RSS

Understanding Mortgage Choices for New Homebuyers in the Edmonton Real Estate Market
By Jason Hafso, Accredited Buyer's Representative, MaxWell Challenge Realty

Hey there, future homeowners! Buying a home in Edmonton or surrounding areas? One of the first things you'll need to understand is mortgages. Let's break down the options available so you can make an informed decision.

Fixed-Rate vs. Variable-Rate Mortgages

Fixed-Rate

With a fixed-rate mortgage, your interest rate stays the same for the entire loan term. This option provides stability and is often favored by first-time homebuyers.

Variable-Rate

In a variable-rate mortgage, the interest rate may change based on market conditions. If you're comfortable with some risk, this could save you money in the long run.

Open vs. Closed Mortgages

Open Mortgage

An open mortgage offers flexibility, allowing you to pay off your loan at any time without penalties.

Closed Mortgage

A closed mortgage has restrictions on how much you can pay off yearly. However, they usually come with lower interest rates.

Down Payment

The down payment is your initial investment and typically ranges from 5% to 20%. In Edmonton, many first-time buyers opt for the minimum down payment to get into the market sooner.

Pre-Approval

Getting pre-approved gives you a ballpark figure of the mortgage you can afford. It's a valuable tool when house hunting in competitive markets like Edmonton.

First-Time Home Buyer Grants and Incentives

CMHC’s First-Time Home Buyer Incentive

The First-Time Home Buyer Incentive helps new buyers by giving them extra money for their down payment. It aims to make buying a home easier and also encourages builders to make more homes. You can get 5% of the home's value for an older home or 5-10% for a new one. This is an interest-free loan, but you need to pay it back when you sell the house or within 25 years. The payback amount will depend on how much your home is worth at that time.

First-Time Home Buyers’ Tax Credit (HBTC)

The First-Time Home Buyers' Tax Credit lets new buyers in Canada get some money back on their taxes. They can claim up to $10,000, which translates to a $1,500 tax credit. Even though it's not a huge amount, it's pretty easy to apply for and get.

Home Buyers' Plan (HBP)

Another valuable program is the Home Buyers' Plan (HBP), allowing you to withdraw up to $35,000 from your RRSPs tax-free to buy or build a qualifying home. If you’re buying with a partner who's also a first-time buyer, they can withdraw the same amount, potentially doubling your down payment.

The Tax-Free First Home Savings Account (FHSA)

The FHSA is a special savings account for your first home. You can put in up to $8,000 each year and get tax benefits on that money. The most you can save in this account over time is $40,000. If you don't use up the full $8,000 in a year, you can add it to next year's limit.

Mortgage Loan Insurance

If your down payment is less than 20%, you'll be required to get mortgage loan insurance. While this adds to your cost, it's also what enables you to buy a home with a smaller down payment.

In the dynamic Edmonton real estate market, understanding your mortgage options is crucial. Whether you're eyeing a downtown condo or a family home in a surrounding community, make sure you're financially prepared.

Looking for more advice on buying a home in Edmonton and surrounding areas? Contact Jason Hafso, your local Accredited Buyer's Representative at MaxWell Challenge Realty.

Read

For Sale - 305 10142 111 ST in Edmonton

I have listed a property at 305 10142 111 ST in Edmonton.

Use the link below for more information and to book a showing.

See details here

Don't miss out on this exceptional executive suite in Meridian Plaza! With an amazing view of the grand indoor atrium from your year-round balcony, this spotless unit is truly unique. Enjoy the convenience of Hunter Douglas automated blinds, built-in closet organizers/drawers and an in-suite laundry room with custom cabinetry. You'll love cooking in the upgraded kitchen with high-end stainless steel appliances and granite countertops, while the upgraded light fixtures and beautiful hardwood floors add a touch of luxury. Stay cozy with two fireplaces, including one in the primary bedroom. Amenities include a social room with a kitchen, business centre, gym, bike storage, indoor visitor parking and rentable suite for your guests. Your oversized underground parking stall provides extra convenience. Within walking distance of all downtown has to offer and steps to the future Valley Line LRT, this home is perfect for those seeking an exceptional lifestyle. Don't miss your chance to own this one-of-a-kind gem!

Read

5 Budget-Friendly Ways to Boost Energy Efficiency and Save Money on Your Home

Hey there! It's Jason from MaxWell Challenge Realty. Today, I want to share some simple, budget-friendly ways to make your home more energy-efficient. Let's dive right in!

1. Seal Up Leaks

Gaps and cracks in your home's envelope can let in drafts. Use weatherstripping or caulk to seal up these problem areas. It's a quick fix that can help you save big on heating and cooling.

2. Install a Smart Thermostat

A smart thermostat can adjust the temperature based on your schedule, cutting down on wasted energy. You can find good models for under $150, and they're easy to install.

3. Switch to LED Bulbs

LED bulbs are more energy-efficient than traditional incandescents and can last up to 25 times longer. Make the switch and you'll see a drop in your electricity bill.

4. Use Power Strips

Plug your electronics into a power strip and turn it off when you're not using them. This stops "phantom" energy usage, which can add up over time.

5. Insulate Your Water Heater

A water heater blanket can cost as little as $20 and can save you up to 16% on water heating costs. It’s a quick DIY project that pays off.

That's it for today! Making your home more energy-efficient doesn’t have to break the bank. Try these tips and let me know how they work for you.

Until next time,
Jason


Read
Categories:   2022 | account | activities | adventure | affordability | agents | air | air conditioning | air quality | alarms | alberta | ambiance | amenities | andrew | Andrew, Andrew Real Estate | apartments | appliances | art | artwork | assessment | automation | backsplash | backyard | balconies | balcony | bank | banking | barbecue | Barrhead, Barrhead Real Estate | basement | bathroom | bathrooms | bedroom | benefits | bikes | bills | bistro | Blue Quill Real Estate | borrowing | budget | build | builders | building | buildings | bungalow | buyers | buying | cabinet | cabinetry | cabinets | Canada | Canadian | canadians | candles | carbon monoxide | ceiling | chairs | challenges | chimney | city | clean | clients | climate | clutter | cmhc | cold | colour | colours | comfort | communities | community | concrete | condo | condos | construction | consumers | contractor | costs | countertop | covid-19 | credit | curb appeal | curtains | debt | design | diy | donations | doors | edmonton | edmonton, alberta | Edmonton, Edmonton Real Estate | education | efficiency | election | electrical | energy | entertaining | entertainment | entrance | entryways | environment | exits | expense | expenses | expert | exposure | fall | families | family | fan | faucets | fees | finances | financial | financing | fire | fire escape | fire extinguisher | fireplace | fixtures | flood | flooding | floor | flooring | flowers | food | Fort Saskatchewan, Fort Saskatchewan Real Estate | friends | fun | furnishings | furniture | garage | garbage | garden | gardening | Gibbons, Gibbons Real Estate | government | grass | greenery | greenspaces | groundwater | gym | hardware | health | heating | heloc | highrise | home | homeowner | homeowners | homeownership | homes | homework | house | household | houses | housing | ideas | ikea | incentives | income | indoors | infrastructure | insulation | insurance | integration | interest | interest rate | interior | interiors | invest | investing | investment | investments | kitchen | lamps | land | landlord | lawn | lawns | layout | learning | lender | lifestyle | light | lighting | lights | listing | living room | loan | location | lrt | mail | maintenance | makeover | market | marketing | meals | minimalism | money | mortgage | move | movie | nature | neighbors | neighbourhood | new | news | nights | offer | offers | office | offices | oliver | Onoway, Onoway Real Estate | options | outdoor | outdoors | outside | oxygen | paint | painting | park | patio | patterns | payments | pergola | perks | permits | pesticide | pests | pets | photographs | pillow | pitfalls | plan | planning | planter | plants | plumbing | plywood | pollution | pool | population | portfolio | price | professional | project | projects | property | purchase | purchasing | quality | realtor | red cross | regulations | remodelling | reno | renovate | renovating | renovation | renovations | rental | repair | repairs | resale | reserve | retirement | river valley | roof | room | rooms | Rural Lac Ste. Anne County, Rural Lac Ste. Anne County Real Estate | Rural Leduc County, Rural Leduc County Real Estate | Rural Sturgeon County, Rural Sturgeon County Real Estate | safety | sale | save | saving | savings | search | season | security | security system | sell | sellers | services | sewer | shades | shed | Sherwood Park, Sherwood Park Real Estate | shopping | shops | sidewalk | sink | smart home technology | smoke detectors | sold | solutions | spa | space | spending | spring | Spruce Grove, Spruce Grove Real Estate | St. Albert, St. Albert Real Estate | statements | Stony Plain, Stony Plain Real Estate | storage | stove | street | stress | style | succulents | suite | summer | table | tax | technologies | tenant | theatre | theft | thermostat | tile | tips | tools | toys | transportation | trends | tub | upgrade | upgrades | vacations | value | veggies | ventilation | viruses | volunteering | vote | walkway | wall | wallpaper | walls | warm | warmth | water | wealth | weather | weatherstripping | weeds | well | window | windows | winter | winters | wiring | wood | woodstove | work | workspace | workstation | world | Zone 01, Edmonton Real Estate | Zone 02, Edmonton Real Estate | Zone 05, Edmonton Real Estate | Zone 07, Edmonton Real Estate | Zone 09, Edmonton Real Estate | Zone 10, Edmonton Real Estate | Zone 12, Edmonton Real Estate | Zone 14, Edmonton Real Estate | Zone 15, Edmonton Real Estate | Zone 16, Edmonton Real Estate | Zone 20, Edmonton Real Estate | Zone 21, Edmonton Real Estate | Zone 23, Edmonton Real Estate | Zone 27, Edmonton Real Estate | Zone 28, Edmonton Real Estate | Zone 29, Edmonton Real Estate | Zone 30, Edmonton Real Estate | Zone 51, Edmonton Real Estate | Zone 55, Edmonton Real Estate | Zone 58, Edmonton Real Estate | zoning
Copyright 2024 by the REALTORS® Association of Edmonton. All Rights Reserved.
Data is deemed reliable but is not guaranteed accurate by the REALTORS® Association of Edmonton.
The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA.