity partnership
Through the B.C. HOME Partnership program, the Province is helping first-time home buyers by contributing to the amount they have already saved for a down payment with a loan that is interest-free and payment-free for the first five years.
Here is how it works:
- The B.C. HOME Partnership program will meet the buyer’s contribution up to 5% of the home’s purchase price, to a maximum purchase price of $750,000.
- After five years, buyers can either repay their loan or enter into monthly payments at current interest rates.
- Loans through the program become due after 25 years – the same length as most mortgages.