
Dear reader,
Are you tired of watching your hard-earned money go towards rent each month with nothing to show for it? You’re not alone. Many British-Columbians dream of homeownership but feel stuck in a cycle of renting, especially with today’s challenging housing market. The good news? There are creative ways to break free from renting and start building equity in your own home. These are also tricks that I have seen my clients successfully use over the years.
Make a budget. This sounds simple, but most households do not have a budget. They do not know what payment they will be comfortable with, how much down payment they have, are they saving money every month or losing money. It is important to get a good grip on your financial situation. There are lots of websites and tools available to make a budget, so I will not review that here. But your budget should allow you to save money, pay your bills, and enjoy life. If you are not enjoying life with your budget you will not stick to it.
Standard budgeting strategy states that 10-20 % (the older the higher) of your pay should go to savings, 50% to your obligations, such as housing, transportation, food, cell phones, debt payment, etc., and 30 % on discretionary things like vacation, movies and dining out. If 50% is not enough to cover your obligations, you should cut in your discretionary not your savings.
Savings should be a priority unless you have credit card debt. 20% interest rate beats all and any interest you can make on your savings.
You should pay yourself first. This means that the 20% should be taken out first. Not after all the bills were paid off. Savings should be put in a separate account, preferably in a separate bank.
Pay off your debt. If you carry lots of consumer debt such as credit card debt, line of credit, student loans, car loans, etc. This should be a priority to get rid of. Of course you do not have to pay everything off to get a mortgage. Here is a comparison between 3 borrowers (B1, B2, and B3) that have the same salary of 150K, 100K of down payment but with various amounts of debt. They all applied for a loan with less than 20% down. The difference is not that big for B1 and B2 because some level of debt is expected by lenders. However, B3 sees their purchasing capacity being reduced by more than 155K. Paying debt will also allow you to save more money for your down payment.
An easy way to pay off debt is to use the snowball method. This consists of paying the smallest amount first and then using the savings to attack the next smallest account. For example, if you have 3 credit cards with balances of CC1:$10,000, CC2: $3000 and CC3: $500. Even if the highest interest rate is on the 10K card, you pay the $500 first. You always make your minimum payment on the cards. In this example CC1 will be first to be repaid. You have a minimum payment of $10 and you apply $100 extra. So, in 5 months it is fully paid. You then add this to the next card CC2. You will pay a minimum payment of $80 plus the $110 that you were paying on CC3. You will do that until you fully pay CC2. The most important point is that once the card is paid off no more expenses goes on it.
Freezing your Credit card. If you can’t control your spending on your credit card. Destroy the card. If you want to keep one for emergencies, put one in a ziplock bag, fill it with water and put it in the freezer. By the time the card is accessible you may no longer have the need to use it.

Leverage First Time Home Buyer Programs
Home Buyers’ plan (HBP). This program allows you to take out up to $60,000 from your RRSP to use as a down payment. More info here: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan.html
FHSA , the first home saving account allows you to save $8,000 per year and all profits are tax free. The account gives you a tax deduction similar to the RRSP. More information here: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account.html
BC First Time home buyers’ program. This program from the BC government allows you to avoid paying the Property transfer tax if the property is below $835,000. There are many conditions that apply. More information here: https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/exemptions/first-time-home-buyers
Start with a lower priced home, many people wish to buy their first property as a single family home (SFH). Since SFH are expensive on the lower mainland and around Victoria it is difficult for First Time Home Buyer (FTHB) to achieve the 1.5M + for a SFH around the main centres in the province. So, defining your needs and not necessarily your wants may help you find your first home.
It is also easier to start with a condo, townhouse or other property sharing 1 or more walls with the neighbour's property.
Moving away from a large centre such as Vancouver and Victoria will also reduce prices. The suburbs or even rural areas can make it a lot easier to find a property that fits your budget.
Buying a home that needs renovation/updates can also be a good idea
Increase your down payment faster. This one is going in the same direction as having a budget and paying yourself first.
You can have a second job or a side hustle such as driving an uber/ uber eat, waiting tables at a nearby restaurant or starting a small business. What you do does not matter. Every dime you make is acceptable as down payment. The trick is to use 100% of this money for your down payment and nothing else. If you have credit card debt you may use this to pay them faster.
Sell old stuff you no longer need or care for. The amount of money sitting in your closets may be much larger than you think.
You can ask for help from your parents, siblings or grand-parents.
I hope those tips will help you become a homeowner in 2025! If you have any questions about those tips or about mortgages in general or if you would like to start a pre-approval process, please contact me at simon@refinancebc.ca or schedule an appointment on the link below.
Sincerely,
Simon Bilodeau and Gina Lopez
Mortgage Broker
DLC-Mortgage Negotiators
Phone : 604-828-9864
email : simon@refinancebc.ca
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