Buying your first home is an exciting milestone, but it can also feel overwhelming at times. From exploring neighbourhoods to understanding the buying process, there’s a lot to consider and learn along the way. It’s natural to have questions and even some uncertainties, but with the right guidance and resources, this new chapter of your life can be empowering and rewarding.
The Calgary housing market offers incredible opportunities, but preparation and the right guidance are key to unlocking them. Whether you’re dreaming of a cozy home in a quiet suburb or a modern condo in the heart of the city, the path to finding your perfect place is within reach.
Step-by-Step Guide to Buying a Home
Step 1: Getting Pre-Approved for a Mortgage
The home buying process begins with understanding your budget. This means getting pre-approved for a mortgage by working with a lender to determine the amount you can borrow. Pre-approval not only gives you clarity, but also positions you as a serious buyer when house hunting. Be sure to compare various lenders to find the best terms and rates.
Step 2: Working with a Real Estate Agent
A knowledgeable real estate agent is your best ally in navigating Calgary’s housing market. They’ll help you identify properties that fit your preferences, negotiate on your behalf, and guide you through legal paperwork. Look for someone who understands Calgary’s neighbourhoods and has experience working with first-time buyers.
Step 3: Finding the Right Property
Once your budget and goals are clear, it’s time to focus on finding the right home. Consider key factors like proximity to schools, work, and amenities, as well as future resale value. Remember, your “dream home” may not tick every box, but it should meet your top priorities.
Step 4: Making an Offer
When you find the right property, your agent will help you craft a competitive offer. This will include your proposed purchase price along with any conditions, such as a home inspection. Be prepared for some negotiation, but keep your budget ceiling in mind to avoid overstretching.
Step 5: Home Inspection
A professional home inspection helps identify potential issues with the property, such as structural problems or required repairs. While this is an added cost, it can save you from unexpected expenses and provide peace of mind about your investment.
Step 6: Closing the Deal
Once your offer is accepted and legal and financial details are finalized, it’s time to close the deal. This includes signing the final paperwork, transferring funds, and receiving the keys to your new home. Congratulations, you’re now a homeowner!
First-Time Home Buyer GST Rebate
The First-Time Home Buyer GST Rebate is designed to help reduce the financial burden of purchasing a new home by refunding a portion of the GST paid on the purchase. This rebate is available to eligible first-time home buyers who meet specific criteria, making homeownership more accessible and affordable.
Who Is Eligible?
To qualify for the GST rebate, you must meet the following conditions:
- Be a first-time home buyer of at least 18 years of age.
- Be either a Canadian citizen or a permanent resident
- Purchase a new home from a builder or a substantially renovated home that will be your primary residence.
- Ensure the home is under $1.5 million.
How Much Can You Receive?
The rebate amount depends on the purchase price of your home. The GST is completely eliminated for purchases of homes valued up to $1 million. For any property between $1 million and $1.5 million, the specific GST rebate will depend on the value. For example, a $1.25 million home could receive a 50% GST rebate.
In general, buyers can save up to $50,000 due to this rebate.
First Home Savings Account (FHSA)
If you’re not planning to purchase a home within the next year, the First Home Savings Account (FHSA) could be a valuable tool to help you save for your future homeownership goals. An FHSA is a tax-advantaged account designed specifically for first-time home buyers. It combines key benefits of both a Registered Retirement Savings Plan (RRSP) and a Tax-Free Savings Account (TFSA).
With the FHSA, you can contribute up to $8,000 per year, up to a lifetime maximum of $40,000, making it an excellent way to accumulate savings over time for a down payment. Contributions to the account are tax-deductible, meaning they reduce your taxable income, similar to RRSP contributions. Additionally, any investment growth within the account is tax-free, and withdrawals used toward the purchase of your first home are also not subject to tax.
Another benefit of the FHSA is that funds can remain in the account for up to 15 years or until the year you turn 71, whichever comes first. This means you can take your time building your savings if you’re not yet ready to buy.
Local Insights for Calgary Home Buyers
The Calgary housing market has seen steady growth, providing opportunities in both resale homes and new builds. Working closely with a real estate agent to monitor trends will help you make an informed purchase decision.
Some popular neighbourhoods for first-time buyers include:
- Livingston: A newer community designed with affordability and connection in mind, Livingston features modern housing options and plenty of community spaces, making it perfect for young families and professionals.
- Nolan Hill: Offering a mix of single-family homes and townhouses, Nolan Hill is surrounded by natural green spaces and walking paths, appealing to buyers who value outdoor activities.
- Cranston: Located on the edge of the Bow River, Cranston blends nature with convenience, providing beautiful homes close to schools, parks, and shopping.
- Walden: Known for its modern design and sustainable living, Walden boasts unique architecture and green spaces, making it great for environmentally conscious buyers.
- Legacy: This thoughtfully designed neighbourhood prioritizes community and convenience, with walking trails, parks, and a variety of housing styles that suit different needs and budgets.
Where Dreams Meet Doorsteps
Buying your first home doesn’t have to feel overwhelming. With the right team backing you up, you’re well on your way to making a confident decision.
Looking for expert guidance? Connect with our team at Mortgage Connection today. We’re here to make the exciting leap into homeownership as smooth as possible. Your dream home is closer than you think.
