This isn’t just a purchase; it’s a leap into independence, a chance to carve out a space that’s all yours, and a foundation for your future. The journey may seem overwhelming at times, but with the right guidance and a few key steps, your dream of homeownership is closer than you think. Whether you’re excited, nervous, or a bit of both, you’re not alone in this—let’s make this milestone a rewarding and unforgettable experience!
We offer free First-Time Home Buyer Consultations
As a first-time home buyer, you may be eligible to buy a home with as little as a 5% down payment. Keep in mind, however:
Less than 20% Down Payment: If your down payment is under 20%, you’ll be required to get mortgage default insurance. This insurance protects lenders and allows you to get a mortgage with less equity upfront.
20% or More Down Payment: With a 20% or higher down payment, you can avoid mortgage insurance, potentially lowering your monthly payments.
Additionally, Canada offers additional government incentives to help first-time buyers. Programs like the First Home Savings Account (FHSA) allow you to save up to $8,000 annually (up to a $40,000 lifetime max) tax-free toward your first home. Find more information at First Home Savings Account (FHSA) .
No Realtor Fees: When buying a home, you usually won’t have to worry about paying any realtor fees. Instead, these commissions typically come out of the total sale price, which means it’s the seller who ends up covering them. At closing, the seller’s lawyer will handle dividing up the commission, so it’s a seamless process for both sides. This setup allows you, as the buyer, to focus on your purchase without having to budget for realtor fees directly.
Location and Resale Value: Choosing the right neighborhood is essential. Think about future resale potential and look for areas with amenities, low crime rates, and good schools.
Condo Document Reviews: If considering a condo, review the condo documents carefully. These documents outline the building’s finances, rules, and future maintenance plans, providing insight into the property’s long-term stability. Do note that there is a fee associated with this if you decide to get it done professionally.
HOA and Condo Fees: Condos and homes in certain communities may require monthly fees for amenities, maintenance, or community events. Check what these fees cover to understand the value they provide.
Closing Costs: Budget an additional 1.5%-4% of the home’s purchase price for closing costs, which may include inspections, appraisals, and more.
Legal Representation: You’ll need a real estate lawyer to finalize the transaction, review documents, and handle funds. They play a vital role in ensuring a smooth closing.
Utilities, Property Taxes, and Insurance: Keep in mind the monthly expenses that come with homeownership, including utilities, property taxes, and home insurance.
You can buy a home with as little as 5% of the price of the home. A bigger down payment would factor into your monthly mortgage payments. Please speak to your preferred mortgage specialist for more details and clarification or visit https://www.canada.ca/en/financial-consumer-agency/services/mortgages/down-payment.html to learn more.
There is no correct answer for this as it is all down to personal preference. We would recommend for you to shop around for the best rates.
Buying a home and settling down really depends on your lifestyle. As you continue to rent, the money goes towards a landlord and at the end of the day, essentially not build any equity for yourself. In terms of buying a home and paying a mortgage, you pay down the house, which in turn gains you equity. We like to think of it like savings in a bank. Eventually, depending what the market does, it can also prove to be a great way to make money once you go to sell if you had bought the home at a lower cost.
In Alberta, the current industry standard is that the buyer does not have to pay their realtor! The sale of the home by the seller settles all commission fees regarding Real Estate Agents. However, there are a couple items that go unspoken when purchasing a home. Costs that you can expect are fees regarding property inspections, condo document review (if you’re purchasing a condo/townhouse), as well as lawyer fees.
Use Dream Homes Calgary! Your real estate agent needs to be well informed and educated about current market conditions, have excellent negotiating skills, access to off-market or pre-market listings, identifying red flags, and more.
The turn around time for buying a home can occur very quickly, with standard being about a month’s time. Not including the time of finding a home that is the fit for you, once an offer is drawn up and accepted, it comes down to how fast conditions can be removed such as financing and property inspections. For financing, mortgage specialists tend to ask for 10 business days, and from there, it’s just more paperwork for lawyers and other parties involved.
An offer rejected has no consequences other than the fact that specific offer will not acquire you the home. Your trusted real estate agent would then give recommendations about what needs to change in the offer such as conditions or even adding more to the offered price. If nothing is can be done, we return to the search!
A deposit is generally given within 3 days of an offer accepted. A deposit forms part of your down payment which will contribute to the total price of the home. The deposit is completely refundable if conditions such as financing or property inspection are not waived. Once conditions are waived, and the deal falls through, if it’s from the side of the buyer, the deposit is forfeited and legal actions may ensue depending on the situation.
We always say, consider your future plans. If you need to move around a lot for work or for personal reasons, it may not be the most beneficial idea to purchase a home.
Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS® System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.
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