September 23, 2023

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Right here’s the Down Fee You’ll Have to Purchase a Home in Calgary Area

3 min read

Amid decrease rates of interest and exceptionally tight situations, report house costs and gross sales have been set in Calgary area within the first half of 2022. Now that rates of interest are larger and situations not as tight, what can homebuyers count on this spring season?

We needed to find out how present down fee minimums within the Calgary area evaluate to these of final 12 months when the market was particularly sizzling. For this examine, Zoocasa calculated the distinction within the required down fee a purchaser would wish to buy a benchmark-priced indifferent home in 8 areas throughout Calgary in March 2023 vs. the identical timeframe in 2022. 

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Benchmark house costs have been sourced from the Calgary Actual Property Board. Minimal down fee quantities have been calculated based mostly on 5% of the acquisition worth for houses valued at $500,000 and beneath, 10% for the parts of house costs between $500,001 – $999,999, and 20% for houses priced at $1 million and over. 

Take a look at the infographic under to see how minimal down fee quantities have modified for benchmark indifferent homes between March 2022 – 2023.

House Patrons Require Bigger Down Funds in All however One Calgary Area This Yr

Due to interprovincial migration, demand is excessive and that is persevering with to push costs upwards in many of the Calgary area. Chestermere skilled the biggest worth improve, with the value of a indifferent house leaping from $653,800 in March 2022 to $724,900 in March 2023. That resulted in a $12,110 improve within the minimal down fee required on a benchmark-priced house, now at $52,490. The minimal down fee required in Okotoks has additionally gone up significantly, with the minimal down fee now at $37,520, a year-over-year improve of 19%.

Canmore stood out as being the one Calgary area on our listing to have skilled a downward shift in costs; a house in March 2023 price $1,309,00, down 6.5% from final March. Although the minimal required down fee on a Canmore house continues to be hefty at $261,800, it’s decreased by $18,040 from final 12 months. 

Regardless of Value Will increase, Calgary is Nonetheless One of many Extra Inexpensive Markets in Canada

In contrast with Canada’s nationwide common house worth of $662,437 in February 2023, 6 out of 8 Calgary areas are far under that quantity. Regardless of this, Calgary was one of many solely markets in Canada to have skilled optimistic year-over-year modifications in house costs in February 2023.

Strathmore is probably the most reasonably priced of the Calgary areas we analyzed, with a benchmark house worth of $450,900 and a minimal down fee of $22,545, greater than 11 instances smaller than Canmore’s minimal required down fee. Cochrane is one other reasonably priced choice as its costs have remained regular all through the final 12 months, with house costs growing by simply 0.2% and the minimal required down fee up by solely $130. 

Considering studying extra about house costs within the Calgary area? Give us a name right this moment to talk to an actual property agent in your space. 

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