You wonder how to afford a house in Edmonton because you’ve never bought a house before. The thought of embarking on this unknown journey terrifies you. 

I get it. 

I’ve guided many first-time homebuyers through the process. I’ve been a first-time homebuyer myself at one point!

So, I know what you’re feeling right now. But as long as you have an expert real estate agent by your side, it’ll be a breeze. 

I’ll walk you through tips and tricks on how to afford a house in Edmonton. 

Here’s an overview of how to afford a house in Edmonton: 

1. Stay Updated with Edmonton’s housing market
2. Plan your finances for your home purchase
3. Explore and compare mortgage options
4. Understand the city’s cost of living
5. Leverage Government Assistance for First-Time Buyers

Ready to learn more? Dive right in!

1. Stay Updated with Edmonton’s Real Estate Market

Buying your first home is a big step. You will need basic knowledge of the Edmonton’s housing costs to prepare. Let’s break it down. 

Picture Edmonton’s real estate market as a balloon that’s slowly inflating. On average, a home here costs about $420,959, a bit higher than last year.

When people talk about the ‘benchmark’ price, consider it the price tag on a typical city home. The benchmark price is currently around $392,600. This number helps give you a ballpark idea of what many folks pay for a regular house.

Different types of property also have different price tags:

Standalone houses are the kind with a yard and no shared walls with neighbours. These have gone up in price a bit, about 6.5% since last year. 

Townhouses are like houses but share one or more walls with another home. These have jumped up even more in price by 14%. 

Apartments, which are units in a larger building, had a smaller price hike of just 0.7%.

All these percentages just show us how much the prices have gone up over time. Knowing this helps you understand what’s happening in Edmonton’s housing market right now. So you can know the best time when to buy your first home.

2. Plan Your Finances to Buy a House

Imagine you’re preparing for a big adventure. You’d pack your essentials, plan your route, and maybe even do some training, right? Getting ready to buy your first home is a lot like that. It all starts with a solid saving plan. 

Here are some beginner-friendly tips to help you pack your financial backpack:

• Track Your Spending: Like checking the weather before a hike, keeping an eye on where your money goes each month helps you find areas to save.
• Automatic Savings Plan: Set up your bank account to automatically move a little money into savings each payday. 
• Trim the Extra: Look for things you might not need right now, like that extra coffee or streaming service. 

With these tips, you’re not just saving; you’re building a foundation for the day you step into your first home—a home that’s all yours in the heart of Edmonton.

3. Explore and Compare Mortgage Options for Housing

Finding the right mortgage is like finding the perfect hiking boots for a long journey. You need ones that fit just right and will see you through to the end. 

So, here are some friendly pointers to help you choose the best mortgage for your adventure:

Understand Mortgage Rates

Think of the rate. The lower it is, the easier your financial ‘walk’ can be. Right now, you can get a rate of 4.64% for a certain type called a 5-year Fixed mortgage.  This means the rate won’t change for five years.

Learn the Lingo

Mortgages come with their own language. Terms like “amortization,” “principal,” and “interest” are part of this world. Take time to learn these terms so you can make choices that feel good in the long run.

Shop Around

Don’t take the first offer you get. Look at different lenders, like banks or mortgage brokers. See who has the terms and rates that suit your budget.

Get Pre-Approved

Getting pre-approved tells you how much money a lender is willing to loan you. This helps set your homebuying budget.

With a bit of research and help from experts, picking the right mortgage can be a smooth part of your journey to your very own home in Edmonton.

4. Understand the City’s Cost of Living

When you’re dreaming of your new home in Edmonton, look beyond the price tag on the house. 

Yes, our city is kind of a bargain hunter’s dream. Everyday expenses like groceries and bus tickets generally cost 10% less than other spots in Alberta. 

But let’s walk through the not-so-obvious costs that come with a house:

Plan for your Utilities

These are like the monthly subscriptions for services you need. Think, water, power, and heat. Just like you budget for your phone bill, you’ll need to plan for these, too.

Don’t Forget Property Taxes!

Think of this as a membership fee for being part of the community. This money goes to local schools, roads, and emergency services.

It’s Not Just About Learning How to Buy a Home! It’s Also About Maintenance

Owning a house means being your own landlord. When something needs fixing, you’re in charge, so having a little savings set aside for repairs is a smart move.

By factoring in these extra pieces of the puzzle, you’ll have a complete picture of what it really costs to live comfortably in your Edmonton home.

5. Leverage Government Assistance for First-Time Buyers

Stepping into the homebuying ring for the first time? Good news: Canada’s got some sweet deals to help get you into your first home without feeling like you’re wrestling a bear. 

These programs are your cheer squad, ready to give you a leg up:

Home Buyers’ Plan (HBP)

This is like being able to borrow from a future you who’s already settled and cozy. You can take out money from your retirement savings (called an RRSP) and use it for your home. All this without paying tax on that borrowed bit right now.

Tax-Free Home Savings Account (FHSA)

Imagine a piggy bank that gives you a little bonus every time you drop money into it. That’s the FHSA for you. You save some cash and come tax time, you get a pat on the back in the form of tax deductions.

Tax Credits

These are like coupons that you can use to lower the amount of tax you pay when you’re buying your first home. Think of them as a way to keep a bit more money in your pocket.

All these programs are designed to make it easier for you to swing the door open on a new chapter in your life. Remember, it’s all about getting that extra boost so you can plant your flag on your very own piece of Edmonton.

You Know Better How to Afford a House in Edmonton! 

Ready to buy a home? Start your search for homes in Edmonton. Tell us what you need, and we’ll get your personalized recommendations. Within your budget!

Let’s get your dream home for you.