CVCU is here to help you save for your first home. 

Who can be considered a first-time home buyer? 

You are considered a first-time home buyer if, in the four-year period prior to your home purchase, you did not occupy a home that you owned, or one that your current spouse or common-law partner owned. 

Saving for your down payment: What are your options? 

• Your down payment can be as little as 5%. 
• Cash: you must disclose the source of funds (accrued savings, sales of an asset, inheritance, etc.) 
• Non-repayable financial gift 
• Borrowed funds, such an as line of credit, may be considered.  

• Home Buyers’ Plan (HBP) to withdraw funds from your RRSPs 

• Withdraw money from your RRSP to buy or build a qualifying home for yourself or a related person with a disability. 
• A maximum of $35,000 can be withdrawn. 
• You must pay back the withdrawn funds within a 15-year period.  
• To be eligible, you must be: a first-time home buyer; a Canadian resident; have a valid Social Insurance Number; 18 years or older 

• First Home Savings Account (FHSA) 

• Invest your money, grow it tax-free, withdraw when you buy your first home. 
• Qualified withdrawals to buy a home are not taxed. 
• Contributions to your FHSA can be used as deductions against your income, possibly lowering the amount of income tax you pay. 
• Investment earnings are not taxed.  

• Your FHSA can stay open for 15 years or until the end of the year you turn 71, or at the end of the year after your withdrawal – whatever comes first. 
• If you don’t buy a home, the money can be transferred to an RRSP or RRIF without paying tax. 
• Contribute up to $8,000 to your FHSA each year up to a lifetime contribution limit of $40,000. 
• Once your FHSA is opened, you can carry forward up to $8,000 per year in unused contributions, subject to the lifetime limit. 
• To be eligible, you must be: a Canadian resident; have a valid Social Insurance Number; 18 years or older; and you are planning to buy your first home 

Your First Mortgage 

• An open or closed mortgage refers to whether there would be a penalty for paying off the mortgage early. 
• Length of term refers to how long the interest rate is locked in.  
• Amortization refers to the number of years it will take to repay your mortgage. 
• Insured vs conventional mortgage is determined by the amount of the down payment. 

• Life, disability, critical illness and loss of employment insurance are available. 
• Payments can be monthly, biweekly or weekly. 
• A payment plan for property taxes should be set up for budgeting purposes. 
• Heat and taxes are included in the qualifying calculation for your mortgage. Taxes vary whether the home is in Area A or within Town limits. 
• Borrowers are required to obtain fire insurance. The insurance company may require upgrades that weren’t planned. Some areas outside of fire protection have higher insurance costs.  

• It is possible to apply for renovation funds as a ‘purchase + improvements’ loan. 
• Additional expenses to consider: 

• Legal fees 
• Prorated property taxes 
• Property transfer tax (if you are not a first-time home buyer) 

• Cost to transfer utilities 
• Appraisal fees 
• Possible inspection fee 

CVCU is ready to help you. 

If you’d like to learn more, if you are ready to start saving for a down payment, or if you are ready to apply for a mortgage, please contact one of our team members: 

Tawnia Jobin tawnia.jobin@cvcu.bc.ca 

Bonny MacLeod bonny.macleod@cvcu.bc.ca