Are you planning on a home purchase in Edmonton, Alberta? If yes, you must have a clear idea of the local real estate market, including the rules and regulations in this province regarding home buying. After all, it’s a lifetime investment you are making. In today’s blog, we will delve into these unknown facts that most first-time buyers remain unfamiliar with and provide in-depth insight. Let’s get started.
Unknown Facts About Home Purchases in Edmonton What Buyers Must Know
Alberta, especially Edmonton, offers a combined lifestyle of rural and urban living with diverse landscapes. No wonder more and more people are trying to buy homes here at cheaper prices. And, when it’s your first time buying a house in Edmonton, Alberta, you need to dive deep into the following facts to ensure a secure investment, for example, incentives and home-buying programs available. Such as:
Alberta Real Estate Market
According to recent reports for 2023, the average price for a home purchase in Alberta is around $460,000, reflecting an increase from the previous year. However, the rental market prices are a little different for rural and urban living demands. Overall, the buyers have to face affordability challenges.
Affordable Down Payment For Home Purchase In Alberta
Nowadays, the lowest down payment in Alberta for home buying is just 5% of the purchase price of the first $500,000, while it will increase up to 10% when the purchase price increases. It means buyers can lower their mortgage payments while reducing the amount required to borrow. In fact, suppose your down payment is around 20% of the purchase price, which means you don’t have to apply for any mortgage insurance.
Alberta Home-Buying Incentive Programs
The federal and provincial governments have created different incentive programs, allowing first-time home buyers an opportunity to get the most out of their purchases. For instance:
- Public Essential and Key (PEAK) Program
- The First Place Program in Edmonton
- The Attainable Homes Calgary (AHC) program
- Federal assistance for first-time home buyers
- The First Home Savings Account (FHSA) program
- The Home Buyers’ Plan (HBP), etc.
All these programs help buyers either cover their closing costs and down payment, offer a five-year deferral on land costs, or cut down their monthly mortgage payments by 5% to 10%. Overall, you are receiving a golden opportunity for your first-time homeownership.
Property Taxes
Understand which province of Alberta you are buying your new home in. According to that, the municipality will assess and collect property taxes depending on your home value. Evaluating how it works will help you determine its impact on the monthly budget and make the home-buying plan accordingly.
Budgeting
Before you start seeking a property in Edmonton, Alberta, it’s important to understand what and how much you can afford. In this case, you need to consider not just the purchase price but the additional expenses associated with it, including maintenance costs, property taxes, insurance costs, and much more. In this way, you can cut down on around 30% of your gross income every month.
Evaluating The Mortgage Process
It’s mandatory to understand the types of mortgages and documents you need to provide. Overall, you should know how to overcome the mortgage test. It’s best to get expert help, like getting in touch with an efficientproperty real estate lawyer for a home purchase. These experts will simplify the entire procedure while making sure you receive the best mortgage rates possible.
In Conclusion
We hope this guide will help you invest in a secure home-buying deal in Edmonton, Alberta. And, as a first-time buyer, if you wish to make some strategies before investing in this real estate market in Alberta, count on us. At Peter B Mason Professional Corporation Real Estate Lawyers, our certified experts won’t just help you in the closing process but guide you throughout the investment process, including home purchases with or without a mortgage, refinancing your property, and much more.
Stay connected with our best lawyer for home purchases today, or click here for an estimate now!