First-Time Home Buyer

Buying your first home is a very exciting time but it can also seem overwhelming. At Westoba, we can simplify the process and work with you to help make your largest financial decision the right one! Before you start looking for your first home, it’s important to know what you can afford.

Down Payment

To purchase your first home, you are required to have at least 5% of the purchase price available to use as your down payment. If you have less than 20% for a down payment, your mortgage is considered high-ratio and you will require mortgage default insurance. The premium paid for this insurance can be added to your total mortgage amount. We work with two different partners to offer you high-ratio mortgage options:

• Canada Mortgage and Housing Corporation | CMHC
• Sagen (formerly Genworth Canada)

Our Financial Consultants can go over the down payment and premium options with you to ensure you are making the right investment decision for you.

RRSP Down Payments

The Home Buyers’ Plan is a Government program that allows first-time home buyers to use up to $35,000 of their RRSPs towards a down payment on their home purchase. Things to consider:

• The funds must be paid back to your RRSP within 15 years, starting the second year after you make the withdrawal/home purchase
• There are eligibility requirements and qualifications
• Read more here: What is the Home Buyers’ Plan (HBP)? – Canada.ca

Costs

Great work on saving for your down payment! There are some additional costs associated with buying your first home. Costs to keep in mind:

1. Mortgage default insurance (discussed above)

2. Closing costs

• Land transfer tax
• Legal fees
• Property tax adjustment
• Interest adjustment
• Home Inspection

3. Moving/Cleaning Costs

4. Furniture, appliances, décor (all of the things that make a house a home!)

5. Ongoing costs

• Property tax
• Home Insurance
• Utilities
• Maintenance/repairs