If you are considering purchasing your first home, you likely have many questions. What home can I afford? How can I get approved for a mortgage? What type of mortgage is best for me?  

With so much information out there, it can be hard to know where to start. That is why we asked our team to share their top mortgage tips for anyone beginning the journey toward homeownership. Even if buying a house is still a few years away, it isn’t too early to start setting up your finances so that the process will be smoother when the time comes.

Here are our staff’s best mortgage tips:  

Establish Credit & Plan Early 
“Prior to seeking mortgage financing, you should have some credit already established. One of the best ways to begin to establish credit, is with a small limit on a credit card. Make a couple of purchases with it each month but pay off the full balance by the due date so you are paying no interest. This will show that you can handle credit.”  J.K., Financial Service Officer.

"My best advice for first-time homebuyers is to plan early. Start saving for your down payment, keep monthly debts low as they affect how much you can borrow and maintain a stable job to strengthen your approval." M.G., Financial Service Officer. 

Get Pre-Approved for a Mortgage 

“If you are planning to purchase a home, getting a pre-approval should be your first step. This allows you to know the maximum amount you could be approved for and will narrow your search to homes that are within your budget.”  M.P., Financial Service Officer.

To get pre-approved for a mortgage, book an appointment with an FSO at Provincial Credit Union. They will look at things like your income and employment, downpayment, and current debts. Be sure to bring your ID, proof of address, proof of employment and income, and social insurance number, to the meeting.  

Save for a downpayment 
“Other advice I like to give our members when it comes to applying for a mortgage is saving for a down payment…A down payment is required when looking for a mortgage to build or purchase a home.” J.K., Financial Service Officer.

“Another good product for first-time homebuyers to use when saving for a down payment is an First Home Savings Account (FHSA) account. This will allow them to put a maximum of $8,000 annually, and up to a maximum of $40,000 over 15 years into their FHSA. The contributions made to FHSA's are tax deductible which means they reduce taxable income and qualifying withdrawals are not taxed. This means that homebuyers can grow their money tax free all while saving for their first home!” M.P., Financial Service Officer. 

Remember, your down payment plays a large role in the mortgage amount you can expect to get pre-approved for. Down payments typically start at 5% of the purchase price of a home. The more you can save to put towards your down payment, the more you will save in the long run.    

Plan Ahead 

Plan to avoid making large purchases or acquiring new debt during the mortgage process.  

“Don’t make any major purchases before you plan to buy a home. Having a large payment and a large amount of money owed right before attempting to get a mortgage can decrease your chances of getting approved for the amount that you could be looking for. Keep in mind there are many other cost to owning a home besides just the mortgage payment!” M.P., Financial Service Officer. 

Utilize Mortgage Calculator Tools

When it comes to your mortgage, factors like your down payment, amortization period, and payment frequency all play an important role. A larger down payment can lower your monthly mortgage costs, while the length of your amortization period affects how quickly you pay off your loan. Choosing bi-weekly payments instead of monthly can also change your overall mortgage. Use our mortgage calculator to compare mortgage scenarios and get an understanding of your mortgage costs.

If you have more questions about getting a mortgage, book an appointment with one of our Financial Service Officers by texting 1-855-728-2211 or calling your nearest branch.