The First-Time Home Buyer's Guide

Before you look at a single listing, get a clear picture of what you're working with. This is the least exciting step and the most important one.

Check — and understand — your credit

Your credit score directly affects the mortgage rate you'll qualify for. Pull your report from Equifax or TransUnion, dispute any errors, and pay down revolving debt (credit cards, lines of credit) before you apply. Avoid opening new credit or making large purchases in the months before you apply for a mortgage — lenders re-check your credit right before closing.

Figure out your down payment

Anything under 20% down means you'll need CMHC (or an equivalent) mortgage default insurance, which is added to your mortgage. Expect the premium to run roughly 2.8–4.0% of your mortgage amount depending on how much you put down — the closer you get to 20%, the lower the premium.

Use the accounts built for this

You can use both the FHSA and the HBP toward the same home purchase, as long as you meet the eligibility conditions for each at the time you withdraw.

Pre-approval tells you — and sellers — what you can actually afford. Don't skip this or treat it as optional; in a competitive market, an offer without a pre-approval letter gets taken less seriously.

Pre-qualified vs. pre-approved

Pre-qualified is a rough, informal estimate based on what you tell a lender. Pre-approved means a lender has actually verified your income, debt, and credit, and will typically hold your quoted rate for 90–120 days. Aim for a real pre-approval before you start touring homes.

The mortgage stress test

Every lender must qualify you at the higher of two numbers: your contract mortgage rate plus 2%, or 5.25%. This is the "stress test," and it exists to make sure you can still afford payments if rates rise. It's a big reason your approved amount can come in lower than you'd expect — budget accordingly.

Lenders generally look at two ratios

• GDS (Gross Debt Service): housing costs shouldn't exceed roughly 39% of your gross income.
• TDS (Total Debt Service): all debt payments combined shouldn't exceed roughly 44% of your gross income.

Bank vs. mortgage broker

A broker shops multiple lenders on your behalf at no direct cost to you in most cases, which usually means more options and better rates than walking into a single bank. I work with brokers regularly and I'm happy to make an introduction.

You don't do this alone. Here's who you'll want in your corner, and when.

Separate needs from wants

Before you tour a single home, write down your non-negotiables (commute, bedroom count, condo fees you're comfortable with) separately from your nice-to-haves (finished basement, garage, specific school catchment). This keeps you from getting emotionally talked into a compromise you'll regret.

Know your Calgary options

Calgary offers very different entry points depending on the community — from condos and townhomes in established inner-city neighborhoods to detached homes further out with more space and yard. I'll walk you through neighborhood-level pricing, resale trends, and what tends to hold value, based on current MLS data through Pillar9.

What to watch for on a showing

• Signs of water damage: staining on ceilings, musty basement smell, efflorescence on foundation walls
• Age of major systems: furnace, hot water tank, roof, windows
• Condo-specific: reserve fund health, upcoming special assessments, pet and rental restrictions
• Resale factors: proximity to major roads, lot orientation, parking

Once you've found the one, we move fast — but not blindly. Here's what goes into an offer:

• Purchase price — based on comparable sales, not just the list price
• Deposit — typically 1–5% of the purchase price, held in trust and applied to your down payment at closing
• Conditions — financing, home inspection, condo document review (if applicable), sometimes an appraisal
• Possession date — when you actually get the keys
• Included items — appliances, window coverings, anything you want explicitly named

Once your offer is accepted, you enter the condition period — typically 5–10 business days. This is your chance to walk away or renegotiate if something turns up.

Home inspection

Budget $400–$700 for a standard inspection. Attend it in person if you can — a good inspector will walk you through the property's real condition, not just hand you a checklist. Use findings to negotiate a price adjustment, request repairs, or in a serious case, walk away with your deposit intact.

Financing condition

Your lender finalizes your mortgage approval based on the specific property, including an appraisal to confirm the purchase price is supported by market value.

Condo document review

If you're buying a condo, your lawyer or a specialist will review the reserve fund study, meeting minutes, and bylaws for red flags — underfunded reserves or pending litigation are dealbreakers worth catching now.

Plan for closing costs on top of your down payment — in Alberta, that's typically 1.5–4% of the purchase price.

In the days before closing

• Final walkthrough of the property, usually 24–48 hours before possession
• Home insurance policy confirmed and sent to your lender
• Down payment and closing funds sent to your lawyer, in trust
• Sign final mortgage and title documents with your lawyer

Possession day

Funds are released, title transfers into your name, and you get your keys — typically by early afternoon. Book movers and utility transfers (power, gas, internet) to start the same day.

First 30 days as a homeowner

• Update your address with CRA, your employer, and your bank
• Locate the main water shutoff and electrical panel
• Set aside 1–2% of your home's value annually for maintenance and repairs
• Save every receipt related to the home — useful for taxes and future resale