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Chestermere is experiencing a noticeable shift toward buyer-favoured conditions compared to neighbouring markets.
Sales: 31 (+32.6% Y/Y)
New Listings: 110
Sales-to-New-Listings Ratio: 28%
Inventory: 212 (+6.5% Y/Y)
Months of Supply: 6.84
Benchmark Price: $703,700 (+6.8% YTD, +0.2% Y/Y)
Average Price: $613,768
Median Price: $600,000
Detached benchmark pricing stands at $785,700 (+0.7% Y/Y).
With nearly seven months of supply, Chestermere has moved firmly into buyer-market territory. New listings are significantly outpacing sales, creating more negotiating power for purchasers.
Despite higher inventory levels, prices have remained relatively stable year-over-year.
Bottom Line: Buyers currently have increased leverage in Chestermere, while sellers must price strategically.
Airdrie’s market is showing signs of stabilization, with increased supply creating more balanced conditions for buyers and sellers.
Sales: 122 (+0.8% Y/Y)
New Listings: 236
Sales-to-New-Listings Ratio: 52%
Inventory: 401 (+16.2% Y/Y)
Months of Supply: 3.29
Benchmark Price: $512,200 (-5% vs. last year levels noted in report context)
Average Price: $526,387
Median Price: $513,700
Detached benchmark pricing is $603,500 (+5.4% Y/Y), indicating continued strength in that segment.
Inventory has risen above long-term trends, giving buyers more options. With just over three months of supply, Airdrie is considered relatively balanced.
Increased competition from new home construction and greater choice across the region have contributed to some price adjustments compared to last year.
Bottom Line: Airdrie is offering buyers more opportunity while remaining stable overall.
Cochrane continues to see strong activity, with solid sales growth helping maintain balanced market conditions.
Sales: 91 (+21.3% Y/Y)
New Listings: 154
Sales-to-New-Listings Ratio: 59%
Inventory: 284 (+44.9% Y/Y)
Months of Supply: 3.12
Benchmark Price: $553,500 (-3% Y/Y)
Average Price: $553,500 (benchmark context)
Detached benchmark price: $636,800 (+5.3% Y/Y).
The rise in new listings has been largely offset by strong sales activity. With about three months of supply, Cochrane is shifting toward more balanced conditions.
Although benchmark pricing is slightly below last February due to prior quarterly pullbacks, prices edged up month-over-month in February.
Bottom Line: Cochrane remains competitive but balanced, with solid buyer activity and stable pricing trends.
Okotoks remains one of the tighter surrounding markets, with limited supply continuing to support pricing.
Sales: 36
New Listings: 63
Inventory: 96 (+39.1% Y/Y)
Months of Supply: 2.67
Benchmark Price: $612,300 (+5.0% Y/Y)
Detached benchmark price: $699,900 (+1.0% Y/Y).
Although inventory has improved compared to last year, it remains well below long-term averages. With under three months of supply, Okotoks continues to experience relatively tight conditions.
The benchmark price increased two per cent over January and remains similar to last year’s levels, reflecting ongoing demand strength.
Bottom Line: Okotoks continues to favour sellers, with limited supply and steady upward pricing pressure.
February brought steady momentum to Calgary’s housing market, with balanced conditions and continued year-over-year price growth.
Sales: 1,526 (+11.2% Y/Y)
New Listings: 2,766
Sales-to-New-Listings Ratio: 55%
Inventory: 4,822 homes (+16.3% Y/Y)
Months of Supply: 3.16
Benchmark Price: $560,500 (+2.3% Y/Y)
Average Price: $627,841
Median Price: $565,000
With just over three months of supply, Calgary remains in relatively balanced territory. Inventory levels have improved compared to last year, easing some of the extreme seller-favoured pressure seen in prior cycles.
Prices continue to trend upward, with the total residential benchmark price rising 2.3% year-over-year and 3.1% year-to-date. Detached benchmark pricing sits at $734,300 (+3.2% Y/Y), showing continued strength in the single-family segment.
Bottom Line: Calgary remains stable and healthy, with steady demand and moderate price growth heading into spring.
You’ve scrolled through hundreds of home listings and feel ready to buy a home. But wait! Have you done your homework to figure out what you can afford, where your down payment will come from, and if you can get a mortgage for the rest? There’s a lot to know and do before buying a home, especially when it comes to the financial elements, so let’s help you get started.
This guide breaks down what home buyers, especially first-time home buyers, need to know using reliable, up-to-date insights from an RBC Mortgage Specialist. You’ll also learn how to shop for a mortgage, compare fixed versus variable rates, get pre-approved, and understand what lenders look for when determining how much you can borrow. Whether you’re a first-time buyer or making your next move, this article walks you through what to expect—so you can move forward with clarity and confidence.
Buyers need to put down a minimum of 5% of the home’s purchase price, but if you can afford it, it’s often a good idea to put down more, says Marion Leblanc, a Mortgage Specialist with Royal Bank of Canada. Buyers who put down anything less than 20% of the price of the home must also pay for mortgage insurance.
“When you put down more towards your down payment you set yourself up to save thousands of dollars in interest charges. Plus, if you’re able to put down 20% or more, you’ll also save on mortgage insurance,” explains Leblanc.
“Your mortgage insurance premium gets added to your mortgage, and you’ll pay it off over the mortgage’s lifetime,” says Leblanc.
“Mortgage insurance starts at 4% of the total mortgage amount when you put down 5%. If you put 10% down, the premium reduces to 3.1%, reducing further to 2.8% when putting down a down payment of 15%.
Of course, if you want to become a homeowner and can only afford to put down 5% (a common thing to do these days) it’s perfectly acceptable to do so. It allows you to get into the market, build equity, and achieve your goals of homeownership sooner.
In addition to building up your savings through traditional savings and investment vehicles (for example, through GICs, ETFs, etc.), following a budget and paying off your debt, first-time home buyers can gather money for a down payment by tapping into government programs and incentives.
Launched in 2023, the First Home Savings Account (FHSA) is one of the most powerful tools first-time home buyers have in their arsenal when it comes to saving for a home. It enables first-time home buyers to save up to $8,000 per year, tax-free, up to a lifetime maximum of $40,000. When used to purchase a home, the FHSA combines the benefits of an RRSP, where you get an upfront tax deduction, and a TFSA, where you pay no tax on investment gains when you withdraw the money.
The First-Time Home Buyers’ Tax Credit allows home buyers to claim a non-refundable tax credit of up to $1,500. You can also put away up to $7,000 (the amount is indexed to inflation and increases over time) each year, tax-free, through your TFSA, which you can then withdraw from to buy a home.
“There’s also the Home Buyers’ Plan (HBP), which allows you to borrow up to $60,000 from your RRSP. You then have 15 years to pay that back, otherwise there are tax implications,” adds Leblanc. Make sure to consider how this savings strategy may affect your retirement plan.
“It’s important to remember that your down payment is not your only cost when purchasing your home,” cautions Leblanc.
“Even if you have the money to put down 20%, part of your budgeting exercise should include thinking about whether putting that much down makes sense for your own financial situation. You don’t want to find yourself in a position where you are house-rich, but cash-poor; you need an emergency fund to cover unexpected costs that come up. Home repairs are a good example of this,” she explains.
Leblanc says homeowners should set up a home maintenance and renovation fund equal to 1% of the property’s purchase price.
“Often, people move into a home without fully realizing that, when you own a home, there’s always a project: replace the roof, the windows, the furnace. That’s why it’s so important to have that 1% emergency fund ready to go,” she says.
“You also want to be able to live your life without worrying about the fact that you’re living paycheque-to-paycheque.”
At the time of purchase, you’ll also be responsible for closing costs, including real estate appraisal fees, legal fees, and title insurance, so keep a financial cushion in place.
RBC suggests budgeting roughly 3% of the purchase price of your home to go towards closing costs.
When you’re looking for a lending institution, it can feel overwhelming. The first step is learning the difference between a mortgage specialist and a mortgage broker. Mortgage specialists work for one specific bank and have access to that bank’s rates and products.
Mortgage brokers don’t work for a particular bank; they’re intermediaries between the clients and the banks. They have access to many—though not all—lenders’ rates and products, so they can shop around for you and match you with some of the best products and lenders for your needs.
Your REALTOR® can be a great resource and offer recommendations on who to work with.
“When considering working with someone, think about how knowledgeable they are, as well as whether you’re comfortable with them,” adds Leblanc.
Interest rates are just one component to evaluate when shopping for a mortgage. You also need to consider the types and terms of a mortgage:
An open mortgage offers the flexibility to pay part or all your mortgage anytime throughout the term with no penalties. Interest rates are usually higher for this type of mortgage.
A closed mortgage offers a lower interest rate, but it cannot be prepaid or renegotiated before your term ends without paying a penalty to the lender. If rates drop, you cannot get your rate reduced; you’re locked into your mortgage for the length of your term.
“With a closed mortgage, if you sell the home prior to the end of your term, you’ll be charged a penalty for doing so,” notes Leblanc. “With an open mortgage, you can pay it off at any time without paying a penalty. Because of this added flexibility, open rates are typically more expensive than closed ones. If you’re looking at staying in your property for more than five or six months, you’ll likely be better off with a closed rate.”
Hybrid mortgages—where a portion is fixed and a portion is variable at the same bank—are less common, notes Leblanc.
“While hybrid mortgages aren’t for everyone, there are instances where it makes sense. For example, if you’re not sure where interest rates may go in the future, a hybrid mortgage can offer both protection against rising rates, and some benefits if rates drop. A Mortgage Specialist can help you determine if a hybrid mortgage is right for you.”
Speaking of rates, you’ll need to choose between fixed, which doesn’t change over the course of your term, and variable, which can go up or down according to market rates. It’s also important to ask about your prepayment options in case you want to pay the mortgage off faster, says Leblanc.
Many people prefer to pay off their mortgage as quickly as possible to minimize interest paid, and lenders often offer features that allow you to do that. These features can include the ability to make lump sum payments that go straight to the principle, or monthly top-up payments beyond your minimum.
“It can be advantageous to get pre-approved early in your home buying journey. With a pre-approval in hand, sellers know they’re dealing with a serious buyer who has already thought about their financing needs for the purchase,” says Leblanc.
A pre-approval provides you with the upper limit a lender is willing to lend you, but that doesn’t mean you need to take out a mortgage that bumps up against that upper limit. It’s important to calculate your budget ahead of time. If you’re looking at purchasing in a certain price range, how much will that cost you per month?
“Check out an online mortgage calculator and see what’s within your budget,” she says, adding that first-time buyers also need to consider heating, electricity, property taxes, and home insurance. An affordability calculator can help you figure out what you’re comfortable spending across all of these items.
“Then, find a REALTOR® you trust so they can start the home search. Your next step is understanding how much lenders are willing to loan you, and at what interest rate, by obtaining a mortgage pre-approval. Many banks, including RBC, allow you to start the process online.”
Looking for a REALTOR®? Use our Find a REALTOR® feature to connect with a real estate expert in your area who can help find your next home.
Lenders evaluate several things when deciding on the amount they’ll allow you to borrow, beginning with your credit score.
“The higher your credit score, the more likely you are to be approved for a mortgage, and the more likely you are to receive a more favourable interest rate,” explains Leblanc. “Lenders also consider your debt servicing ratios: how much you earn versus the debt of the property you’re taking on, plus any personal debt you have, like credit cards, student loans, or car loans.”
Lenders want to ensure your credit history shows you pay your debts promptly, she adds.
Once you’re pre-approved for a mortgage and continuing your search for the perfect property, be aware that the details of your pre-approval may shift depending on how long it takes you to find a home and whether interest rates have changed.
“Some lenders allow you to lock in a rate at the time of pre-approval, while others don’t,” explains Leblanc.
In terms of guaranteeing a quoted rate, it depends on how thorough the lender is when doing your pre-approval. For example, some lenders may do the pre-approval by checking your credit, but not checking other documents, such as proof of employment or your tax returns. This means when you go back with an accepted offer and your documents, things can change based on new information your lender receives about you.
Another scenario that happens often is you find a home that’s more expensive than you originally planned for, which requires you to borrow more than you were approved for. In that case, you’ll need to get a new pre-approval. For this reason, Leblanc suggests getting pre-approved at the highest amount you’re comfortable with, even if you don’t end up needing it.
If you’re in the market for a new home and already own one, there are a few things you need to know. To source funds for the down payment, you can leverage the value of your current home or pull money from your TFSA, but you don’t qualify for government programs or tax credits geared towards first-time home buyers.
If you’re not finished paying for the home you currently own, you can transfer your mortgage to the new property.
“If you have a fixed rate, you’ll likely be able to port your old mortgage over to the new property and maintain the old rate. As for variable rates, they’re generally not portable,” explains Leblanc.
It happens—you figure you’ll start looking at homes to see what’s available and fall in love with a property right away, before putting your current place up for sale. What now?
Your REALTOR® can assist you here. For example, they may suggest that you list your property and tell any buyer coming in that you only want to close in four months, to give you the time to sell your property.
If you decide to put an offer on a house before selling your own, it is important to consult with your lender to ensure you can support both properties at the same time, adds Leblanc.
“If you can afford both, that’s great! Then you don’t need to include that condition to sell your property. On the other hand, if your debt servicing ratios wind up being too high with two mortgages, you would then need to make your purchase conditional on selling your current property.”
Leblanc cautions even if the mortgage on your original home is paid off, you may want to think twice about holding two properties at once.
“There are still fees, taxes, utilities, and maintenance costs you have to pay for when owning two properties, and that can be difficult,” she says. “It’s usually best to put a condition of selling your own home first in your offer to purchase.”
If you need help determining the best approach for your unique situation, a financial planner can help you navigate the best path forward.
Worried that having two mortgaged properties will lower your credit score? Don’t be.
“Many Canadians have multiple properties (a primary residence and a secondary residence or rental property), and carrying two mortgages short-term before you sell your house is not an issue,” says Leblanc.
“As long as you continue to make your payments on time, there will be no impact. Just make sure you’re always paying your personal debts on time as well, and that your balances don’t go over their limit. Missing the mark on either of those will pull your credit score down.”
Whether you’re a first-time buyer or are getting ready to move into your next home, purchasing a property involves many steps and decisions along the way. Having the right team of professionals by your side—including a Mortgage Specialist and REALTOR®—can help you navigate this path with confidence.
The content in this article is provided for general informational purposes only and does not constitute legal, mortgage, or other professional advice. The views expressed are those of the contributors and do not necessarily represent those of REALTOR.ca. Individuals should consult qualified professionals regarding their specific circumstances before making financial decisions. Programs, lending criteria, and rates are subject to change