property virgins

First Time Buyer Mortgage In Alberta

The moment you turn the key, see those rustic hardwood floors, gleaming granite counter tops and floor to ceiling brick fireplace, you know you are home. It’s love at first site, and it’s exactly how you imagine buying your first home. You are excited, nervous and maybe even a little scared. So what’s next?

Getting a first time buyer mortgage in Alberta can be very stressful. A home will no doubt be the biggest investment of your life. We want to make this experience an exciting and memorable one. Just as you can pay too much when you buy your first home, you can also pay too much for your new mortgage. Let us find you the lowest rate for you based on your personal situation. We will get you the prepayment privileges you want (or not, with a no frills product), the payment options you need and a long term strategy that works for you and your future plans. This is how our home loan experts tailor your first time buyer mortgage in Alberta for you.

First Time Buyers Don’t Have to Make Rookie Mistakes

Many areas of the city can be difficult places to become a new homeowner due to the price of the real estate, don’t try to do it alone. You need a great realtor, a good lawyer and the provinces top mortgage broker working for you! As mentioned, mistakes can be magnified with a purchase this size, get a professional team working for you.

When you are a first time buyer, the confusion surrounding the financing is magnified. Fears of the biggest investment of your life becoming your biggest mistake can keep you up at night. We can help to take away this stress, and let you concentrate on finding your perfect first home. Our goal is to get you the best deal and make the experience of being a first time buyer a good one. We will walk you through all the steps, to make the process less daunting, and show you how much you can afford.

7 Steps to Becoming a First Time Buyer

1. The first step is to take an object look at your financing situation. How much can you afford to come up with now for down payment and closing costs? How much can you afford on a monthly basis moving forward? Putting together a budget is relatively easy, but you need to be realistic and honest about your expenses.

One thing that a lot of new home buyers do not take into account are the additional costs that inevitably come with a new home. Furniture, appliances, repairs and landscaping are just a few areas that can chip into your savings after you get into your new home.

2. Once you’ve done your budget on how much you can afford every month, it’s time to talk to a broker to determine how much you actually qualify for by doing a pre-approval. As a first time buyer with less than 20% down, the new stress test rules will limit the amount you can borrow, so the banks qualification number may be different from your own desired amount.

Choosing a mortgage term and product will be your next choice. This is something that you need to tailor to your personal situation and where you expect to be in the next few years. Most clients go with the 5 year fixed product, however this may or may not be the right choice for you. Talk to your broker openly about your future plans and they will be able to give you the pros and cons of the different options.

Getting pre-approved with a rate hold happens after you decide the right term for you.

3. Finding a property is the next step in the process. This step can take a while depending on how much research you have done prior to this point. We recommend realtor.ca is your resource for both preliminary searches and once you are working with a realtor; new properties come up every day. Speaking of realtors, this is where you will want to get a quality agent working on your behalf to find you properties which match your  search criteria. Hopefully your schedule allows you to be flexible in terms of looking at properties, as the good ones don’t last long even in slower markets.

4. The next step is what we like to call due diligence. Once you find a home, it’s imperative to do your homework on that property. A house is a lot more than just cosmetics. Do your research on schools, future development in the area, have an inspection completed on the property, what are the comparable sales telling you about the value. A good realtor should be able to provide you with most of this information, but you many need  to ask for it.

5. Your offer is the first step toward negotiating the price and terms of a property. If you are hoping to get the home for ‘x’ amount, don’t get stuck on that figure if the comparable sales don’t support that value. if the home is a bit more than you think it should be, than you need to decide whether the extra cost is worth it. We always tell our clients, that if you pay more than you wanted to, it will grate on your for a few days. If you buy the wrong house at the right price, it will grate on you the entire time you own that home.

6. Once your offer is accepted, your broker will submit your information to a lender who checks all the boxes for your situation. You will need to submit, employment and income confirmation, down payment confirmation and property information. The entire process takes approximately a week or 5 business days to complete.

7. The last step is signing the actual mortgage documents with your lawyer. This is the real meat and potatoes of the mortgage, with all the fine print and caveats of having a home loan. Be sure you understand what is in the documents, and don’t be afraid to ask questions. This is a pretty important contract you are signing.

Buying a first home is a great experience, but you can’t take shortcuts. Working with the right people is the difference between a successful and forgettable experience. We specialize in first time buyers and would love to sit down with to show you how and why working with a mortgage broker is better.

Apply Now Current Rates

Average Home Prices in Edmonton and Area

  • Strathcona
  • Riverdale
  • Downtown Edmontotn
  • Highlands
  • Millwoods
  • Windermere Estates
  • Twin Brooks
  • Hollick Kenyon
  • Bonnie Doon
  • Oliver
  • Sherwood Park
  • St Albert
  • Leduc
  • Camrose

The statistics listed for Edmonton areas above are courtesy of Money Sense, you can see the full list of areas here.

If Price is a Factor, What are you Willing to Compromise?

One issue a lot of property virgins run into is trying to buy the home of the their dreams with the budget of their nightmares. Many first timers need to make some sacrifices with regards to property type, location, age of property and so on.

If you know that price is going to be an issue, what are you willing to give up in order to find the right home for you today and likely for the foreseeable future? Chances are you may have to decide between a town home in the area you want with a house in a less desirable area. The new stress test will make these choices even more common.

Buying Starter Homes Again

Twenty five, thirty years ago, homes were purchased differently than they have been over the past 10-15 years. People used to buy a small home, move a medium sized home and then up to their dream home over a number of years. Now, first time buyers want their parents house right off the start. The new qualification requirements will mean many buyers have to buy that starter home again and start working up.

Putting your dream home on hold may be the new reality for many first time buyers. We will work with you however to maximize the amount you qualify for today, and show you ways to increase this amount if you don’t want to settle or compromise on your first home.