There are so many different Canadian cities to choose from when you are looking for the ideal place to buy a house, but the Calgary real estate market has been heating up lately. There are many reasons for this. For one, Calgary is more affordable than many other cities in the country, which makes it attractive to those who may be priced out of other areas. In addition, it provides you access with one of the most beautiful parks in the country: Banff National Park. Therefore, if you love spending time in the outdoors, it’s one of the best places to be. Combine that with high scores for walkability, safety, and schools, and you can see why so many people want to live in Calgary.
However, if you are looking into Calgary real estate, you are probably wondering what you should expect when it actually comes time for you to buy a house. After all, you’re going to have to make a significant down payment on your home, and after that, you’ll have to take your mortgage payments into account. Therefore, it’s in your best interest to do your research before you buy a home so that you really know what to expect from the market. Keep reading for more essential information.
Down Payment Considerations
Generally, when it comes to Calgary real estate, it makes the most sense to make a down payment that is at least 20 percent of the price of the home. Why? Well, if you decide to make a down payment that is less than 20 percent, then you are looking at a high-ratio mortgage. If you enter into a high-ratio mortgage, you will have to pay an insurance premium to the Canada Mortgage and Housing Corporation, which is obviously an expense you will want to try to avoid if at all possible. The less you put down, the more of a premium you’ll end up paying. Therefore, it’s a good idea to save up as much as you can, so you don’t have to pay these high premiums in the long run. You can’t negotiate on these payments, and it really doesn’t make sense to pay more for a home if you can get it for less if you just pay more up front.
Start Saving
So, are you wondering how you are going to get into a house considering the current Calgary real estate market? You’re not alone. Basically, the easiest way to do so is to start saving as much as you can. In fact, 60 percent of home buyers have at least 5 percent saved for their down payment, so it makes sense for you to do the same. Remember, the earlier you start, the sooner you will be able to buy your new home, so start pinching those pennies now.
When you are ready to enter into the Calgary real estate market, you need to contact a real estate agent in the area to help you navigate the home-buying process.
