Rent or Buy

Before entering this program, you need to decide that you are 100% in favor of purchasing your own home. While many people talk about all of the advantages of home ownership, there are times when it makes more sense to rent. For instance, if you plan on leaving Airdrie or Calgary within five years, it may make more sense to rent. If you’re unsure about your job situation, you may want to rent. If you are having marital issues it may make more sense to rent. The links below give you some other thoughts on renting vs buying. Once you decide you want to call a place your own, then you may be ready for this program. To take the emotions out of buying a house you might want to read this Investopedia article on renting makes sense or this CBC report on renting vs buying.

Household Income

In Airdrie, the types of houses which we purchase are typically in the $325,000-$425,000 range. The number of homes in the $325,000 to $350,00 range are limited. In Calgary, the types of houses which we purchase are typically in the $350,000-$425,000 range. More typically they would be in the $375,000 to $425,000 range.

Based on new CMHC mortgage requirements, which were introduced in October 2016, home buyers who put 5% down on a property need to qualify for a mortgage based on a five-year fixed posted mortgage rate. That rate is approximately 5.24% (at the time of writing) which is considerably more than the interest rate you may end up actually paying. This is to ensure that when mortgage rates start to increase, the holder of the mortgage will be able to meet their obligations.

The graph below indicates the approximate household income you will require to purchase a home through this program. It is based on a two-year Rent to Own program and offers a degree of safety based on current mortgage rates and government requirements, both of which could change in the future.

Household income vs house price

For this program to work, do you have the income required to purchase the home you desire?

In Airdrie houses between $325,000-$425,000 typically have 3 to 4 bedrooms, 2 baths and have between 1,200 to 1,600 square feet. Some will have a garage and/or driveway and typically a finished basement. Generally, a similar house in Airdrie will be about$25,000 less than Calgary.

Current Airdrie listings in this price range can be seen by following this MLS link.

Current Calgary listings which fit our program from a price perspective can be seen by following this MLS link.