What Buyers Need to Budget for Beyond the Down Payment

Buying a home in Calgary is an exciting step—but if you’re only budgeting for the down payment, you might be in for a surprise. Many first-time (and even repeat) buyers overlook key expenses that come with a real estate transaction, which can quickly add up and create last-minute stress.

Here’s what you need to know about the hidden costs of buying a home in Calgary and how to budget smart.

🧾 1. Legal Fees

When you buy a property in Alberta, you’ll need a real estate lawyer to handle the legal paperwork, review title documents, and ensure the property is transferred properly. Legal fees in Calgary typically range from $1,000 to $1,800, depending on the complexity of the transaction.

✅ Pro Tip:

Ask your REALTOR® for trusted lawyer referrals who specialize in real estate—some even offer flat-rate pricing for standard transactions.

🕵️ 2. Home Inspection

A home inspection helps you uncover any hidden issues with the property. This is a crucial step, especially for resale homes. Expect to pay $450–$650+ depending on the size and type of property.

If you’re buying an acreage near Calgary, you may also need specialized inspections (like septic or well testing), which are additional costs.

📋 3. Appraisal (If Required)

If you're getting a mortgage, your lender may require an independent appraisal to confirm the home’s market value. This usually costs between $300–$500 and is often paid by the buyer unless your lender covers it.

📄 4. Title Insurance or Real Property Report (RPR)

In Alberta, sellers are usually expected to provide an up-to-date Real Property Report with municipal compliance, but in hot markets, many offer title insurance instead. If the seller doesn’t provide either, you may need to cover the cost:

• Title insurance: $200–$350

• RPR with compliance: $800–$1,200+

✅ Ask your agent:

“Will I be responsible for the RPR or title insurance in this deal?” It’s a negotiable term in most purchase contracts.

⚡ 5. Utility Hookups & Moving Costs

Once you’ve got the keys, there are still costs to cover:

• Setting up electricity, gas, internet, water

• Moving services or truck rental

• Potential appliance upgrades or cleaning fees

It’s smart to budget $500–$2,000 for these post-possession essentials.

🏡 Buying a Home? Let’s Make Sure You’re Budget-Ready

As a Calgary-based REALTOR®, I help my clients prepare for every part of the buying process—no surprises, no stress. Want a full checklist of these hidden costs and how to plan for them?

📩 DM me “COSTS” and I’ll send you my free Buyer Budget Breakdown Guide.

Let’s get you into your next home with confidence and clarity.

Kristen Edmunds is a Calgary-area REALTOR® and Associate Broker with KIC Realty, specializing in acreages, luxury homes, and smart buy/sell strategies. With expertise in rural properties (water wells, septic, equestrian facilities) and a client-obsessed approach, Kristen helps buyers and sellers achieve their real estate goals with confidence and ease.

Figuring out how much house you can afford can be challenging, but it is one of the most important steps when planning to buy a home. Understanding your budget ensures you do not become "house poor"—a term used for individuals who buy a home beyond their financial reach and struggle to cover other living expenses. This guide will help you make informed decisions and balance buying a home with maintaining a healthy budget.

Understand Your Financial Picture

Before you start browsing listings, getting clear on your financial situation is crucial. Here’s how you can begin:

1. Calculate Your Income
   Add up all sources of income, including salary, bonuses, rental income, and any other earnings. This gives you an idea of what you have to work with every month.

2. Review Your Expenses
   Look at all your regular expenses, such as groceries, transportation, entertainment, and savings contributions. Understanding these will help you identify how much you can spare for a mortgage payment.

3. Check Your Credit Score
   Your credit score impacts the mortgage rate you can secure. A higher score can lead to a lower interest rate, saving you thousands over the loan's life.

The Importance of the Down Payment

A down payment is the lump sum you pay upfront when buying a home. It affects your loan amount and whether you'll need mortgage insurance. Here's what to know:

• Homes Up to $500,000:
  A 5% down payment is required. This means saving $25,000 for a $500,000 home.

• Homes $500,000 to $999,999:
  You need 5% of the first $500,000 and 10% of any amount over that. For instance, a $750,000 home requires $25,000 on the first $500,000 and $25,000 on the remaining $250,000, totaling a $50,000 down payment.

• Homes $1 Million or More:
  A 20% down payment is standard. This equals $200,000 for a $1,000,000 home.

First-time buyers might not have a large down payment. However, they should remember that putting down less than 20% requires mortgage loan insurance.

Budgeting Beyond the Purchase Price

Buying a home involves more than just paying the sale price. Budget for extra costs:

1. Closing Costs:
   These include lawyer fees, land transfer taxes, and other administrative charges, typically ranging from 1.5% to 4% of the purchase price.

2. Moving and Setup Expenses:
   Consider costs like hiring movers, utility setup fees, and initial purchases such as furniture or appliances.

3. Emergency Fund:
   Set aside funds for unexpected repairs or costs that may arise after moving in.

Choose the Right Mortgage

Securing the best possible mortgage is vital. Here's how:

1. Shop Around:
   Compare rates from different lenders to find the best deal. Even a small difference in interest rates can greatly affect the total amount you pay over time.

2. Consider Different Types:
   Look into fixed-rate and variable-rate options. Understand how each works and their pros and cons based on your financial outlook.

3. Get Pre-Approved:
   A pre-approval gives you a better idea of what a lender might offer and shows sellers you're serious, making your bid more attractive.

Assess What You Can Comfortably Afford

When deciding what you can afford, think about your daily life, not just the mortgage payment.

1. Use the 28/36 Rule:
   Experts suggest that your housing costs should not exceed 28% of your gross monthly income. Additionally, your total debt payments should not surpass 36% of your income.

2. Prioritize Needs Over Wants:
   Understand the difference between essential features (like number of bedrooms) and nice-to-haves (like a pool). Focus on what adds real value to your family life.

Location Matters

Knowing where you want to buy is as important as what you want to buy.

1. Neighbourhood Insights:
   Research the best neighbourhoods for safety, schools, and convenience. Location can impact property value and growth potential.

2. Property Types:
   Decide what suits you best—a single-family home, condo, or townhouse. Each has unique costs tied to its property type, like HOA fees for condos.

Utilize Professional Guidance

Working with a real estate expert can significantly ease the home-buying process. Here’s what they offer:

1. Buyers Agent Expertise:
   They provide access to listings, honest advice, and negotiation experience ensuring stress-free transactions.

2. Financing Connections:
   Agents often know mortgage brokers who can offer guidance suited to your needs.

3. Market Knowledge:
   Agents familiar with your area can offer insights that save you money and help you find a home that fits well with your life goals.

Take Advantage of First-Time Buyer Programs

For starters, there are government programs that aim to make this journey easier.

1. First Home Savings Account (FHSA):
   This account lets you save specifically for a down payment, with some tax advantages that can make it faster to reach your goal.

2. Tax Rebates:
   Look into available tax rebates for first-time buyers that can add extra savings when buying your home.

Knowing how much home you can afford involves thoughtful planning and budgeting. By following these steps, you can find a home that meets your needs and remains within your financial reach. With the right information and support, the path to homeownership can be a rewarding journey. Always remember, being prepared and informed is the best way to enjoy your new home with peace of mind.

Kristen Edmunds is a Calgary-area REALTOR® and Associate Broker with KIC Realty, specializing in acreages, luxury homes, and smart buy/sell strategies. With expertise in rural properties (water wells, septic, equestrian facilities) and a client-obsessed approach, Kristen helps buyers and sellers achieve their real estate goals with confidence and ease.

Entering into an Exclusive Buyer Representation Agreement is a significant step for any homebuyer. This agreement outlines not only my commitment to providing focused and professional representation but also details the rights, responsibilities, and protections you’ll have as a buyer.

In this post, I’ll cover each key element of the agreement so you can feel confident in what this document entails and how it benefits you.

1. What is the Exclusive Buyer Representation Agreement?

This agreement is a formal arrangement between you and the brokerage, through me as your designated agent. By signing, you’re granting me the exclusive right to assist you in finding and purchasing a property that matches your search criteria.

As your designated agent within a designated agency brokerage, I am exclusively committed to you. This distinction is essential in Alberta’s real estate market, as designated agency ensures that even though I work within a larger brokerage, I represent only your interests in the transaction, separate from other agents in our office.

2. Key Responsibilities of Your Designated Agent

Upon signing, I will provide exclusive services to help you navigate the home-buying process. This includes:

• Property Search and Evaluation: I actively search for properties that meet your criteria, provide market evaluations, and discuss each property’s pros and cons.

• Offer Preparation and Negotiation: When you’re ready to move forward on a property, I’ll guide you in creating a competitive offer, negotiate terms on your behalf, and manage all necessary paperwork.

• Market Updates and Professional Advice: I’ll keep you updated on market conditions and provide honest advice to empower your decisions.

  
  

3. Conflict of Interest and Transaction Facilitation

A conflict of interest may arise if I represent both a buyer and a seller for the same property. In such a case, I will inform both parties and present options, such as acting as a transaction facilitator. In a transaction facilitation role, I’d act neutrally to help bring the deal to completion without representing either party’s specific interests. If either party does not agree to facilitation, I would continue to represent the client with whom I signed the agreement first, unless we agree otherwise in writing.

4. Compensation and Commission Details

Typically, the seller pays the buyer’s agent commission, so most buyers don’t incur out-of-pocket expenses for this service. However, there are exceptions, like For Sale By Owner (FSBO) properties or instances where the seller offers a lower commission than the rate agreed upon in our brokerage agreement.

In such cases, I’ll negotiate my commission with the seller on your behalf. If needed, we can amend our agreement to reflect any modifications so that you’re not left covering the difference, or, if necessary, we may discuss the possibility of you covering the shortfall. For a more detailed explanation of these scenarios, see my Buyer’s Agent Commission and Compensation blog post.

5. Indemnification Clause

Under this agreement, you agree to indemnify and protect me and my brokerage from any legal claims arising from consents or acknowledgments made within this agreement, as well as any claims resulting from our good faith reliance on information you provide. This means that, if issues arise from these aspects, you would be responsible for covering related legal fees or other expenses.

6. Property Recordings and Privacy

It’s important to note that some properties you view may have active recording devices, including video and audio. Our brokerage, including myself, may not always be aware of these devices, so we can’t control whether you’re recorded by the property’s owners. By signing, you agree to release and hold us harmless from any privacy claims related to recordings made by the seller during your viewings.

7. Confidentiality Obligations

Confidentiality is at the core of my service to you, and this obligation doesn’t end when our agreement concludes. I am committed to protecting all personal and financial information related to your transaction, both during our agreement and afterward. Any confidential information shared during the transaction remains secure and is only disclosed with your written consent or as required by law.

8. Additional Terms and Show Home Visits

In some cases, there may be additional terms in the agreement that clarify specific expectations. For example, if you’re interested in new builds or pre-sale properties, I ask that you contact me before visiting show homes or sales centers. Many builders require an agent to be present at your first visit to secure representation and avoid exclusion from the sales process.

9. Early Termination Scenarios

The agreement will end automatically when you complete a purchase. However, several other circumstances can lead to early termination:

• If I or the brokerage materially breach the agreement, you can end it with written notice.

• If my real estate license is suspended, cancelled, or if our brokerage goes bankrupt, the agreement will terminate.

• You also have the option to end the agreement if our board membership status changes in a way that affects our ability to fulfill our obligations.

10. Document Attachments and Amendments

Any additional documents, such as the Consumer Relationship Guide, are attached to the agreement and form part of it. This guide provides valuable information on the different types of relationships you can have with a real estate agent, including designated agency, and what each relationship means for your rights and obligations. If any changes are needed to the agreement, amendments must be made in writing and signed by both parties to be valid.

For more insights into the different agency relationships and how they affect your rights as a buyer, feel free to check out my blog post, Understanding Your Relationship with a Real Estate Agent: A Guide for Buyers and Sellers.

11. Agreement Finalization and Communication Methods

To finalize the agreement, both you and I will sign, acknowledging that we’ve reviewed each part of the agreement and fully understand its terms. This includes your preferred communication methods for exchanging information—whether in person, by mail, or electronically. We recognize that each of these methods may involve certain risks, which we will discuss so you’re comfortable with the process. Additionally, we agree that electronic signatures are legally binding and will function the same as traditional ink signatures.

In Summary

The Exclusive Buyer Representation Agreement is an essential document that formalizes the commitment between you and your agent, ensuring you receive dedicated, confidential, and expert representation. This agreement provides peace of mind, clarity, and structure throughout your real estate journey.

If you have questions or would like to review the agreement together, don’t hesitate to reach out. I’m here to help ensure every aspect of your buying experience is transparent and supportive.

For more information on compensation and commission scenarios, please refer to my detailed post here, where I cover what happens in cases where commission differs from our original agreement.

Kristen Edmunds is a Calgary-area REALTOR® and Associate Broker with KIC Realty, specializing in acreages, luxury homes, and smart buy/sell strategies. With expertise in rural properties (water wells, septic, equestrian facilities) and a client-obsessed approach, Kristen helps buyers and sellers achieve their real estate goals with confidence and ease.