Many parents today are gifting money to their children to help with their first down payment. While this can be incredibly helpful for some young people looking to purchase residential real estate in Alberta, others who are not ready for home ownership might find this "gift" to be a burden. If a young person ends up with a home that he or she cannot comfortably afford to pay off, other financial priorities could suffer due to the mountain of mortgage debt.
Before buying a home, it is important that potential buyers think carefully about their financial situation. Alberta home buyers should consider their job security, savings and comfort within a budget before deciding to jump into the residential real estate market. Those who do have this financial security may find that purchasing a home is their best option with increasing rent costs.
Last week, we discussed some basics about shopping for a mortgage. After a lender pre-approves you for a mortgage, you must prove to the lender that you can repay the loan amount. The lender will calculate your total monthly housing costs and your total debt load. It will then calculate your gross debt service ratio and your total debt service ratio (more about these below). If these calculations show that you can pay your housing costs and your additional debts, you will probably get your mortgage.
Buying a house is the biggest investment most people will make. Getting the money to buy the house will be your greatest challenge. Borrowing the money is the only option for most people. That means obtaining a mortgage: a loan in which the lender can seize the house and sell it to pay off the loan if you cannot meet the mortgage payments.
Moving into a new home is both an exciting and a stressful time. You may have a long to-do list, family and friends helping you move, as well as paperwork to review from your bank, lawyers and broker.
The process of purchasing a home is both exciting and stressful. For well-prepared residential real estate buyers, the hope is that the everything goes as smoothly as possible and that come closing day, they can finally breathe easy.
Moving into a new condo unit can be an exciting, and frustrating, experience. Some people find it challenging to make the most of their new space.
Buying a home is a big decision, and the process can be intimidating. Getting advice from experienced real estate experts is a good idea for people looking to get into the residential real estate market in Alberta. Here is some of the more common advice real estate professionals tend to offer prospective buyers.
A recent report from a Canadian bank is comparing how rising interest rates will affect the residents of different provinces differently. The report speculates that Alberta's households will be hardest hit by the increase. Residential real estate is typically more affordable than properties in Ontario and British Columbia, however experts say that they are more vulnerable to interest rate hikes than these provinces.
One of the biggest questions facing adults across the country is whether to rent or purchase a home. Prospective homeowners in Alberta should consider several different factors before jumping into the residential real estate market. From personal finances to lifestyle, the decision whether to rent or buy is not always an easy one.