Tired of renting? Would you like to own your own home? Now is a great time to make the move to homeownership. Low-interest rates, government incentive programs and a great supply of homes on the market are making the homeownership dream more possible.
Use Your RRSPs
Use the RRSP Home Buyers’ Plan! You are allowed to use your RRSP contributions (maximum $20,000 per person, $40,000 per couple) to build or purchase a home. To qualify, you have to be a first-time buyer or for 4 straight years, you didn't own a principal residence. Income taxes are not deducted from this money if you repay it to your RRSP following the repayment schedule of the government.
There are many mortgage options available. With conventional mortgages, you can borrow up to 75% of the home's appraised value or purchase price (whichever is lower) to a maximum outlined by government rules. You have to provide the other 25%. Don't have the 25% down payment? A high-ratio mortgage might be an alternative if you are able to provide most of the money needed. High-ratio mortgages have to be insured at your expense. Ask your mortgage broker or lender if you qualify for this kind of mortgage. You can usually get a variable-rate mortgage for high-ratio and conventional mortgages. If interest rates increase, you pay more in interest monthly; if rates decrease, more money goes to your principal. Fixed-rate mortgages, on the contrary, have the same interest rate for the duration of the mortgage.
Evaluate Your Needs
Where do you want to live? What kind of house do you want? Start thinking about what you want today. Our REALTOR’s® are invaluable in helping you with the answers. They can access the Multiple Listing Service® (MLS®), a co-operative listing marketing system that gives great exposure to homes on the market. A quick computer search and our REALTOR® will narrow down the choices, based on location, price, number of bedrooms etc.
There are numerous housing choices in the Greater Calgary area, so defining your focus is critical. Your options will be resale homes, new houses, townhouses or condos. One of our REALTOR’s® will help you choose the option that is ideal for your current and future needs. Our REALTOR’s® will also go to viewings with you and give you all the relevant details so you can make an informed decision. Are you ready to buy a home? The conditions are great right now. Calgarians generally agree that owning a home is a great investment and it will give you some financial security in retirement.