With the high cost of real estate here in the Lower Mainland, it’s harder than ever for first time buyers to afford their first home.
Banks and mortgage lenders require home buyers to put a minimum of 5% of the purchase price as a down payment on the home if the home is $500,000 or less. For homes more than $500,000 the required down payment is 5% on the first $500,000 and 10% on the remaining.
So, on a $500,000 purchase that amounts to $25,000 that is needed as a down payment.
On a $600,000 home, that is $35,000.
That’s a lot of money to save, especially when one considers rent and living expenses, on top of saving for their first home.
There are a variety of programs to help home buyers purchase their first home; and the new federal…