I can guarantee you will over pay for a home if you do these three things!

I Guarantee You Will Overpay for a Home if You Do These Three Things!

Are you wondering how you might end up overpaying for a home in Calgary? With the next interest rate announcement by the Bank of Canada scheduled for September 4, 2024, the pressure is mounting—not only for those facing mortgage renewals but also for those eager to enter the market.

#1: Playing Chicken with the Housing Market

Timing the market can be a dangerous game, especially if you're not factoring in the massive migration to Alberta, particularly Calgary. While August may have shown a slight increase in inventory, it's essential to understand that this is a seasonal fluctuation. Most Albertans are taking a hiatus, enjoying the last moments of summer with their families before school resumes.

As we approach the fall market—the second busiest housing season in Calgary after spring—demand will spike. The question is, are you ready to navigate this market? Who really wants to move in winter? Likely, not you. Our strategies and solid reputation in the industry enable us to negotiate on your behalf, securing today’s price while allowing you to benefit from tomorrow’s interest rates.

With recent inflation reports hinting at a potential trend of decreasing interest rates, many buyers are tempted to wait it out, hoping to leverage lower rates for a bigger mortgage. But here's the catch: waiting could cost you. As more buyers enter the market, competition will drive prices higher, and you could end up overpaying as demand outstrips supply. Remember, home prices have nearly doubled in some segments since the pandemic, a period marked by unprecedented monetary expansion. Delaying your purchase might mean paying a premium later.

#2: Putting 20% Down for Financing

When it comes to financing, many believe that putting down 20% is the smartest move. However, unless you're buying a home outright with cash, you need to carefully consider your financing options. Securing a mortgage insured by one of Canada’s mortgage insurers—Sagen (formerly Genworth Canada), Canada Guaranty, or the Canada Mortgage and Housing Corporation (CMHC)—allows you to purchase a home with just 5% down on the first $500,000 and 10% on the remaining purchase price.

Why does this matter? An insured mortgage typically comes with a lower interest rate compared to an unsecured mortgage with 20% down. While there’s a one-time insurance fee, the long-term savings on interest could be significant. Plus, having a secured mortgage provides you with the flexibility to invest your remaining capital elsewhere, potentially outpacing inflation and increasing your wealth.

#3: Not Using a High-Level Real Estate Professional

Buying a home can be an intimidating process—especially if you go it alone or with a part-time agent. The reality is, real estate transactions in Calgary are complex, and not having access to professional systems, market data, and industry relationships can cost you dearly in the long run.

Did you know that 80% of real estate transactions are handled by less than 20% of licensed agents? Working with a seasoned professional like myself means you’re getting expertise and guidance that only comes with experience. I’ve built relationships with top producers, trusted home inspectors, mortgage professionals, and condominium document reviewers—all to ensure your home-buying process is seamless and successful.

As a fiduciary, my duty is to protect your best interests and secure the best deal possible. With in-depth knowledge of the market and communities, I can provide you with the competitive edge needed to have your offer accepted. In today’s market, homes are often priced to reflect market conditions, not just a listing figure—so having an expert on your side is crucial.

Conclusion: Let Me Guide You to Success

My journey into real estate was fueled by my own experience of buying a home—an experience that left me feeling overwhelmed and intimidated. Today, my goal is to ensure that you never feel that way. This is my full-time profession, and I am committed to performing at the highest level to ensure you win.

Under the mentorship of Shawn Getty, who completed 186 transactions in his last year of production, I am dedicated to delivering the same level of expertise and success. When you work with me, you’re not just working with any agent—you’re working with a true professional who has your best interests at heart.

Contact me today,

Amandeep Walia - eXp Realty

Getty Group - Partner

Cell: 403-909-9868