Buying your first home is an exciting milestone, but it can also feel overwhelming, especially if you’re not familiar with the process. If you’re a first-time home buyer in Edmonton, this guide will walk you through the key steps and provide helpful tips to make your journey smoother.

1. Determine Your Budget

Before you start house hunting, it’s crucial to understand how much you can afford. Take a close look at your current financial situation, including:

• Income: What is your steady monthly income?
• Debt: How much do you currently owe on loans or credit cards?
• Expenses: What are your fixed monthly expenses (rent, utilities, groceries)?
• By calculating these factors, you can determine a comfortable monthly payment range for your mortgage. Don’t forget to account for property taxes, insurance, and maintenance costs.

2. Get Pre-Approved for a Mortgage

Once you know your budget, the next step is getting pre-approved for a mortgage. Pre-approval helps you:

• Understand how much you can borrow
• Lock in an interest rate (for a limited time)
• Show sellers that you’re a serious buyer
• Lenders will evaluate your credit score, income, and debt-to-income ratio to determine your eligibility. Having a pre-approval letter in hand will make your offer stronger when you find the right home.

3. Explore Edmonton’s Housing Market

Edmonton offers a variety of neighborhoods, each with its own charm. Whether you’re looking for something in the bustling downtown core or a quieter suburban area, it’s important to research different neighborhoods and get a feel for the community. Consider factors like:

• Proximity to work or schools
• Local amenities (grocery stores, parks, etc.)
• Future development plans
• Take the time to visit open houses, drive around different areas, and talk to locals to understand what fits your lifestyle best.

4. Save for a Down Payment

Saving for a down payment can be one of the biggest hurdles for first-time home buyers. In Canada, you can buy a home with as little as 5% down for homes priced up to $500,000, but putting more down upfront has its benefits:

• Lower mortgage payments
• Potentially avoiding mortgage insurance (if you put down 20% or more)
• Increased equity in your home from the start
• Additionally, there are programs available to help first-time buyers, such as the First-Time Home Buyer Incentive and the Home Buyers’ Plan, which lets you borrow from your RRSP to fund your down payment.

5. Consider Additional Costs

First-time home buyers should be prepared for expenses beyond the purchase price. These include:

• Closing costs: Legal fees, land transfer taxes, home inspection fees, and appraisal fees
• Moving expenses: Hiring movers or renting trucks
• Home maintenance and repairs: Especially for older homes, there may be immediate fixes to budget for
• It’s wise to set aside 1-3% of the purchase price annually for home maintenance to cover any unexpected repairs or upgrades.

6. Find a Real Estate Agent You Trust

A reliable real estate agent can be your best ally when purchasing your first home. They’ll guide you through the process, provide insights on market conditions, help you make competitive offers, and negotiate on your behalf. Choose someone who understands your needs and the Edmonton market well.

7. Make an Offer

When you’ve found your ideal home, it’s time to make an offer. Your real estate agent will help you decide on an offer price based on the home’s market value and other factors. Be prepared for negotiations. Sellers may counter your offer, and you’ll need to be flexible while still staying within your budget.

8. Finalize the Purchase

After your offer is accepted, the process of finalizing the purchase begins. This includes:

• Home inspection: Ensuring the property is in good condition
• Appraisal: Confirming the home’s value for the lender
• Final mortgage approval: Providing the lender with the necessary documents to close the deal
• Once everything is in order, you’ll sign the paperwork, pay the closing costs, and get the keys to your new home.

Buying your first home in Edmonton is a major life event, and being well-prepared can make the process smoother and less stressful. Start by setting a budget, getting pre-approved for a mortgage, and exploring the different neighborhoods that Edmonton has to offer. With the right guidance and a solid plan, you’ll soon be settling into your first home.

If you need help with your financial planning or understanding the costs associated with buying your first home, FR Accounting and Tax Services is here to assist you. Let us help you make your dream of homeownership a reality.