This Fall we are not only changing seasons but also gaining access to a new incentive program through the Government of Canada for first time home buyers. The First Time Home Buyer Program aims to relieve qualified applicants of some of the financial burden they face after taking on a mortgage. But how does it work?

Simply put, qualifying first time home buyers receive an interest-free 5-10% loan on their mortgage from the government for the opportunity to have a stake in your home’s future equity. The loan acts as a second mortgage on title that would only be paid back when you sell the property or after 25 years. 

Brand New Edmonton Homes: receive an additional 10% towards your down payment

Take a $350,000 new home in YEG. You would need to put a minimum downpayment of 5% ($17,500). The government would provide an interest-free loan of an additional 10% ($35,000), bringing your down payment to $52,500. This would translate into a monthly mortgage payment decrease of approx. $190/month or a savings of $2280/year. 

Resale Edmonton Homes: receive an additional 5% towards your down payment

Now take a $350,000 resale home. You would still need to put a minimum downpayment of 5% ($17,500). In this case, the government would provide an interest-free loan of an additional 5% ($17,500), bringing your down payment to $35,000. This would translate into a monthly mortgage payment decrease of approx. $100/month or a savings of $1200/year. 

How Do You Qualify For The First Time Home Buyer Program? 

• At least one of the buyers has to be classified as a first time home buyer, meaning:
  • You have never purchased a home
  • You are going through a divorce or separation (married or common-law partnership)
  • In the last 4 years, you have not lived in a house that you or your spouse have owned
• Your gross income is less than $120,000 per year
• You have the minimum down payment of 5% available
• You are borrowing no more than 4 times the qualifying income. (ex. If you earn $100,000, you could be eligible up to $400,000, plus your down payment)

Just remember, like any loan… you must pay them back eventually. The Government is gambling on the Edmonton real estate market (just like you), and hope that your home benefits from a positive ROI when you sell. 

Now, if you plan to stay in your home for more than 25 years (which happens a lot, just ask us how we help many Edmonton seniors who have lived in their homes for 30-40+ years) or if you choose to sell, then you will simply have to pay back the government the percentage borrowed based on the current market value.

So, let’s take the first example of buying a $350,000 home that you live in for 5 years. 

New Edmonton Home: Goes up in value to $375,000 (+$25,000)

You will owe the Government of Canada $37,500 (10%) back. During this time, you saved $11,400 which means you kept $8,900 more in your pocket over the course of those 5 years. 

Resale Edmonton Home: Goes up in value to $375,000 (+$25,000)

You will owe the Government of Canada $18,750 (5%) back. During this time, you saved $6,000 which means you kept $4,250 more in your pocket over the course of those 5 years. 

Now, imagine a scenario in which your home is worth less than what you bought it for? 

New Edmonton Home: Goes down in value to $325,000 (-$25,000)

You will only owe the Government of Canada $32,500 (10%) back. During this time, you saved $11,400 meaning you still kept more in your pocket over the course of those 5 years. 

Resale Edmonton Home: Goes up in value to $325,000 (-$25,000)

You will only owe the Government of Canada $16,250 (5%) back. During this time, you saved $6,000 meaning you still kept more in your pocket over the course of those 5 years. 

Reading this, the First Time Home Buyer Program is a great option for many buyers but won’t be the best option for all. It is important to take time connecting with a YEG real estate agent and mortgage broker to collaborate so they can recommend the best option for your lifestyle and financial goals. 

Connect with us today to learn more about the home buying process – we’re here to help!  

We often hear people brag about the loft space in their designer home or their loft-style condo, but with only 200 true converted industrial lofts in Edmonton, those who own them belong to an exclusive club with a lineup of buyers hoping to get in. 

At the heart of the core surrounded by every possible amenity, endless entertainment and downtown nightlife, YEG’s converted industrial lofts are an excellent choice for today’s urban singles and power couples. These properties are well-built and efficient with a minimalist aesthetic. Not only are they smart real estate investments, but they come with a coveted lifestyle inside a rare piece of Edmonton history. 

True converted Edmonton industrial lofts represent just 2% of residential properties in the core and only 6% of those have been listed/sold within the past year. Which means to get into the 200-Loft Club you need an Edmonton real estate advisor with the expertise to help negotiate your membership. That’s where I and the TruHome Real Estate Team come in. 

The TruHome team started researching Edmonton’s lofts because we are passionate about our local history when it pertains to how Edmonton became the city it is today.

Did you know Philips Lofts used to be a storage warehouse with a 20-foot arcade?

Or that Cobogo Lofts is built on the foundation of the Ker Building which burned down in 1913? 

Our team and myself personally, appreciate the uniqueness of loft living and have dedicated time and energy to specialize in these types of properties, we are well connected with current Edmonton loft owners and building managers. If you don’t see what you are looking for on the Edmonton MLS® System, get in touch, as often we have our beat on the pulse and can keep you informed of “not yet on the market” opportunities.

So let me help you jump the lineup into the 200 Loft Club and close the deal on your new life in the core. 

Michael van Butselaar

Your, TruHome Advisor

Michael van Butselaar, your TruHome Real Estate Advisor of RE/MAX Real Estate has a keen eye for finding the unique properties right for his clients. His expertise in high-quality renovations also aids his clients in visualizing the possibilities.

Searching for the ideal Edmonton loft? Learn more about many of Edmonton’s amazing lofts right here, with the latest Edmonton lofts for sale and news.