As of December 15, 2024, new regulations have been introduced to make homeownership more accessible in Canada, including Calgary, Alberta. These changes specifically focus on adjusting the minimum down payment requirements based on the property’s purchase price. Whether you’re buying your first home or upgrading, understanding these new requirements is crucial for planning your next move. Here’s a detailed breakdown of the current down payment rules:

Minimum Down Payment Requirements:

• Homes Priced Up to $500,000:
For homes priced at $500,000 or less, the minimum down payment is 5% of the purchase price.
Example: If you’re purchasing a home for $500,000, your minimum down payment would be $25,000.

• Homes Priced Between $500,001 and $1,499,999:
For homes in this price range, the minimum down payment is calculated by taking 5% of the first $500,000 and then 10% of the remaining amount above $500,000.
Example: If you’re buying a $700,000 home:

• 5% of $500,000 = $25,000

• 10% of $200,000 = $20,000
  Total Minimum Down Payment: $25,000 + $20,000 = $45,000

• Homes Priced at $1,500,000 or More:
For homes above $1.5 million, the minimum down payment is 20% of the purchase price.
Example: For a $1,500,000 home, the minimum down payment is $300,000.

Key Changes Effective December 15, 2024:

• Increased Price Cap for Insured Mortgages:
The maximum property value eligible for mortgage insurance has increased from $1 million to $1.5 million. This change means buyers can now make lower down payments on higher-priced homes, allowing more flexibility when purchasing homes that are priced closer to the $1.5 million mark.

• Extended Amortization Periods:
As of December 15, first-time homebuyers and purchasers of newly built homes can now opt for a longer mortgage amortization period of up to 30 years. This extension helps reduce monthly payments, making it easier for buyers to manage their finances while still investing in a new home.

Additional Considerations:

• Mortgage Loan Insurance:
If your down payment is less than 20%, mortgage loan insurance will be required. These premiums are added to your mortgage and vary based on the amount of your down payment. Be sure to factor this into your total mortgage costs when planning.

• First-Time Home Buyer Incentives:
If you're a first-time homebuyer, take advantage of programs like the enhanced Home Buyers’ Plan, which allows you to withdraw up to $60,000 from your RRSPs to help fund your down payment. This is a valuable tool for first-time buyers looking to minimize their initial costs.

Final Thoughts:

The updated minimum down payment requirements are designed to make homeownership more achievable, even as housing prices continue to rise. Whether you are a first-time buyer or looking to upgrade, understanding these changes is crucial for making informed decisions. These adjustments give buyers more flexibility, especially for those purchasing higher-priced homes.

For more detailed information and the latest updates, visit the Government of Canada’s Mortgage and Housing Information or consult with a mortgage professional to get personalized advice.

If you have any questions, don’t hesitate to reach out – I’m here to guide you every step of the way.

Exciting News for Calgary Homebuyers: 30-Year Mortgage Amortization Now Available!

Great news for Calgary homebuyers! Starting December 15, 2024, first-time buyers and those purchasing newly constructed homes can benefit from the newly introduced 30-Year Mortgage Amortization. This policy aims to make homeownership more accessible and affordable for many.

Who is Eligible for the 30-Year Amortization?

• First-Time Buyers: Those purchasing their first home or who haven’t owned one in the past four years.

• New Home Buyers: Applicable to individuals buying newly constructed homes.

• Mortgage Insurance: Buyers with less than 20% down payment qualify if their mortgage is insured.

Key Benefits

• Lower Monthly Payments: Reduced payments give you more financial flexibility.

• Increased Affordability: Afford a larger home or a better location in Calgary.

• Flexibility for First-Time Buyers: Easier and less stressful transition to homeownership.

• Financial Freedom: Free up funds for other priorities while building equity.

How Does It Work?

The 30-year amortization extends the mortgage term, spreading payments over a longer period.

Example: For a $500,000 home with a 20% down payment:

• 25-Year Term: Higher monthly payments.

• 30-Year Term: Lower payments, making homeownership more manageable.

Things to Keep in Mind

• Total Interest Costs: A longer amortization may result in higher interest paid over time. However, early payments can offset this.

• Long-Term Planning: Consider your financial and personal goals to ensure this option aligns with your needs.

• Market Demand: This change may increase demand for homes, potentially affecting prices. Acting sooner could be advantageous.

Additional Flexibility: Pay Off Your Mortgage Faster

While the 30-year term offers smaller monthly payments, you can choose to pay off your mortgage early through prepayment options. Many lenders allow extra payments or lump-sum contributions, helping you save on interest and shorten the mortgage term without penalties.

Why This is a Game-Changer

The 30-Year Mortgage Amortization offers:

• Affordability: Lower monthly payments make homeownership more achievable.

• Purchasing Power: Access to better home options.

• Flexibility: Ideal for first-time buyers and those balancing their budgets.

• Early Payment Options: The ability to pay off your mortgage faster gives you control over your financial future.

Final Thoughts

This new policy is a fantastic opportunity for Calgary homebuyers, especially first-time buyers and those looking for newly built homes. With options to pay off your mortgage early, you can enjoy both immediate affordability and long-term financial benefits.

Feel Free to Reach Out

If you have any questions or need guidance, don’t hesitate to get in touch. I’m here to help you navigate the Calgary real estate market and make informed decisions with confidence.

Winter Isn’t the Season to Buy? Think Again!

For years, many have believed that winter is the worst time to buy a home. The chilly weather, shorter days, and holiday distractions seem like reasons enough to wait until spring or summer. But here’s the truth: winter can actually be the best time to buy a home in Calgary. Let’s debunk this myth and explore why this season could offer you a golden opportunity in the real estate market.

Less Competition = Better Opportunities

While most buyers flock to the market in the warmer months, winter sees fewer people hunting for homes. This drop in competition means you won’t be caught up in bidding wars. With less demand, you have the advantage to negotiate better terms and potentially get a lower price. In fact, fewer buyers mean less pressure, and you can take your time to find the right home for you.

Motivated Sellers Want to Close Deals

People who list their homes during winter often have urgent reasons for selling, such as job relocations, family moves, or financial changes. These motivated sellers may be more flexible with pricing and willing to negotiate on terms, which could result in a better deal for you. In Calgary, this gives you the chance to snag a home that might otherwise be off the market in busier seasons.

Great Deals and Incentives from Builders

If you’re looking at new construction or pre-construction homes, winter can be a fantastic time to buy. Builders often offer attractive deals and incentives to help move inventory during the slower season. These could include price reductions, upgrades, or other perks that aren’t available in peak buying seasons. Plus, with fewer buyers in the market, builders are often more willing to personalize homes to your taste.

See the Property’s True Winter Performance

Winter gives you a unique opportunity to assess a home’s performance during the colder months. How does the heating system function? Is the insulation up to standard? Is the property properly maintained, especially when it comes to snow removal? With Calgary’s winter weather, these details can make or break your home-buying decision.

Better Mortgage Rates and More Time to Close

While interest rates are always a crucial factor, winter may provide more stable or even favorable borrowing conditions. Some financial institutions might offer promotions or better rates during this time to encourage activity in a quieter market. Additionally, with fewer transactions in progress, lenders may have more time to focus on your application, leading to a smoother process.

Prepare for the Spring Rush

Buying in winter also puts you ahead of the game for the spring market. You can close the deal and settle into your new home before the busy season begins. This means fewer moves during the chaotic months of spring, giving you more time to get comfortable in your new space.

Why the “Winter Slump” Myth Still Exists

The myth that winter is a bad time to buy stems from outdated notions that the market is slow or that homes are less desirable. But in reality, these factors just shift the market dynamics in your favor. Winter buyers are often more serious, and sellers are looking to close deals quickly. This creates a win-win situation where you can get a great property at a better price.

Tips for Winter Homebuyers:

• Work with a Realtor: A local expert can help you navigate the unique challenges of winter buying and identify opportunities others might miss.

• Be Patient and Flexible: Winter markets are quieter, but that means you have more time to make thoughtful decisions. Sellers may also be more willing to negotiate if you show interest without rushing.

• Bundle Up: Don’t let the cold weather deter you. Touring homes during winter gives you a chance to see how a property handles the season’s challenges.

Final Thoughts

Winter in Calgary offers serious advantages for buyers, from motivated sellers and fewer competitors to great deals and incentives. So, if you’ve been waiting for the right time to buy, the winter months may just be the perfect opportunity to make your move. The Brilliant Realty team is still selling 1 home every 24 hours, even in winter.

Ready to find your dream home? Contact me today and let’s make it happen this season.

Interest Rate Drop: What It Means for You

The Bank of Canada has reduced its key interest rate from 3.75% to 3.25% as of December 11, 2024. This is an exciting change, especially for those in the housing market or looking to manage their finances. Here’s how this affects you:

Benefits for Homebuyers

• Lower Monthly Payments: Reduced rates mean smaller mortgage payments, leaving you with more money in your pocket.

• Increased Purchasing Power: You can qualify for a larger loan amount while staying within your budget.

• First-Time Buyers Win: Easier affordability makes it a great time to step into homeownership.

Benefits for Homeowners

• Refinancing Options: Save money by renegotiating your mortgage for lower interest rates.

• Variable Rate Advantage: If you have a variable-rate mortgage, your payments could drop automatically.

• Home Equity Potential: Lower rates can help increase demand and value for your property.

Benefits for Investors

• Cheaper Financing: Investing in real estate becomes more affordable with reduced borrowing costs.

• Improved Cash Flow: Lower interest rates on loans mean better returns on your rental income.

• Market Opportunities: More buyers entering the market could boost demand and competition.

Additional Benefits

• Debt Management: Lower rates can reduce interest on lines of credit and personal loans, making it easier to pay off debt.

• Boost to the Economy: Increased activity in the housing and spending sectors helps stabilize the economy.

• More Options for Buyers: With improved affordability, you have more choices to find the perfect home.

What Should You Do Next?

• Check Your Mortgage: Review your current mortgage terms to see if you can benefit from refinancing.

• Get Pre-Approved: If you’re planning to buy, get pre-approved now to lock in these lower rates.

• Act Quickly: With more people likely entering the market, it’s a great time to take advantage of opportunities before demand rises.

This rate drop creates exciting possibilities, whether you’re buying, selling, or investing. Contact me today for personalized advice on how to make the most of these changes. Let’s turn this into a step toward your real estate goals!

For more information, feel free to contact me.

November 2024 Housing Market Update: Key Insights

As winter approaches, Calgary's housing market is aligning with seasonal trends, showing a cooling in activity compared to the fall months. Here's a detailed look at the November 2024 housing market:

1. Overall Market Trends

Sales:

• 1,797 sales in November, matching last year’s figures and 20% above long-term averages.

• Growth observed in detached, semi-detached, and row homes, while apartment sales declined.

Inventory:

• 4,352 units available, a significant increase from last year’s 3,000 units.

• Despite the improvement, supply levels remain below long-term trends.

Prices:

• Residential benchmark price: $587,900, marking a 4% year-over-year increase.

• Price growth has slowed due to increased supply and heightened demand for affordable housing options.

2. Market by Property Type

Detached Homes:

• Sales growth primarily in homes priced above $600,000, while lower price ranges faced supply challenges.

• Benchmark price: $750,100, a 7% rise compared to last year.

• Market conditions favorable for sellers below $700,000, while higher price ranges are more balanced.

Semi-Detached Homes:

• 173 sales in November, contributing to a 5% year-to-date increase.

• Benchmark price: $675,100, up 8% from last year.

• Seller's market conditions, particularly for homes under $700,000.

Row Homes:

• Sales increased by 3% year-to-date, reflecting strong demand for affordability.

• Benchmark price: $454,200, a 7% increase year-over-year.

• Tight market conditions with just two months of supply. Price increases are slowing compared to earlier in the year.

Apartment Condominiums:

• 429 sales in November, lower than last year but 47% above long-term trends.

• Benchmark price: $337,800, a 9% year-over-year increase.

• Rising supply is easing price pressures, particularly for units priced between $300,000 and $500,000.

3. Regional Market Highlights

Airdrie:

• Supply: 344 units, returning to pre-2020 levels.

• Benchmark price: $543,300, a 4% increase year-over-year.

• Apartment-style homes saw the most significant price growth at 16%.

Cochrane:

• Record-high November sales, with strong activity in detached homes.

• Benchmark price: $568,600, a 4% rise from last year.

• Inventory remains tight, even with an increase in new listings.

Okotoks:

• Limited new listings (47) but strong sales (52) kept inventory constrained.

• Benchmark price: $624,000, up 6% year-over-year.

• Row homes recorded the most significant price gains.

Final Thoughts

This November housing market update showcases the latest trends shaping Calgary’s real estate market. Whether you’re looking to buy, sell, or invest, staying informed is essential to making the right moves.