First-time buyers comprised 30% to 35% of the new home buying market last year, taking advantage of low mortgage rates and builder price reductions and incentives.

With the announcement by the Bank of Canada last week it is holding its key overnight rate at 0.25%, the favourable buying environment should stay in effect for several months at least.

“We have a great fixed, five-year rate right now at 3.99%,” says Gar y Seigle, regional manager in Calgary for national mortgage broker Invis.

“ The variable is prime minus 20, which e quals 2.05%, but that, in all likelihood, is going to go up.”

Choosing between the variable or fixed rate is a matter of your financial situation and your tolerance for risk.

A fixed rate means your monthly payments are identical and budgeting is easier — with a variable, monthly payments can change each month, but the latter is a money saver, says Seigle.

“For people looking to save as much money as possible, there are several ways to attack it,” he says.

“One is to take the lower rate and make higher monthly payments.”

Another option is to make bi-weekly rather than monthly payments, which pays down the principal faster and can result in savings in the thousands of dollars.

And, if variable rates look as if they might soar, the owner can go into a fixed rate.

“Variables are convertible and you can pretty much convert whenever you want,” says Seigle.

“It must be for the term that is being renamed so if there are three years left on the term, to convert, the new term would have to be 3½ to four years.”

There is more security in a fixed rate mortgage, which most Canadians choose.

“There’s no question we’re seeing a lot of people gravitating more towards fixed,” says Seigle.

“And it is a good opportunity — when was last time the rate was below 4% for a five-year term. Obviously it doesn’t happen very often and that reality is definitely worth considering.”

First-timers, while possibly enjoying advice from friends and family about the home buying process, should talk to a professional, who is better positioned to guide them through it than relatives and acquaintances.

The process is complicated and can be confusing.

“A lot of first-timers don’t know what questions to ask and a professional can cover all of it,” says Seigle.

“It might take awhile to find a house right away and they need to stay in touch through the entire process.

“Our job isn’t a one-shot job.”