First Time Buyers

Buying Your First Home

There’s no denying the excitement and anticipation of searching for a home you can call your own. But your financial readiness will go a long way toward determining your home-buying experience.

Are you ready to buy?

Figuring out what you can afford starts with looking at your cash flow. First, deduct what you spend on everyday items like groceries and transportation from your income. Next, determine your housing costs, including mortgage, utilities and property taxes, as well as your existing debt payments.

Remember to factor in the one-time costs that come with buying a home. Legal fees and other closing costs can add up to as much as 4% of the selling price, according to the Canadian Mortgage and Housing Corporation. Don’t forget what you may have to spend on moving or renovations.

Try our mortgage calculator to get a general idea of what you’ll be able to afford at your current income.

And don’t worry - your SASCU Credit Union mortgage specialist will closely review these numbers to help you determine how much you can spend on a home. 

Determine your down payment.

While you can get away with as little as 5% down when financing a home, the larger your down payment, the less interest you’ll pay over time. Plus, if your down payment is less than 20% of the home’s sale price, you’ll have to pay for extra insurance.

To fund a more generous down payment you can borrow from your RRSP using the Home Buyers’ Plan. Under the plan, each individual can withdraw up to $25,000 tax-free from their RRSP. However, you must return the borrowed funds to your RRSP within 15 years.

Pre-approval helps.

Getting pre-approved for a mortgage tells realtors and sellers you’re a qualified purchaser. It lets you shop and negotiate with confidence, knowing how much you can borrow, so you won’t waste time looking at homes out of your price range.

Let’s talk.

At SASCU Credit Union, we take pride in helping our members get into a home they’ll love. For smart advice and flexible mortgage options to fit your lifestyle, make an appointment with a mortgage specialist today.

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Or call us at 250.832.8011

What to Bring to Your First Appointment

When you come in to meet with one of our Financial Service Representatives, there are a few documents you will need to bring with you:

1. Income

  • Previous year's income tax Notice of Assessment 
  • Two most recent paystubs
  • Are you self-employed? Please bring the previous two year's of income and business records.

2. Property

  • Do you have a property in mind? Bring all of the information that you have for the property, including the MLS number if the property has been listed.
  • Have you placed an offer? Bring the sale agreement.

3. Co-Signers

  • Are you purchasing the property yourself or with another person? They will need to bring their income records as well.
  • Is the co-signer a member of SASCU Credit Union? If not, they will need to bring their ID and Social Insurance Number.

The first appointment will enable your Financial Service Representative to discover your needs and to identify how we can best help you in making your first home purchase stress-free!

 

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