Tips for First Time Buyers

Depending on which market you live in, it can be really difficult to buy your first home. If you are in a super expensive place like Vancouver, you might have to wait until you are in your thirties before you can even think about it.

Regardless of where you live, you need a solid plan and some discipline if you are going to achieve your goal of home ownership in your twenties. If you are single you will almost certainly have to settle for a condo because a single family home will be too expensive for you to qualify for a mortgage on your own. It really helps to have a partner or spouse so that you can use two incomes to qualify and get a better home.

The most important thing to have is two incomes from jobs that you have both held for at least a couple of years. Also, try to minimize your debt – hold off on that new car until you have bought your home. A monthly car payment can kill your chances of qualifying so make do with that old car for now. You can drive a nice car when you are older and have more money.

The more you save for a downpayment, the better. If you can walk into your bank or mortgage broker with a 20% downpayment you will look really solid as a borrower, and you will avoid the large mortgage insurance fee that you have to pay with a smaller downpayment.

Here are some more tips for people in their twenties that are hoping to buy a home.