Looking to buy your first home? How exciting! Buying your first home is a big milestone. While it can be incredibly gratifying to buy your first home, it is also a big investment with a large amount of your money on the line. Buying a home is always an expensive affair, but there are ways you can actually save a hefty lump sum too.
If you’re wondering how to save thousands on your first home, you’ve come to the right place. At Innovation, we’re always looking for ways to serve our members better. We’re passionate about Responsible Banking™, which involves helping you save money, wherever possible. It stands to follow then; we’re also going to help you save as much as you can while making a huge purchase like your first home. So, what’s the secret to saving thousands on your first home? The answer lies in an old Beatles song - with a little help from your friends. We’ll explain.
Save thousands on your first home with an Innovation mortgage
How can we help you save? By offering you the best in financial support. That means giving you a mortgage or home loan with great terms and exceptional service – because whether it’s your first home or fifth, you’re going to have questions.
Let’s take a look at what an Innovation mortgage offers:
At Innovation, we’re very happy to report that our mortgage interest rates have always been very competitive. It’s a source of pride for us to be able to offer incredibly favourable and attractive interest rates on mortgages to our members. We invite you to always check out our special 5-year fixed-term mortgage rate. It’s typically the lowest interest rate we offer, so you get the most bang for your buck. It’s also the mortgage that can come with some fantastic cashback options which we’ll discuss later.
Flexible payment options
Apart from a great rate, another wonderful thing about taking out a mortgage from Innovation is that you can enjoy flexible payment options. When payment options are flexible, you will be able to pay your mortgage down quicker. Usually, you would pay your mortgage over a period of years. When you make your mortgage payments, a larger portion of the payment amount goes towards paying your interest. A smaller portion goes towards the principal amount. As you keep making payments, the portion you pay towards interest keeps reducing, while the portion towards your principle keeps increasing. Keep in mind that the interest is charged on the principal amount. As more of your principal mortgage amount gets paid, the interest amount decreases. With flexible payment options, you can pay down your mortgage by making a lump sum payment when you come into some funds. Flexible payment options may also include increasing the number of mortgage payments you make. All of this would mean you would end up paying less as interest, potentially saving thousands on your first home.
Options to avoid interest hikes and penalties
Along with special mortgage interest rates and flexible payment options, Innovation also offers you options to avoid interest hikes and penalties. How will this help you to save thousands on your first home? Often it is these unexpected or unknown costs that will trip you up. When you take out a mortgage from Innovation, you can choose to opt for a fixed interest rate. A fixed rate is an interest rate that stays constant throughout your mortgage loan term. It will never spike or reduce. Considering our 5-year fixed mortgage already offers a low rate, opting for a fixed interest rate will ensure that you never have to pay more than you expect. To make it clearer, if you had to go for the other option — that is, a variable interest rate — you would run the risk of paying more on your mortgage if the rate were to rise. The benefit of a variable interest rate is that if the rate drops, then you will not have to pay as much. However, if the rate rises, you have no option but to pay more. When you’re already starting off with a low rate, a fixed interest rate is the better option when you buy your first home. Especially when compared to how much you could potentially have to shell out if you had no option but to go with a variable interest rate.
Affordable protection plans
If the COVID-19 pandemic has taught us anything, it is that life can be uncertain. Tough times can come without warning and leave us struggling to make ends meet. During such situations, it may seem impossible to keep up with your mortgage payments. However, if you miss your mortgage payments, your bank or lending institution has every right to foreclose on your home. Of course, losing your home to foreclosure is something you would want to avoid at all costs. Getting mortgage insurance ensures you won’t ever have to face such a circumstance. Mortgage insurance will help you to make your mortgage payments when you are unable to make them. In fact, to get a favourable mortgage it is necessary to have mortgage insurance. At Innovation, we have some very affordable protection plans. Our mortgage insurance will not only save you when you are facing tough times but will save you money simply because they are so affordable. Since you need a protection plan or mortgage insurance for your first home anyway, by choosing Innovation, you will end up saving the money you would have had to spend on more costly mortgage insurance.
Cashback offers and Member Rewards
Yes, we’ve saved the best for last. You’ll already be making incredible savings on your first home when you choose Innovation for your mortgage. To bump up those savings even more, we’re giving first-time homebuyers up to $3,000 cashback* on their mortgage. That’s thousands you’ll save on your first home right there. Sure, we’ve got great mortgage interest rates, some wonderful flexible payment options, and affordable protection plans, but our $3,000 cashback offer guarantees you’ll instantly save a whopping three thousand dollars on your first home. So, what will you be spending it on?
Want more cash back? You got it! When you join Innovation, you automatically become a part of our Member Rewards loyalty program. Each quarter, we share our profits with every Innovation member in the form of cash dividends. How much you earn depends on the business you do with us, like having your mortgage with us. That means you will receive a cash dividend each quarter just by choosing Innovation for your first home needs. As you can see, getting a mortgage with us won’t just save you money, you will earn money too!
Bonus: Save thousands on your first home with the CMHC First-Time Home Buyer Incentive
The Government of Canada can also help you save money on your first home – thousands of dollars, actually. The Canada Mortgage and Housing Corporation (CMHC) has a special program for first-time homebuyers. If you are eligible for the program, the CMHC First-Time Home Buyer Incentive lets you borrow 5-10% of the purchase value of your property. That way, you can make a larger down payment, allowing you to take out a smaller mortgage.
We’d be happy to discuss the CMHC First-Time Home Buyer Incentive with you. For more details and eligibility, you can also visit their website.
What if I’m not a first-time home buyer?
You might already have a mortgage from another lender. Can you still save money on your mortgage if you transfer to Innovation? You bet! You’ll still enjoy our low mortgage rates and earn Member Rewards for banking with us. Plus, to help cover any transfer fees, we’ll give you up to $1,500 to help you cover the costs of transferring your mortgage to Innovation.
Ready to get your Innovation mortgage and save thousands on your first home? You can check out our Mortgage Application Checklist (pdf), speak to one of our mortgage experts, or apply online for your mortgage right now.
*Offer can end anytime without notice.