First-Time Homebuyer’s Guide: Steps for Beginners

Buying your first home is one of life’s most exciting milestones, but it can also feel intimidating if you don’t know where to start. This beginner-friendly guide breaks the process down step-by-step and highlights federal and BC first-time homebuyer incentives that can save you thousands of dollars.

Step 1: Assess Your Finances & Set Your Budget

Before you browse listings, take a close look at your financial picture:

• Review income, monthly expenses, debts, and credit score.
• Determine how much you can afford for a down payment and monthly mortgage payments.
• Factor in additional costs: property taxes, home insurance, closing costs, utilities, and possible renovations.

Why it matters: A clear budget helps you shop confidently, avoid surprises, and focus on homes within your reach.

Step 2: Take Advantage of Incentives & Tax Credits

Being a first-time homebuyer in Canada and BC comes with valuable programs designed to make homeownership more affordable.

Federal Incentives

• Home Buyers’ Amount (HBTC): Claim up to $10,000 on your income tax return, which can mean roughly $1,500 in tax relief.
• Home Buyers’ Plan (HBP): Withdraw up to $60,000 from your RRSP (or $120,000 for couples) tax-free to put toward your down payment, with 15 years to repay.
• New GST/HST Rebate: For new homes valued up to $1 million, a full GST rebate may apply (phased out between $1M–$1.5M).

BC Provincial Incentives

• First-Time Home Buyers’ Program: Get a full or partial exemption from BC’s Property Transfer Tax on homes up to ~$835,000 (partial exemption up to ~$860,000).
• Additional city grants may apply for newly built homes—check local municipality websites for details.

💡 Pro Tip: Confirm eligibility before writing an offer so you can factor the savings into your budget.

Step 3: Get Pre-Approved for a Mortgage

Mortgage pre-approval tells you exactly how much you can borrow and shows sellers you’re a serious buyer. Work with a mortgage broker or your bank to get a pre-approval letter before house-hunting—it will make your offers stronger.

Step 4: Find the Right Location & Property Type

Consider your lifestyle, commute, and future plans:

• Location: Proximity to work, transit, schools, and parks.
• Property Type: Condo, townhouse, detached home, or even a live/work property if you run a business.
• Resale Value: Choose a home with good long-term potential.

A REALTOR® can help you narrow your search, book showings, and guide you through the process.

Step 5: Make an Offer & Do Your Due Diligence

When you find the perfect home:

• Submit an offer with conditions (financing, inspection, document review).
• Arrange a home inspection to catch hidden issues.
• Review strata documents (if buying a condo/townhouse) and secure final mortgage approval.

Step 6: Close the Deal & Move In

On closing day:

• Pay closing costs (legal fees, title insurance, property transfer tax if applicable).
• Sign final documents and transfer ownership.
• Set up utilities, home insurance, and plan your move!

Common Mistakes to Avoid

• Overstretching your budget and ignoring maintenance costs.
• Skipping a home inspection to “save money.”
• Failing to shop around for the best mortgage rates.
• Forgetting to apply for available credits and rebates.

Conclusion

Buying your first home is a major milestone—but with proper planning, expert guidance, and the right use of tax incentives, it can be a smooth and rewarding process.

At Aminie Realty, we specialize in helping first-time buyers understand every step, from pre-approval to possession day, and ensuring they get access to all available incentives.

Ready to start your homeownership journey? Contact us today—we’ll help you find the perfect first home and make the process stress-free.