3 Financial Tips for First-Time Homebuyers

Calgary’s residential market is currently in seller’s territory with less inventory for sale while interest rates remain higher than buyers have experienced in recent years. For first-time homebuyers, this could pose a challenge of getting into the market, but one that you can overcome if you’re dedicated to becoming a homeowner.

Whether buying a new build or resale, you can do a handful of tasks to ensure your first home transaction is a success. Let me share a few friendly first-time buyer tips with you to help.

#1 – Check Your Credit

First and foremost, it is a good idea to check your credit score before going down the road towards getting a mortgage. The lower your score, the less likely lenders will provide you with good interest rates or the option to borrow money altogether.

If you do have a lower score, check on the credit report as to why. Then, follow through over the next several months and correct these issues as best you can to improve your score.

You need the best mortgage rate possible, and having good credit sets you up to be offered the best deals by lenders. A better interest rate – even by a half per cent – could save you tens of thousands of dollars over your mortgage, so improving your credit before buying your first home is always best.

#2 – Think About Your Finances

Do your due diligence with your finances to see how much of a home you can afford. I recommend doing this even before you get mortgage pre-approval so you’re fully aware of how much you want to spend on a monthly basis.
Check online for the best rates, then use mortgage calculators to show how much your monthly payments would be given your down payment.

Mortgage calculators will give you a rough idea of your price bracket. It is important to know how much you can afford before shopping around, as you may find a home that you love but is out of your price range, which could lead to disappointment.

#3 – Shop Around for the Best Rates

If your finances are solid, shop with multiple lenders for the best interest rates. This is an absolute must because sometimes lenders have different agreements with banks than others and can offer you a better interest rate as a result.

Checking with a few different lenders is always a good bet. For example, check with a major bank and a mortgage brokerage for the best rates and the best deals.

Happy House Hunting

Despite current market challenges, forecasts for Calgary’s residential real estate market predict further benchmark price growth through 2025. Make sure to check with your Calgary real estate agent and REALTOR® of choice to see if now is a good time to pursue your first-time homebuying goals.

Happy house hunting this year, wishing you all the best!