Calgary First Time Buyers Need to Understand How to Buy a Home
Get started buying your first Calgary home:
1st Time Buyer Check List For 2019 - Are You Ready To Buy?
Breaking into Calgary Real Estate Market in 2019
Costs to Buy a Home - What are they?
Down Payment (minimum): 5% of Home Purchase Price (Investment in Property)
No GST required on resale home
Lawyer Fees are typically: $800 to $1,400
Home Inspection Cost: $450 to $600
Condo Document Review: typically $425 to $450 (if buying Condo)
Mortgage Fees can be $200 to $400
Costs for New Home: $10,000 to $50,000 plus.
There could be costs for blinds, drapes, landscaping, deck, garage, etc. Don't forget GST on a new house!
Moving costs for Furniture & Buyers possessions: this will vary and depends on distance & type of service.
RRSP for Down Payment - First Time Home Buyer's Plan (Tax Credit)
Yes you can use your RRSP for a down payment on your first home. The Home Buyer's Plan is a Canadian Federal Program that lets first time buyers borrow funds from your Registered Retirement Savings Plan (RRSP) to purchase your first home. You and your spouse can each withdraw up to $25,000 from your individual RRSP to put towards a down payment on a home. Upto $50,000 could be used for down payment. Contact us and we will send you a copy of Home Buyer's Plan, at 403 608 5682 or email@example.com
Zero Downpayment Option: Buyers with very good credit & stable income do have the option of a zero down payment method.
Please contact me for details.
What happens if you don't have RRSP or don't qualify for zero down payment? Borrow (Gift) from family or save money. Speak to your Mortgage Broker or Bank.
Economic conditions continue to favour Buyers in 2019. What Do Buyers Need to Know.
Homes sales down compared to same time last year. As oversupply continues in Calgary’s housing market, December prices eased by one per cent compared to last month and are over three per cent below last December. “Persistent weakness in the job market and changes in the lending market impacted sales activity in the resale market this year,” said CREB® chief economist Ann-Marie Lurie. “This contributed to elevated supply in the resale market, resulting in price declines.” December sales totalled 794 units, a 21 per cent decline over the previous year. Overall year-to-date sales in the city totalled 16,144 units. This is a 14 per cent decline over 2017 and nearly 20 per cent below long-term averages.
Mortgage pre-approval is required to make an Offer on a Home, and for your REALTOR® to show Homes for Sale. Your REALTOR® will need bank agent name & contact telephone number to confirm. Need help? We can have you pre-approved in 48 hours, call 403 608 5682. Please ensure you are pre-approved before we start showing homes for sale. Buyers often want to go and see homes before they are pre-approved, this causes problems for the REALTOR® since he is not sure what the Buyer is qualified for, or even if they will be pre-approved at all. This can waste time for the Buyer and REALTOR®. Buyers need to know that their financial status, income, credit score and down payment meet the banks mortgage requirements.
Deposit cheque is required at time of Offer, usually $5,000 to $10,000. Deposit is returned to the Buyer if Buyers Conditions are not met.
Minimum Down payment is usually 5% or more. If you are self employed or on a work permit you will need more than 5%, speak to your mortgage broker or bank. Down payment is required before Possession day. The deposit goes towards the down payment. If you want to avoid CMHC Insurance a 20% down payment or more will be required. Did you know you can use your RRSP as a down payment on your first home?
Purchase Price of Home is negotiable.
Seller and Buyer need to be motivated and willing to negotiate a deal that is fair to both parties. What are comparable homes selling for in community? What is Calgary housing market doing? Ask your REALTOR®, "What is the average drop for List to Sold price in area you plan to buy in?"
Offer (Purchase Contract) has to be prepared in writing by the Buyers REALTOR®. Work with the Buyers REALTOR® who represents the Buyer, and has no conflict of interest, and will negotiate the best deal & price for the Buyer, & ensures the Purchase Contract is written with Buyers interests as a top priority. Buyers who work with the Listing REALTOR® can be dissappointed and the Buyers needs & requirements can be missing from the Offer.
Possession Date & when do you want to move in?
Does the Buyer have to terminate their rental agreement?
Sellers are generally wanting 1 to 2 months or less for possession date.
Home Inspection is highly recommended. Buyers need to have key areas of the property checked out, including: roof, furnace, property drainage, foundation, exterior, insulation, and basement condition.
- Buyers Conditions are recommended in the Offer to protect the Buyer:
Finance Condition for mortgage approval
Home Inspection Condition
Condo Review Condition (only if buying condo)
5 to 10 days is usually allowed for Buyers to meet conditions.
12. Status in Canada: Canadian Citizen or Permanent Resident no issues at all.
Work permit Status: may cause issues for Buyer, need to speak to mortgage agent.
13. Income of the Buyer. Does the Buyer have a full time job with sufficient income?
Please speak to your Bank or Mortgage Broker for mortgage pre-approval.
assist you with buying your home. It is often your Biggest investment!
This site is MLS® compatible and has property for sale from many of the Real Estate Companies in Calgary,
Example : Deposit & Down Payment Breakdown for Home Purchase Price $400,000
Deposit: $10,000 required at time of Offer (goes towards the down payment)
Down Payment: $10,000 plus $10,000 Total: $20,000 (5% of purchase price)
Mortgage would be: $380,000, CMHC Insurance is needed speak to your Mortgage Broker.
Note the deposit is negotiable and may vary. The down payment of 5% is not negotiable and is required by all Canadian Banks. CMHS insurance can be avoided with larger down payment.
Meet us at any CIR REALTY Office and we will give you a Calgary Homes Buyers Guide Package. The Guide breaks down the process of buying and provides details on Home Inspections, negotiating the Best Price for the Buyer, low mortgage rates, and more. Call for appointment at 403 608 5682 or Contact CIR REALTY Today for More Information!
We have four CIR REALTY Offices throughout this City of Calgary, so we can meet you at the most convenient location for you. We look forward to meeting you and working with you.