McLeod Law

Mar 22, 2022

Looking to purchase your first home but don't know where to start? We curated a first-time homebuyer's guide just for you Author of the article: Article content Looking to purchase your first home but don’t know where to start? We curated a first-time homebuyer’s guide just for you Advertisement 2 Article content Try refreshing your browser, or Calgary’s first-time homebuyer‘s guide Back to video So you’ve decided to take that first big step and plunge into homeownership — starting with the purchase of your first home. First of all, congratulations! Buying your first home is a huge milestone. While the process can be incredibly rewarding, it can also be daunting, especially if you’re not sure where to begin. Article content That’s what this homebuyers’ guide is all about. Complete with stories about the top neighbourhoods, tips for first-time homebuyers, real estate trends, how to sell your home and more, we hope it gives you a glimpse into what you need to know to purchase (or sell) your first home. Article content Zen Sequel is Avalon Master Builders’ new net-zero multi-family development — one of the first in Canada. Photo by Supplied /Postmedia New home buyers want to be socially responsible in regards to climate change and reducing their carbon footprint, as long as their new home doesn’t cost more. Advertisement 3 Article content The deadline for Canadian buildings to be “net-zero ready” by 2030 is only eight years away. The hard deadline to be “net zero” is 2050, in 28 years. For context, the hit movie Forest Gump was released 28 years ago. Time flies. Building energy-efficient homes has been a priority for decades but when it comes to balancing energy costs versus mortgage costs, new home buyers want a net-zero solution here, too. Net-zero homes produce as much clean energy as they consume. Net-zero “ready” homes are built to the same efficiency standards as net-zero homes but don’t yet have their renewal energy system (solar panels) installed. Advertisement 4 Article content Rather, these two prairie provinces offer homebuyers another benefit: no land transfer taxes. “It’s a huge advantage,” says Brad Mitchell, chief executive officer of Alberta Real Estate Association. “That’s because a land transfer tax is really taking money away from a down payment.” Few people will ever make a larger purchase than buying a home. This makes it easy to overlook the additional expenses that come with stepping into homeownership. From covering costs needed before the move to needs once one takes possession, first-time buyers benefit from budgeting beyond mortgage payments. Josh Skapin takes a look at some of the costs new homeowners need to keep in mind. We apologize, but this video has failed to load. Try refreshing your browser, or Article content Along with calls to a home builder and moving company, one of the essential contacts when buying a new home is a law firm. The complex documents involved in buying a home are considerable and require a lawyer’s attention and expertise. “Notwithstanding it is mandatory to hire a lawyer when buying a home in Alberta, there is a significant amount of paperwork required and a lawyer will ensure your interests are protected and ensure the transaction goes smoothly and on schedule,” says Daniel G. MacAulay, associate at McLeod Law LLP in Calgary. Matt and Karina Chrysler bought their first home in Copperfield, Calgary. Photo by Brent Taylor Photography /Postmedia For Matt and Karina Chrysler, living in a hip, cosmopolitan city like Toronto has its perks, but it was not where they wanted to buy their first home. In their early 30s and dreaming of starting a family, the couple heard that single-family homes in Calgary were more affordable than anything they might find in the GTA. “Matt grew up in Calgary. We’d been talking about moving for a long time. Then, working during the pandemic in a tiny, one-bedroom apartment, we were in each other’s faces all day,” says Karina. “We looked at home prices in Calgary and made the decision.” Article content We’ll be blunt; Canada is not an easy place to buy a home. Decades of underbuilding have resulted in Canada having one of the most acute housing shortages in the G7. With fewer homes to go around, real estate in many of Canada’s major cities has been bid up to levels that now rank as some of the most unaffordable on earth . But it’s not impossible, even for those Canadians who may not have the good fortune of an eight-figure inheritance to play with. Nearly 70 per cent of Canadians own their own home, and that figure is rising each year. Read more for tips on how to join them. Sumi Ragu bought his first home at 22-years-old, a near-impossible feat for the average millennial these days. But the accomplishment came at no small cost, he acknowledged. “I didn’t have a work-life balance. I was doing a lot of work and minimal sleep,” he said. “I lost half my hair, like, trying to get a mortgage for this.” After having a child, Amanda and Joseph wanted to expand their living space and have a place to call their own. Amanda has been working since she was 17 years old, and homeownership was always something in the back of her mind, she said. Beyond savings from work, both her husband and her lived with their respective parents until they got married, in order to live more frugally. Before they got married, she invested in a pre-construction condo in Maple, Ont. The development took about three years to complete and was profitable by the time they sold it. She said this initial investment helped to fund the house they bought. Camille has been saving up for some time now to buy a place of her own. She decided to stay at home while attending school and save money she would have otherwise spent on rent. Through her previous job, she had saved up enough for half of the down payment, and she continued saving until she could pay for it. Although she wanted to live in Ottawa, where she works, the cost was too high and she had to remain open-minded and look elsewhere. Quebec seemed like a viable alternative. Derek feels lucky he was able to buy a place of his own. Knowing he wanted to buy in Tofino, he kept an open mind to how he would buy a place. Initially, he thought he would buy a house with his friend and split the cost. Houses were moving fast and he said everything he was interested in would get snapped up quickly — often over the original asking price. “It was just very frustrating being a first-time homebuyer, not being able to lean on my equity from a previous house to buy a second place or a huge line of credit or anything like that. I just felt like it wasn’t fair. Like, I couldn’t really do anything,” she said. “But then I got really lucky.” We apologize, but this video has failed to load. Try refreshing your browser, or Article content The era of ultra-low borrowing costs is over. When the Bank of Canada raised its benchmark interest a quarter point to 0.5 per cent in early March, it made clear that more increases were on the way. The biggest obstacle to home ownership for many is the down payment, especially these days, with home prices in Canada’s hottest markets running rampant. One way many first-time buyers get over that barrier is with a boost from their registered retirement savings plans (RRSPs) through the Home Buyers Plan . Before depleting this tax-sheltered savings account, there are a few things to consider. We apologize, but this video has failed to load. Try refreshing your browser, or