It’s an awesome and exciting time for buyers and sellers out there! The market is ON FIRE. According to the Realtors Association of Edmonton, total residential unit sales jumped to 69.3% in February 2022 from January 2022! That’s an insane number – especially in the start of the year. There is no doubt that March will be extremely busy.
At Realty Executives Focus, we introduced a new program called, “Sell or Buy You Get to Fly!” It is an amazing opportunity for those interested in purchasing an investment property (whether it is a new home or for income purposes) or those looking to sell. Be sure to click here for more information!
Win a $4,000 travel voucher from Realty Executives Focus!*
All you have to do is buy or list your property with one of our Agents, contract must be firm (also known as conditions removed or sold) by December 31, 2022 and that’s it!
T&C:*
1. Entry is valid to all Canadian residents who buy or sell a property with a Realty Executives Focus Agent in 2022.
2. The property must be in a firm contract (also known as sold or conditions removed) by December 31, 2022.
3. The winning entry will receive a travel voucher to the value of $4,000.00.
4. Winner will be drawn on January 3, 2023. The winner will be contacted via E-mail.
5. The voucher can be used for any form of travel to be booked with our travel agent before the 31st of December 2023.
Each office is independently owned and operated. Not intended to solicit individuals under contract with another Brokerage. Draw and incentive offer subject to rules and eligibility agreement.
Now that restrictions are lifted and we are moving forward from the COVID-19 pandemic era – this is a great chance to start fresh!
Click here for a free market evaluation where we can take a look at your home and see what potential numbers we can work with. It is not an obligation to work with me as a Realtor but I would love to be your resource.
Click here for a mortgage calculator! It is a great tool to see your starting financial numbers and what you are budgeting for.
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.
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!
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!
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.
I want to take a moment to spotlight what YESS | Youth Empowerment & Support Services (YESS) do for the Edmonton youth. Not only do they provide emergency shelter for young people, they also have tons of resources that help our youth in need. They provide food, clothing, school supplies and packed lunches for those attending school. In addition, they offer help in dealing with traumas, provide addictions and mental health counselling. They also assist in integrating them with the community to hopefully help avoid re-entry into homelessness by connecting them to resources to help build life skills.
My wife, Jezelle, worked at the Stollery Children’s Hospital, and knows they have used the organization’s services a lot to find a place for our homeless youth once they’ve been discharged from the hospital.
Julia and I delivering LOVEPIZZAs to YESS in Edmonton! (Sept 28, 2021). The dinner we helped provide is only a small gesture.
To walk beside traumatized youth on their journey towards healing and appropriate community integration.
YESS Mission Statement
What They Do:
Based in Edmonton, Youth Empowerment and Support Services (YESS) provides immediate and low-barrier overnight and day shelter, temporary supportive housing, and individualized wrap-around supports for young people aged 15-24.
YESS helps youth aged 15 to 24 who are experiencing difficult realities such as addiction, abuse, and homelessness. Young people come to YESS from all cultures, economic backgrounds, religions, communities, sexual orientations, and gender identities. They have had many traumatic experiences which, unaddressed, create self-esteem, self-worth, and self-regulation issues.
Often young people are not connected with Alberta Children’s Services, leaving them without resources or financial support. As a result, they are seeking guidance, stability, and a caring environment in which they can access the supports they need.
They work collaboratively within a network of care focused on the prevention of youth homelessness by providing youth with the necessary supports to stabilize their housing, improve their wellbeing, build life skills, connect with community, and avoid re-entry into homelessness.
Their Focus:
1. Focus on prevention and diversion of homelessness.
Prevention means providing proactive resources for youth and their caregivers before youth become homeless. Diversion means finding appropriate housing for youth before they become entrenched or as an exit out of homelessness.
2. Focus on healing trauma through relationship.
Trauma has a negative impact on the physical, emotional and developmental well-being of an individual. Among many other serious effects, trauma can have a lasting impact on the ability to develop healthy relationships.
3. Focus on walking beside youth to minimize falling through gaps.
Barriers are policies or expectations that put resources out of reach of those who need them. These restrictions often prevent people from seeking help.
4. Focus on collaboration (with everyone).
They work together with other organizations and in line with local, provincial, and national plans to create a holistic approach to addressing homelessness.
What you can do to Support!
Donate
Your donation supports YESS program and resources that help youth reach their goals. Click here to donate.
Host a Fundraiser
YESS will help you host a fundraiser for you and your team. Read through their fundraising package, submit an application form for approval and host your event!
Could do in-person events such as Skip the Depot (for bottle drives) or virtual events such as Facebook and Canada Helps.
Current Needs:
All general in-kind donations can be dropped off at the Bissell Thrift Shop (8818 118 Avenue) and identify that the donation is for YESS. The Bissell Centre will provide YESS with these essential items, and surplus items will benefit the Bissell Centre clientele too.
If you have any questions or need more information, please contact them at 780.468.7070 ext. 249 or email giving@yess.org
YESS is an amazing organization that focuses on the overall wellbeing (albeit physical or mental) of our youth. They are focusing on the long term success of the individual by providing them with the resources to improve life skills for education and employment. I support this organization and believe in what they stand for.
It’s nerve-wracking to put your trust and money into hiring a company to manage your investment but I assure you, there’s nothing to be afraid of. Here are Top 5 reasons you should hire a Property Manager!
At Realty Executives Focus, not only do we work with clients to buy and sell homes but we also work with owners in our Property Management division. With 16 years of experience, we take all the stress from you and work as a bridge between owners and tenants. You will save both TIME and MONEY when hiring us. We use an online portal where you can see all work orders, maintenance requests, tenant information.
Our fees include all advertising and rental marketing, tenant application reviews and screening, online account access, all accounting and documentation, 24/7 emergency services, periodic rental inspections. We cater to out-of country Owners and have multiple properties rented in Sherwood Park, Fort Saskatchewan, Edmonton, Redwater and more!
If you are still unsure whether or not hiring a Property Manager is a good idea, here are top 5 reasons WHY you should!
1. You’ll Make More Money with a Property Manager
Many property owners are afraid to hire a property manager because of the cost involved – not realizing they will actually make more money in the long term due to the increased care of the property. You will get better tenants that stay longer and have less damage and repairs to deal with. Your property remains in great shape.
Through our services, you will be only charged when the property is rented. Min $75/ month to a Maximum $150/ month.
2. Property Managers Will Save You Lots of Time and Headaches
How much time does it take to be your own landlord? Could you be making better use of your time?
It can be a full-time job to track rent payments, collect late fees, deal with complaints and repairs, prep the property for new tenants, find vendors, and deal with bad tenants. It may also become a constant source of stress. Relinquishing these ongoing responsibilities to a good property manager can allow you to benefit from your investment without sacrificing your time and health.
With a 24/7 emergency hotline service available to both owners and tenants, we are able to settle issues as quick as they come. Our full time Maintenance Manager will handle work orders and quarterly inspections on the property to ensure your property is taken care of.
We do our best to make sure we give you the best bang for your buck.
Rental Available. Location: 11512 11 Ave SW, Edmonton, AB
3. Better Tenants Thanks to Screening and a Bigger Pool Of Potential Renters
If you hire a property manager with experience, they will know exactly how to find the best tenants and screen out potential tenants with a bad history. Property managers have a bigger pool of applicants to choose from due to their extensive marketing and advertising programs. An established property manager will already have waiting lists of potential tenants. The result is better quality tenants in your property faster.
We have advertisements relayed to almost all available Rental Property websites making sure your property will get screen time. We do in-depth credit checks and reference calls to ensure that you have the best tenant in your property.
4. Property Managers Know the Law
How much do you know about the laws that apply to being a landlord? One of the biggest advantages to hiring a professional property manager is the ability to avoid some legal hassles. With a full understanding of all the state and federal laws when it comes to discrimination in screening and selecting tenants, property managers avoid breaking discrimination laws. In the event that an eviction becomes necessary, an experienced property manager will know how to handle it in a way that will save time and money while staying within the boundaries of the law.
5. Property Managers Serve As a Buffer Between Owners and Tenants
When using a property management company, a property owner is able to keep a professional distance from their tenants.
If you are personally involved with the tenant, this can result in being too lenient on certain issues or too defensive about certain types of complaints. Renting out a property is a business and it is much easier for a property manager to keep things on a strictly professional level. When issues arise, experienced Property Managers are more prepared to deal with the issue.
Rental Available. Location: 6727 136 Ave, Edmonton, AB
Here are my top 5 reasons why you should hire a property manager! If you want to know more information about our services at Realty Executives Focus , feel free to reach out to me at 780-777-9703 or email me! I’d love to help you and get you started on your investment journey.
While doing the work yourself can save you the significant commission rates many real estate agents command, for many, flying solo may not be the way to go–and could end up being more costly than a realtor’s commission in the long run. Buying or selling a home is a major financial (and emotional) undertaking.
1. Expertise & Experience
Even though you do not necessarily think that you need an expert to sell a home, hiring professional real estate agent who specializes in your area or property type is critical. With 16 years of experience as a Realtor and Property Manager, I have seen first hand hundreds of different scenarios when buying and selling a home. From all aspects of marketing and promotion to legal issues, a real estate agent can guide you through the process and in a lot of cases, saving you time and money. The key is to find the right agent that has all the professional and personal attributes that you require.
3333 28 Ave, Edmonton, AB sold at 99% List Price
2. The Selling Process
Real estate agents can be put in charge of all the listing and selling requirements as well as client visits. This saves you a lot of time and effort so that you can do more productive tasks while they are taking care of the matters related to your home. For example, if you were to list your property let’s say on Kijiji or Facebook Marketplace, you would have to respond to a lot of inquiries (both from serious and non-serious viewers!). If you had to be the only one to sift through property listing responses and all open house viewing, all your free time would go to that.
With a real estate agent, we can do the following:
Tap into their network and contacts for a potential buyer
Handle all of the required paperwork to sell your home
Double check the legal matters
3. Knowledge & Familiarity with the Neighbourhood
Real estate agents possess key knowledge and information about your neighbourhood. From Sherwood Park,Fort Saskatchewan, St. Albert, Edmonton and Surrounding Area, I have worked in these neighbourhoods gaining extensive knowledge of the market. We can help you identify:
Key selling points
Price points in the neighbourhood
Data on schools
Demographics
Your agent knows what kinds of upgrades will make your home look more attractive to buyers compared to other houses in the area. With a FREE Comparative Market Analysis (available here), we can take a look at the current listing/selling points around your neighbourhood – determining the current value of your property! This will give you an edge in terms of helping you sell your property more quickly.
4223 Prowse Way, Edmonton, AB – Pending within ONE hour of listing!
4. Negotiation Knowledge
When you find a potential buyer, a real estate agent will try to get you the best price in all market conditions. Negotiation skills are very important when selling your home, since this makes or breaks your deal. With a real estate agent, you can rest assured that not only do you have someone working on your side, the agent is there for your protection so it’s a win-win situation.
5. Future Business Relationships
A successful real estate builds credibility based on the results of forming good relationships with his or her clients. To this day, I am in constant communication with all past clients! Because of this, they give great importance and attention to detail to make sure that their clients are satisfied and happy. These positive client relationships result in referrals of an agent to friends and acquaintances which builds trust based on past performance. It also means that agents have an established set of potential buyers that you can potentially tap into from previous listings.
As you can see, there are many extremely important benefits to hiring a real estate professional. The sale or purchase of a home can be one of the most important financial buying or selling decisions in a person’s life. As such, its extremely wise to get the help of a real estate professional working on your side.
If you are interested in working with me, feel free to give me a shout at 780-777-9703!
94 Ridgepoint Way, Sherwood Park, AB – SOLD at list price!
Let’s get the most out of your house – and sell it OVER list price!
Getting ready to sell your house? Then it’s time to roll up your sleeves and get to work! Selling a home, after all, entails a whole lot more than just planting a “For Sale” sign on your front lawn or uploading a few random photos of your place—especially if you’re angling for the most cash. (And, honestly, who isn’t?)
Before you put your house on the market, ask your real estate agent for guidance on improving your home’s presentation. I can tell you what buyers expect in your particular market (Sherwood Park, Fort Saskatchewan, Edmonton, St. Albert and Surrounding Area) and at your home’s price point. You can click here for a FREE Comparative Market Analysis so you know what’s going on in and around your area! The following 10 steps are a way to get a good head start on preparing to sell your home.
1. Welcome buyers. Make your front door visible and accessible to buyers. Paint the door, clear debris and clutter from the walkway and yard, mow the lawn and prune hedges. Pot or plant colourful annuals and perennials to attract attention from the street. Fix broken screens, doorbells, roof tiles, shingles and outdoor lighting, and replace your doormat. Exterior defects can make a poor first impression on buyers.
2. Make it sparkle. Cleanliness implies a home has been well taken care of, so deep cleaning can win points with buyers. Buyers scrutinize homes, especially kitchens and bathrooms. Recaulk and repaint to give these grime-prone rooms a fresh and clean look. Clean rugs and carpets to eliminate unsightly stains or dinginess and eliminate odors. Tidy each room, including cabinets, closets and the garage, before showing. And if it seems daunting to do all that cleaning yourself, consider hiring a professional cleaning company to take care of all of it for you.
3. Start packing. Cramped and cluttered rooms turn buyers off and make your house look smaller. A home packed with your personal belongings also makes it difficult for others to envision living there. Start by storing away excess furniture, toys and personal decorations, such as family photos. Pack up things you don’t use on a daily basis, and put them in storage or ask a friend to hold onto them. Decluttering your house also gives you a head start on your move.
4. Paint wisely. A well-done, no-frills paint job is all you need. Put a fresh coat of paint on white or beige walls, and repaint walls that have eccentric or unconventional colors. Nature- and spa-inspired neutral colors, such as taupe and subtle gray, are the best choices. Definitely don’t forget the trim and molding either. And a fresh paint job on outdated or worn cabinetry goes a long way, too.
5. Fix the small stuff. Repair or replace broken or outdated hardware throughout your home. You can install new door handles, faucets, towel bars and curtain rods – fixtures that are readily visible to homebuyers – rather inexpensively. New hardware in the bathroom, kitchen and on windows and doors also improves the functionality and safety of these components.
6. Update lighting. Replace decorative light fixtures that no longer fit your home’s cleaner, fresher look. Install new bulbs with the appropriate lighting for specific areas of your home. For example, ambient, low-key lighting fills a room, whereas directional or task lighting works better in areas like a reading nook. Use accent lighting to highlight focal points in a room, such as the artwork above a mantle, to draw buyers’ attention to certain selling points.
7. Frame windows. Ensure you have the right window treatments, which enhance natural brightness and boost the appearance of a home. Window treatments also can impact a room’s temperature because they reduce or increase the amount of light entering the space. Adjust window treatments appropriately when showing your home in the mornings, afternoon and evenings.
8. Set the table. Fresh, decorative flowers in the kitchen or on the dining room table are always a nice touch. Also, keep place settings handy for your tables so you can quickly set them out right before showings or an open house. Pull out all the formal stops for a dining room, and keep the table casual in the kitchen.
9. Hide unsightly everyday items. Don’t leave children’s toys and pet belongings out in the open during showings and open houses. Move litter boxes, pet dishes, toys, animal crates and kids’ entertainment to less conspicuous areas of the home, such as an outdoor storage unit or garage before each showing or open house. Also think about where you can store things like dirty laundry and dirty kitchen sponges.
10. Don’t forget the back. Keep your backyard looking spacious and functional. Plant or pot colourful flowers and keep the landscaping trimmed and neat. Consistently pick up after your pets so buyers feel comfortable touring the yard.
Contact me at 780.777.9703 or reach me here and we can get you started today!
Want your own country oasis but still live within the city limits? Or how about having the space to jumpstart or grow your business? This Edmonton Acreage For Sale has tons of potential opportunity for you, your business and/or family!
Built: 1973
Price: The home and the one-of-a-kind city lot can be yours for $1,300,000.
Brief Description: Beautifully maintained home located in the Southeast corner of Edmonton, AB. This established property offers prime location with both a beautiful home and a large shop.
Impeccable kitchen and dining area!
Home Specs: 3 Bedrooms, Main Floor Office/4th Bedroom, 3 Updated Bathrooms, Updated Kitchen, Finished Basement, Double Heated Garage & So Much More! Air Conditioning included in the home.
28x50 Heated Hobby Shop
30x50 Cold Storage Building
For over 25+ years, the previous owners of this home used it for a General Contracting Business! The property boasts incredible potential for a new business.
Why Acreage Living within City Limits?
The thought of living on an acreage is incredibly appealing to many Canadians — to those who value the peace and quiet that acreage life can offer, the space between homes, and the fresh country air. Check out this awesome article to help in your decision!
Perfect living area to lounge around
For any more information on this property or would like to book a showing on this Edmonton acreage for sale, give me a call at 780-777-9703 or send me an email at expert@jarettjohnson.
Location of 3333 28 Avenue, Edmonton, AB:
CONTACT ME:
For the latest updates on this listing, would like to know more or schedule a showing, please give me a call at 780-777-9703 or email me at expert@jarettjohnson.com.
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.
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!
I want to let everyone know I am here to help. My full service real estate brokerage can help you navigate these changing times in our real estate economy. With everything going on in the world I think this is a good time to share with everyone how the real estate market has been effected. We are still busy out there but the truth of the matter is: sales are down, listings are down, activity has slowed in the overall real estate economy (and of course the economy in general). With such a drop is sales we will see a trickle effect on pricing and future motivation for buying in selling. I am going to quickly break down a few markets from last month and will do this again in another month. Time to really watch what is going on. If you are looking to buy sell or rent contact me today for the right advice!
