A Guide for Calgary Home Buyers
If you’re already living in Calgary and are looking for a new home, or have read about the quality of life in Calgary today, and are looking to relocate, it can sometimes be tricky to know where to start. Working with a real estate expert can be helpful, as can consulting with a mortgage broker, especially if you’re new to the mortgage application process or have unusual or complex financial circumstances.
Whatever your situation, be sure to ask plenty of questions, keep the following points in mind and you shouldn’t go too far wrong:
Think carefully about your down payment:
The minimum down payment for insured mortgage loans is 5{6005fe00238ed0ec29dcf4f9ca8b03a9042cdf9ccd9cfcf46fbf772e3d1d5bdd} of the purchase price of a single-family home costing less the $500,000. For properties above $500,000, a 10{6005fe00238ed0ec29dcf4f9ca8b03a9042cdf9ccd9cfcf46fbf772e3d1d5bdd} down payment up to the $1M price points will be required, and then 50{6005fe00238ed0ec29dcf4f9ca8b03a9042cdf9ccd9cfcf46fbf772e3d1d5bdd} down for more than the $1M price range.
Consider your cash flow:
A high-ratio mortgage will be necessary if you make a down payment of less than 20{6005fe00238ed0ec29dcf4f9ca8b03a9042cdf9ccd9cfcf46fbf772e3d1d5bdd}; insurance will be required on the mortgage loan to protect the lender against borrower default.
For down payments of 20{6005fe00238ed0ec29dcf4f9ca8b03a9042cdf9ccd9cfcf46fbf772e3d1d5bdd} or more of the property’s market value or purchase price, you may be able to qualify for a conventional mortgage with no premium. Under some circumstances, lenders may choose to insure the mortgage.
Work with a real estate agent:
Costing you nothing, a real estate agent can guide you through the properties available on the market today that are within your budget and can give you valuable insights into the whole process.
Pair up with a mortgage broker:
The mortgage application process is a significant aspect of buying a new home, and it can be complex and confusing. Simplify the process while gaining access to exclusive, broker-only deals, by working with a reputable, local mortgage broker.
Get your potential new home valued:
Evaluating your prospective home’s value with professional advice from a real estate agent enables you to come to an agreement with the seller and draw up a legally binding contract. The offer you’re given should include conditions that will protect you as a buyer.
Make it official:
The final step in the home buying process is to have the legal documents sent to a lawyer of your choice for signing, and they’ll contact you within 7 days of possession, to have the contract signed. The exact details of your down payment and any pending legal fees will be given to you at this point, and the date can then be set for you to move in.
Buying a home in Calgary is made easy if you work with experts in the field of both real estate and mortgages. Your chosen real estate agent will help you select the perfect property, and your mortgage broker in Calgary will ensure that you get the very best mortgage deal to afford it.
