Over the past decade or so, the Vancouver Real Estate market has been driven largely by first time home buyers. As baby boomers continue planning retirement, more and more of the X generation are making the step into Real Estate.

As a Realtor working with first time buyers, I am often faced with a lot of questions. Of course at first I didn’t have all the answers; but it was these questions that forced me to educate myself as it was essential for my position. There are endless questions that you could ask as a first time home buyer and rather than learning as you go, I thought I’d share some quick tips and information up front to better prepare you for your Real Estate venture.

1. Taking a step – Making the decision to go ahead and buy your first home is half the battle. If you’ve made the step forward to go ahead and actively search for your first home you’ve already overcome a huge fear that many people face. Getting into the market is easier than most people think before they get started.

2. Exemptions and Benefits – There are exemptions and benefits when buying your “first” home and of course they come with some parameters, so it is important to find out what is necessary to qualify. The first, and probably the most significant is the waiving of the Property Transfer Tax.

As a Purchaser, you qualify for the exemption if:
- you are a Canadian Citizen, or a permanent resident as determined by Immigration Canada.
-you have lived in British Columbia for 12 consecutive months immediately before the date
you register the property, or you have filed 2 income tax returns as a British Columbia
resident during the 6 years before the date you register the property.
- you have never owned an interest in a principal residence anywhere in the world at anytime.
- you have never received a first time home buyers’ exemption or refund.
The Property qualifies for the exemption if:
- the fair market value of the property is not more than the current threshold of $425,000.
- the land is 0.5 hectares (1.24 acres) or smaller.
- the property will only be used as your principal residence.
If the property does not meet all of these requirements, you may still qualify for a partial
exemption. There is also the first time home buyer tax credit which was just recently introduced as well as GST rebates on new construction. To find out more, Click Here.

3. RRSP’S – Do you have your savings locked up in RRSP’s? As a first time home buyer, you can borrow up to $20,000 from your RRSP’s to use towards the purchase of your first home. You must use the home as your primary residence and you must pay back the money to the RRSP within a 15 year time frame. There are certain parameters to qualify for this benefit as well and you can find out more by clicking here

4. Use the internet and hire a Realtor – They say that approximately 80% of home purchases begin on the internet. I think it’s probably more than that by now. Who are these people buying Real Estate that have never thought to use the web? There is so much information available to you on the internet to do your homework. RE/MAX of western Canada has a great first time home buyer program on their website that will teach you virtually everything you need to know. Click here to check it out.

Realtor’s have access to important information and knowledge about different areas, different buildings and Real Estate in general. It is always wise to hire a Real Estate Professional. As a buyer, it does not cost you anything to work with a Realtor. I am here 24 hours a day to answer your questions and find you your first home. There is also a large misconception that if you are buying a brand new condo from a sales center that you do not require your own agent but I feel it is very important to have your own representation and make sure that you are represented in a proper manner. This also gives you someone to yell at when something goes wrong:)

5. Long Term – Real Estate can be a very wise and lucrative investment, but you must always be thinking long term. As our prices in Vancouver shot through the roof the past few years, some were lucky enough to be along for the ride but it doesn’t always work that way. If history has taught us anything, it is that Real Estate is always a wise investment in the long term and prices seem to always climb eventually. Deals that seem too good to be true usually are and looking for a “quick flip” is certainly not for the faint of heart.