Imagine finding your perfect home just as you’re about to fly to the other side of the world to visit family. That was the case for Hannah and Isaac, first time homebuyers who had looked for over a year before securing a home that met all of their must-haves.
They finalized their home purchase in quite the dramatic fashion: attending the home inspection just hours before jetting away on an international flight, then signing final purchase documents in a Turkish airport before they continued on to Isaac’s hometown in Uganda.
Upon returning home from their visit, Hannah and Isaac surprised their kids with the news that they would be moving out of their East Van rental into their own condo in New Westminster—where everyone would get their own bedroom.
We chatted with the couple about the ups and downs of purchasing their first condo and what helped make it a positive experience.
Who was the first one to bring up the possibility of buying a home?
Isaac: That was Hannah. She kept saying, ‘Isaac, with the money we’re paying for rent, we could be paying for a mortgage—why don’t we just buy a house?’ We kept looking around, but I kept saying, I don’t think we can afford it. Because I kept looking at the Vancouver area and all the houses I saw or condos I thought I would like were triple our budget.
Hannah: We kept going back and forth, getting excited about the possibility of buying, but then realizing what our incomes could actually afford. It was a big difference. We expanded our search bubble, and then I met a real estate agent at a kid’s birthday party who soon became a friend of ours. She was really open for us to look anywhere, and encouraged us to look at places of all sizes. However we emphasized that we needed more square footage than our rental, as our children were getting older.
We had savings before, but we didn’t plan for a house, to be honest.
Were you both aligned in terms of what you wanted?
Hannah: Our rental was at least 1,000 square feet, and we knew we couldn’t go smaller than that. We settled on our must-haves and then we spoke to our real estate agent, and then to Sophie at Vancity about what we could actually afford.
How much did you know about the logistics and financial nuances of buying a home?
Isaac: Everything was new to us.
Hannah: We exchanged emails with Sophie a lot and we spoke on the phone a few times. She explained everything to us and the best ways to prepare for buying. She broke down how mortgage payments work, and how to calculate what you can afford each month and our down payment.
We met her in person after we made the offer on our condo. She gave us all the options and walked us through amortization, fixed and variable rates, and different structures of down payments.
Cost was the barrier at first. We thought we couldn’t afford anything. We never actually used a mortgage calculator to see what we could afford.
When did you start saving for a home?
Isaac: We had savings before, but we didn’t plan for a house, to be honest.
Hannah: When we realized that we were serious about finding a place, we opened a First Home Savings Account. We also had money in a tax-free savings account. That was all going toward our down payment, but it wouldn’t get us to 20%. Then in the spring of 2023, my grandparents both passed, and I got an inheritance. Then we hit the 20%.
What were the conversations like about your mortgage and purchase price?
Isaac: I didn’t believe we were going to get anything.
Hannah: We went looking around and made an offer on two places. They were both two bedrooms and on the smaller side. And then we reached out to Sophie and asked, ‘Could we increase our budget a little bit more?’ Because I think that third bedroom is going to be important. We have a boy and a girl and we know they’re not going to want to share a room for much longer.
At the time, Isaac had also been promoted at his job. I’d gotten a raise at work. We ran it by Sophie, sent her our new numbers, and she came back to us within a few days with an increased budget. We were nervous about that, because we don’t want to be house poor. We don’t want to spend everything we earn on a mortgage.
So, then we told the real estate agent, increased our budget, and then a few more options came up, including the place we’re in now.
Sophie and our real estate agent were brilliant. I mean, they did everything for us—maybe 90% of the work. So it was pretty smooth.
So you increased your budget and then keep looking. What happened next?
Hannah: Over the span of a year, we looked at maybe 15 places. In this neighbourhood where we bought, we saw three or four. We made one offer and then it went for way over asking. We decided we liked the neighbourhood, and this place ticked all the boxes.
Isaac: When we got to the open house, there were a lot of people viewing it.
Hannah: Yes, we were nervous. The first thing I said when we walked into the lobby was: ‘We’re never going to get this place with the competition.’ So I was kind of frustrated. This was right at our maximum budget.
Right after we saw it, we went for coffee with our agent and told her we really liked it. The only hurdle was that the strata documents were not yet available. Our agent did not want us to make an offer until she reviewed all the strata notes. So she said we could make an offer and it would be contingent on the strata documents—as well as the home inspection and financing.
Isaac: Then our money [for the down payment] seemed like it was going to be delayed.
Hannah: The money from my grandparents had to be transferred from the US to my Canadian bank.
Isaac: Luckily, Sophie hooked us up with an overdraft straight away.
Hannah: It was down to the last minute, that was quite stressful.
Was that the most emotionally taxing part? Removing the subjects and securing the home?
Hannah: This was all happening while we were flying between here and Turkey, and then Turkey to Dubai and then Dubai to Uganda! We’re on these massive flights, downloading and reading documents.
Isaac: Sophie and our real estate agent were brilliant. I mean, they did everything for us—maybe 90% of the work. So it was pretty smooth.
How did your expectations of buying a home compare to reality?
Hannah: Our increase from our rent payments to our mortgage was significant. But at the same time, we’re fine. It’s just realizing where we need to cut back in terms of what we’re spending money on. I don’t feel like we’re in a position where we’re worse off financially than when we were paying rent. Before I kept seeing our rent as…you might as well just burn this money because it’s gone.
Looking back, is there anything that you would have done differently?
Isaac: Started earlier.
Hannah: See, I was right.
[Both laugh]
Hannah: Cost was the barrier at first. We thought we couldn’t afford anything. We never actually used a mortgage calculator to see what we could afford.
Isaac: I kept insisting on a townhouse.
Hannah: Well, at the very beginning, Isaac wanted a house. And I was like, ‘We can’t afford a house; it’s not going to happen.’ In the future, if we could afford a townhouse, that would be great, just to have a little more space and a little more privacy. But we’re not complaining.
Part of the decision was that we knew our kids would have to change schools, so we didn’t want to wait. We wanted to move when they were younger instead of older because it just gets harder.
What advice would you give to a first time homebuyer who’s just starting this process?
Isaac: I’m old school, I would say, ‘Guys, I need to introduce you to two people that will make your life easier.’ And I would introduce Sophie from Vancity and our real estate agent. That’s the best advice I can give you.
Hannah: I’d also encourage people to broaden their search. Like we said, look in different neighbourhoods. I’d probably start widening our scope of where to look earlier.
How does it feel to be homeowners?
Hannah: It’s been very exciting. To tell our kids: you own this place. It’s been a good move and I think it’s for the best. We don’t want to go back to renting.
If you’re thinking about buying your first home but don’t know where to start, a Vancity mortgage specialist can help you on your way with personalized advice. Drop into your local Vancity branch or connect with a mortgage specialist online to get the conversation started on how you can become a homeowner.
