First Time Home Buyer Mortgage in Edmonton

Finding the Right First-Time Home Buyer Mortgage in Edmonton

Purchasing your first home is an exciting milestone, but it also comes with significant financial decisions. Understanding your mortgage options as a first-time home buyer in Edmonton is crucial to securing a loan that aligns with your financial goals. Edmonton offers various mortgage options, and knowing which one suits your situation can make homeownership a smooth and successful journey.

As a first-time home buyer, we are your one-stop shop for all your mortgage needs and questions. From your first interaction with us, we will guide you through the home-buying process. Mortgages typically aren’t something that most people grow up knowing or learning about so this is where our expertise comes in.

We walk you through the pre-approval process and we provide you with a budget
We can refer you to our amazing industry partners (Realtors, Lawyers, Home/Life Insurance)
We will secure and monitor your rate hold while you shop for a home
We get your mortgage approved when you make an offer on a home (most people’s favourite part of buying a home is the home search)
We ensure your mortgage closes on time without hiccups
And we are there after the mortgage funds and you take possession of your new home to answer any questions you have and continue to be a source of support for you.

We are here to help you with every conversation you have about your mortgage and home needs from your first purchase until the day you pay off your last mortgage.

As a first-time home buyer, we want you to feel comfortable with your decisions, so we offer lots of informational tidbits and are available to answer any questions that arise during the process.

First-time Home Buyer Programs

First-Time Home Buyer Programs There are a few programs out there to assist first-time homebuyers and it is important to familiarize yourself with them so that you use all the tools in your toolbox. Each program is linked to its corresponding website for more information.

First Home Savings Account (FHSA):
This account combines the benefits of tax-deductible contributions (like a RRSP) and withdrawals would be tax-free (like a TFSA) geared towards first-time home buyers saving for their down payment on a qualifying home purchase.
Key features:
annual contribution of $8,000 with a lifetime contribution limit of $40,000, unused amount can be carried over to subsequent years. Note withdrawal from this FHSA does not have to be paid back (unlike a withdrawal from your RRSP using the HBP).
First Home Savings Account (FHSA) - Canada.ca

First-time Home Buyers’ Tax Credit (HBTC):
when filing your taxes for the year you purchased your home, ensure you enter that you purchased a home during that year for a tax credit of up to $1,500 to eligible home buyers.
First-Time Home Buyers’ Tax Credit (HBTC) - Canada.ca
Home Buyers Plan (HBP):
this program allows first-time home buyers to withdraw up to $60,000 from your RRSPs towards down payment on a qualifying home purchase. Funds must be repaid to your RRSP within 15 years.
The Home Buyers' Plan - Canada.ca

Quick Inquiry Form

Evaluating Your Budget and Financial Readiness

Best mortgage rates for first-time buyers in Edmonton

Determining Your Home Affordability

Before applying for a mortgage, assess how much you can afford. Consider factors such as your monthly income, current expenses, and savings. Use a mortgage calculator to estimate your potential monthly payments and ensure they fit within your financial plan.

The Importance of a Good Credit Score

Lenders evaluate your credit score to determine your mortgage eligibility and interest rates. A higher credit score can help you secure better loan terms. If your credit score needs improvement, consider paying off debts and maintaining a history of on-time payments before applying for a first-time home buyer mortgage in Edmonton.

Down Payment Considerations

In Canada, a minimum down payment of 5% is required for homes priced under $500,000. If your purchase exceeds this amount, the portion above $500,000 requires a 10% down payment. Saving for a down payment is a critical step in preparing for homeownership.

Call to Action

Are you ready to take the first step toward homeownership? Contact a mortgage specialist today to explore your financing options and secure a mortgage that fits your needs.

Exploring First-Time Home Buyer Programs in Edmonton

Government Programs for First-Time Buyers

The Canadian government offers several programs to help first-time buyers. These initiatives make it easier to afford a home by reducing mortgage costs and providing financial incentives.

First-Time Home Buyer Incentive

This program provides an interest-free loan covering 5% or 10% of a home’s purchase price, reducing your mortgage balance and monthly payments.

Home Buyers’ Plan (HBP)

The HBP allows you to withdraw up to $35,000 from your RRSP to put toward your home purchase. This amount must be repaid within 15 years to avoid penalties.

GST/HST New Housing Rebate

If you purchase a newly built home or substantially renovate an existing one, you may be eligible for a rebate on part of the GST or HST paid.

Call to Action

Take advantage of these first-time home buyer programs to reduce costs and make homeownership more affordable. Speak with a mortgage professional today to find out which programs apply to you.

Choosing the Right Mortgage Option

Fixed-Rate Mortgages

A fixed-rate mortgage locks in your interest rate for the duration of your term, making it a stable option for those who want predictable monthly payments.

Variable-Rate Mortgages

A variable-rate mortgage offers fluctuating interest rates based on market conditions. While the initial rate may be lower than a fixed-rate mortgage, it can change over time.

Green Mortgages

If sustainability is a priority, green mortgages offer incentives for purchasing energy-efficient homes or upgrading existing properties to meet environmental standards.

Call to Action

Not sure which mortgage option is right for you? Speak with a mortgage broker who can guide you through the available choices and help you secure the best mortgage rate.

Understanding the Edmonton Housing Market

Market Trends in Edmonton

The Edmonton real estate market is diverse, offering a mix of affordable condos, townhomes, and detached houses. Prices vary depending on location, property type, and market conditions.

Best Neighborhoods for First-Time Buyers

Downtown Edmonton – Ideal for those who want easy access to city amenities.
Ellerslie – A family-friendly community with newer homes and parks.
Windermere – Offers modern housing options and excellent shopping facilities.

Call to Action

Ready to explore Edmonton’s real estate market? Connect with a real estate professional to find the perfect home in a neighborhood that meets your lifestyle needs.

Building a Long-Term Relationship with Your Mortgage Broker

Why Work with a Mortgage Broker?

A mortgage broker can help you find the best rates, access special financing programs, and simplify the mortgage approval process.

The Role of a Mortgage Broker in Your Home-Buying Journey

A broker provides guidance from pre-approval to final mortgage approval, ensuring you secure financing that fits your long-term goals.

Call to Action

Partner with an experienced mortgage broker to navigate the home-buying process with confidence. Contact us today to start your journey toward homeownership.

Frequently Asked Questions (FAQs)

What are the benefits of a first-time home buyer mortgage in Edmonton?

A first-time home buyer mortgage in Edmonton offers competitive rates, potential financial incentives, and access to government programs that can reduce your mortgage costs.

How does the First-Time Home Buyer Incentive work?

The First-Time Home Buyer Incentive provides an interest-free loan covering 5% or 10% of the home’s purchase price, reducing your mortgage balance and monthly payments.

What is the minimum down payment for a first-time buyer in Edmonton?

For homes priced under $500,000, a minimum down payment of 5% is required. Homes over $500,000 require a 10% down payment on the portion above $500,000.

Are there tax benefits for first-time home buyers in Canada?

Yes. The Home Buyers’ Plan (HBP) allows RRSP withdrawals up to $35,000, and the GST/HST New Housing Rebate can help recover part of the tax paid on a new home.

Should I choose a fixed-rate or variable-rate mortgage?

A fixed-rate mortgage provides stability with set payments, while a variable-rate mortgage may offer lower initial rates but can fluctuate based on market trends.

Call ETown Mortgage Team Today!

Our Mortgage Services include: Purchase Mortgage | Move-Up Mortgage | Mortgage Refinance | Divorce Mortgage | Mortgage Renewal | Fixed vs. Variable Rate

For best mortgage rates in Alberta, Get in touch with Connie Graham & Briana Hennigan - ETown Mortgage Team in Edmonton, Sherwood Park, AB, providing mortgage services across Edmonton, Sherwood Park, St. Albert, Nisku, Leduc, Stony Plain, Spruce Grove, Fort Saskatchewan, Beaumont, Grande Prairie, Grande Cache, Hinton, Camrose, Windermere, Riverbend, Edmonton South, South Edmonton, Edmonton Southside, West Edmonton, Edmonton Westside, Edmonton West End, North Edmonton, Edmonton Northside, East Edmonton.