With interest rates touching historical lows and more attractive house prices, Calgary seems to have a great market on affordability for first time home buyers.  The federal government’s recent budget has added more reasons for Canadians who aren’t home owners to consider entering the real estate market this year.

Under the new federal budget, first time home buyers can qualify for $750.00 tax credit, to help with closing costs, such as legal fees or appraisals.  Also, homebuyers can now withdraw up to $25,000 from their RRSP under the Home Buyers Plan for a down payment – up from the previous limited amount of $20,000.  Couples can access an extra $10,000 from their RRSPs under the new plan.

Here are some tips to help first time home buyers:

Start the process early.

A mortgage consultant can help you with getting the right documentation in place, such as proof of income and down payment.  A consultant will also check your credit history to avoid any unpleasant surprises and ensure that you can meet the lenders requirements. 

Know your price range:

 If you want to buy a home within the next few months, getting a mortgage pre-approval will help you determine the right price range of homes to shop for, it may also help you to avoid disappointment if looking at homes above your range. Many lending institutions will also guarantee a rate for up to 120 days when pre-approving potential borrowers for a mortgage.

Don’t rush your decision:

A buyers market means that you now may have the leeway to negotiate more with sellers on the price as well as other terms of the transaction such as the possession date and other extras to be included in the purchase.

Accelerate your payments – early and often:

A mortgage is often the largest debt a consumer will ever take on, and paying it down faster can mean large savings on interest costs over the long term.  Get in the habit of making lump sum payments whenever possible, and consider making bi-weekly payments as a way to decrease the life of the loan.

Know your goals:

Choose a mortgage that accommodates your present state of finances, but also fits your long-term goals. Don’t just buy a home because it’s a buyers market, choose a home that fits your lifestyle as well as your family’s needs in the years ahead.