First-Time Home Buyer Guide for Alberta (2025)

General Cedric Pelletier 30 Dec

 

Buying your first home can be an exciting but daunting experience. Whether you’re eyeing a condo, townhouse, or single-family home, it’s essential to be prepared for the home-buying process, especially in Alberta, where the market and regulations have specific dynamics. Here’s a comprehensive guide for first-time homebuyers in Alberta for 2025.

  1. Understanding the Alberta Housing Market

Alberta’s real estate market can be unique due to factors like oil prices, economic conditions, and migration trends. In 2025, buyers might see varying market conditions depending on the region (e.g., Calgary vs. Edmonton, or smaller communities).

  • Calgary and Edmonton: These two major cities typically offer the most diverse real estate markets, with both having a mixture of new builds, older homes, and condos.
  • Rural Areas: Smaller cities or towns like Red Deer, Fort McMurray, and Lethbridge could offer more affordable options, though availability and amenities may be different.

Trend to watch: The 2025 Alberta market may still be influenced by the post-pandemic recovery, interest rates, and migration from other provinces. Stay updated on market reports for the most relevant information closer to your purchasing time.

  1. Know Your Budget and Financing Options

Before you start browsing listings, it’s important to determine your budget. Here’s how:

  • Mortgage Pre-Approval: Getting pre-approved by a lender is crucial. This will give you a clear idea of how much you can borrow and the mortgage terms you can expect. In Alberta, you’ll need to provide proof of income, credit score, and debt obligations.
  • Down Payment: You’ll need a minimum of 5% of the home’s purchase price for a down payment if the price is under $500,000. For homes over $500,000, you’ll need 5% for the first $500,000 and 10% for the remainder.
  • Mortgage Insurance: If your down payment is less than 20%, you’ll likely need mortgage default insurance, which protects the lender in case you can’t repay the loan.
  • Mortgage Rates: In 2025, interest rates might be a key consideration. Be sure to shop around for the best rates, whether through fixed-rate or variable-rate mortgages. Keep an eye on the Bank of Canada’s rate decisions as they impact mortgage rates.

  1. First-Time Home Buyer Incentives and Programs

There are several programs and incentives for first-time buyers in Alberta, which can make homeownership more accessible.

  • First-Time Home Buyer Tax Credit: This federal program provides a non-refundable tax credit to first-time buyers of $5,000, which could reduce your tax liability by up to $750.
  • First-Time Home Buyer Incentive (FTHBI): This federal initiative offers a shared equity mortgage with the government, providing 5% or 10% of the home’s purchase price for first-time buyers. However, the incentive is subject to income and home price limits. You will need to repay the government’s share when you sell or after 25 years, whichever comes first.
  • GST New Housing Rebate: If you’re buying a newly built home, you may qualify for a rebate on part of the GST (5%) paid during the purchase.
  • Alberta’s Home Buyers’ Program: This provincial initiative offers a partial refund of the land transfer tax, which can reduce the upfront cost of buying a home.

  1. Choosing the Right Property Type

There are a few options when it comes to choosing a home in Alberta, each with different advantages and considerations:

  • Condo/Apartment: These properties tend to be more affordable, especially in urban centers like Calgary and Edmonton. However, you must factor in monthly condo fees and restrictions on pets or renovations.
  • Single-Family Home: This is ideal if you’re looking for more space and privacy. However, they typically require higher down payments and ongoing maintenance costs.
  • Townhouse: Offers a balance between the affordability of condos and the space of single-family homes. You’ll typically pay less for a townhouse than a single-family home.

  1. Factors to Consider Before Buying

  • Location: Whether you’re looking for access to work, schools, public transit, or amenities like parks and shopping, the location of the home is key. Remember, the more desirable areas in major cities will likely have higher prices.
  • Size and Layout: Consider the number of bedrooms, bathrooms, and living space you need. Make sure the layout suits your lifestyle (e.g., open-concept living, or a more traditional style).
  • Condition of the Home: Whether you’re buying new or resale, have the home inspected by a professional to assess its condition. A thorough inspection can uncover potential issues with the foundation, plumbing, roof, or electrical systems that might require expensive repairs.
  • Future Resale Value: Think ahead about whether the property will hold its value or appreciate over time. Key factors that influence resale value include the neighborhood, local amenities, and market trends.

  1. The Home-Buying Process in Alberta

  • Hire a Real Estate Agent: While not mandatory, a licensed agent can help you navigate the buying process, from finding the right property to negotiating the price. Make sure they are familiar with the Alberta market.
  • Make an Offer: Once you’ve found the right property, your real estate agent will help you make an offer. In Alberta, offers often include conditions like financing approval, home inspection, and a review of the title.
  • Home Inspection and Appraisal: After your offer is accepted, it’s wise to get the home inspected to avoid unforeseen costs. Also, your lender will require an appraisal to ensure the home’s value aligns with the loan amount.
  • Closing the Deal: If everything goes well, you’ll sign the purchase agreement, pay your down payment, and cover closing costs (usually 1.5-4% of the purchase price). In Alberta, the land title registration fee is one of the main closing costs.

  1. Legal and Closing Costs

In addition to your down payment, you’ll need to budget for the following:

  • Land Transfer Tax: This is calculated as a percentage of the property’s purchase price and varies by municipality. As a first-time buyer, you may be eligible for rebates.
  • Legal Fees: You’ll need a lawyer to handle the paperwork and title transfer. Expect to pay $500–$1,500 in legal fees.
  • Home Insurance: Lenders require home insurance to protect the property. Shop around for the best rates and coverage.
  • Title Insurance: This optional insurance protects against issues like fraud or title disputes, and is often recommended.

  1. Post-Purchase Tips

  • Maintenance: Keep your home in good condition by addressing minor repairs before they become costly problems. Regular maintenance on plumbing, electrical systems, and HVAC can help maintain or even increase your home’s value.
  • Property Taxes: Alberta’s property tax system varies by municipality, so you’ll need to budget for annual taxes. They’re usually based on the assessed value of your home.

Conclusion

In 2025, Alberta will likely offer a dynamic market with both opportunities and challenges for first-time buyers. By understanding the housing landscape, securing financing, utilizing available incentives, and making informed decisions, you can set yourself up for a successful home-buying experience. Always consult with local experts and stay informed about market trends as you begin this exciting journey.

Budgeting for the Year Ahead!.

General Cedric Pelletier 28 Dec

With the recent inflation and rising prices occurring across the country, it is time to take control of your finances. One of the quickest ways to understand where your money is going and where you can make changes, is to create a monthly budget. This will help you get a snapshot of your income compared to your spending, and provides an avenue to review all of your outgoing costs and helps you make changes to increase your monthly cashflow – or just feel less stressed!

Step 1: Calculate Your Income

The very first step to creating any budget is determining your income – knowing exactly how much money you bring in is important to understanding what you have available to spend. Remember to focus on NET INCOME versus gross salary, as budgeting for more than you can afford will lead to overspending.

Step 2: Track Your Spending

Once you have determined your income, you will want to take a look at your spending. Reviewing and categorizing all your monthly bills can help you breakdown exactly where your money goes and make some priorities to mark where changes can be made. To start, first list out your fixed expenses – these are things like car payments, loans, rent or mortgage costs that do not change on a monthly basis. Next, you will want to take a look at your variable expenses – things like groceries, gas, entertainment, etc. and determine your average spend. This is typically the area where people are able to cut back.

Step 3: Set Realistic Goals

Realistic goals are vital for long-lasting financial health. It is important to determine what you cannot live without and where you can cut costs or scale back on spending. Ideally, when it comes to your monthly budget, you want to consider the 50/30/20 rule, which applies the following:

  • 50% of your spending is for NEEDS such as rent or mortgage payments, car payments, utilities and groceries
  • 30% of your income goes to WANTS such as shopping, vacations, streaming services, etc.
  • 20% of your income goes to SAVINGS OR DEBT such as emergency funds, retirement, child’s education and/or credit card payments

Step 4: Make a Plan

Once you have your goals set, you can now make a plan to tackle your financial position and ensure a healthy cashflow each month. For some, setting realistic spending limits for each category works well. For others, taking a look at the importance of their expenses and re-prioritizing can free up funds.

Step 5: Adjust Your Spending

Now that you have determined how much money you bring in per month and what you spend it on, you can take a look at adjusting your spending to ensure you remain on budget. Taking a realistic look at your wants is a great place to cut out frivolous spending beyond a reasonable amount. This is also a great time to review your fixed expenses. Perhaps you can save money by getting a better interest rate on your mortgage or changing the payment schedule for your loan. Be sure to connect with a me before making any changes to your mortgage!

Step 6: Stay on Track

Tracking your budget on a monthly basis is important to catch any changes in your spending habits. As well, it is a good idea to conduct an annual review and take into account any increase in expenses or wages that may require shifts in your overall plan.

The Government of Canada has an online budget planner tool available as well if you need further assistance! You can find it here.

Remember: A healthy budget is key to financial freedom and comfort.

Written by my DLC Martketing Team

Refinancing Your Mortgage in 2025.

General Cedric Pelletier 26 Dec


Refinancing Your Mortgage in 2025.

Refinancing your mortgage can be a smart financial move for many reasons, and as your trusted mortgage advisor, I’ve seen how much it can benefit homeowners!

Ideally, refinancing is done at the end of your mortgage term to avoid penalties, but the timing can vary depending on your goals. For some, it’s about unlocking the equity in their home to fund renovations or cover big expenses like college tuition. For others, it’s an opportunity to consolidate debt, lower their interest rate, or change up their mortgage product.

Let’s take a closer look at some of the ways refinancing your mortgage can help!

  • Get a Better Rate: As interest rates have continued to decrease with the Bank of Canada updates these past few months, now is a great time to consider refinancing for a better rate and lower overall mortgage payments!  Experts anticipate the Bank of Canada will move to have the overnight rate down to 4.0% at year-end and potentially down to 2.75% for 2025.
  • Consolidate Debt: When it comes to renewal season and considering a refinance, this is a great time to review your existing debt and determine whether or not you want to consolidate it onto your mortgage. In most cases, the interest rate on your mortgage is less than you would be charged with credit card companies or other forms of financing you may have. Plus, having all your debt consolidated into a single payment can keep you on track!
  • Unlock Your Home Equity: Do you have projects around the house you’ve been dying to get started on? Need funds for a large purchase such as a new vehicle or post-secondary education? When you are looking to renew your mortgage, it is a great opportunity to consider refinancing in order to take advantage of the home equity you have built up to help with these larger changes in your life!
  • Change Your Mortgage Product: Are you unhappy with your existing mortgage product? If you have a variable-rate or adjustable-rate mortgage, you may be considering locking it in at the lower rates. Alternatively, you may want to switch your current fixed-rate mortgage to a variable option with the interest rates expected to continue decreasing into 2025. You can also utilize your refinance to take advantage of a different payment or amortization schedule to help pay off your mortgage faster!

PLUS! Some latest changes by the Government of Canada will make it even easier for you when it comes to your renewal and refinancing options:

  • Those of you who may have an uninsured mortgage will no longer have to pass the stress test as of November 21st. This means that you have more flexibility when it comes to rates and mortgage products in renewal cases where you wish to switch lenders without adding additional funds to your mortgage!
  • Beginning January 15, the federal government will allow default-insured mortgages to be refinanced to build a secondary suite. If you’ve been considering adding a suite to your property, you may be eligible to access up to 90% of your home’s equity for this purpose.

No matter your plans or situation, please don’t hesitate to reach out

Writter by my DLC Marketing team

Great tips on making a holiday party to remember

General Cedric Pelletier 23 Dec


With the Holidays just around the corner,
I wanted to share some great tips on making a holiday party to remember! 

Preparations: Food and Drink

When it comes to parties, the best way to host a stress-free celebration is to BE PREPARED. This includes: making a list of all the food you need and getting as much bought days, if not weeks, in advance. If there are any dishes or desserts that can be prepared in advance and frozen for a week, this is key! The night before, get all your prep-work done. Take out any frozen items and allow them to defrost overnight, either on the counter or the refrigerator. This is also a good time to cut veggies and brine and stuff your meat and ready it for the oven the next day.

Trust me! Waking up and only having to shove your meal into the oven and keep an eye on it, you are way ahead of the game. Not only does this give you less things to stress over on the day of the party, but will also ensure you have more time to entertain your guests.

Keep the Party Going! 

Getting as much food and drink prep done before the party will help keep your internal temperature down a few degrees. For an even greater party experience, there are a few additional things you can do to keep the celebrations moving along!

Don’t hesitate to call on a close friend or family member to help you. Between the two of you, this ensures there is always someone greeting guests at the door, making sure coats are put away and getting a drink into their hand as quickly as possible. It also can’t hurt to keep one or two people on bar duty, making sure everyone’s glass stays full, that there is ice available and a few cocktails on hand. If you’ve have little ones in attendance, set up an area for them to play and show off their new gifts. Maybe select your favourite holiday movie to keep them occupied.

Holiday Décor

Your décor is a major part of any party, but it really comes down to individual taste and tradition. No matter your color preferences, your goal as host is simply to make your guests (especially any family members) feel like they are truly in the holiday spirit and right at home.

The End of the Night

It is not unusual for holiday parties to run into the wee hours. If your party is going to involve a fair amount of celebratory cocktails, it is your duty as host to ensure your guests get home safely and don’t drink and drive. If you are not able to make reservations in advance, it could be tough to get a last-minute cab. If you’ve got space, be prepared for people to stay over or plan ahead for safe rides home.

When all is said and done, the most important part of a good holiday party is FUN! Make sure your guests (and you!) are enjoying themselves and the season. Before you know it, it will be all over and you’ll be planning for next year!

Speaking of which…  as you look ahead to the new year, I want to remind that I am here should you have any questions about your mortgage or want to discuss any new financial goals you have in mind. Send me a quick email to learn  more about your Options. 

Refinancing Your Mortgage in 2025.

General Cedric Pelletier 22 Dec

Refinancing your mortgage can be a smart financial move for many reasons, and as your trusted mortgage advisor, I’ve seen how much it can benefit homeowners!

Ideally, refinancing is done at the end of your mortgage term to avoid penalties, but the timing can vary depending on your goals. For some, it’s about unlocking the equity in their home to fund renovations or cover big expenses like college tuition. For others, it’s an opportunity to consolidate debt, lower their interest rate, or change up their mortgage product.

Let’s take a closer look at some of the ways refinancing your mortgage can help!

  • Get a Better Rate: As interest rates have continued to decrease with the Bank of Canada updates these past few months, now is a great time to consider refinancing for a better rate and lower overall mortgage payments!  Experts anticipate the Bank of Canada will move to have the overnight rate down to 4.0% at year-end and potentially down to 2.75% for 2025.
  • Consolidate Debt: When it comes to renewal season and considering a refinance, this is a great time to review your existing debt and determine whether or not you want to consolidate it onto your mortgage. In most cases, the interest rate on your mortgage is less than you would be charged with credit card companies or other forms of financing you may have. Plus, having all your debt consolidated into a single payment can keep you on track!
  • Unlock Your Home Equity: Do you have projects around the house you’ve been dying to get started on? Need funds for a large purchase such as a new vehicle or post-secondary education? When you are looking to renew your mortgage, it is a great opportunity to consider refinancing in order to take advantage of the home equity you have built up to help with these larger changes in your life!
  • Change Your Mortgage Product: Are you unhappy with your existing mortgage product? If you have a variable-rate or adjustable-rate mortgage, you may be considering locking it in at the lower rates. Alternatively, you may want to switch your current fixed-rate mortgage to a variable option with the interest rates expected to continue decreasing into 2025. You can also utilize your refinance to take advantage of a different payment or amortization schedule to help pay off your mortgage faster!

PLUS! Some latest changes by the Government of Canada will make it even easier for you when it comes to your renewal and refinancing options:

  • Those of you who may have an uninsured mortgage will no longer have to pass the stress test as of November 21st. This means that you have more flexibility when it comes to rates and mortgage products in renewal cases where you wish to switch lenders without adding additional funds to your mortgage!
  • Beginning January 15, the federal government will allow default-insured mortgages to be refinanced to build a secondary suite. If you’ve been considering adding a suite to your property, you may be eligible to access up to 90% of your home’s equity for this purpose.

No matter your plans or situation,  don’t hesitate to reach out to me for a talk 🙂

Written by my DLC Martketing Team

6 Small Home Improvements That Make a BIG Impact.

General Cedric Pelletier 19 Dec


Whether you’re looking to sell your home this year, or just want to make some updates, I have put together six small home improvements that can make a BIG impact on your space! From improving saleability to refreshing your home, here are some simple and affordable ideas to help get you started:

  • Painting: One of the easiest ways to spruce up your home for a refreshed vibe or sale is to add a new coat of paint! While it is a relatively simple task for a new homeowner to take on, you might be surprised at how many people will pass on a house because they are not a fan of the paint colors or the flooring. A fresh coat of paint – especially more neutral colors such as beige, cream, light grays, and soft blues or greens – can do wonders to make a home feel appealing.
  • Light Fixtures: I don’t know about you, but I haven’t taken a good look at my light fixtures in a while. However, potential buyers will! Light fixtures are another low-cost and relatively easy improvement you can make to your home. Upgrading to newer styles and ensuring they are clean, with fresh LED bulbs, will help add an extra sparkle to your home!
  • Update Your Hardware: Another overlooked aspect of a home is light switches and door handles. If your home is 20 years old, most likely your white light switch covers are not so “white” and your door handles are a little worn down. These are a cheap and easy replacement that will go a long way to boost your interior!
  • Swap Out Your Window Coverings: Just like with a fresh coat of paint or new hardware, swapping out your window coverings is a small change that can make a big impact. Change your stale, white plastic blinds for wooden slats, or update your curtains to something fresh and vibrant!
  • Refinish Your Cabinets: The kitchen is known to be a central space in most homes, but did you know roughly 80% of homebuyers feel that it is the most important space to consider when deciding on a new home? While a full kitchen renovation may be out of the question and all-new kitchen cabinets can cost thousands, there is a third option. Refinishing or repainting your cabinets is a great alternative for breathing new life into your kitchen!
  • Curb Appeal: They say don’t judge a book by its cover but, when it comes to selling your home, first impressions matter. This is where curb appeal comes in! If a potential buyer pulls up to see overgrown weeds, clogged gutters, or cracked concrete, they are already going to have a negative impression of the home and it will be harder to impress them once they are inside. Attending to landscaping and any outside maintenance needs will go a long way in making your home more appealing. A pressure wash and a new coat of exterior paint can also do wonders to give your home a facelift!

By putting the effort into completing a few small changes around your home, you can reap big rewards when it comes time to sell – and increase your comfort in the interim!

Written by my DLC marketing team

The Tax-Free First Home Saving Account (“FHSA”) Highlights

General Cedric Pelletier 18 Dec


If you or someone you know is saving for a down payment on a house they may want in the future, the FHSA is the tool you need to boost your investment. The FHSA combines features of an RRSP and TFSA, which gives prospective homeowners and investors some tax relief and a boost toward their possible homeownership goals.

Highlights

  • Account holders can contribute up to 8000$ annually, up to a lifetime maximum of 40 000$
  • Just like an RRSP, contributions made to an FHSA are tax deductible (bigger tax return)
  • Like a TFSA, funds can be withdrawn from your FHSA tax-free, given funds are used for a home purchase
  • Funds in your FHSA can be invested in allowable investment assets (stock, bonds, ETF, etc.) and growth from it is tax-free
  • Transfer can be made from RRSP to FHSA given it stays under the 8000$ limit
  • Transfer can be made from FHSA to RRSP if you decide not to purchase a house 😊

 

All the pros, remember to open an account early to start your contribution.
We love our tax-free money, we love keeping more money, in our pockets.

DiY Holiday Gifting Ideas

General Cedric Pelletier 17 Dec

Looking for some creative and thoughtful DIY holiday gifting ideas that are easy to make and can add a personal touch to your gifts this season? These affordable, fun, and personalized options can suit anyone in your life – and they’ve never been easier to make!

  1. Homemade Scented Candles: These are easy to make requiring only a few ingredients but can be a great statement for friends and family! Pick their favourite scent in essential oil (lavender, peppermint, cinnamon, sage, etc.) and mix in with melted wax and pour into jars with a wick! Plus, you can customize them further with fun holiday-themed tags or labels on the jars.
  2. DiY Bath Bombs: Surprisingly easy to make, these bath bombs pair especially well with a homemade candle or handmade soap for the ultimate personal-scented bath set! Requiring just baking soda, citric acid, Epsom salts and essential oils to set in molds, these are a fun, low-cost gift idea!
  3. Handmade Soaps: Another great gift idea to make a personalized statement are handmade soaps! All you need is a soap base, essential oils, and additives to pour into molds to set! Want to get extra personalized? Find unique and fun molds that celebrate the personality of that friend or family member!
  4. Personalized Photo Calendars: Fun for the whole family, personalized calendars can be a great way to snapshot your previous year and highlight the good times as you head through 2025! You can have these created online or do it yourself by printing photos and a template, binding the pages with ribbon, and adding handwritten, personal notes on special dates.
  5. Custom Recipe Book: Do you have fun family recipes or have friends with a list of top treats? Why not create a custom recipe book with their favourite eats! All you need is a blank notebook or binder, printed recipes plus some photos for added personalization.
  6. Knitted Outdoor Wear: With the temperatures starting to drop, why not give the gift of comfort with a scarf or hat knitted with love? Combine their favourite colours or patterns and even add a personalized name tag!

The season of giving has never been easier with these affordable, fun and personalized gift ideas for all those special folks in your life!

Written by my DLC marketing team

First-Time Homebuyer Benefits 2024

General Cedric Pelletier 17 Dec

Buying your first home is a significant milestone! While you’re thinking about your affordability and what type of home you want to own, we have some exciting updates around first-time homebuyer benefits:

New or Pre-Construction Homes: Did you know? First-time buyers looking to purchase a new build or pre-construction home are eligible for 30-year amortization. This mortgage commitment can allow you to have smaller monthly payments, versus a standard 25-year amortization.

Mortgage Default Insurance: The CMHC has recently made it so mortgage default insurance will cover up to $1.5 million homes (increased from $1 million), helping more Canadians qualify for insured mortgages.

The Home Buyers’ Plan (HBP): The Canadian government has a program known as the Home Buyers’ Plan (HBP), which is designed to allow first-time homeowners to withdraw up to $60,000 from RRSP to buy a home!

Purchasing with your spouse? You can access a total of $120,000 from your RRSP’s.

First Home Savings Account (FHSA): The First Home Savings Account (FHSA) is specifically designed to help first-time homebuyers save for their down payment without paying taxes on the interest earned on their savings. The maximum is $8,000 annually that you can add into this account to save, with a maximum of $40,000 lifetime contributions.

Writtent by my DLC Marketing Team

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