Purchasing a property in Calgary is one of the best decisions because houses in this location are available at the best competitive rates. There’s a huge price surge in Vancouver and Toronto which has left no other option for the buyers. Calgary is a beautiful place with budget-friendly properties. If you’re planning to buy a house in Calgary, this article is for you.
- Know your budget– Before investing in a property, the first thing that you should do is find a reliable real estate agent who can help you with the process. Calculate all the expenses including the down payments, property taxes, condo fees, and others. There are lots of homes for sale in Calgary that are available at the best market rates. Seek professional help before you buy them.
- Get pre-approved for a mortgage– Canada has made stricter legislation with regards to giving a loan. The mortgage companies are bound to take a ‘stress test’ before sanctioning a loan. This means that if the bank is having an interest rate of 4%, the bank will likely charge you 2% more of it. The bank will check if you have the capacity to pay your interests in case the rates go up in the coming 5 years. This is done to test your affordability.
- Credit history should be maintained properly– Buying a home is a huge investment which is possible through bank loans. After calculating the budget expenses, your next job is to check the credit score. If you want to build your dream house in Calgary, it’s important to have a good credit score. The score should be 700 and above because that is considered the best. If your score is less than 700, talk to a financial expert about how you can improve your score.
- Keep your down payment ready– Save your money so that you can easily pay your down payment. If you have bigger savings, you can pay more than the down payment. This will also reduce your loan amount as well as the interest rate to a considerable extent.
Lastly, you should at least keep your property for 5 years to get a good return on investment. Buying and selling properties within 5 years is too short a time and sometimes it is not even a worthy option. But if you wait at least 5 years, the value of your property will automatically increase and you can make good profits out of it.