Hidden Costs to Buying A Home in Alberta

Ready to buy your new home? STOP! These are the hidden costs you should know about before purchasing your home in Alberta! The Calgary real estate market continues to stay hot so be well aware and you'll be on your way to purchase your new home in no time! We'll run through details on GST, Mortgage Default Insurance, Home Inspections, Appraisals, Homeowners Insurance, Land Survey Fees, Legal Fees, Land Transfer Fees, and Real Estate Closing Costs.     Introduction Congratulations! You’re in the market to buy a property, but before you take that step, here are the hidden costs associated with buying a property. With the interest rates as high as they are, it’s a no-brainer that budgeting for the home can be the differentiating factor between being able to get that dream home or feeling the dread of mounting financial pressures upon the closing process. It all comes down to having an open and honest conversation about what to expect in the buying process and that’s what my clients can expect working with me. While not all of these may apply to you, the goal of this video is to help you make an informed decision without having any surprises.    GST Let's kick it off with the first contender on the expenses list - GST, aka Goods and Services Tax. Here's the deal: If you're not swooping in for a shiny new construction, you can take a breather, this one's not for you. But hey, if you're setting your sights on a spanking new build, then listen up. This is where you factor in the GST. Now, here's the good news: You won't be rummaging through your pockets for this one in most cases. Nope, it's kind of like a secret ingredient baked right into the overall home cost. You've got a clear picture of the total price tag right from the get-go.   Mortgage default insurance Coming in hot at #2, we've got mortgage default insurance – and let me tell you, this one's a real game-changer, especially if you're part of the under-20% down payment crew. Brace yourselves, because for many homeowners, this cost can easily steal the spotlight. Picture this: You're going for a down payment that's less than 20%, and if down the line you find yourself struggling to keep up with those mortgage payments, chances are it's due to a drop in property value or an economy that's seen better days. Regardless of the why, mortgage insurance steps in like a superhero cape to protect the lenders from the dreaded scenario of not being able to swoop in, foreclose, and flip the property to recover their investment. Now, here's the deal – it's an upfront cost, but hold up, don't sweat it just yet. More often than not, that sum gets tacked onto your mortgage, sparing you from some out-of-pocket sorrows. Let's run the numbers, shall we? Say you're rolling with a $350,000 mortgage and adding another $10,000 for that mortgage insurance. That puts your grand total at $360,000. Now, here's where the math gets interesting: You're looking at an extra $45 per month on your payment to cover the mortgage insurance tab. But here's the scoop – once that cash leaves your grasp, there's no turning back. It's a one-way street. Still, here's a quick heads up – the mortgage insurance tag is actually portable. So, if you decide to dive into the property game again down the road, you might just be able to pack up that insurance and bring it along to your next real estate adventure.   Legal fees Let's dive into the third expense that comes into play when you're in the process of snagging a property and locking down a mortgage - legal fees. So, here's the deal: You're gonna need a title insurance company or a lawyer to grease the wheels and make that transaction official. Now, these fees, they're like the seasoning on your financial plate - they can range anywhere from a humble $500 upwards to over $2,500. But hold on, the digits depend on where you're at on the map. Oh, and don't forget - it's like a sliding scale. Bigger price tag on the property, you might see a bigger number on the legal bill. Smaller value property? You guessed it, a friendlier figure. Now, here's the pro tip: When you're all set to lock in that property or saddle up with a mortgage, don't just pick the first lawyer you find on the block. No, no. Ring up two or three legal eagles in your town and get some quotes. Now, it's not about grabbing the bargain basement deal. You're after the sweet spot combo - a lawyer with a rock-solid rep and a cost that doesn't make you sweat bullets. It's like building the ultimate burger, but with legal stuff.   Appraisal fee Alright, let's talk about what goes down if you're skipping on mortgage insurance 'cause you're dropping more than 20% down payment. Now, you might just find yourself facing an appraisal fee. Hang on, there are two flavors of this fee. First up, we've got the automated appraisal fee, a digital dance that'll set you back between $70 and $100. Here's the deal: Lenders use their tech to ping the value of the property you're eyeing against their own valuation systems. If things match up, you're looking at a bill of seventy to a hundred bucks, and it's front-loaded onto your mortgage. Next up, it's the full appraisal. This one's got a price tag of $300 to $500, give or take your location in the country. Oh, and if you're gunning for some high-end real estate, that bill might just shoot even higher. Here's the scoop: A bona fide appraiser gets down and dirty, snapping pics, measuring the property, and ensuring the property's value checks out 100%. Now, I know you might look at that appraisal bill and go, "Whoa, that's no small chunk of change." But here's the kicker: Stack it up against a ten-grand insurance premium, and suddenly, it's not so massive. Just note, the appraisal usually doesn't tag onto the tippy-top of your mortgage. Most times, if you've got a fat 20% down payment, you can handle the hit of an appraisal. But hey, keep it on your radar as a possible cost if you're swinging that big down payment. Bottom line: It's all about the lender ensuring they've got their bases covered. So if, for some wild reason, you can't make those payments down the road, they can swoop in, foreclose, and flip that property to get their cash back   Land transfer tax #6 and we take pride in this one: land transfer taxes. Now, here's the deal - in every province except for Alberta and Saskatchewan, there's this thing called land transfer taxes. Now, I won't dive super deep into the nitty-gritty here, but here's your move: pop open your web browser, punch in your province's name and toss in 'land transfer tax'. You'll get the scoop on what you're looking at. The numbers, my friend, they can dance anywhere between 1% and 2%. And let me tell you, they can balloon up to a hefty chunk of change, depending on your coordinates in this great land of ours and what kind of real estate you're locking down. But wait, in Alberta, there's a twist. They've got these things called land transfer fees and mortgage registration fees, which are a bit different. Now, these fees, they're not as weighty as the full-on land transfer tax. They're more like a mini version. What do they do? To make sure your property title goes from one owner to the next without a hitch.   Home insurance Coming in at #7, let's talk insurance - that thing you definitely don't want to overlook when you're diving into the world of property purchases. Now, here's the lowdown: When you're picking up a house, fire insurance is like the VIP ticket, mandatory and all. But hold up, if you're rolling with a condo, it's a bit of a different story. Technically, you're not forced to snag insurance, but here's where it gets interesting: We're waving the recommendation flag like crazy for condo ownership content insurance. Why, you ask? Well, imagine this scenario - something goes down in your pad, or even worse, your place becomes the epicenter of a domino effect that spills into other units. Suddenly, you could be stuck dealing with the bill for the condo corporation's insurance deductible, or if things really go south, the whole cost could land on your doorstep.  So, here's the golden rule: Insurance is your wingman, whether you're sliding into a house or sliding into a condo. It's your shield, your protector, your safety net. And trust me, out of everything we've talked about today, this is the big kahuna takeaway - get yourself some insurance. Don't fall into that trap of assuming condo life means you're covered. You wanna roll with a safety net that's got your back when it comes to your stuff, any accidents, or even potential mess-ups that might point your way . Moving costs Next up at #8,  moving costs. Now, you've got options here - it could range from zilch, nada, if you're doing the heavy lifting yourself, all the way up to a couple thousand dollars if you're enlisting the services of the moving maestros. These days, it's not uncommon to see folks trading the cost of a pizza and a round of beers for their buddies' to help them move. I mean with inflation, the last I could get is a charcuterie and some wine right? But hold up, if you're the proud owner of a sizable crib or you've accumulated more stuff than you can shake a stick at, it's time to mull over the pros. Yeah, I'm talking about the professional movers. Trust me, once you've wrangled a mountain of possessions or some precious cargo, doing the DIY shuffle gets old, real quick. That's when the experts step in. They're like the superheroes of hauling, effortlessly hefting your couch and TV stand, and loading 'em up without a single scratch. Oh, and the art of truck Tetris? Believe me, it's a skill. You wouldn't believe how much strategy goes into stacking a truck to ensure nothing takes a tumble. That's where the big-league movers shine. And let me tell you, every single penny you spend on these pros is worth it. So, whether it's the DIY hustle or the A-team of movers, choose your move wisely, my friends.   Condo fees If you're diving into the world of condos, guess what? You're about to meet your new buddy - condo fees. And let me tell you, it's crucial to get cozy with what those fees are right from the start. Accuracy is key. So, what's the deal with these condo fees, you ask? Well, they're like your all-inclusive pass to a bunch of upkeep stuff - think maintenance, cleaning, shoveling snow like a champ, and keeping those lawns looking pristine. But that's not all, especially in some corners of the map. In certain provinces, you'll come across what's known as a reserve fund. Think of it as the stash that every condo owner chips into for the future. We're talking upcoming fixes, renovations, and making sure the place stays on point down the road. So, whether you're in a condo or eyeing one, get cozy with the fees, the what's and the why's, and you'll be riding that condo wave like a pro.   Home inspection Alright, here's a nugget of wisdom you'll wanna keep in mind when you're in the house-hunting game: Home inspection? Yeah, it's the real MVP move. These home inspectors? Worth their weight in gold. You're looking at a ballpark range of $350 to $500, and trust me, every single penny is an investment in peace of mind. Why? Well, these folks have a superpower. They can spot stuff in a property that you might miss. Stuff that could turn into issues down the line. And guess what? They're not just eyeballing it – many of them rock these nifty infrared cameras. These gizmos can sniff out leaks that'd usually play hide and seek. Plus, these inspectors? They're like encyclopedias of house knowledge. From hot water heaters to furnaces and the lifespan of different parts, they've got it all down pat. And you know what that means? Potential savings stacked up for your future self. Oh, and here's the kicker: They're not just there to point stuff out. If they do find something wonky, you can actually use their insights as ammo to negotiate that price tag down. So, remember, when you're about to seal the deal on a home, getting a home inspector on your team, Absolute game-changer!   Well/septic report "Now, here's the scoop. If you're diving into the world of rural properties or snagging some acreage, there's a chance you might need a septic or well inspection in the mix. Now, this is where it gets interesting. Sometimes, the sellers foot the bill for these inspections, and sometimes it's on you, the buyer. Yeah, it's like a coin toss on who pays. Keep in mind, this inspection game could be a sneaky little cost tag attached to your property purchase. Oh, but wait, there's more. Let's talk survey fees. In the realm of Alberta (and hey, I can't speak for the whole country), sellers usually cover these fees. It's what they call a real property report, and it's all tucked into the Alberta Real Estate Association's contracts. But hold up, this is where things change gear. If you're looking at a property that's being sold 'as is,' like a foreclosure or a bank-owned deal, guess what? These costs just did a 180 and they're coming your way.   But the plot thickens. You see, condo documents, in most cases, are usually in the seller's court. Seller's problem, not yours. That's the usual deal. Yet, hold on to your hat because if you're diving into the deep end with a bank-owned or foreclosure property, guess who might be footing that condo document bill? That's right, you. It all boils down to what's inked into your purchase contract. So, if you're in the midst of this labyrinth, tap your realtor on the shoulder and have a chat. You'll thank me later.   Property taxes Alright, folks, we're almost there - just a couple more things to tackle when you're diving into the world of property ownership and the costs that tag along. Let's talk property taxes - they're like the second-to-last boss you gotta face. Here's the scoop: Many times, the previous owner, might have gone ahead and fronted those property taxes in advance. Now, your job? You're gonna have to square up and pay 'em back for that kindness. No worries though, the legal wizards will crunch the numbers for you, figuring out what you owe the seller for those prepaid taxes. Now, brace yourself, because there's a chance you might need to rustle up some cash to give back to the seller for those taxes they've already forked over.   Payout penalty Alright, remember when we kicked off this video? I promised to break down all those sneaky costs that come with buying a property. And now, we've reached the grand finale, the cost that's like that plot twist you never saw coming: drumroll the bank's penalty. Strap in, because here's the deal - when you're diving into property ownership, that mortgage you're grabbing? It's like making a pact with the interest rate gods. You're either committing to playing the game with them for a good while, or you're setting yourself up for a penalty showdown. And here's a stat that might drop your jaw: a whopping 60% of Canadians don't make it through their full mortgage term. Yeah, that's right, six out of ten folks hit a fork in the mortgage road. Now, picture this: you're going for a five-year fixed mortgage at one of the big banking giants. Well, odds are, this might be the biggie in terms of expenses, and guess what? There's a 60% chance this will be your battle. So, it's like a mortgage penalty ambush waiting to happen. You've gotta be a chess master and think long-term strategy when you're picking your mortgage and sealing the deal on your property. The name of the game? Risk reduction. 'Cause let me tell ya, when folks want to tango with their mortgage or put their property on the market, these penalties swoop in like equity-eating vultures. It's like handing your hard-earned bucks straight back to the bank.

Welcome to the H1B Visa in Canada!

The Calgary real estate market is set to receive a boost as a Canadian government program aimed at attracting highly skilled tech workers from the U.S. quickly reached its application limit. The program, introduced by Immigration Minister Sean Fraser, offers work permits to H-1B visa holders in the U.S. as part of a strategy to tap into global talent. This article explores how the program swiftly reached its capacity and its implications for both the tech industry and Calgary's housing market. Tech Talent Migration: The H-1B Visa Scenario In the wake of the pandemic, tech companies initially experienced a surge in hiring but later faced significant layoffs. This trend has led to a wave of uncertainty among H-1B visa holders in the U.S., who are now seeking new job opportunities before their visas expire. Recognizing this situation, the Canadian government designed a temporary work permit program for these highly skilled individuals, targeting the technology sector. Calgary Real Estate Gains Attraction The Canadian program's rapid filling of available spaces highlights the strong allure of the country to skilled workers. With a competitive job market and a reputation for inclusivity and quality of life, Canada, and notably Calgary, stands as a top destination for professionals seeking new opportunities. As skilled tech workers explore the possibility of relocating to Canada, the Calgary real estate market could experience increased demand from these newcomers. Application Rush and Social Media Buzz The program's launch created a whirlwind of interest, causing the available spots to be claimed within a single day. Elon Musk, the owner of Twitter, even tweeted "Wow" in response to the program's swift saturation. This rapid response underscores the urgency many H-1B visa holders feel to secure stable job prospects in light of layoffs in the U.S. tech industry. Program Expansion: Future Prospects Given the overwhelming response, experts in the field are advocating for the program's expansion to accommodate more applicants. The Council of Canadian Innovators suggests that tapping into the pool of highly qualified individuals with experience and expertise can benefit the Canadian tech landscape. While the initial intake stands at 10,000, there are indications that the Canadian government may consider increasing this number to further capitalize on the international talent pool. Challenges and Improvements While the program's popularity signals its potential success, some individuals encountered hurdles during the application process. Immigration lawyer Mark Holthe highlighted issues such as glitches in the online portal and unclear instructions. Holthe emphasized the need for simplifying the application process to ensure a smoother experience for prospective applicants.   The Canadian program's swift success in attracting highly skilled tech workers from the U.S. showcases the country's appeal to international talent. As professionals consider relocating, cities like Calgary could witness increased interest in their real estate markets. However, it's essential for the government to address challenges in the application process to provide a seamless transition for those seeking to contribute to Canada's tech industry. The intersection of tech talent migration and Calgary's real estate market holds promise for both sectors in the months to come.

Newest Okotoks Listing: 138 Drake Landing Loop

Ready to check out our newest listing in Okotoks Alberta? Look no further than 138 Drake Landing Loop! Description Introducing this charming 3-bedroom, 3.5-bathroom residence located in the sought-after community of Drake Landing, Okotoks. This spacious FORMER SHOWHOME, freshly painted, is the largest in the area, boasting over 2,300 sq ft of fully finished living space, designed with both warmth and functionality in mind. Step onto the inviting front verandah, perfect for embracing the outdoors. Inside, the main living and dining spaces seamlessly blend together, creating an open and welcoming ambiance. The well-appointed kitchen offers granite counters, ample cabinet space, an eat-up breakfast bar, and a corner pantry for added convenience. Abundant natural light fills the living room, featuring a cozy tiled fireplace with a mantle for relaxation. The main floor also houses a roomy front office with a transom window, ensuring brightness and privacy – perfect for work or study. A half bath completes this level. Upstairs, discover three bedrooms, including the primary suite with a distinctive feature wall, a barn door leading to the 4-piece ensuite with a soaker tub, tiled shower, and walk-in closet. A skylight bathes the suite in natural light. Two additional bedrooms share a well-appointed 4-piece bathroom, and upstairs laundry adds to the convenience. The fully finished basement boasts a spacious rec room with built-ins, ideal for family movie nights or entertaining. There's also a sizable fourth bedroom with a walk-in closet and direct access to a 3-piece bathroom – a perfect space for guests or teens. Outside, a sunny deck awaits in the backyard, offering ample space for outdoor activities and relaxation. The graveled area leads to the oversized double garage, ensuring your vehicles are well cared for. Enjoy the exceptional amenities of Drake Landing, with parks, playgrounds, and schools just a short walk away, along with an off-leash dog park for pet owners. Daily commuting and accessing central Okotoks amenities is effortless. This home presents an opportunity for a comfortable and enjoyable lifestyle in the heart of Drake Landing. Don't miss making it yours!

Ready to sign your next contract with a thumbs emoji? HOLD UP!

Trust me, you don't want to miss this one. We just had a precedent setting ruling as a judge said a contract was executed with a thumbs up emoji.  A Canadian judge has recently made a groundbreaking ruling, declaring the "thumbs-up" emoji as a valid form of signature in court cases. The decision comes as the court recognizes the need to adapt to the changing ways people communicate in the modern world. In this particular case, the Court of King's Bench in Saskatchewan dealt with a dispute between a grain buyer, Kent Mickleborough, and farmer Chris Achter. It all started when Mickleborough, representing South West Terminal, sent out a mass text message in March 2021, offering to purchase 86 tonnes of flax at a specified price per bushel. He then engaged in a phone conversation with Achter and sent a picture of a contract to deliver the flax in November. In the text, Mickleborough requested Achter to confirm the flax contract, to which Achter responded with a thumbs-up emoji. However, things took a turn when Achter failed to deliver the flax in November, and by then, the crop's prices had risen. Mickleborough argued that the thumbs-up emoji served as confirmation of the contract's terms, citing previous instances where contracts were confirmed through text messages using emojis. On the other hand, Achter contended that he merely intended to acknowledge the receipt of the contract and did not consider the emoji as an acceptance of the incomplete contract. During the legal proceedings, Achter's lawyer objected to a cross-examination about the meaning of the thumbs-up emoji, stating that his client was not an expert in emojis. Nevertheless, Justice Timothy Keene delved into the matter, even resorting to the definition of the emoji from dictionary.com. The judge ultimately ruled in favor of considering the thumbs-up emoji as a valid means to "sign" a document, given the circumstances of this particular case. Despite defense concerns about potential interpretations of other emojis, Justice Keene dismissed those worries and emphasized that the court should embrace technological advances and the common usage of emojis. He acknowledged that using emojis, including the thumbs-up symbol, appears to be the new reality in Canadian society, and courts must be prepared to address the challenges that may arise from their use in legal matters. As a result, the court ordered Achter to pay the agreed-upon amount of C$82,000 ($61,442) for the unfulfilled contract.