First Time Buyer Q & A

I get some really great questions from both buyers and sellers, (and really anyone that knows me and knows I am a Realtor 😆) and a lot of them come up regularly. So I figured I’d pull them together here and share the answers with you too. This group of questions are for those First Time Buyers.

  • How much do I actually need for a down payment in Alberta?

    You don’t need 20% - that’s one of the biggest misconceptions!

    $500,000 - 5% down 

    $500,000 to $1.5M - 5% of the first $500,000 + 10% for the portion of the purchase price above $500k

    $1.5M+ - 20% down


  • So, can I buy with less than 20% down?

    Yes! Most first-time buyers do.

    Anything under 20% just means your mortgage will be insured (CMHC), which allows you to get into the market sooner.

    For many people, waiting to save 20% would take years - and that doesn’t always make sense.

  • What’s the difference between pre-qualified vs pre-approved?

    This one matters more than people think.

    Pre-qualified = quick estimate based on what you tell a lender

    Pre-approved = verified income, credit, and finances

    Pre-approval is what actually gives you confidence (and makes your offer stronger).

  • What hidden costs should I budget for (closing costs, etc.)?

    This is where a lot of buyers get caught off guard.

    Typical closing costs include:

    Lawyer fees - $1,500-$2,000

    Adjustments (property taxes, utilities, etc.) - varies

    Home Insurance - varies

    Home inspection - $400-$600

    Moving expenses - $500-$3,000

  • How much can I really afford vs what the bank says?

    The bank will tell you the maximum you can borrow… not what feels comfortable month-to-month.

    Things to think about:

    Your lifestyle (kids, travel, activities)

    Future plans (maternity leave, job changes)

    Comfort level with monthly payments

    Just because you can spend a certain amount doesn’t mean you should.

  • Is now a good time to buy or should I wait?

    This is probably the most common question!

    There’s no perfect “right time” - only what’s right for you.

    Right now:

    Buyers have more options than we’ve seen in a while. Yes, interest rates and prices can shift, but then so does competition. Waiting might get you a better price… or it might mean more competition and higher rates.

  • What credit score do I need to buy a house?

    Generally:

    680+ = Puts you in a strong position with major banks and helps you qualify for the best rates.

    600 - 679 = Still works for insured mortgages (under 20% down), but with a few more conditions.

    Below 600 = May mean looking at alternative or private lenders, which usually come with higher rates and fees .

    But your credit score isn’t the only factor - income, debt, and overall financial picture all matter too.