House Hunting for Defence families
By SISIP Financial
Buying a home is one of the biggest financial decisions most people make. For Defence team members and their families, it comes with an extra layer of complexity: postings, uncontrollable timelines, and uncertainty around settling into a new community. However, this doesn’t mean owning a home is out of reach.
Understand the Timing of Making a Purchase
If another posting could be on the horizon, renting might offer better flexibility and limit future stress of a resale. For families who expect to stay for several years, buying could make more sense.
Look Beyond the House Itself
While it can be easy to become absorbed in a house’s features, the neighbourhood and community lifestyle will shape daily life just as much. Consider commute times, access to services, and nearby education and childcare options.
Know What You Can Afford
A bank can sometimes approve more than what can be comfortably afforded; while approval is based on income and debt ratios, it does not reflect a family’s actual monthly expenses (such as groceries, childcare, or car payments). Take time to build a realistic budget based on what is sustainable month to month.
Build a Strategic Down Payment
A First Home Savings Account (FHSA) and an RRSP Home Buyers’ Plan are both accounts that can help fund a down payment or supplement savings. Used together, these programs can meaningfully accelerate your timeline.
Take Advantage of Military Banking Benefits
BMO is the official bank of the Canadian Defence community; as such, eligible Canadian Armed Forces (CAF) members can receive employee discounts on mortgage options and added flexibility to break a mortgage without penalty when posted through the CAF Relocation Directive.
Understand the Cost of Ownership
Importantly, the purchase price of a house is only part of the picture. Legal fees, moving bills, furniture, upgrades, renovations, and other ongoing costs should also be taken into account. Additionally, Defence families can take advantage of CANEX for furniture, goods, and appliances, as well as the No Interest Credit Plan (NICP) to spread the cost of certain purchases over time without paying interest.
Talk It Through Before Committing
A SISIP advisor is qualified and able to provide financial aid when it comes to all the financial decisions, analyses, and factors that affect the purchase of a house. An advisor can help preview budgets, reveal unknown costs, support strategic down payments and account management, prepare for a future move, discuss the purchase of a house alongside other financial priorities, and provide additional guidance and support.
