For many young people, the idea of homeownership can feel out of reach, if not a daunting proposition. They know they want the dream of homeownership, but they’re not sure how to get there. Especially when it comes to financing and getting a mortgage. The good news: There’s so much information and so many professionals out there to lend a hand.

If you’re a young first time homebuyer, there are a few things to consider as you get ready for your journey.

It’s important for young people to know as first-time homebuyers they have certain privileges of which they can take advantage.

First-time homebuyers:

• are exempt from property transfer taxes on a home less than $500,000
• can use $25,000 from their RRSPs for a down payment and pay it back within 15 years
• Need only five per cent as a down payment

If you’re a couple going into your first purchase together, use one as a guarantor. A guarantor guarantees payments will be made, but they have no claim to the property and they are not on the title. This means they also aren’t using their first-time homebuyer status and can save it for a second purchase down the road.

There are also some common misconceptions, or mistakes, young people tend to make as first-time homebuyers.

Newbies to real estate tend to want to try and save up for a larger down payment. But they’ll do so at the expense of paying off their existing debts. Instead of trying to put 10 per cent down, put down five per cent and take that extra money to pay off consumer debt, like credit cards and car payments.

Speaking of debt, a lot of young people will find themselves with student loans to pay back. While it’s always good to pay off as much as you can, they may not be as big of an albatross as you think, provided it’s not reported on your credit bureau. Every lender calculates student loan payments differently, which may or may not hurt your chances of getting a mortgage. But you are better off focusing on your unsecured lines of credit or credit cards before tackling your student loans.

Let’s face it, applying for a mortgage can be intimidating. You’re baring your financial soul to strangers who determine whether your dream will actually come true.

But your mortgage broker is there to help. They work for you, not the other way around.

The mortgage broker is the professional, but you’re the boss. Ask questions and be comfortable in what you’re being told.

You’re doing a disservice to yourself if you accept anything less than excellent communication and customer service.

Thank you Tracy Brock .

Mortgage Broker