1. Understand Your Financial Readiness
Before starting your home search, take a close look at your finances. Here are the key steps:
- Save for a Down Payment: In Canada, the minimum down payment is 5% for homes under $500,000 and 10% for the portion above $500,000. Programs like the First-Time Home Buyer Incentive or using RRSP savings under the Home Buyers' Plan can help ease this cost.
- Consider Closing Costs: Budget 1.5%-4% of the home's purchase price for closing costs, including legal fees, property transfer tax, and home inspections.
- Get Pre-Approved for a Mortgage: Calgary’s competitive market requires serious buyers to have pre-approval in hand. This process will also clarify what you can afford and lock in a favourable interest rate for up to 120 days.
2. Know Calgary’s Neighbourhoods
Calgary’s diversity of neighbourhoods makes it essential to choose a location that fits your lifestyle. Here’s a snapshot of some popular areas:
- Inner-City: Communities like Beltline and Bridgeland are perfect for those who love urban living, with proximity to restaurants, shops, and downtown offices.
- Suburban Charm: Tuscany, Evergreen, and Douglasdale offer family-friendly living with green spaces, parks, schools, and spacious homes.
- Emerging Areas: Developing neighbourhoods such as Livingston and Seton offer new-build opportunities with modern amenities and a sense of community.
3. Understand Mortgage Rates and Local Regulations
Calgary buyers benefit from Alberta’s limited land transfer tax, which can significantly reduce costs compared to other provinces. However, understanding the mortgage process is key:
- Fixed vs. Variable Rates: Work with a mortgage advisor to determine which option suits your financial goals.
- Stress Test Requirements: All buyers must qualify for a mortgage under a higher rate (currently 2% above the contract rate), ensuring affordability in a fluctuating market.
4. Work with a Trusted Real Estate Agent
Buying your first home involves many decisions, and a knowledgeable Calgary Realtor® will guide you through every step. They’ll help you:
- Navigate the offer process and negotiations.
- Understand local market trends and property values.
- Connect with trusted professionals, such as home inspectors, mortgage advisors, and lawyers.
5. Begin the House-Hunting Process
With your pre-approval in hand and your priorities outlined, it’s time to start viewing homes. Be realistic about your "must-haves" versus "nice-to-haves" to find a home that fits your needs and budget. Calgary’s market offers a mix of new builds and resale properties, so there’s plenty to explore.
6. Make an Offer and Conduct Due Diligence
Once you find the perfect home, your Realtor® will guide you through submitting an offer. This will typically include conditions like financing approval and a home inspection to ensure you’ve done your due diligence and the property is a sound investment.
7. Closing Day and Moving In
After finalizing the paperwork, closing day is when the keys are officially handed over. Celebrate—you're now a homeowner! The interim between waiving conditions and closing is the time to set up utilities, get property insurance and explore your neighbourhood. Then all you need to do is make your new house feel like home!
Why Buying Your First Home in Calgary Is a Great Move
Calgary offers a unique combination of affordability, quality of life, and job opportunities. With no provincial sales tax, low closing costs, and diverse communities to choose from, it’s one of the best cities in Canada for first-time buyers.
Ready to Get Started?
As a professional Calgary Realtor®, I’m passionate about helping first-time buyers navigate the process with confidence. If you’re thinking about buying your first home, let’s connect! I’ll guide you through every step to ensure a seamless and rewarding experience.
Let’s make your dream of homeownership in Calgary a reality!
-Jenna Drummond, Royal LePage Benchmark