First-time home buyer questions, answered

Choosing the right kind of home

Condo or townhouse for a first home?

Both can work. Townhouses tend to hold their value well because there are fewer of them. A 2 bedroom plus den condo is also a smart first home, and the strata fee is usually lower. Compare the monthly cost, not just the price. My condo vs townhouse cost page shows the numbers side by side.

Aren't new condos very small?

Some are. Look at the square feet on the floor plan, not just the bedroom count. The couple I met wanted at least 700 sq ft, ideally about 1,000. Writing your minimum down before you start looking saves a lot of wasted showings.

Should we buy a house with a suite?

If the budget allows, it can make sense, and rent from the suite can help with the mortgage. A classic Vancouver Special has 3 bedrooms and 2 bathrooms upstairs and a 2 bedroom suite downstairs. Before you choose this, ask yourselves one honest question: are we comfortable being landlords?

Are older houses cold?

Some are. It depends on the age of the home, the insulation and the heating system. An older basement suite can feel colder than upstairs. Your home inspection is the time to check this.

Can we change the floors?

Yes. As a rough guide from our meeting, new wood or laminate floors for a whole house can run about $10,000 to $20,000 and take 2 days to a week. Get quotes for your home before you count on a number.

Is noise a problem in a duplex?

Newer duplexes are usually built with better sound separation between units than older ones. Ask what the shared wall is made of, and visit at a busy time of day to hear it for yourself.

Money, credit and mortgages

How do we build credit fast?

Each of you should have a credit card in your own name, and pay it in full every month. It doesn't need to be a fancy card. A no-fee card from your bank or a store card works.

Can my parents help with the down payment?

Yes, a gift from close family can usually go toward it. Lenders ask for a signed gift letter, and they want to see where the money came from, often about 90 days of bank history. I moved my own money from Thailand, so I know the paperwork takes time. Start early, keep every transfer record, and ask an accountant about tax rules in both countries.

Tip: Your mortgage broker confirms exactly what your lender needs, in writing, before the money moves.

Should we keep working until we buy?

Yes. Your lender checks your income to approve the mortgage. Stay in your jobs until you qualify and the purchase is complete. Plan bigger changes, like a new job or time off, after completion day.

Does the mortgage broker stay with us after closing?

A good one does. Your mortgage broker should be there for renewals and refinancing for years. I can refer you to brokers I trust.

What about government programs?

The FHSA and the RRSP Home Buyers' Plan can be used together. The numbers are in the facts above, and my first home in BC guide covers the tax exemptions and closing costs.

Timing, offers and fees

Peak season or off-season?

The season matters far less than finding the right home at the right price. Spring brings more choice and more buyers. Fall and winter bring fewer homes and sometimes more room to talk.

Do buyers really lose homes by a little?

Yes. I recently lost two deals for clients by about $2,000 each in multiple offers. Decide your top number before you write, so you won't regret it either way.

Who pays the realtor and the mortgage broker?

Usually the seller pays the realtor commissions, and the lender pays the mortgage broker. As a buyer you usually pay neither directly. In BC, one realtor can't represent both you and the seller, so you get someone who works only for you.

Is Burquitlam a good place for a Korean family?

Yes. Burquitlam has strong Korean community resources close by, and SkyTrain too. See my Burquitlam guide.