Buying your first home is one of the biggest financial decisions you will ever make. In Calgary, where you can find everything from inner-city condos to family homes in growing suburbs, having a clear plan makes the process far less stressful. Here is the roadmap we walk our first-time buyers through.
1. Know your budget before you browse
Start by looking at your monthly cash flow, not just the price tag. Beyond your mortgage payment, factor in property taxes, home insurance, utilities, condo fees (if applicable) and a maintenance cushion. A common rule of thumb is to set aside 1% to 2% of the home’s value each year for upkeep.
2. Get a mortgage pre-approval
A pre-approval tells you how much a lender is willing to lend and holds an interest rate for a period of time (often 90 to 120 days). It also shows sellers you are a serious buyer. Remember that every federally regulated lender must test whether you can still afford payments at a higher qualifying rate, so your approval amount may be lower than you expect.
3. Use the programs built for first-time buyers
- First Home Savings Account (FHSA): contribute up to $8,000 per year (to a $40,000 lifetime limit). Contributions are tax-deductible and qualifying withdrawals for a first home are tax-free.
- RRSP Home Buyers’ Plan: withdraw up to $60,000 from your RRSP toward your first home and repay it over time.
- 30-year amortization: first-time buyers with an insured mortgage can now stretch their amortization to 30 years, which lowers the monthly payment.
4. Choose the right neighbourhood
Think about commute times, schools, access to the C-Train, parks and pathways, and future development. Visit the area at different times of day. A slightly smaller home in the right location often beats a bigger home in the wrong one.
5. Make a smart offer
Your REALTOR® will pull recent comparable sales so your offer is grounded in real data. In Alberta, common conditions include financing, a home inspection and, for condos, a review of the condo documents. Conditions protect you, so think carefully before waiving them.
6. Plan for closing costs
Alberta has no land transfer tax, which is great news for buyers, but you will still pay land title and mortgage registration fees, legal fees, a home inspection and possibly mortgage default insurance. Budgeting roughly 1.5% of the purchase price for closing costs is a sensible starting point.
7. Closing day and beyond
On possession day, your lawyer releases the funds and you get the keys. Do a final walkthrough, change the locks, and set up your utilities. Then enjoy your new home!
Ready to start?
The Apollo Realty Advisors team helps first-time buyers across Calgary every step of the way, from the first coffee chat to the day you get your keys. Get in touch and let’s find the right move together.
