Hal Peterson AMP, FICB
I bought my first home in 1971 and, like many first time home buyers, I knew very little about buying a home. In 1971, homes cost about 3 times a person’s annual gross salary. Financing was achieved via greements for Sale, CMHC direct lending, or from your Bank, Credit Union or Trust Company. Interest rates were fixed at 6%. Terms and amortizations usually coincided at 25 years.
The process of buying a home today is still confusing to most first timers….
- When should we buy?
- Where should we buy?
- How much can we afford?
- Should we go with a variable rate or a fixed rate?
- What will our payments be?
- Should we go short term or long term?
- What will our costs be?
- Are there any programs to assist first time home buyers?
- Should we get a Pre-Approved Mortgage?
- Should we get our financing directly from our Bank or through a Mortgage Broker?
To me, the most important thing for a first time home buyer is to partner with Professionals: a Realtor, a Lawyer, and a Mortgage Broker.
The Realtor will help you find the right home and help you prepare your Offer to Purchase Contract.
The Lawyer or Notary will review your Contract and warn you against legal pitfalls.
The Mortgage Broker (that’s me) will inform you of any programs for first time buyers, will ensure you get the very best mortgage financing available, and will work with you through the entire process to a satisfactory completion of your purchase.
I recommend first time buyers review our website at www.mortgagesbc.ca for helpful information, including particulars of the several programs available to first timers from both Federal and Provincial governments. Since 1971, working as a banker and now as a mortgage broker, I have helped many people buy their first home. Despite the ups and downs of house prices and mortgage rates, I sincerely believe home ownership is an excellent goal for all Canadians. If you don’t yet own your own home, I urge you to contact a Mortgage Broker and begin the journey to home ownership. The Mortgage Broker will provide the answers to all your questions and work with you to a happy ending.
Why a Mortgage Broker instead of a banker? The banker works for the Bank, not for you, and can only offer that Bank’s mortgage products; and at prices dictated by their Head Office. Mortgage Brokers work for you and can locate the best mortgage for you, which might be from your own Bank or Credit Union or from a Trust or Mortgage Company. Like the banker, the Mortgage Broker does not charge for his services to you. Unlike the banker, the Mortgage Broker can and will offer you the lowest broker-discounted interest rates.
Go ahead, first timer. Buy now. Just make sure to surround yourself with the right professionals.