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First-time Home Buyers

 

Buying your first home?

Buying your first home is an exciting time and a big decision. We know there is a lot to consider, and it can be hard to know where to start. Our experts are here to guide you through the process, while keeping your financial wellbeing at heart.

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Before You Buy

If you’re thinking about becoming a homeowner, here are some things to consider before taking the plunge:

Strong financial foundation

You have enough money for a down payment and closing costs, and you’re prepared to cover home maintenance expenses in addition to your usual expenses.

The right advice

Once you've made the decision to purchase a home, you'll need to work with your lender to determine the best mortgage for you and your situation.

Flexible schedule

Set yourself up for success with a flexible payment schedule (monthly, biweekly or weekly) that suits your life and budget.

Competitive rates

All mortgages are not created equal. When you choose Sunrise Credit Union, you can have confidence that no matter which mortgage you choose, your rate will always be competitive.

First Home Savings Account (FHSA)

Start saving for your first home tax-free with the First Home Savings Account. CLICK HERE to learn more.

Get the right
tools & advice.

Our experts are here to offer you guidance and trusted advice in this exciting time.

MEET AN ADVISOR
 

Fixed-Rate or Variable Rates

One of the first decisions for home buyers and mortgage shoppers is whether to select a fixed-rate or variable rate mortgage. No matter which you choose, Sunrise Credit Union's mortgage rates are always competitive. You'll also receive a payment schedule that suits your life and budget.

Fixed-Rate Mortgage

A fixed-rate is when the interest rate is set and does not change over time. The amount you pay monthly will stay the same the entire term of your loan. 


A fixed-rate mortgage can be a bit of a gamble, as rates may decrease, but it does provide cost certainty and making it easier to budget.

However, fixed rates tend to be slightly higher to counter the effect of rates rising in the future.

Variable Rate Mortgage

A variable rate mortgage sees the interest rate change throughout the term of your mortgage – sometimes for the good and sometimes for the bad.

Financial institutions base the rate change on an index, which is usually reflective of changes in the national economy or the rate of inflation. If that index increases, so does your rate and the amount of your payment.

If the index goes down, so does your rate and the amount of your payment. Therefore, a variable rate mortgage is more unpredictable and harder to budget for than a fixed-rate mortgage.

 

Frequently Asked Questions: Buying a House

  • Once you have found a house you would like to buy, it’s time to make an offer to the seller.  This is typically done through a real estate agent or a lawyer but can also be drafted yourself.  Your offer must include:
    • Your legal name, the name of the seller, and the address of the property
    • The amount you’re offering to pay (the purchase price) and the amount of your deposit
    • Any extra items you want included in the purchase such as window coverings
    • The date you want to take possession
    • A request for a current land survey, if applicable
    • The date the offer expires
    • Any other conditions that must be met before the contract is finalized. For example, financing approval or a satisfactory home inspection
  • Once you have an accepted offer to purchase, contact your financial institution to confirm mortgage details if you’ve been pre-approved or to begin the financing approval process.
  • A lawyer is required to purchase a house.  A lawyer will:
    • Obtain mortgage instructions from your financial institution
    • Confirm property taxes are current
    • Contact your insurance agent to confirm house insurance is in place
    • Prepare purchase and mortgage documents and meet with you to sign them
    • Obtain the purchase funds from you and your financial institution
    • Send the purchase funds to the seller's lawyer
    • Ensure the seller’s mortgage and any unwanted liens are removed from the title
    • Register the transfer and mortgage documents at the Land Titles Office
  • Closing costs vary depending on the price of the house and the requirements of your financial institution. Most house purchases involve the following closing costs:
    • Legal fees
    • Survey or title insurance fees
    • Land transfer tax
    • Land Titles Office fees
    • Tax certificate fee
  • A survey, also known as a building location certificate, is a sketch of the property prepared by a licensed surveyor that details the location of all buildings on the property.
  • A survey can confirm that the buildings and structures purchased are located within the property lines, and/or that it is free from encroachments by buildings or structures on adjoining properties.
  • Instead of getting a new survey you can obtain title insurance.  Title insurance is intended to cover you for any loss you suffer in the future as a result of not having obtained a new survey.
  • Title Insurance is generally less expensive than a survey.
  • Land transfer tax is collected by the government when transfers of land take place.  It is paid for by the buyer when the transfer is sent to the Land Titles Office.  Land transfer tax is included in the closing costs that the buyer pays to the lawyer typically at the time of signing documents.
  • The amount of the tax is based on the fair market value of the property.
$1 - $30,000                = 0.00%
$30,001 - $90,000       = 0.50%
$90,001 - $150,000     = 1.00%
$150,001- $200,000    = 1.50%
$200,000 +                  = 2.00%
  • Before the possession date, you should set up your utility accounts by contacting:
    • Manitoba Hydro
    • Municipal water department (if there is municipal water service)
  • You should arrange your house insurance well in advance of the possession date, but the policy does not have to be in effect until the actual date of possession.
  • Your financial institution will require confirmation that they have been listed as first loss payable on your house insurance policy.
  • If more than one person is to be the owner, you should consider whether you wish to take title as “joint tenants” or as “tenants-in-common,” the main difference being what happens to the property upon death of either co-owner.
  • As joint tenants, when one of you dies, the survivor is automatically entitled to ownership of the entire property.
  • As tenants-in-common, the survivor shares the property with the deceased person’s heirs.
  • A property tax adjustment is either added to the purchase price or deducted from the purchase price, depending on whether the possession date is before or after the property tax due date. This is calculated by and paid to the appropriate lawyer.
  • If the possession date is before the date the taxes are due in your municipality, a tax adjustment is usually deducted from the purchase price. It is calculated as:

(Net taxes/365 days) x (# of days in the year before possession date)

For example: February 1 is the possession date
January 1 to February 1 is 31 days
Net taxes for year are $1,200.00
($1,200.00/365) x 31 = $101.92

 

  • If the possession date is after the date the taxes are due in your municipality, a tax adjustment is usually added to the purchase price. The tax adjustment is calculated as:

(Net taxes/365 days) x (# of days in the year including and after possession date)

For example: December 1 is the possession date
December 1 to December 31 = 31 days
Net taxes for year are $1,200
($1,200.00/365) x 31 = $101.92