20 Feb

Total Cost of Buying a Home in Grande Prairie

Jillian Napen

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Cost of Buying a Home in Grande Prairie? Any hidden fees?

This week I will talk about the cost of buying a home in Grande Prairie.

Although I bought my home back in 2015, I’m lucky enough to work with new mortgages and purchase’s everyday here in Grande Prairie, so this will be as detailed as I can give you.  Here’s a breakdown of what I spent.

I’ve signed the purchase agreement for my new home here in Grande Prairie. My mortgage broker has verified that I have enough downpayment but….

What is the cost of getting a mortgage in alberta 2019?

“What other cost’s should I expect when buying my home?

Legal Fee’s

First I’ve called a lawyer for a quotes.

“Could I get a quote for legal fee’s on this $250,000 house I’m purchasing here in Grande Prairie?”

 I would expect legal fee’s for a home purchase to run around 0.5% of the purchase price.  So $250,000 home x 0.05% = $1250.  A $500,000 home will have a cost around $2500. This will vary between lawyers so call for quotes!

My lawyer will help me purchase title insurance, $160 for a $250,000 home in Grande Prairie, and roughly $300 for a $500,000 home.

Home Insurance

Next I’ve called a home & auto insurance company for a home insurance quote. If I’m lucky my new insurance company won’t make me do too much legwork. I’m prepared to answer questions like:

” How old is the roof of your new home? How old is the hot water heater? Is the basement carpeted or tiled?”

My current home insurance policy costs me $120 every month. You are required to have home insurance to get a mortgage. So expect to pay between $120 to $220 a month on homes priced between $250,000 to $500,000.

 Another insurance to get is for your personal protection- life & disability insurance. For me on a $250,000 home Life Insurance was $17 a month, and disability was $37 a month. These rates will change based on your health and age. I was 25 and darn healthy.

    • Mortgage Default Insurance:  if you put less than 20% down on your house, you are getting default insurance. You don’t have to worry about saving up, as every mortgage company in Canada just adds it to your mortgage.  The cost varies based on your downpayment vs purchase price. Check out this CMHC calculator to estimate it based on your next home purchase. ( 5% down on a $250,000 home – $11,400 for default insurance.)
    • If you avoid mortgage default insurance you may pay $200-$400 for an appraisal. (You also may need an appraisal if there’s something strange about your new home. Wood Foundation? Used to be a church?)
    • Watch this video to learn more about default insurance

Cleaning Supplies

This was an expense I never expected for my first home. You move into your lovely new house and then slowly realize…. I need a broom, kitchen scrubs, rakes, shovels! you need dish towels, disk racks, spoons, tea kettle, spices…. It adds up.

If you can try to negotiate for “Backyard Shed including contents” to avoid having to buy yard supplies. I’ve never seen a purchase agreement negotiate for the cleaning supplies closet to be left fully stocked, but I would have saved so much.

As well,Budget another $500 to stock your house up with all the cleaning supplies, brooms, mops, linens, pot and more that a house requires. You could of course spend way more than this…. Try to hold off purchasing the diamond crusted broom till month two.

Furnishing your New Home

This… you can spend so much on furniture so quickly!  The most subjective cost out of all the categories. My best advice is take it slow. Enjoy the freedom of having no furniture. Being minimalist is very chic for 2019. Budget $500 for the first two months and see how far you can stretch it.

 

Don’t go out and buy all new furniture with a monthly payment plan. Wait a year.

Utilities

Start calling at least two weeks in advance before your move-in date to get your services set-up.

Internet: $90/month

Heat & Electric on a combined bill: $228/month

Water & Garbage Removal: $80/month

Future Repairs

Start planning for the future. Now that you own your home, 10 years down the road you’ll need a new roof/fridge/hot water boiler/ new deck. Try to put aside $1000 a year to cover future repairs. One day you will need to replace the roof/ repaint the deck/ buy a new furnace / update the windows. Plan and set the money aside in advance, future you will be happy.

The Total Cost of Buying a Home in Grande Prairie

Cost of Getting a Mortgage on a $250,000 home in Grande Prairie with 5% down (Rough Numbers)

Lawyer $1250

Default Insurance: $11,400 – added to your mortgage

Title Insurance: $160 -Part of your legal cost’s

Appraisal $200-$400 – not always required for a purchase.

Household Goods $500

To Furnish your home –  $500 & be strategic for the first two months.

Monthly Add-on’s to the budget

  • Internet $90
  • Cable TV $90 (Netflix $13)
  • Heat & Electric on a combined bill $228
  • Water & Garbage $80
  • Home Insurance $120
  • Home Maintenance $84 (Save $1000 a year to start)

 

Getting a home is a big investment, and a major change to how you’ll budget and spend your money. For myself having a place of my own to decorate and host at was always worthwhile.

If this is starting to seem like too big of expense – We live here in Grande Prairie! Our rental market is thriving, and people are always looking for a room to rent. Rent a spare room out and net $600 a month. I’m renting two rooms for $700 a month right now in my house.

 

PS: please send me an email or message me on Facebook if you’d disagree with these numbers for a $250,000 home in Grande Prairie. Or if you think I’ve missed any of the cost’s associated with owning a home!

Working hard to increase our website SEO in Grande Prairie

Jillian Napen, Office Manager at HT Mortgage Group, Part of Dominion Lending Centres in Grande Prairie Article updated Feb 20th, 2019

 

 

13 Feb

Alberta Mortgage Rate Update Feb 13th, 2019 (& More Downpayment)

Jillian Napen

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Mortgage Rates for Grande Prairie & Northern Alberta

It’s Mortgage Rate Wednesday again! Here I update our best available rates, talk about our beautiful city of Grande Prairie and answer some common homeowner questions such as buying a second home.

” Do I need 20% down to buy a house if it’s my second house?”

Buying a second home? Can I need to put 20% downpayment on that second home?

Alberta Mortgage Rates for Feb 13, 2019.

Do I need 20% down to buy a house if it’s my second house?

How do you classify a second home? Here’s a couple of scenario’s.

Why are you buying a second house?  Which of these situations describes you best?

  • Buying a Second home after selling my first home?

Buying a home here in Grande Prairie after selling your first home? Then this is considered your new primary residence. We can do 5% down.

  • Buying a Second home for my children to live in while going to school in another city

All lenders will let you do 5% down on a family home. So if you want to purchase college condo or home for your kids, give us a call.

  • Buying a second home, and keeping my first home as a rental property

If you plan to live in this home, then 5% down.

  • This second home will be a rental property, I’m still living in my first home

As a rental property, you’ll have to put at least 20% down anywhere you purchase it in Canada.

 

Repeat those Alberta Mortgage Rates?

Here are this week’s best rates for February 13th, 2019:

  • 6 month at 3.30%
  • 1 year at 3.49%
  • 2 year at 3.54%
  • 3 year at 3.24%
  • 4 year at 3.64%
  • 5 year rate Special at 3.39%
  • 5 year variable rate mortgage at 2.95%    P- 1.0%
  • 7 year 3.64%
  • 10 year 3.89%

Give us a call today to get a mortgage started for your second home!

(780) 513-6611

Working hard to increase our website SEO in Grande Prairie

Jillian Napen, Office Manager at HT Mortgage Group, Part of Dominion Lending Centres in Grande Prairie

6 Feb

Grande Prairie, Alberta Mortgage Rates Feb 6, 2019 and downpayment

Downpayment

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Grande Prairie, Alberta Mortgage Rates Feb 6, 2019

 

Grande Prairie, Alberta Mortgage Rates for Feb 6, 2019

Here are this weeks mortgage rates for Grande Prairie, Alberta.

 

Everyone always has downpayment questions. How much do I need to put down on my first house? If I put more down do I get a lower rate?  Do I need to put a different amount down if it’s not my first house? What is the downpayment if it’s a rental home? So this week we post our Grande Prairie, Alberta Mortgage Rates and talk a bit about downpayment.

How much do I need to put down on my first house?

As long as it’s for your primary residence:

As of February 2019 in Alberta, current mortgage rules are that you only have to put 5% down on your first house, or your second or even 20th home. If you are buying a home that’s meant to be your residence you can do just 5% down. Given Grande Prairie’s Residential Average Home Price (September 2018) of  $320,744 that 5% would be $16,038.

You could get a lower rate in Grande Prairie with a higher downpayment

That doesn’t mean it’s always a good idea to just put 5% down. If you put 35% down here in Grande Prairie instead of 5%, many companies will give you their best rate. Putting 5% down gets you a home in Grande Prairie, but not always the best mortgage rate.

Put more than 5% down to avoid mortgage default insurance

If you can afford to put 20% down on a home in Grande Prairie, you can avoid having to pay for mortgage default insurance. Mortgage default insurance is mandated in law by the Canadian government. As of February 2019, it is required to have default insurance on your mortgage if you put less than 20% down. Given Grande Prairie’s Average Home Price of $320,744 when putting 5% down or $16,038 you will pay $12,188 when mortgage default insurance is added to your mortgage. Go here to calculate that mortgage default insurance for any scenario. You don’t have to pay it up front, but that mortgage default insurance does add up!

Your Credit Score can affect downpayment

Mortgage lenders will consider your credit score when you go to get a mortgage as well. If you have excellent credit then 5% down is no issue, but maybe your score has dropped below 670 when you pull your credit report. What if your credit score is only 620? A lower credit score may mean that you have to put more than the standard 5% down here in Grande Prairie to make mortgage lenders comfortable issuing a mortgage.

This house won’t be my primary residence

How much downpayment do I need to purchase a rental home in Grande Prairie, Alberta? You will need to have a downpayment of a least 20% ready to purchase a rental home. Let’s take our average home price of $320,744 for Grande Prairie in September 2018 again that is $64,149 as downpayment. Given your credit score, the number of rentals you already own, or the condition of the home you are purchasing you may be required to put down much more than 20%. One good point, putting at least 20% down you avoid mortgage default insurance.

 

There are many situations that can change what amount of Downpayment is required here in Grande Prairie Alberta. For clarification, or just to have a professional run the numbers call our office here in Downtown Grande Prairie at 780-513-6611.

Or go here to fill out a form with questions.

Jillian Napen, Office Manager at HT Mortgage Group, Part of Dominion Lending Centres in Grande Prairie

 

 

 

 

4 Feb

Baby It’s Cold Outside

General

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Grande Prairie the air is freezing

The view outside of Dominion Lending Centres on Feb 4th 2019- it’s so cold the air is frozen! Call us from home, you don’t have to go outside!

Call us from home, you don’t have to go outside to get a mortgage!

Here at HT Mortgage Group, part of Dominion Lending Centres in Grande Prairie, we understand. Call us from home, you don’t have to go outside to get a mortgage! Just call our office at (780) 513-6611. We are having a terrible coldsnap this week, Environment Canada even issued an Extreme cold warning for Northern Alberta. As I write this is it -36 C, but with Windchill it could dip as low at -47 C! Don’t risk getting frostbite, stay warm and call us from home!

Yes you can even send documents electronically!

Nowadays, you can send us payslips, T4’s, tax receipts and other income paperwork electronically. We use a secure documents portal to protect your confidential documents. You can ask your realtor to send over your purchase agreement and your MLS listing to us as well!

If you check out the Our Agents section, we have every one of our mortgage agent’s cell phone’s and email address’s listed, but just in case you don’t want to head over to another page to check them out here they are again:

Megan Lemay megan@buymeahome.ca
Cell: 780-978-2060  www.meganlemay.ca
Pamela Lobban pam@dlcgp.ca
Cell: 780-831-9024 Web: www.pamelalobban.ca
Gert Martens gertm@dlcgp.ca
Cell: 780-933-0109  www.gertmartens.ca
Daina Stringer daina@buymeahome.ca
Cell: 587-343-1612 www.dainastringer.ca
Chanele Langevin chanele@dlcgp.ca
cell:780-876-2707 Chanelelangevin.ca
Kaitlyn Moore Kaitlyn@buymeahome.ca
Cell: 1-780-938-4366 www.buymeahome.ca
Doria Zacharias dzacharias@dominionlending.ca
Cell: 780-933-7767 www.doriazacharias.ca
Darren Ward dward@dominionlending.ca
Cell: 1-403-805-5322
Trevor Morris mortgageswithTrevor@gmail.com
Cell: 780-380-6247 www.trevormorris.ca
Jillian Napen htmortgage.ca
Office: 780-513-6611 htmortgagegroup@dominionlending.ca
Jodi Scotton jodidlc@outlook.com
Cell: 1-780-625-5037 www.jodiscotton.ca
Alycia Larocque alyciadlc@outlook.com.

Call us from home, you don’t have to go outside when it’s this cold!

Our office is open Monday to Friday from 9am to 5pm – and we do have staff who are here, braving the cold everyday – if you like going outside in this weather. Our Keurig is ready to serve hot coffee to any intrepid customers who do visit us today!

Jill the office manager at HT Mortgage Group in Grande Prairie, goes outside even when it’s cold – here she is at O’brien park with a friend collecting snowflakes/ Litter from the trail.