If you’re a new home buyer in Calgary, Canada, this article is for you. We’ll explore who can buy a home, the home buying process, and specific considerations for purchasing a home in Calgary, Canada. Whether you’re a first-time buyer or a seasoned homeowner, this article will provide valuable insights to help you make informed decisions when purchasing a new home. So, let’s get started!
Who Can Buy a Home?
In Canada, permanent and non-permanent residents are permitted to purchase property, but there are specific conditions to meet. Here are some factors to consider when determining who can buy a home:
Legal Age:
In Canada, the legal age to purchase a home is determined by the legal age to enter into a contract, which varies by province. In most provinces and territories, the legal age at which an individual can enter into a contract, including purchasing a home, is 18 years old.
Citizenship/ Residency:
Permanent residents and non-permanent residents, such as those with work permits, can buy a home in Canada. However, be aware of the January 1st 2023 law that restricts non-resident Canadians by clicking here.
Financial Stability and Income:
To buy a home, you’ll need to prove that you have sufficient funds to make a down payment and cover other related expenses.
The minimum income requirements vary depending on the type of home you’re interested in. For example, for a detached home, you’ll need an income of at least $146,769 per year, while semi-detached homes require an income of at least $117,098.
Learn how your income can affect your ability to get a mortgage here.
Mortgage Eligibility:
You’ll need to meet the minimum credit requirements, with most lenders requiring a credit score of at least 600.
Learn how your credit score affects your mortgage application.
Down Payment:
You’ll need to have at least 5% of the down payment to qualify for some programs and incentives. For an uninsured loan, you must be prepared to have 20% as a downpayment.
Pre-approval for a Mortgage:
Getting pre-approved for a mortgage before starting your home search is essential, as it helps you determine your budget and shows home sellers that you’re a serious buyer.
Understanding these eligibility criteria and requirements allows you to know who should buy a home in Canada.
5 Considerations for Buying a Home in Canada
If you are considering buying a home in Calgary, you should know several critical things before making a purchase. Here are five essential considerations to keep in mind:
1. Research the Calgary Housing Market:
Before you start house hunting, it’s crucial to understand the Calgary real estate market, including average home prices, popular areas, and market movements. You may also consider working with a Realtor who can support you throughout the process.
2. Get Pre-Approved for a Mortgage:
It’s important to get pre-approved for a mortgage loan to understand your budget constraints and put you in a better position when bidding. Begin by checking mortgage rates from various lenders to make an informed decision.
Understand the Mortgage Pre-Approval Process here
3. Consider the Cost of Living:
The cost of living in Calgary is relatively affordable compared to other major Canadian cities, but it’s still essential to factor in expenses like utilities, transportation, and groceries when budgeting for your new home.
4. Hire a Certified Home Inspector:
If you’re considering a new or old home, it’s crucial to hire a certified home inspector to scrutinize every part of the property and identify any issues that may need to be addressed.
Download and Use our Free Home Inspection Checklist in our Resources page here.
5. Choose the Right Neighborhood:
Calgary has many neighborhoods to choose from, each with its unique character and amenities. Consider factors like proximity to your workplace, schools, and public transportation when selecting the right neighborhood for you.
By keeping these five critical considerations in mind, you can make an informed decision when buying a home in Calgary.
Final Take Away
Prospective homebuyers should assess their financial readiness, understand the specific considerations for buying a home in Calgary, and be well-informed about the home buying process.
To support your home buying journey, we recommend downloading the “Calgary Home Buyers Glossary” for valuable insights and terminology related to home buying in Calgary.
When you’re ready to explore current and upcoming home projects in Calgary and to receive expert guidance, we highly recommend the trusted real estate agents Ace Realty at 403-472-3909.
We believe you can confidently navigate the home-buying process by leveraging these resources. Good luck!
