First Time Home Buyers

Buying your first home

House hunting for the very first time? You’re probably excited but also a little nervous. Rest easy - Affinity advisors are here to help you every step of the way.

Take the stress out of buying a home by following these simple steps to homeownership.

Step 1: How much can I afford?

What you want and what you can afford aren’t always the same thing.

Learn what you qualify for versus what you can afford.
Use our mortgage calculator to figure out what you can afford and determine your estimated monthly payments. Compare scenarios to help pay off your mortgage faster.

Step 2: Get pre-approved

Start your pre-approval process online today! It will help you shop in your price range and speed up the process once you're ready to buy.

Loan Preapproval

Step 3: Select your mortgage

You've got options!

Straight Rate: your interest rate stays steady.
CU Flex: make extra payments anytime.
Variable: it follows interest rates as they change.

Can’t decide? Find out which mortgage rate is right for you.

Find more answers on buying a home.

How much can I afford?

Everybody’s a little different so there isn’t a one-size-fits-all answer. The best way to gauge what you can afford is to look at what you’re managing right now. Add up all your housing costs – rent, utilities, insurance – and compare that against what you’ll pay for the mortgage, taxes, insurance and utilities on your new home. It’s a good idea to ask the seller how much they pay in taxes and utilities so you’ll know exactly what you’ll be faced with. If the costs of the home you’re considering are a lot higher, affordability could be an issue.

Home ownership means you’re responsible for maintenance as well as repairs. When you’re thinking about how much your new home will cost each month, include contributions to a savings account. That way, if your furnace conks out one day you’ll have the money saved to fix or replace it.

Our mortgage calculator is a great tool to help you understand how much you’re qualified to borrow. The best way to know how much you’ll have to spend is to call our Contact Centre at 1.866.863.6237 for advice on getting pre-approved.

There’s a difference between what we’ll lend you and how much you can afford. It’s your decision how much you can afford and we’ll make sure you’re fully aware of how much you’re qualified to borrow.

What's a mortgage stress test

A mortgage is a long-term commitment. Your mortgage could last 25 years, and in that time, interest rates are going to rise and fall. If you buy your home when interest rates are low, your mortgage payments will be lower because you’re paying less in interest. That’s great for you, but it can lead to trouble if interest rates go back up. If it was a stretch to pay your mortgage when interest rates were low, it’s going to be a big challenge if rates increase.

This is what stress tests are designed to prevent. Even if you end up getting a lower rate, with a stress test you’re forced to qualify at a higher rate to show you can afford your home in case rates increase. This ensures that you’re in a good position to pay your mortgage whether rates are high or low.

Where can new Canadians learn more about buying a home?

Moving to a new country is a huge change. If you’re new to Canada, you’ve probably been adjusting to a ton of new things, and housing might be one of them. The Canada Mortgage and Housing Corporation has some great information available for new Canadians who have questions about buying or renting a home, getting a mortgage and just about anything else to do with housing. The information is available in eight different languages.

We’re also here to help. Call our Contact Centre at 1.866.863.6237 and we’ll get you the information you need.

What should I bring when I apply for a mortgage?

There are three main things you’ll need to have with you when you’re applying for a loan.

Two sources of income verification
1. If you’re a salaried employee, this would be your last two paystubs, most recent T4, notice of assessment (NOA), a letter from your employer, or last year’s year-end paystub.
2. If you’re self-employed or a business owner, you’ll need to supply copies of your T1 General (income tax returns and Notice of Assessment), Corporate Registry Search (we can pull this for you) and T2125 (Statement of Business or Professional Activities) for the past three years. If your business is a corporation or partnership, you're also required to provide your financial statements for the last three years.
A full list of your assets – what you own.
A full list of your liabilities – what you owe.

Every loan is unique so there may be times when we need more information. We’ll let you know if that’s the case.

Call our Contact Centre at 1.866.863.6237 to get your loan application started or get the process rolling online.

We're building our first home — do you offer construction mortgages?

Yes, we sure do! If you've found the perfect spot and can picture building your dream home, our Construction Mortgage could help you get started. With all the benefits it has to offer, you won't want to wait to start construction.

These benefits include:

Flexible down payment options - you can qualify with as little as a 5% down payment
ake interest-only payments during the time of construction. After your home is built, switch to blended payments.
Guarantee a fixed rate at the project onset to rate-lock an interest rate for when construction is completed.

Shopping around for a ready-to-move (RTM) home? We have a mortgage for you too! Give us a call at 866.863.6237.

If what you want to know isn't here, give us a call or book an appointment online. We'd be happy to talk more about the steps to buying your home.