There comes a time in many Albertans' lives when they feel the need to purchase their first property. Perhaps your family is beginning to grow too small for your condo, or you've finally saved up enough money to make a sizable down payment. Regardless of the reason, buying a home for the first time is an undeniably exciting and often stressful process.
If you're a first time home buyer Alberta has a wide variety of homes to choose from. However, before diving head-first into the home-buying process, we suggest that first time home buyers do some research.
If you don't have the time to read through various articles, that's ok! We've put together a thorough Alberta first time home buyer guide that is sure to streamline any future property purchases.
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Continue reading to learn more about how to buy your first home in Alberta.
First time home buyer Alberta guide
Are you a first time home buyer in Alberta? Feel free to reference the following guide at any point throughout the home-buying process:
Don't rush the home buying process
Rushing into any big decision rarely pays off in the long run, especially when it comes to purchases as significant as a property.
First time home buyers (and second time home buyers, for that matter) should avoid making rash financial decisions and do their best to take things slowly.
Regardless of how perfect a potential property may be, you should rarely consider making an offer unless you can comfortably make a 20% first-time home buyer Alberta down payment. Although you may be able to purchase a home with a smaller down payment, this puts more financial pressure to the situation.
Familiarize yourself with your desired housing markets
First time buyers don't have to be real estate experts in order to spot common trends in certain housing markets.
Getting a general idea of some common trends (like when you're in a "buyer's" market or a "seller's" market) can help you get the most bang for your buck. If you're buying a home in Alberta, the ideal time to make an offer is when there's a buyer's market — this is when there are more homes on the market than buyers. First time home buyers can use this as leverage to get a competitive price on their new property in Alberta.
Get preapproved for a mortgage in Alberta
Getting preapproved for a mortgage isn't mandatory, but it can give you an edge over other first time home buyers in Alberta.
When you get preapproved for a mortgage in Alberta, it shows home sellers that you are an active buyer that is motivated to make offers. In turn, getting preapproved for a mortgage can increase the chances of a buyer accepting your offer.
As a reminder, if you're getting a mortgage for your new home in Alberta (or anywhere else in Canada), your mortgage lender will generally require you to purchase a home insurance policy that meets their specifications. Mortgage lenders require home buyers to purchase sufficient home insurance in Alberta because it is the best tool they can use to protect their investment until they've paid off the loan.
Learn more about home insurance in Alberta.
Research the various incentives and first-time home buyer grants Alberta has to offer
Are you aware of the first time home buyer incentive Alberta?
If you qualify for the first time home buyer incentive, you can receive a shared-equity mortgage from the Canadian government. Doing this allows you to lower your monthly mortgage expenses and take advantage of the following benefits:
- 5% or 10% for first time home buyers purchasing a newly-built property
- 5% for first time home buyers purchasing a resale property
- 5% for first time home buyers purchasing a manufactured or mobile home (new or resale)
There are also a number of first time home buyer grants that new home buyers can utilize throughout the buying process:
- Public, Essential, and Key (PEAK)
- Residential Access Modification Program (RAMP)
- First time home buyers tax credit
Start house hunting
Who doesn't enjoy spending an afternoon hunting for houses? House hunting is the best way to get an up-close-and-personal look at a prospective property. House hunting also gives you the opportunity to envision yourself, family members and personal belongings in a potential property.
If you're a first time home buyer, it's easy to get caught up in the excitement of house hunting. Be sure to utilize these tips while searching for your first home:
- Create a wishlist for your first home (highlight your must-haves, good-to-haves and red flags)
- Take notes during each house hunting session
- Carpool with others to save on gas
- Consider the pros and cons of the entire neighbourhood, not just the home you’re looking at
- Wear comfortable shoes that are easy to take on and off
After the house hunting process is over and you’ve made a decision, you're ready to make an offer! Try to stay patient while waiting for a response, and don't get too discouraged if your offer isn't accepted. There are plenty of homes in Alberta to choose from!
Consider the additional expenses that come with buying a home
There are several expenses that are associated with buying a home — some common expenses include:
- Deposit fees
- Inspection fees
- Moving expenses
- Furnishings
Not to mention, you'll also need to make monthly or annual home insurance payments if you want to protect your property from sudden, unforeseen events, like fires, high winds and more. Speaking of home insurance…
