Becoming a pro at working with first-time buyers

With lower interest rates, and new mortgage rules in place, there is a surge in interest from first-time homebuyers, especially among millennials and Gen Z. However, these buyers often face obstacles when navigating the real estate market.

As Realtors, it is our duty to guide these buyers, understand their challenges, and provide them with strategic insights to help them achieve their homeownership goals.

Assessing financial health

Encourage clients to assess their financial health early on. A debt-to-income ratio below 40% is preferred by lenders for mortgage eligibility. Remind clients about the minimum down payment requirements set by the Canada Mortgage and Housing Corporation.

Highlighting financial assistance programs for first-time buyers

• First-Time Home Buyer Incentive: Inform clients about this program that can help lower monthly mortgage payments.
• Land Transfer Tax Refund: Inform clients about the possibility of receiving a refund on their land transfer tax.
• RRSP Home Buyers’ Plan: Encourage clients to consider this plan for accessing funds for a home purchase.

The value of mortgage pre-approval

Stress the importance of obtaining mortgage pre-approval and educate clients about different interest rates and fees.

Encouraging visualization of their dream home

Encourage clients to visualize their dream home to streamline their search process.

The role of a knowledgeable Realtor

As their advisor, guide clients through the market complexities and communicate openly about their preferences and goals.

Preparing for competitive market conditions

In a competitive market, encourage clients to explore properties and stay informed about market trends.

Budgeting for full homeownership costs

Remind clients about closing costs, property taxes, insurance, and maintenance expenses when budgeting for homeownership.

Selecting the right legal representation

Emphasize the importance of choosing experienced real estate lawyers to ensure a smooth transaction.

Building generational wealth through homeownership

Highlight the importance of homeownership in building generational wealth and empowering first-time buyers for financial stability.