First Time Home Buyer

February 2024 Rental Market: Edmonton and Surrounding Areas

In recent years, the rental market in Edmonton and its surrounding areas has witnessed notable shifts and trends. From fluctuating rental rates to evolving tenant preferences, understanding the dynamics of this market is crucial for both landlords and renters alike. In this blog post, we delve into the latest rental market statistics, offering insights into key trends and developments.

It is essential to note that rental market conditions may vary significantly across different neighborhoods and regions within Edmonton and its surrounding areas. Factors such as proximity to urban centers, access to transportation, and neighborhood amenities can impact rental rates and demand. Landlords and property managers should carefully analyze local market trends and tailor their rental strategies accordingly to maximize returns and attract quality tenants.

As the rental market in Edmonton and surrounding areas continues to evolve, staying informed about the latest trends and statistics is vital for landlords, property managers, and renters. By understanding market dynamics, adapting to changing tenant preferences, and leveraging available resources, stakeholders can navigate the rental landscape effectively and achieve their objectives in the ever-changing rental market.

Whether you’re a landlord looking to maximize your rental property’s potential or a renter searching for your next home, our team is here to help. Contact us today to learn more about the rental market in Edmonton and surrounding areas and explore available rental opportunities tailored to your needs.

This report covers the rental market stats in Edmonton, Sherwood Park/ St. Albert, Fort Saskatchewan, Leduc/Beaumont and other surrounding cities.

Discover Luxury Living in Trumpeter Edmonton!

The Flamenco by LuxuryPro Homes

The Flamenco

Welcome to the Flamenco by LuxuryPro Homes – a stunning 2-storey residence nestled in the serene community of Trumpeter, Edmonton. This magnificent home offers a breathtaking walkout that overlooks tranquil waters, ensuring unmatched privacy and a picturesque setting.

Spacious Open Concept Layout

The open-concept main floor showcases an off-set dining area, a high-quality kitchen equipped with built-in appliances, and a grand living room adorned with abundant windows that invite scenic views and ample natural light. Step out onto the rear deck from the dining area to enjoy the outdoors.

Unique Floor Plan

Spanning 2341 sqft, this unique floor plan boasts 4 bedrooms plus a den, 2.5 baths, and a generously-sized double attached garage. As you enter, you’re greeted by a main floor bedroom or den, complemented by a convenient half bathroom. The well-designed mudroom features a built-in bench and hooks, seamlessly leading to a walk-through pantry.

Contact Me Today

Don’t miss the opportunity to make the Flamenco your new haven, where luxury meets functionality, and every detail is meticulously designed for a superior living experience. Contact us today to schedule a viewing and embark on your journey to luxury living in Trumpeter!

View This Home!

Move In Ready Homes by LuxuryPro Homes

The Jive | 21028 128 Ave NW, Edmonton, Alberta

The Waltz | 20904 128 Ave NW, Edmonton, Alberta

Just Listed in Sherwood Park!

JUST LISTED 🏠 112 Pine Street, Sherwood Park, Alberta

OPEN HOUSE! Saturday May 13 12-3 PM

Just Listed in Sherwood Park! Welcome Home! Wonderful family home quietly placed on one of Sherwood Park’s largest residential lots in Sherwood Heights. Perfect place to raise your family and enjoy peaceful enjoyment surrounded by mature trees and tons of privacy. Great location close to parks, schools, shopping, and walking trails. Beautiful bungalow approximately 1900 sqft with 3 bedrooms plus den and 2.5 bathrooms. Tons of beautiful features such as a unique 2 way fire place, large vaulted ceilings, open concept living, finished basement complete with wet bar, and so much more! Enjoy a bright and open space with natural lighting all around. Huge backyard with finished deck – a perfect place to entertain and make memories with your family.  Come check it out next weekend at our open house!

🛌 3 Bed + 🛀 2.5 Bath

🌲 1,895 Sqft

💲 Offered at $579,900

💻 MLS: E4338964

Advantages and Disadvantages of Owning a Home

Buying a home is the biggest financial decision many people make. As with any major decision, a key question to answer before proceeding: Why?

Perhaps your why is a larger home to raise children, or have a yard, or get to a better school system, or in the time of COVID-19, to find a home office. There is no right or wrong answer, merely the best one that fits each individual circumstance.

The benefits of home ownership don’t come without costs and limitations. For some, renting may be a better option. The pros and cons of buying a house should be considered as you think through the process, and before a decision is made.

One recent significant consideration: The COVID-19 pandemic lit the housing market like a bottle rocket. Home prices rose in early 2021 at the fastest pace in 15 years. The most affordable homes rose 16.5% year over year. Too, homes are being snapped off the market with Usain Bolt-like speed, sometimes sight unseen.

The boom in sales and buying is expected to continue for several more months, at least. It’s great for sellers, provided they have found a home they can afford to buy. It’s not so great for those who may not be able to afford a down payment, or who can’t act fast. Buyers well positioned to make an offer can find their dream home; they just have to act quickly. In this housing market, there is no reward in hesitating.

Advantages and Disadvantages of Owning a Home

Before buying a home, it’s important to consider how the purchase will affect your finances and lifestyle. Review as many of  the advantages and disadvantages of becoming a homeowner before making the commitment.

What Are The Advantages Of Owning A Home?

  • A good long-term investment: You are investing in an asset for yourself rather than a property management company or landlord.
  • Low interest rates: Rarely will we see interest rates like we are seeing now. Rates can vary depending on your personal credit score and where you are buying.
  • Building equity: Your equity is the difference between what you can sell the home for and what you owe. Equity grows as you pay down your mortgage. Over time, more of what you pay each month goes to the balance on the loan rather than the interest, building more equity.
  • Federal tax benefits: There are tons of resources available to first time home buyers when purchasing their first home. Home Buyer’s Plan, GST/HST Housing Rebates, and Moving Expense reimbursements just to name a few.
  • Greater privacy: You own the property so you can renovate it to your liking, a benefit renters don’t enjoy.
  • Home office: The work-at-home phenomenon may not vanish after the pandemic fades, which means more of us will need a home office. The right setup makes a difference in comfort and productivity. Those needing that work-at-home space can find it on the market – if they act quickly.
  • Stable monthly payments: fixed-rate mortgage means you’ll pay the same monthly amount for principal and interest until the mortgage is paid off. Rents can increase at every annual lease renewal. Fluctuating property taxes or homeowner’s insurance can change monthly payments, but that typically doesn’t happen as often as rent increases. Click here for my beginner’s guide to mortgages!
  • Stability: People tend to stay longer in a home they buy, if only because buying, selling and moving is difficult. Buying a home requires confidence you plan to stay there for several years.

What Are The Disadvantages of Owning a Home?

  • COVID costs: The housing market is ablaze, with sellers typically getting the asking price and more, and getting it in a hurry. This makes it tough for first-time buyers who may not have saved the needed down payment money. It also makes it tough for those who like to ponder big decisions.
  • High upfront costs: Closing costs on a mortgage can run from 2% to 5% of the purchase price, including numerous fees, property taxes, mortgage insurance, home inspection, first-year homeowner’s insurance premium, title search, title insurance, and points, which are prepaid interest on the mortgage. It can take about five years to recover those costs.
  • Less mobility: If one of the advantages of home ownership is stability, that means it may take more thought to accept an attractive job offer requiring you to pick up and move to another city. The offset to this concern is the speed with which homes are selling.
  • Maintenance costs: Contorting yourself to fit under the kitchen sink to fix a leak is a joy (not) for those who try it the first time. But when you own a home, you are the first line of repair – especially if you want to save money by doing it yourself, Bob Vila style. Some items do need professional attention. If the air conditioner goes out, you’re not only going to sweat until it’s fixed, you’ll also be writing a check to get the cool air flowing again. Some folks enjoy mowing the lawn; others don’t. That, and trimming the bushes, and cleaning the gutters, and shoveling the snow are all part of home ownership.
  • Equity doesn’t grow immediately: Most of the payments go toward interest in the early years of a mortgage, so you don’t gain equity quickly unless property values in your area skyrocket – and that has happened in many areas in the post-pandemic market. Those who want to build equity faster could apply a small extra amount to their principal each month, provided it fits the budget. Even $20-to-$50 extra every month specifically applied to loan principal can help.
  • Property values can fall: That happened during the 2008 nationwide housing crisis, and more local conditions can cause this, too. Your building will depreciate over time, especially if you don’t maintain it.
  • Continuing costs: As you try to sell your home, you still have to keep making mortgage payments and maintain it. If you’ve bought another house before selling yours, that means paying for two homes. The post-COVID sales fervor does help sellers unload their property faster, though.

Advantages and Disadvantages of Renting a Home

Home ownership might not be for everybody, at least not in every stage of life. Before you buy, consider whether that is right for you right now.

Advantages of Renting a Home

  • Rent payments may be lower: This certainly can be true if you’re renting an apartment, and it also may be the case when renting an identical house. If a mortgage is more than you can afford, renting makes more sense than being stretched too thin financially.
  • Repairs aren’t your responsibility: The property owner has to pay for that leaky faucet and anything else that breaks or wears out. So, you don’t have to factor those unplanned expenses into your budget.
  • Flexibility: Your obligation to a place you rent can’t exceed the length of the lease, and if the property owner can quickly find a new tenant, that can get you off the hook if you leave before the lease expires.
  • Low upfront costs: There is no down payment. Except for a security deposit – often the cost of a month’s rent – you don’t have to write a big check or finance the costs required to get a mortgage.
  • No HOA dues: Some homes are in developments with homeowner’s associations that require monthly dues on top of all the other expenses, and they aren’t optional. Not so with renting.

 Financial Disadvantages of Renting

  • You can’t change the property: Would you like a deck for entertaining? Would you prefer a fenced yard? Want to paint the bedroom a greyish blue? There’s nothing you can do about any of that in a rental, except complain; see where that gets you.
  • You aren’t building value: When you leave your rental, all you take with you is yourself and the furniture and dishes that belong to you. It’s the property owner’s equity that grows, not yours.
  • Rent may increase: You may be comfortable with what you’re paying each month, but that could change when your lease comes up for renewal, typically in six months or a year.
  • No credit score improvement: While paying a mortgage on time improves your creditworthiness, you don’t get the same benefit from rent.
  • No cosmetic improvements: If the home you are renting looks dated, you may just have to get used to it.

Owning vs. Renting

Own Or RentAdvantagesDisadvantages
HomeownershipPrivacy
Usually a good investment
More stable housing costs from year to year
Pride in ownership and strong community ties
Tax incentives
Equity buildup (savings)
Long-term commitment
Maintenance and repair costs
Lack of flexibility
Usually more expensive than renting
High up-front costs
Foreclosure
RentingLower housing costs
Shorter-term commitment
No/minimal maintenance and repair costs
No tax incentives
No fixed housing costs
No building of equity

In assessing the pros and cons, ask yourself three questions.

  1. Can you afford it?

“The down payment, closing costs and risk of sudden, very large expenses popping up combine to make it a very expensive proposition,” he said. “You need to save above and beyond your mortgage payment for infrequent yet major household expenses so that you keep it up properly. And making a smaller down payment and paying private mortgage insurance (which protects a lender in case you default on your mortgage) only increases the total cost of ownership.”

  1. How long do you expect to stay in the house?

“It can be difficult to break even on a house if you stay in it for three years or less; the closing costs and commissions are significant, and expecting the house to appreciate in value enough within three years to make up for those costs may be setting your expectations too high,” Figgatt said. “And remember that your entire mortgage payment does not go towards the home’s equity. During the first year of your mortgage, depending on the terms, perhaps only about 30% of the principal and interest payments will actually go towards the principal of the home.”

  1. Why are you looking to buy?

“If you’re looking at the purchase as an investment, it could work out very well, but high fixed costs mean the shorter the amount of time you hold the property for, the less likely you are to come out ahead relative to other investment opportunities out there,” he said. “Constantly buying and selling houses if you move frequently may be eating up wealth, not increasing it. And if you plan to rent the place out after you move, make sure you have a plan for managing the property – be ready to pay for that, too.”

Next Steps

Big financial decisions can be scary, and you don’t want to be paralyzed into inaction. I can help you think through the variables so you can decide if this is a smart decision right now.

mortgage calculator can help sort through costs and budgets. I can help connect you with a mortgage broker to consider your financial options (budget, affordability, credit score, etc.)

My home buyers’ guide can also be a great stepping stone for those looking into homeownership. You’ll learn how to prepare for owning a home and get a better understanding of the home purchase process, including how to finance and afford a home for the long term.

Summary

If you have any questions or would like to have a quick chat, feel free to reach out. Furthermore, as both a Realtor and Property Manager, I have over 16 years of expertise and a well-rounded experience on both renting and owning a home. If you are currently renting and would like to take the next step and purchase a home, we can go over different options specific to your situation.

Lastly, there are tons of resources out there but it’s always great working on 1-on-1 with a professional that can cater to your current situation. I would love to help you out and be apart of your journey! Email me or call me at 780-777-9703.

  1. Click here for vacant rentals!

2. Click here for my listings!

3. Click here for a free Mortgage Calculator!

4. Click here for your Dream Home Finder!

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The Beginner’s Guide to Mortgages

The Beginner’s Guide to: Mortgages

Buying a home is an important financial commitment. Home ownership may be the biggest investment you’ll ever make, so it’s important to do your homework and take your time. There’s a lot to think about when choosing a mortgage including the size of the mortgage, the down payment you’ll make, amortization period (the amount of time you’ll take to pay off your mortgage), the term of the mortgage and whether you’re most comfortable with a fixed or variable rate of interest.

Different prices for different areas in Alberta. It is important to know what area of the city you are looking at and what you have to work with. I am extremely knowledgeable and well-informed of current market rates in Sherwood Park, Fort Saskatchewan, Edmonton, St. Albert, Spruce Grove and surrounding area. I have had experiences with a LOT of first time home buyers, investors and much more. I also have a property management division under our brokerage (including a few rentals of my own) so I will definitely be able to help you and guide you through the home-buying process.

Home ownership is a big decision. It’s important to do your homework and take your time when deciding on a mortgage. Click here for a mortgage calculator. Here is my beginner’s guide to mortgages!

Understanding Mortgages

What is a Mortgage?

When you buy a home, you may only be able to pay for part of the purchase price. The amount you pay is a down payment. To cover the remaining costs of the home purchase, you may need help from a lender. The loan you get from a lender to help pay for your home is a mortgage.

A mortgage is a legal contract between you and your lender. It specifies the details of your loan and it’s secured on a property, like a house or a condo.

With a secured loan, the lender has a legal right to take your property. They can do so if you don’t respect the conditions of your mortgage. This includes paying on time and maintaining your home.

How a Mortgage Works When Buying a Home:

  • The buyer uses funds from a mortgage to pay the seller for the property and the buyer repays any money borrowed, plus interest and fees, over a set period of time (e.g., 5, 10, 15, 20 or 25 years).
  • The buyer pays the lender generally every month. A portion of the payment, the principal, is used to pay down the amount borrowed and a portion of the payment is applied to interest.
  • The mortgage is registered on the property with the applicable provincial or territorial land registry office.
  • In many cases, the buyer can move into the new home as soon as the closing is complete (contract terms can sometimes specify a later move-in date).

How Much Mortgage Can I Afford?

The rule of thumb is you can afford a mortgage where your monthly housing costs are no more than 32% of your gross household income, and where your total debt load (including housing costs) is no more than 40% of your gross household income. This rule is based on your debt service ratios.

Most lenders use two calculations to determine the maximum amount you can afford:

Gross Debt Service (GDS) Ratio. Housing costs such as your mortgage, heat, condo fees and property taxes make up your GDS.

Total Debt Service (TDS) Ratio. Adding any additional debt payments such as student loans and credit card debt to your GDS gives you your TDS.

Home buying programs, plans and incentives

Before you buy a home, consider the programs, plans and incentives available to you.

Canada’s Home Buyers Plan (HBP)

This plan allows first-time home buyers to withdraw up to $35,000 per person from their Registered Retirement Savings Plans (RRSP), without tax liability, to buy a home in Canada. You don’t have to start paying back your RRSP until two years after the purchase of the home. Before cashing in your RRSP to buy a home, weigh the pros and cons carefully. To be eligible for the HBP:

  • Written agreement to buy or build a home
  • You intend to occupy the home as your principal residence
  • First time homebuyer
  • Your HBP balance on January 1 of the year you withdraw has to be zero

*IMPORTANT Terms You Need to Know

Pre-Qualification: This is ideal when you’re only thinking about buying a home. A lender will collect basic information about your finances and then give you an approximate figure for how much they’d potentially be willing to lend you to buy a property.

Pre-Approval: Getting pre-approved for a mortgage is the next step after pre-qualifying. In this stage a lender will verify the financial information you provide them and run a credit check. If you are pre-approved, it indicates that the lender is committed to providing you with a loan. However, the final amount they’re willing to lend you and the terms of the mortgage are subject to change based on an actual property valuation as well as market fluctuations.

The Mortgage Stress Test: This is a calculation of whether you can still afford to pay your mortgage in the event that rates increase. The results of this stress test will determine your qualifications for the mortgage you’re looking to take and applies to all home buyers, including those who make a 20% down payment on their home.

Down Payment: This is the amount of money you’re required to pay upfront when buying real estate. The bigger your down payment, the smaller the mortgage you’ll need. The size of your down payment depends on the purchase price of your home. For example, if you spend less than $500,000 on a home, you’re only required to put 5% of the purchase price down.

Mortgage Rate: This is the interest rate you’ll pay on your mortgage. This will determine how much you pay in interest over the life of your mortgage. Your mortgage rate may change depending on if it’s fixed or variable (more on that below).

Closing Costs: These are expenses that you’re required to pay out of pocket leading up to your closing date (move-in day). Examples of closing costs include real estate lawyer fees, land transfer taxes, a home inspection, and movers. It’s a good idea to budget between 1.5% and 4% of a home’s purchase price towards closing costs.

Requirements for getting a mortgage

Whenever you apply for a mortgage, lenders are looking for three major things. As long as you have the following, you should be approved:

3 important factors: credit score, income, down payment!
  • A good credit score. Lenders want to ensure that you’re creditworthy. A lender is generally looking for a borrower with a credit score above 670 or 680 with no late or delinquent payments. However, if you have late payments, or, in some cases, if you’ve filed for bankruptcy or a consumer proposal, you may still be able to get a mortgage. A lender will usually want to know the reason why you have a credit blemish. If it’s due to life circumstances outside your control (e.g. you got sick or were laid off from work and fell behind on bills) and you can prove you’re a responsible borrower otherwise, you may still be able to get a mortgage.
  • A down payment. You need to have at least 5% of the purchase price saved to qualify for a mortgage. If the down payment funds are from a bank account, the lender will usually want to see a 90-day transaction history. If the funds are from investments or RRSPs, you’ll usually need to provide three monthly statements. 
  • Secured income. Having a full-time job will prove that you have a steady income.Lenders are looking for borrowers with a stable source of income. You’ll need to be able to prove that your income is sufficient to regularly make mortgage payments.

Even if you don’t meet all the criteria, you may still have options. Some lenders are willing to work with borrowers with a lower credit score, but you may have to pay a higher interest rate. Freelancers and low-income individuals can still get a mortgage, but they may need to prove their income or get a co-signer.

Mortgage Stress Test

The official stated purpose for the stress test is to protect consumers and financial institutions from trouble when mortgage rates rise in future.

Regulated lenders determine how much you can borrow using a rate set by the federal government. As a result, the rate is set higher (currently much higher) than rates being offered by lenders. This buffer means consumers should be able to continue to pay their mortgage if rates go up.

Speak with a Mortgage Specialist to discuss all mortgage options available to you.

Refer: Mortgage Innovation Solutions

I have been working with Kris Crawford of Innovative Mortgage Solutions for a number of years and I would highly recommend his expertise. We will work hand-in-hand to provide you with the best options as a first time home owner!

100 – 960 Emerald Drive
Sherwood Park, AB T8H 0W6

Phone: (780) 416-1085 | Fax: (780) 401-3125

Email: kcrawford@innovativemortgage.ca

Where to Find Me:

Ready to start your home search? I have experience and knowledge in Edmonton and Surrounding area including but not limited to Sherwood Park, Fort Saskatchewan, St. Albert, Beaumont, Lamont, Bon Accord, Spruce Grove and more!

Resources used:

https://cba.ca/understanding-mortgageshttps://www.canada.ca/en/financial-consumer-agency/services/mortgages.html

https://www.rbcroyalbank.com/mortgages/understanding-mortgages.html

https://www.tangerine.ca/forwardthinking/borrowing/adapting-to-the-mortgage-stress-test?gclid=CjwKCAjw_L6LBhBbEiwA4c46usMW2n-Y0mpk_mNewuVe9tHW9IefvMuSIJtcG0EcTRHgvcTZlGLFAhoC4vUQAvD_BwE&gclsrc=aw.ds

https://www.greedyrates.ca/blog/mortgages-101-a-guide-to-getting-your-mortgage/

This article offers general information and should not be regarded as a complete analysis of the subject matter discussed. It is not intended as legal, financial or other professional advice. Consult a professional advisor regarding your specific situation.

Home Buying Process

Step 1: Decide if you are ready to own a Home

Before we get right down to the finances, take a moment and consider the advantages and disadvantages of owning a home. Are you ready for the costs involved in homeownership, such as mortgage payments, utilities, repairs, and maintenance?

Buying a home isn’t only about money, but money does have a lot to do with it. So how do you decide if you’re financially ready for homeownership? Here’s a step by step guide to get you started:

  1. Calculate your current household expenses – add up all of your current costs such as rent, utilities, groceries, clothing, entertainment, transportation etc.
  2. Calculate your current debt payments – car payments, student loans, credit cards, etc.
  3. Add it all up – anything left over?
How much can you afford?

The first rule of affordability, is that your monthly housing costs shouldn’t be more than 32% of your gross monthly income. Housing costs include mortgage payments, property taxes and heating. If you’re thinking of buying a condominium, half the condo fees are also included in your monthly housing costs when a bank or broker is calculating what you can afford. 

Secondly, your total monthly debt payments should not be more than 40% of your gross monthly income. Monthly debt payments include the housing costs noted in the first rule above, plus all other debt payments (student loans, car payments, credit cards, lines of credit etc). 

A mortgage broker can help you work through all of these calculations, and give you a pre-approval or pre-qualification to buy a home. They can also give you advice to help you increase the amount you can qualify for, such as saving more money for a down payment or improving your credit score. I’d be happy to connect you with a good mortgage broker, contact me for details. 

Step 2: Determine the Right Type of Home for You

Buying a home is a long term commitment, you need to think about your future needs when you buy a home. Think 5-10 years down the road and try to find a home that will grow with your needs. If you’re not ready for a 5 year commitment, you should probably re-think your home buying plans. Here are some basic considerations to help determine the type of home that’s right for you:

  • Size (including number of bedrooms & bathrooms)
  • Parking
  • Distance from work (do you also need a home office?)
  • Distance from school (what transit options are available?)
  • Outdoor space
  • Lifestyle needs
  • Type of home (single family, condo, townhouse etc)

Step 3: Find the Home

So you know what you can afford, and you know the type of home you want, now you just have to see if it’s out there. This is the step where many people start making mistakes, such as calling listing agents, visiting open houses and giving confidential information to agents who don’t represent them. The seller’s agent has a contract with the seller, and must represent their best interests, not yours. 

You’ve already found the best web site to find homes for sale in the Edmonton, Fort Saskatchewan, Sherwood Park and St. Albert area, a real estate agent can help narrow down your search, to homes and areas that will work the best for you. Don’t just work with the first agent you meet, select an agent that knows the areas you’re interested in, is qualified, has experience, is well trained, responds to questions quickly, sells lots of homes, has time to work with you. Our team of agents at Realty Executives Focus have years of experience working with first time home buyers and sellers alike!

Step 4: Write an Offer

Your real estate agent will help you go through the important steps of writing a good offer on a property. There are some important parts of the offer to think about in advance, such as the deposit, down payment, conditions, possession date and more. There are far more elements to writing and offer than can be covered in a guide such as this, so here are some general points to consider. Although a deposit is not technically required, the seller in almost every case expects one within a few days of the offer being accepted; the deposit will eventually make up part of your deposit. You can write conditions in your offer, such as an inspection condition or a financing condition. If you don’t remove the conditions by the time agreed to in the offer (usually 7-10 days) the deal “collapses” and you’ll get your deposit back (usually in a week or so). If you remove your conditions, the deal will proceed and you’ll be a proud homeowner in the near future (the agreed possession date). Of course, all of these points are general examples and will likely differ when you actually write an offer on a property.

Step 5: Closing

Closing, also known as possession day, is the day that you and the seller agreed in the purchase contract as the day you’d take possession of the home. Most of the time, closings go smoothly, and buyers get their home on the agreed date, but sometimes there are problems. Assuming there are no problems, the day will generally go something like this: 1. Your lawyer (yes, you need a lawyer!) will request that your lender to releases the funds. 2. Your lawyer will send the funds to the seller’s lawyer. 3. When funds are received, the seller’s lawyer will “release the keys.” 4. Your agent will obtain the keys and meet you at the property. 5. Welcome to your new home!

Many times things don’t go quite as planned, and your real estate agent can guide you through all the ins and outs of getting qualified, finding a home, writing and offer, removing conditions and taking possession. Contact me when you’re ready and we’ll get you started in the right direction.

13 Tips for First Time Home Buyers

If you’ve been thinking about buying a house, you may be wondering you’ll know when it’s “the right time.” If you don’t have a 20% down payment saved up, is it still okay to consider buying? If you can’t afford your forever home, should you still jump into ownership now? Does the Covid-19 pandemic change the rules for first- time home buyers?

This is a summary of the advice I have received over the years (the good parts anyways) along with 15 years of my own industry experience.

1. Ease Into It

Go to a few Open Houses. If you’re with a partner, talk about what you both want and make a list. Try to rank the items. Check out realtor.ca to see listings in different communities in the city. Pay attention to local schools, parks and promixity to transit and retail shopping.

2. Know your numbers – make sure you can afford the home you want.

The more accurate you can be the better. Then develop a budget that includes your projected mortgage payment with estimates for property taxes and maintenance. Trust me on this. Twenty-five years is a long time to owe money. Developing a realistic and manageable budget now will save you a lot of money and stress over the long run.

Many of us dream of buying a home but we also need to be realistic about what kind of properties you can actually afford. Your household income, personal monthly expenses, and home costs like property taxes, condo fees, and heating and electricity bills all factor into the total amount you can borrow.

3. Get Pre-Approved.

Once you understand your cash flow and you have an idea of how much monthly income you want to commit to your mortgage, get pre-approved and lock in a rate for 120 days. While a pre-approval may not get you the lender’s best rate and it doesn’t guarantee that you will be approved on your full mortgage application (actually purchasing the house), it does give you some rate insurance, and at no cost.

If you’re serious about making an offer, get a lender to run your numbers in detail, to confirm what you can actually spend with confidence – and understand that the house or condo, too, must pass for the deal to work.

4. Don’t try to time the market.

If you buy a solid asset at a fair price and stay in the market for the long haul, you’ve set yourself up for success.

5. Choose a good realtor.

Referrals from someone you trust are always a good option, but if you are starting from scratch besides the usual vetting, try to find someone who does a lot of business in your neighbourhoods of interest (Fort Saskatchewan, Edmonton, Sherwood Park, St. Albert). One easy way to do that is to scan the names of realtors when searching MLS listings in your area. You’ll probably notice a few that pop up frequently, and the busy ones are usually that way for reason.

6. Location, location, location.

It’s a well-known cliche, but doesn’t that also make the ultimate proof statement?

7. Future-proof your buying decision.

Think seriously about what your plans for the future are! That means assessing where you’re going to be comfortable today, and for the next five years – without underestimating what the next few years will bring.

It’s important to consider not only what you can afford now, but what you’ll be able to swing if a baby comes along, your career goes off-track, the property you buy needs a major repair or something so unexpected as the COVID-19 pandemic!

IIs the commute that seems tolerable when you test it on a Sunday still manageable at 6 a.m. on a Monday in February? If you hate the kitchen in a place you buy, and proceed with the deal anyways because “we’ll just renovate it later,” have you got a solid plan for the $20,000 to $30,00 price tag—or more—for that renovation? And if you don’t, can you live with the unrenovated kitchen for the foreseeable future? 

“Future-proofing” the deal means getting into a situation you can enjoy not only now, but as your life inevitably changes over time.

8. Consider using a Mortgage Broker.

Did you know mortgage brokers can get you a mortgage with a Big Bank, but at lower rates?

Mortgage brokers compare mortgages from a variety of banks and financial institutions, to find the best options for their clients.

In addition to the Big Banks, mortgage brokers have access to mortgage products and special rates from trust companies and credit unions. They also work with smaller lenders who don’t have the same overhead costs as the Big Banks (and therefore often have lower rates and fewer fees).

The best part? Most mortgage brokers don’t charge you for their services. It is the lender that pays the broker’s commission. All the negotiating and paperwork is handled by the broker and they will assist you in the application process, from pre-approval to home appraisal.

9. Get a Home Inspection.

A good home inspection costs about $500 but is worth every penny. If you only have 5% down, and you are stretched to pull it together, you can’t afford a house with unknown problems that come to light after you buy – because you don’t have enough money to fix them. Do your homework beforehand. Specifically, ask about the experience and background of the person the inspection company is sending out.

In order to make your home-buying situation work, you need to make sure you have the resources available to handle the inevitable extra costs (leaks, breaks, and unavoidable maintenance and repairs) that come with home ownership.

I have a great list of vendors if you are looking out for any! Feel free to reach out at 780-777-9703.

10. Consider taking out a First-Time Home Buyer’s RRSP loan.

 This allows you to borrow up to $35,000 from your RRSP (each), and the funds can be put toward your down payment or used to cover closing costs, moving expenses and/or home renovations. Borrowers should especially consider this option if it will increase their down payment to 20% of their purchase price and eliminate the need for high-ratio default insurance.

11. Take advantage of Firs-Time Home Buyer programs.

As a first-time homebuyer, you’ll want to be familiar with various programs that apply to your situation. Whether it’s a rebate you may qualify for or a tax-efficient way of funding your down payment, there are a number of government programs listed below that can help you potentially save some money when you buy your first home:

  • The Home Buyers’ Tax Credit currently works out to a rebate of $750 for all eligible first-time home buyers.
  • The Canadian government’s Home Buyers’ Plan (HBP) allows first-time home buyers to know up to $5,000 from your RRSP for a down payment, tax-free.

12. Don’t rush a major renovation.

If at all possible, live in your house for a while before you renovate. You’ll develop a better sense of where you want things to go and how you want to use each part of the home.

13. Have fun with it!

Buying your first house is an adventure of discovery and an experience you’ll remember for the rest of your life. There will be times when the process is stressful (especially on offer night) but done right, it can fun and very rewarding.

The Bottom Line: 

We make our best decisions when we feel secure in the knowledge that we have planned properly and have approached big decisions in a methodical, measured way. Do that, and you give yourself the best possible chance for success and happiness.

The COVID-19 pandemic has added new uncertainties for today’s prospective homebuyers. The price of housing, the stability of income, and the overall health of the Canadian economy have all been impacted by the pandemic – and the effects are still unfolding. However, these 13 tips of practical advice can help you out during these strange and unexpected times!

Check out previous blog posts:

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Bruderheim Real Estate

Affordable Duplex in Bruderheim! WOW!

Affordable Duplex in Bruderheim! WOW!

Looking for something move in ready, corner lot, build equity with affordable living in private setting. Problem Solved! Move or Invest in Bruderheim. Wonderful 3 + 1 Bedroom Home. 10 Minutes North of Fort Saskatchewan. 20 Minutes from Edmonton city Limits. Bang on close to Industrial Heartland and just what the doctor ordered! Treed private corner lot. Renovated and comfortable. Literally come pick up the keys and move on in. Great property for first timers or someone looking for an ideal rental property with affordable price tag.

bruderheim real estate

4702 56 Ave, Bruderheim  – CLICK HERE
$169,900

Call 780-777-9703!