Houses for Sale in Edmonton

"RAISING THE REAL ESTATE BAR"

Today, it is still possible to purchase a home with a 5% down payment.

 

Investing in Edmonton's real estate market is relatively simple. For a small amount of money down, usually five percent, (plus closing costs) and can own an asset worth significantly more and build your net worth. Your down payment must be from your own savings or a gift from a family member. You cannot use a loan or line of credit.

To use the 5% down payment option, the following rules apply:

The home must be your principal residence - in other words, you will actually live in the home. So if you plan on buying a condominium or other property for residual income, you won’t be eligible for the Canada Mortgage and Housing Corporation’s 5% down payment option.

To calculate your GDS or Gross Debt Service ratio, factor in your monthly mortgage payment, utilitie costs, property taxes and condo fees, if applicable. This number cannot exceed more than 32% of your gross taxable income. Plus, all your consumer debt, loans and housing-related payments cannot exceed 40% of your gross taxable income—this is your Total Debt Service ratio or the TDS.

 

Finally, you must have good credit and a minimum of one year with your current employer.

 

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CLOSING COSTS FOR BUYERS

Are you ready to purchase your new home? Often, buyers find themselves overwhelmed with the cost of purchasing a home and should be aware of these extra home costs to ensure you won't be struggling at the last moment to find more cash to complete the purchase of your new home. 

 

When a home is sold, the buyer incurs various closing costs in addition to the property sale price. Although, most of the houses expenses are paid for by the seller, the buyers pays a variety of fees such as mortgage origination charges, title insurance, lawyer, home insurance and property taxes. Depending on the buyer and the home purchased, there may be additional fees including CHMC Fees and other costs agred upon and not covered by the seller costs. Don't forget your moving and utlity hook up costs.

 

If you are not sure of the true cost of purchasing a home, contact one of our experts today for help and free advise.

 

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Houses for Sale in Edmonton
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Data is deemed reliable but is not guaranteed accurate by the REALTORS® Association of Edmonton.