Blog

People fear what they don’t understand. For a first-time home-buyer, the decision to purchase a home can be nerve-wrecking. Between finding the perfect house, making sure it is a good investment and understanding the mortgage financing, it is no wonder that so many people are afraid to purchase their first home.

Here are steps to get you started on the journey of home ownership.
Before starting your house search, allow yourself to imagine what it will be like for a home-owner.
For most people, home ownership can be the most rewarding financial turning points in their lives. Picture living in a home with a fenced yard for the kids, a garage for your car, enough room for all of your furniture and in a quiet neighborhood.
One of the biggest obstacles to accomplish this dream is saving up for a down payment.
Banks recognize this dilemma and offer products with low down payment options. You can purchase a home with as little as five percent down payment because of default insured mortgages. Canadian banks are required by law to insure “high ratio” mortgages against default. “High ratio” refers to mortgages with less than a twenty percent down payment.
Default insurance is typically provided by companies such as Canada Mortgage and Housing Corporation (CMHC), Canada Guaranty (CGI), or Genworth Canada. Insurers provide a safety net for banks by assuming all the risk involved with mortgaging a property.
There are many ways to find or save for a down payment. Consider sources such as saving your tax refund, RRSP’s, a financial gift from a family member or take a second job (casual or part time) to save additional funds.
Contact a mortgage specialist and get pre-approved for a mortgage. This will not only give you an idea of how much of a down payment you will require, but will also tell you how much you are able to afford.
Your mortgage specialist will ask for documentation to confirm your employment, income, the source of your down payment and other aspects of your financial situation.
A pre-approval will let you know exactly how much you can spend on a home before you start your search with a real estate agent.
There is a special type of real estate agent called a buyer’s agent that will help you search for the perfect home.
A buyers agent will help you narrow down your property search and can disclose things to you about the seller (or the home) that they would not be able to do if they represented the seller. You do not pay their commission because the seller does.
The quickest and easiest way to get educated about the entire home buying process is to select a mortgage specialist and realtor who offer unbiased professional advice with your best interest in mind. A mortgage specialist’s job is to educate and advise you to make right decisions based on your unique situation.

Are you financially ready to buy a home? It may be a good idea to sit down and write a draft household budget. Get a sense of your current monthly expenses. A licensed mortgage broker or bank can also help you determine if you’re financially ready, but there are things you can think about on your own too:

Consider your down payment: A down payment is the part of the purchase price the buyer pays in cash rather than financing with a mortgage. Buyers typically need a minimum 5% of the purchase price as a down payment. You cannot borrow down payment funds, though a relative can provide you with a gift of a down payment. In that case, you’ll need a letter from your relative (“gift letter”) verifying the down payment funds are a gift and don’t need to be repaid. Other than any such gift funds, you must prove to the financial institution or lender that your down payment is from your own funds.

If your down payment will be less than 20% of the purchase price, you will need a high ratio mortgage and it has to be your primary residence (i.e. you can’t rent it out). Lenders require borrowers to obtain mortgage insurance for high ratio mortgage, since they can be riskier for financial institutions. The insurance will protect your lender in the event you default on the mortgage. If you need a high ratio mortgage, you need to include the cost of the mortgage insurance in the total mortgage amount. Your mortgage insurance premium will vary depending on the size of your down payment relative to the price of the property, but ranges from under 1% of the purchase price to more than 3%. A real estate professional, mortgage broker, or lender can calculate your exact premium, and some websites have calculators available for doing the math yourself. If your down payment is 20% of the purchase price or more, you do not require mortgage insurance.

Ensure you have deposit funds: You need to provide a deposit with your offer to purchase. Your real estate professional can advise you on the deposit amount, and your deposit funds are typically part of your down payment.

Budget for closing costs: Closing costs are separate from your deposit and down payment, and are typically due on possession date, which is the date when the real estate transaction is complete and the property is yours. Closing costs include lawyer fees, property tax adjustments, title insurance (if any), etc. It is a good idea to budget a couple thousand dollars on top of the purchase price as closing costs.

Remember that being approved for a mortgage of a certain amount doesn’t mean you have to spend that much. In fact, many experts believe you shouldn’t max out on the value of your home. You want to leave enough room in your budget in case you have unplanned expenses come up, interest rates rise in the future, or if there’s going to be a period of time when you’re off of work (sickness, parental leave, etc.), you’ll still be able to make your mortgage payments.

Get a sense of market conditions: News articles often refer to real estate market conditions. You may hear the terms buyer’s market, seller’s market, or balanced market. But what do those mean?

• buyer’s market – where property supply is strong and buyer demand is weak. In a buyer’s market, you’re more likely to hear that buyers think they received a good deal.
• seller’s market – where buyer demand is strong and property supply is weak. A buyer in a seller’s market may worry they’re paying too much for a property because they’re competing with other buyers for a limited supply of properties.
• balanced market – where demand from buyers is keeping pace with the supply of properties for sale.

Market conditions affect home prices. Sellers want to get as much for their property as they can and buyers want to pay as little as they can; the market conditions will dictate who has a stronger negotiating position.

Very private fully treed lot located less than 10 minutes to town. A lot of building sites and walkout potential. Located in the Muir Lake school district. Pavement right to your driveway. 6.75 acres of serenity can be yours!

You can find the link at realtor.ca below!

https://www.realtor.ca/Residential/Vacant-Land/17846384/2-54014-Rge-Rd-280-Rural-Parkland-County-Alberta-T7X3V4-None

Out of Subdivision!!! Very private and fully treed lot located less than 10 minutes to town. A lot of building sites and walkout potential. Located in the Muir Lake school district. Pavement right to your driveway. 2.74 acres of serenity can be yours!

You can find the link at realtor.ca below!

https://www.realtor.ca/Residential/Vacant-Land/17846383/1-54014-Rge-Rd-280-Rural-Parkland-County-Alberta-T7X3V4-None

Wow. A .46 acreage in a family friendly lake community within a 5 minute walk to the water. A lot to build your summer retreat or year round home that is perfect for the tranquility of life. This lot presently hosts a 5th Wheel Holiday Trailer, 750 gallon holding tank with a legal portable outhouse on it, a pump house to provide water to the Trailer from a small portable cistern. Trees are abundant, firewood galore, and wildlife visitors on a regular basis. An outdoor paradise. Power with a 60 amp service is already in use for this property. It is close to the water, towns close by and school just down the road, it works.

You can find the link at realtor.ca below!

https://www.realtor.ca/Residential/Vacant-Land/17841887/19-4224-RR545-Warwa-Estates-Rural-Lac-Ste-Anne-County-Alberta-T0E0L0-Warwa-Estate

Absolutely stunning! This 2997 square feet home boasts 5 bedrooms and 3.5 baths in the amazing community of Summerside. As you enter through the large foyer you will notice the high ceilings and charming finishes this home has, as well as the circular staircase which gives a grand element to this home. The kitchen is a chefs dream with glistening counter tops and a butlers pantry. You will love the family room with a great fireplace, which is excellent space for entertaining friends and family. There is also office space, perfect for working at home, and a large mudroom. Upstairs you will find a large master suite with a huge en-suite and laundry! There are 2 other bedrooms upstairs as well as a bonus room which can be converted to an extra bedroom if needed. Downstairs you will find a fully finished basement with 2 more bedrooms and another 4 piece bathroom. A must see home! This home also has a triple attached garage with heated flooring. Perfect large yard with plenty of space for a growing family.

You can find the link at realtor.ca below!

https://www.realtor.ca/Residential/Single-Family/17841103/2051-90-ST-SW-Edmonton-Alberta-T6X2C5-Summerside

This nearly brand new 2-storey in Stony Plain is just stunning! Built in 2014 this is a great place to call home! Large welcoming foyer when you walk in the front door. Very open floor plan with kitchen, dining and living room. The living room features hardwood floors and a gas fireplace. The kitchen has all stainless steel appliances, hardwood floors, granite countertops and a corner pantry. The dining area has plenty of space for family meals and doors to the deck. Move upstairs to the large bonus room. Tall ceilings and plenty of space for family movie night! The master suite is a great size with large walk in closet and a 4pc ensuite. The ensuite even features in floor heating for extra warmth on those cool mornings. The other 2 bedrooms are a great size for kids, guests or a home office. An additional 4pc bathroom rounds out upstairs. Main floor laundry is an added bonus. Basement is unfinished. Garage is 21×21 and fully insulated and dry walled. Central A/C and security system included!!

You can find the link at realtor.ca below!

https://www.realtor.ca/Residential/Single-Family/17830743/219-SILVERSTONE-CR-Stony-Plain-Alberta-T7Z0E8-Silverstone

Diamond Star Green Built Home located in Greenbury area beside Jubilee Park. This unique 3 story Dolce Vita “Lexington” floor plan provides an open main floor with kitchen that overlooks dining & living areas. There is a door off the dining to the massive pie shaped south facing back yard and deck with gas line for BBQ hook up. The upper level has 2 large “master suites” that each have walk in closets & 4pc en-suites and laundry room. Continue to the upper Master loft with vaulted ceilings large walk in closet and 6pc spa ensuite. The lower level is developed with family/entertainment room, den with adjacent room that is roughed in for additional future bathroom, storage & utility room. This home is green built and energy efficient from the LED lighting throughout, to the Envirosense high efficient (96%) hot water tank, high efficient (95%) 2 stage furnace, HRV system and energy star appliances. Steps to the Jubiliee Park to enjoy green space, parks & new spray park opening 2017!

You can find the link at realtor.ca below!

https://www.realtor.ca/Residential/Single-Family/17826478/25-GREENBURY-CR-Spruce-Grove-Alberta-T7X0L9-Greenbury

This great 1400 square feet plus bungalow has a fully finished basement with second kitchen set up for canning or large family gatherings. 3 Bedrooms upstairs with open kitchen area. Well maintained home has plenty of Storage space, Large Heated 28×36 square feet garage, Large deck area with Hot Tub Room. Built on 3 Acres the lot is fenced and usable for horses or family pets. 100 fruit trees have been planted, Saskatoon bushes and a large Garden are all set for Canning. Lots of space for storing Campers and Toys.

You can find the link at realtor.ca below!

https://www.realtor.ca/Residential/Single-Family/17821044/124-53123-RGE-RD-21-RD-Rural-Parkland-County-Alberta-T7Y2G9-Crystal-Meadows

Your offer has been accepted and you can’t wait to move in. But don’t break out the bubbly just yet. You have to close the deal. Your REALTOR® and lawyer will do most of the closing work, but here’s your checklist.

Immediately begin satisfying any conditions of the agreement that require action on your part. Your REALTOR® can fill out the documents stating that the conditions have been satisfied. Have your lawyer begin searching title to the property. This can take a while, so make sure you allow ample time.

Well before closing, get your homeowner’s insurance to be effective on your closing date. Your insurance broker will give you a ‘binder’ letter certifying that you’re covered. You can’t get a mortgage without this letter!

Contact your lender and have them finalize your mortgage documents. Have your lawyer review them before you sign. Your lawyer will transfer essential utilities like hydro and water, but you’ll have to make sure telephone and cable companies switch their services to your name.

If you rent, give notice to your landlord or sublease your apartment.

Begin planning your big move! Where are those cardboard boxes?

Send out your change of address information and fill out a card at the post office.

Contact the Ministry of Transport about changing your driver’s licenses.

Walk through your new home one more time with your REALTOR®. A day or two before closing, you’ll meet with your lawyer to sign the closing documents. Your lawyer will tell you in advance what certified cheques you’ll need to seal the deal.