This is going to sound like a pitch – but I promise there are no balloons, streamers, or wacky waving inflatable arm-flailing tube men here. If you’re a first-time buyer, there has never been a better time to buy a new home… The BC Government, last year, introduced a $10,000 credit, available only to first-time home buyers who purchase a new home. This expires at the end of the month (March 31, 2013). This means there is still time – if you’re quick – to take advantage and be in your new home by the first of April.
You would most likely have to purchase something that is already completed (or very close to completion). The sale would have to close by March 31st for you to qualify. If you’re renting, this would likely mean you need to hang on to your rental for a month, but $10,000 is more than enough to cover that!
It’s a very simple program – you buy the home and your lawyer submits paperwork when you sign the closing documents, and then several weeks later, you get a cheque for $10,000. Use it to pay down your mortgage, invest, vacation, furniture or whatever.
Let’s look at a couple properties that are available right now that would qualify.
- List price: $299,900
- Down payment: $15,000
- Mortgage amount: $285,000
- Monthly payment: $1350 based on 3% rate
- List price: $349,900
- Down payment: $17,500
- Mortgage amount: $332,500
- Monthly payment: $1573 based on 3% rate
These are only examples, and of course there are lots of other factors which go into being able to afford a home, but it’s a good starting point. If you were thinking about buying your first home this year, you should get in touch with a mortgage broker and then contact me as soon as possible. After March 31, your $10,000 cheque from the BC Government disappears.