So, you’re ready to stop renting and start owning — but where do you even begin?
It all starts with knowing your numbers. Budgeting for your first home isn’t about limiting your dreams — it’s about setting yourself up for success (and fewer surprises along the way).
💰 1. Know Your True Price Range
Before scrolling listings or touring show homes, talk to a trusted mortgage broker. They’ll review your income, debts, and credit score to determine how much you can comfortably borrow.
Most first-time buyers are approved for 4–5x their annual household income, depending on interest rates and existing debt. But just because you can borrow that much doesn’t mean you should. The right budget should leave you breathing room for life’s other adventures.
🧾 2. Factor in the Extras
Beyond your down payment, there are a few hidden costs every first-time buyer should plan for:
- Closing costs: typically 1.5–4% of your purchase price
- Home inspection fees (worth every dollar — see 🏡 Want to Get the Most Out of Your Home Inspection? Here’s How! 🔎)
- Legal fees and title insurance
- Property tax and utility adjustments — learn more in How Property Taxes, Utilities, and Fees Are Adjusted at Closing
- Moving expenses & home insurance
These upfront costs often surprise first-time buyers, so it’s smart to save an extra 2–3% cushion in your budget.
🏠 3. Plan for Ongoing Ownership Costs
Owning a home comes with recurring costs that renting never prepared you for. Be sure to factor in:
- Property taxes
- Utilities
- Condo or HOA fees (if applicable)
- Maintenance (aim for ~1–2% of your home’s value annually)
Our guide on Hidden Home Issues? What Buyers & Sellers NEED to Know About Material Latent Defects can also help you avoid unexpected repairs that could eat into your budget later.
📈 4. Think Long-Term: Home as an Investment
Buying a home is more than a purchase — it’s a financial strategy. You’re not just paying for shelter; you’re building equity. If you’re on the fence, read our post:
👉 Is Homeownership Still the Best Investment? What No One is Telling You
Over time, even modest annual appreciation can grow your wealth — especially in stable markets like Edmonton.
🔑 5. Get Professional Guidance Early
Your ARIVL agent can connect you with mortgage brokers, lawyers, and inspectors who align with your goals and budget. Having the right team early helps you make confident, informed decisions — and avoid expensive surprises later.
🎯 Pro Tip:
Get pre-approved before you start house hunting. It shows sellers you’re serious and gives you a real budget to work with — no guessing, no heartbreak.
Ready to start planning your next move?
Let’s map out your home-buying adventure together.
📩 Email hq@arivl.ca or call Jakie at 780-224-5566.
ARIVL: Your Real Estate Adventure Awaits!