Frequently Asked Questions (FAQ) for Home Buyers in Calgary

General Questions

1. What are the first steps to buying a home in Calgary?

- Determine Your Budget: Assess your financial situation, including your savings, income, and current expenses. This will help you understand how much you can afford.

- Get Pre-Approved for a Mortgage: Contact a bank or mortgage broker to get pre-approved for a loan. This shows sellers you are a serious buyer and gives you a clear budget.

- Find a Reliable Realtor®: Choose a Realtor® who has extensive knowledge of the Calgary market. A good Realtor® will guide you through the process, from finding properties to negotiating the best deal.

2. How can I find the right Realtor® in Calgary?

- Experience and Knowledge: Look for a Realtor® with years of experience and a deep understanding of the local market. Diane Richardson, with 15 years of experience in the Calgary real estate market, is a trusted and knowledgeable professional who can help you find the perfect home.

- Strong Negotiation Skills: A skilled negotiator can help you get the best price and terms for your new home.

3. What is the average price of homes in Calgary?

- Prices vary significantly depending on the neighborhood and type of property. As of now, The benchmark price for a detached home in Calgary rose 7.64 per cent in 2023 to $675,783 – up from $627,792 in 2022, while the average price of a condo in Calgary was $349,200, which is a 15.6% increase over the previous year.

4. What areas in Calgary are popular for families?

- Southeast Calgary:

• Legacy: Known for its parks, schools, and family-friendly environment.
• Cranston: Offers extensive green spaces and is close to the Bow River.
• Mahogany: Features a large lake and plenty of recreational facilities.

- Southwest Calgary:

• West Springs: Known for its top-rated schools and family amenities.
• Aspen Woods: Offers luxury homes and proximity to excellent schools.
• Signal Hill: Popular for its parks and shopping centers.

- Northwest Calgary:

• Tuscany: Known for its community center and family-friendly environment.
• Arbour Lake: Features a lake and numerous recreational options.
• Brentwood: Close to schools and the University of Calgary.

- Northeast Calgary:

• Coventry Hills: Offers a range of amenities, including shopping and recreational facilities.
• Skyview Ranch: Known for its new developments and family-friendly parks.
• Monterey Park: Popular for its multicultural community and schools.

Financing and Mortgage

5. How do I get pre-approved for a mortgage?

- Financial Information: Provide your financial information, including income, credit history, and debts, to a bank or mortgage broker.

- Assessment: The lender will assess your eligibility and determine the amount you can borrow.

- Pre-Approval Letter: You will receive a pre-approval letter, which shows sellers you are serious and financially prepared.

6. What types of mortgages are available in Calgary?

- Fixed-Rate Mortgage: Offers a fixed interest rate for the entire term, providing stability in monthly payments.

- Variable-Rate Mortgage: The interest rate can fluctuate based on market conditions, potentially offering lower rates.

- Adjustable-Rate Mortgage (ARM): Starts with a fixed rate for a set period, then adjusts periodically.

7. How much down payment is required to buy a home?

- Homes Under $500,000: The minimum down payment is 5%.

- Homes Over $500,000: For the portion above $500,000, the down payment requirement is 10%.

Legal and Documentation

8. What legal documents are needed to buy a home in Calgary?

- Purchase Agreement: A legally binding contract between you and the seller outlining the terms of the sale.

- Identification: Government-issued ID to verify your identity.

- Proof of Financing: Documentation from your lender confirming your mortgage approval.

- Home Inspection Report: A report from a professional inspector detailing the condition of the property.

9. Do I need a lawyer to buy a home in Calgary?

- Yes, having a lawyer is essential for:

• Reviewing Contracts: Ensuring all documents are legally sound.
• Title Search: Verifying the seller’s ownership and checking for any liens or encumbrances.
• Handling Closing: Managing the transfer of funds and ownership.

Home Inspection and Closing

10. Is a home inspection necessary?

- While not mandatory, a home inspection is highly recommended to:

• Identify Issues: Discover any potential problems with the property before purchase.
• Negotiate Repairs: Use the inspection report to negotiate repairs or price adjustments with the seller.

11. What happens during the closing process?

- Final Walkthrough: Ensure the property is in the agreed-upon condition.

- Sign Documents: Complete and sign all necessary legal documents.

- Transfer Funds: Pay the down payment and closing costs.

- Receive Keys: Officially take possession of your new home.

Market Trends and Conditions

12. How is the current real estate market in Calgary?

- The market can vary based on economic conditions, interest rates, and seasonal trends. Stay informed by consulting with your Realtor® and following local market reports.

13. Is it a good time to buy a home in Calgary?

- This depends on:

• Interest Rates: Lower rates can make borrowing more affordable.
• Market Conditions: A buyer’s market can provide more favorable terms.
• Personal Circumstances: Consider your financial stability and long-term plans.

Miscellaneous

14. Can I buy a home in Calgary if I am not a Canadian resident?

- Yes, non-residents can buy property in Canada, but may face:

• Additional Taxes: Non-resident speculation taxes may apply.
• Financing Requirements: Stricter mortgage requirements.
• Legal Considerations: Additional documentation and processes.

15. What amenities and services are available in Calgary?

- Calgary offers:

• Schools and Education: High-quality public and private schools.
• Healthcare Facilities: Access to top-tier hospitals and clinics.
• Shopping and Dining: A variety of shopping centers, restaurants, and entertainment options.
• Parks and Recreation: Numerous parks, trails, and recreational facilities.