How to buy a house in Edmonton? Well, everyone wishes to live in their dream home someday. But it can be an intimidating process. There are many steps to follow and things to consider. So, buying your first home can stress you to the core.
But that should not be the case, and you are fulfilling your long-cherished dream. An expert-guided house buying checklist can make the process easier. Additionally, if you have knowldege in preparing closing documents would give extra strength while dealing any residential property.
If you are buying a house in Edmonton, a step-by-step approach can make things simpler. So, without further ado, let’s get into an in-depth discussion.
- 1 Is It Hard or Easy to Buy a House in Edmonton?
- 2 How to Know If You are Ready to Buy a House in Canada
- 3 How to Buy a House in Edmonton [10 Easy Steps]
- 3.1 Step 01: Start Saving for the Down Payment
- 3.2 Step 02: Decide Where You Want to Live
- 3.3 Step 03: Gather Necessary Documents
- 3.4 Step 04: Get the Mortgage Pre-approval
- 3.5 Step 05: Hire a Realtor
- 3.6 Step 06: Begin House Hunting
- 3.7 Step 07: Get the Final Mortgage Approval
- 3.8 Step 08: Hire a Real Estate Lawyer
- 3.9 Step 09: Get Fire Insurance
- 3.10 Step 10: Move-in Your New House
- 4 Frequently Asked Question
- 5 Final Words
Is It Hard or Easy to Buy a House in Edmonton?
Buying a home in Edmonton seems like a challenging task. First-time homebuyers in Edmonton are facing difficulties in finding their preferred houses. Two factors are at play here.
Firstly, the real estate industry is experiencing a rise in prices. As a result, Canadians are finding it hard to buy a house that suits their budget.
Research has found that many people have to spend way more than the asking prices. This is making it very difficult for first-timers to buy their preferred house.
After this, the supply of houses in Canada is rapidly falling. This is discouraging the city dwellers from getting a home of their own.
They are moving towards the suburbs and municipalities. As a result, those areas are now facing a high demand for housing facilities.
Read more on calculating capital gain if you buy a cottage in Edmonton.
This eventually means that you will have to do your research. And things will vary depending on the city you choose to buy a house in.
A positive sign is the introduction of low-interest rates. This makes it much easier than before to buy a house on loan.
How to Know If You are Ready to Buy a House in Canada
Before you know the steps of buying a house, you must be sure if you are ready. There are many things to consider. It would be best if you checked the following 5 requirements of buying a new home.
The first thing to consider is the down payment. The term means the minimum amount of money you have to pay upfront. So, how do you determine this?
You will find two types of mortgages in Canada. The first one is a CMHC-insured mortgage. The down payment for this is 5% of the final price.
Another one is a conventional mortgage. This type of mortgage is non-insured. The down payment for this is 20% of the final price.
Mortgage Closing Costs
You will need to pay some closing costs before finalizing the purchase. This involves legal fees, mortgage insurance, land transfer tax, and other expenses. If you have some extra cash ready, you are good to go.
Read More On the Closing Cost for home buyers.
Your Employment Status
Having a stable source of income is very important for home loans. First-time buyers often overlook this. You will need to show your income source to get mortgage loans from banks.
The Location of the House
The place where you want to live is a huge factor. Everyone wants to live in the most suitable location. This will make the prices of the house jump high. You will need to figure out a perfect balance of lifestyle and budget.
It is always tough to keep track of the real estate market. But there are some basics that you can cover. Consider the mortgage interest rates and market demand first.
If you can compete in such market conditions, you are ready to get your home.
How to Buy a House in Edmonton [10 Easy Steps]
Every new homeowner has followed some steps before buying their house. It would help if you also had a first-time homebuyer checklist to be your guide. Here are 10 steps you can take to buy your dream house in Edmonton, AB, Canada.
Step 01: Start Saving for the Down Payment
This is the first step to follow for every home buyer. It is crucial as it can take years to gather that amount of cash.
Also, the real estate prices in Canada are continuously on the rise. As a result, you need to accumulate as much hand cash as possible.
Step 02: Decide Where You Want to Live
This is one of the most challenging things to decide. If you are living alone, you may find it easier to research and pick. But it can be different when you have other family members. You will have to consider everyone’s preference. You will also have to make the best decision for everyone’s future.
Step 03: Gather Necessary Documents
This step will bring you a bit closer to the mortgage. You may want to consult a bank agent or mortgage broker right away.
But wait a bit more and gather all the necessary documents. This can include the salary statement, source of income, tax certificate, and bank statements.
Step 04: Get the Mortgage Pre-approval
This is a new thing you will face today before buying a house in Canada. A mortgage pre-approval will allow a real estate agent to handle your situation.
At first, go to a mortgage broker or advisor with all your documents. That person will verify your affordability of buying a house.
After this, the mortgage broker will pre-approve your status and set a mortgage rate. You can hold this mortgage rate for 120 days after you get the pre-approval.
Step 05: Hire a Realtor
Now you are ready to look for suitable house options. The best way to go about it is by hiring a realtor. The realtor will guide you to find the best-suited home for you.
It can be hard to find a good and successful realtor. So, it would help if you researched your options. You can interview your options. It is also a good choice to ask for recommendations from friends or family.
Step 06: Begin House Hunting
This is probably the most exciting step to getting your house. The realtor you hired will bring several options to you. Those options should match your preference and budget.
It is best to physically visit the houses and check everything with your own eyes. You can also bring a trusted and experienced person with you for better judgment. You can begin negotiations with the vendor in this step.
Step 07: Get the Final Mortgage Approval
Your mortgage lender will give you the final approval after the vendor accepts your offer. The mortgage lender will carry out a thorough inspection of the house.
The person will ensure that the final price matches the market value. An appraisal may also go with the mortgage lender in the process.
After this, the mortgage lender will give you a document to sign. This document is the mortgage lending agreement. It includes mortgage choice, interest rate, and other terms and conditions.
Step 08: Hire a Real Estate Lawyer
This step involves hiring a lawyer for your support. You can complete this step before any other steps above. If you have not already, do it now.
A real estate lawyer will make sure that everything is legally correct before you make the final call.
Step 09: Get Fire Insurance
Home insurance is the most popular alternate name of fire insurance. It is a requirement by the mortgage lender, and it’s a significant step before finishing up the buying process.
Step 10: Move-in Your New House
This is the final step. You are now a homeowner, and there is nothing else to do. Get the keys to the house and move in with lots of enthusiasm.
Frequently Asked Question
Buying a house is a huge amount of money that you can invest. It needs lots of thinking and discussion to make the decision.
People who want to buy a house are asking many questions before they invest their hard-earned money. Here are some of those most common questions we have seen online. Find your answer below.
How Much Money Do I Need to Buy a House in Edmonton?
You will need to have at least the down payment amount to buy a house in Edmonton. You may be buying a CMHC-insured mortgage.
In this case, you need 5% of the final price of the home. In the case of a conventional mortgage, you need 20% of the final price.
How Can a Real Estate Lawyer Help Buy a House in Edmonton?
A real estate lawyer can do many works for you. The lawyer will:
- Review the Agreement
- Ensure Legal Procedures
- Arrange Title Insurance
- Work on Different Taxes
- Generate Mortgage Documents
- And Close the Final Transactions
What are the Requirements to Buy a House in Edmonton?
The most important requirement to buy a house in Canada is affording the down payment. Another important requirement has a stable income source to pay mortgage loans.
Does Buying a House Affect Your Tax Return in Edmonton?
Buying a house affects your tax return in some ways. The greatest benefit you get is the deduction of mortgage loan interest. This means that you will be able to deduce the mortgage interest amount from every year’s tax return.
Do You Need Money in the Bank to Buy a House?
You will need to have money in the bank to buy a house. The rule is to have enough money to cover the first two month’s mortgage payment.
Buying a house in Edmonton isn’t so easy to handle. You may need to go through several legal proceedings before you can buy a house. There also needs to consider tax issues while choosing a house for yourself.
In that case, a real estate lawyer would help you the most. Our experienced real estate lawyers are well-trained and have practical knowledge dealing real estate property trade.
However, we hope that after reading the article now you have an idea about how to buy a house in Edmonton. If you do, please spread the love of authentic content and share it on your social profiles.