First Time Home Buyer Myths that First Time Home Buyers Should Ignore

first time home buyers picturesFirst time home buyers are often intimidated by the home buying process, due largely to myths they have heard from others. Proper education is essential especially today when there are so many options and choices to make as a first time buyer.

There are first time buyers who are even afraid to begin the process because of what they have heard from a friend of a friend or read somewhere. Below are the top 5 dangerous (if you believe them) myths that we will eliminate today.

#1 I can’t afford a down payment

Many first time home buyers think that they are required to put up a 20% down payment, but no. In fact, 7 out 10 first-time home buyers make a down payment of 5% or less and some first time buyer programs offer NO MONEY DOWN! (certain restrictions apply). This is definitely a home buying myth!

#2 I can’t get a mortgage because I have less than perfect credit

Your credit is very important, that’s for sure. Good credit is useful, because it gives you “buying power.” But, more importantly, good credit shows your “integrity” and “creditworthiness”. Even if you have had credit challenges (due to no fault of your own) you can still operate in integrity by co-operating with your creditors.A less-than perfect credit history does not have to stand in your way of reaching your goals of owning a home. There are mortgage companies and products that have helped thousands of individuals move beyond credit challenges into homes of their own. This is something that many first time buyers are not even aware of, but should be!

With changing times in the credit market, it’s important that you get your scores up as high as possible to ensure better chances for loan approval. If you need help, please work with a legitimate, non-profit organization or program dedicated to helping individuals develop discipline to live within their means and pay their bills on time.

If you have credit challenges, commit to the process of raising your scores. Be pro-active. Contrary to what some may tell you, it really doesn’t take very long to see increases in your credit scores if you are handling your credit responsibly. But do be aware that there are no quick credit fixes. Stay away from thoseadvertisements that claim to clean up your credit and give you a spotless score.

There is a light at the end of the tunnel, You can do it! Don’t give up…slow and steady wins the race!

#3 It’s cheaper to rent

With today’s low rates, there’s a good chance that your monthly payments will be lower than they are right now. And unlike rental costs, your monthly principal and interest payments will stay the same for the life of a fixed-rate mortgage. Moreover, as a homeowner, you’ll be building equity in your home, which is wealth that you can use to achieve your financial goals! This is something that as a first time buyer may not see out of the gates, but it is a very important factor nonetheless.

#4 The loan process is long and complicated

Now, more than ever, it the home buying process has become very seamless. Your mortgage consultant will help you through each step of the financing process, so you’ll NEVER have to go it alone. There are a lot of things to consider, don’t get me wrong. But this is why it is very important to select the right people to surround yourself with, in what is likely your largest single financial obligation.

Here’s a tip. The key to having an expeditious loan process and approval is to be ORGANIZED with your DOCUMENTS! Start keeping all of your documents in a separate folder (i.e. pay stubs, tax returns, lease agreements, etc). This ALWAYS helps to speed up the process. We provide our clients with a checklist of all the items we will need from you to show the lender. When your lender asks for them, we will have them handy versus having to wait at the mercy of someone else to give you a copy.

Remember, organization is the key. Get organized, then stay organized!

#5 I won’t be able to make my monthly payments

With a mortgage loan that fits your budget and your financial goals, your home will be a POWERFUL tool in building a secure future for you and your family. If you are paying your rent on time each month…why wouldn’t you do the same with your mortgage payment? You will!

As a first time home buyer, you have to be responsible and take control of your situation. Don’t allow these “adopted” myths to become a part of your thinking. True, that some people may have issues with one or two of these above scenarios but NOT you! Interpreting these home buying myths as truth will paralyze your pursuit of home ownership.

Public Enemy said it best…..Don’t believe the HYPE

I’ll leave you with a piece of advice that really rung true for me. The key to success is to keep moving forward and paying less attention to the noise, and more to your path and your actions.


Eligibility Conditions of First Time Home Buyers Plan for Canadian Residents

The government of Canada has introduced a First time Home Buyers’ plan to ease the load that home buying costs may exert upon its residents. The first time home buyers’ plan is a program that allows you to withdraw up to $25,000 in a certain year from your Registered Retirement Savings Plan (RRSPs) for yourself.

First Time Home Buyers Plan

As a first time home buyer in Canada you have the opportunity to use your registered retirement savings plan (RRSP) under the first time home buyers plan, towards your down payment There are some very specific guidelines for this program that first time home buyers should be clear about before buying a home…


Surrey Mortgage Brokers

Without a doubt buying a home or any kind of property accounts to be one of, if not the biggest investment in one’s life. Intuitively, every aspect of the process should be fully thought out, and precautions taken to ensure you are secure and protected. Moreover, before purchasing any property you need…

First Time Home Buyers Tax Credit Tax Deductible Mortgages

Anyone who has started diving into the world of “how do I use a mortgage payment calculator?” or “what are first time home buyer tax credits & what is a tax deductible mortgage” can certainly understand. But it doesn’t need to be the so complicated, even when mortgages and taxes are being combined…


First Time Buyer Myths That First Time Home Buyers Should Ignore

First time home buyers are often intimidated by the home buying process, due largely to myths they have heard from others. Proper education is essential especially today when there are so many options and choices to make as a first time buyer. There are first time buyers who are even afraid to begin…

First Time Home Buyer Tips

Purchasing your first home is one of the biggest life decisions you will ever make and no doubt this can be a stressful time. It doesn’t have to be all stressful, however, as there are ways to help and you can even have some fun buying your first home. Here are some first time home buyer tips…


Mortgage Traps

3 Mortgage traps, mortgage pitfalls, mortgage problems and how to avoid them. The mortgage trap: Panicking and accepting a high mortgage rate. Be wary of banks that offer you an extremely low initial rate with a significant increase a year later. For a first time home buyer in Canada, the complexities of mortgages…

First Time Home Buyer Vancouver

First Time Home Buyer in Vancouver- helping your children buy. With the high cost of buying real estate in the lower mainland of BC, many parents feel obliged to help their children buy their first home. A question that we often get asked is “what is the best approach in helping our children buy their first home”…


If you would like more information or a free consultation contact Aleem below, and as a Certified Mortgage Specialist let me help you get the home of your dreams. Great Mortgages, Made Simple
Aleem Peermohamed - Mortgage Broker BC


More Posts

no interest rate hikes

Independent Mortgage Planner

Who Should You Get Your Mortgage Through? Hi Everyone, this is Aleem Peermohamed – The Mortgage Specialist Vancouver BC. One of my existing clients, who

Four Reasons To Save Money

Four Reasons To Save Money It’s not rocket science -everyone should be saving money regardless of how much you are making. The concept of saving

Mortgage Check-Up?

Eight out of Ten Canadians make a trip to the doctor at least once a year to help ensure they remain physically healthy. But how

Send Us A Message

Scroll to Top