Busted! Don’t Believe These First-Time Buyer Mortgage Myths!

Taking your first steps towards a mortgage and getting a foot on the property ladder can be a really exciting time. But it’s also important you’re armed with the right information before you start your journey to homeownership. Splitting fact from fiction isn’t all that easy, particularly when some mortgage myths out there have been doing the rounds for many years.

To help you steer clear of these misconceptions, Vidit Paruthi - Mortgage Professional, has debunked two of the most widely believed first-time buyer mortgage myths.

Myth 1: You have to be a first-time buyer to buy with a 5% or 10% down payment
One of the biggest myths is that a borrower has to be a first-time buyer to buy with a 5% or 10% down payment. The reality is that as long as someone fits within loan qualification criteria, they can buy with a 5% or 10% down payment if the property that they are buying is for personal use, not a rental, and the purchase price is below $1M.

Myth 2: If you have a minimum of 5% or 10% down payment, you qualify to buy a home
The reality is that the borrowers still have to qualify for a loan based on other criteria such as income, liabilities, etc. For e.g., If someone is looking to purchase a home worth $800,000 and their loan qualification based upon income/liabilities etc., only allows up to $650,000 loan, they may be required to put a $150,000 down payment to qualify for an $800,000 home.

If you’re looking to steer clear of these myths, reach out to Vidit Paruthi - Mortgage Professional. As the best mortgage broker in Surrey, BC, I am always motivated to help other families looking to buy homes by giving them a friendly and seamless experience throughout their mortgage approval process. I strive to provide support throughout the life of the mortgage and am always available for my clients as their first point of contact.

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