Five Easy Budgeting Tricks for First Time Home Buyers in Vancouver

Marci • March 15, 2014

Five Easy Budgeting Tricks for First Time Home Buyers in Vancouver Buying a new home in Vancouver is an exciting step in preparing for your future. While there’s good reason to be excited, it’s important to take note of the many expenses that can accrue above and beyond your mortgage payments. While they’re not outwardly “hidden” from new buyers, not all first time home buyers are aware of all the expenses associated with a home purchase. It’s for this reason that new homeowners are at risk of taking on more expenses than they can afford. Here are a few budgeting tricks you can use to ensure you can meet your mortgage payments.

How is Your Deposit Going To Be Paid?

Your deposit is your primary down payment, and it can vary depending on your mortgage agreement. It’s wise to take caution here, as some homeowners may have budgeted for their mortgage payments only. If you’re taking out a separate loan for your deposit, then that, as well, should be accounted for. Thye lender will also need to include that new loan in our debt servicing calculations. Rather than rushing into a purchase, consider saving up the amount needed so as to defer future interest on what is, essentially, a second loan with its own interest rate and payment schedule.

Ask About The Cost Of Disbursements

There are a great many “extra” expenses that come with buying your first home. Be sure to talk to a professional about what you can expect to see in terms of paying for home inspections, taxes, registration, insurance, home appraisal fees and legal expenses. Some new owners believe that “closing costs” is a single term to describe only a few things like a real estate agent’s commission. However, the truth is that there are countless smaller fees and services that you will be required to pay.

Amount Of Insurance Must Equal Value Of The Home

While Canadian law doesn’t require you to buy house insurance, it will most likely be a stipulation of your mortgage agreement. The amount of your premium will be determined by a variety of factors such as the age, size, location and value of your home. Be sure to work with an insurance specialist and make sure he or she places a policy for the full value of your new home. In the event that something occurs, you may find that you were under insured for the proper amount, leaving you responsible to make up the difference in the cost of repairs. Budgeting for protection is a lot easier than budgeting for losses after the fact.

Moving Costs And Utility Bills

If you haven’t moved very many times, you may forget to take into consideration the extra costs associated with a new house purchase. However, when moving into your privately owned property, remember that you must have adequate insurance to protect against damage that occurs during the move. Connection fees and cost of utilities should be determined before you buy. Your energy consumption and the infrastructure of a home’s heating and cooling system can greatly impact your quarterly energy bills.

Nix That Fixer Upper

The worst offender to a home budget is the cost of repairs. A fixer-upper may seem like a romantic idea, but consider the expense of contractors, designers, architects, materials, new appliances, building permits, builder’s insurance and even hotel bills if you need to live elsewhere during construction. Bills pile up quickly and become hard to budget for. Before you buy, determine exactly what repairs you will be doing and ask if the previous owner can own some of the costs as well. Everything can be negotiated and built into your new mortgage.

 

If you’re buying your first home, it can be hard to work out a budget. Ultimately, your situation is unique and all of your budgeting concerns will vary depending on your earning potential, your savings and the type and value of the home you are planning to buy. There are a variety of home-related expenses you might incur, and the last thing you want is to have your dream home turn into a money pit. Email us today to talk to an experienced mortgage broker and find a mortgage that you can afford.

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What to Expect in the Closing Process: A Step-by-Step Guide

By Marci Deane • October 8, 2025
You’ve found the right home, your offer’s been accepted, and your financing is approved—congratulations! But before you can pick up the keys and celebrate, there’s one more important stage: the closing process. Closing is the final step in your homebuying journey, where all the paperwork, legal details, and financial transactions come together. It can feel overwhelming if you don’t know what to expect, but with the right preparation, closing can be smooth and stress-free. Here’s a step-by-step guide to help you understand the process. Step 1: Hire a Lawyer or Notary A real estate lawyer (or notary, depending on your province) handles the legal side of closing. They will: Review the purchase agreement and mortgage documents Conduct a title search to confirm the seller has the legal right to sell the property Ensure the mortgage lender is properly registered on the title Handle the transfer of funds between you, the lender, and the seller Your lawyer or notary will be your main point of contact during closing, so choose one you trust and who communicates clearly. Step 2: Finalize Your Mortgage Your lender will send the mortgage instructions directly to your lawyer or notary. At this stage: You’ll provide proof of property insurance (lenders require this before releasing funds) You’ll confirm your down payment and closing costs are available in your lawyer’s trust account The lawyer will prepare all documents for your review and signature Step 3: Pay Closing Costs Closing costs typically range from 1.5% to 4% of the purchase price. These can include: Legal fees Title insurance Land transfer tax (where applicable) Adjustments for property taxes or utilities prepaid by the seller Home inspection or appraisal fees (if not already paid) Your lawyer will provide a final statement of adjustments so you know exactly how much is due on closing day. Step 4: Sign the Paperwork A few days before closing, you’ll meet with your lawyer or notary to sign all the necessary documents, including: Mortgage agreement Title transfer Insurance confirmations Statement of adjustments Bring valid government-issued ID to this appointment. Step 5: Transfer of Funds On the day of closing: Your lender sends the mortgage funds to your lawyer Your lawyer combines these funds with your down payment and pays the seller Legal ownership of the property is transferred into your name The lender is registered on title as a secured creditor Step 6: Get the Keys! Once the paperwork is filed and the funds have cleared, your lawyer will confirm that the transaction is complete. You’ll then get the keys to your new home—officially making it yours. The Bottom Line The closing process is a series of important steps, but with the right team in place, it doesn’t have to be stressful. By working closely with your mortgage professional and lawyer, you’ll have guidance every step of the way—from signing the documents to turning the key in the front door. If you’d like help preparing for the closing process—or want a clear breakdown of your own closing costs— connect with us today.

Stress-Testing Your Mortgage Affordability: Why It Matters

By Marci Deane • October 1, 2025
Buying a home is one of the biggest financial commitments you’ll ever make. That’s why lenders want to be sure you can handle your mortgage payments—not just today, but also if interest rates rise in the future. This is where the mortgage stress test comes in. Many Canadians hear the term but aren’t entirely sure what it means or how it affects them. Let’s break it down in plain language. What Is the Mortgage Stress Test? The stress test is a rule introduced by the federal government that requires all mortgage applicants to qualify at a higher rate than the one they’ll actually pay. Currently, you must qualify at the greater of your contract rate + 2% or the benchmark qualifying rate (set by the Office of the Superintendent of Financial Institutions). For example: If your lender offers you a 5-year fixed mortgage at 5.25%, you must show you could still afford the payments at 7.25% . Even if rates don’t rise that high, the stress test ensures you won’t be overextended if they do. Why Does It Matter? The stress test protects both borrowers and lenders by: Preventing over-borrowing : It ensures you don’t take on more debt than you can realistically handle. Preparing for rate hikes : With interest rates fluctuating, it’s a safeguard against sudden increases. Strengthening financial stability : It lowers the risk of defaults, protecting the housing market as a whole. While it can sometimes feel like a barrier—reducing the amount you qualify for—it’s ultimately designed to keep you from becoming “house poor.” How Does It Impact Buyers? The stress test can significantly affect your homebuying budget. For example, without it, you might qualify for a $600,000 mortgage, but with the stress test applied, you may only qualify for $500,000. That doesn’t mean your dream of homeownership is out of reach—it just means you may need to adjust expectations or explore other strategies, such as: Increasing your down payment Paying down existing debts Considering alternative lenders who may have different qualification standards Why Work With a Mortgage Professional? Every lender applies the stress test, but not every lender views your application the same way. An independent mortgage professional can: Shop multiple lenders to find the best fit Run affordability scenarios at different rates Help you understand how much house you can truly afford—without stretching your finances too thin The Bottom Line The mortgage stress test isn’t meant to stop you from buying a home—it’s there to protect you from financial strain down the road. By understanding how it works and planning ahead, you can make smarter choices and buy with confidence. If you’re thinking about purchasing a home, refinancing, or simply want to know how the stress test affects your options, connect with us today. We’ll help you stress-test your budget and find the mortgage solution that works best for you.

What To Do If You Have Missed A Payment

By Marci Deane • September 24, 2025
If you’ve missed a payment on your credit card or line of credit and you’re wondering how to handle things and if this will impact your creditworthiness down the road, this article is for you. But before we get started, if you have an overdue balance on any of your credit cards at this exact moment, go, make the minimum payment right now. Seriously, log in to your internet banking and make the minimum payment. The rest can wait. Here’s the good news, if you’ve just missed a payment by a couple of days, you have nothing to worry about. Credit reporting agencies only record when you’ve been 30, 60, and 90 days late on a payment. So, if you got busy and missed your minimum payment due date but made the payment as soon as you realized your error, as long as you haven’t been over 30 days late, it shouldn’t show up as a blemish on your credit report. However, there’s nothing wrong with making sure. You can always call your credit card company and let them know what happened. Let them know that you missed the payment but that you paid it as soon as you could. Keeping in contact with them is the key. By giving them a quick call, if you have a history of timely payments, they might even go ahead and refund the interest that accumulated on the missed payment. You never know unless you ask! Now, if you’re having some cash flow issues, and you’ve been 30, 60, or 90 days late on payments, and you haven’t made the minimum payment, your creditworthiness has probably taken a hit. The best thing you can do is make all the minimum payments on your accounts as soon as possible. Getting up to date as quickly as possible will mitigate the damage to your credit score. The worst thing you can do is bury your head in the sand and ignore the problem, because it won’t go away. If you cannot make your payments, the best action plan is to contact your lender regularly until you can. They want to work with you! The last thing they want is radio silence on your end. If they haven’t heard from you after repeated missed payments, they might write off your balance as “bad debt” and assign it to a collection agency. Collections and bad debts look bad on your credit report. As far as qualifying for a mortgage goes, repeated missed payments will negatively impact your ability to get a mortgage. But once you’re back to making regular payments, the more time that goes by, the better your credit will get. It’s all about timing. Always try to be as current as possible with your payments. So If you plan to buy a property in the next couple of years, it’s never too early to work through your financing, especially if you’ve missed a payment or two in the last couple of years and you’re unsure of where you stand with your credit. Please connect directly; it would be a pleasure to walk through your mortgage application and credit report. Let’s look and see exactly where you stand and what steps you need to take to qualify for a mortgage.