Buying your first home in Calgary is exciting, but financial preparedness is key. Start by understanding your fixed and variable expenses: calculate your net monthly income (including bonuses or dividends) and subtract your regular expenses such as rent, utilities, groceries, and discretionary spending. Knowing this helps clarify what you can realistically afford.
Next, determine your debt-to-income ratio (DTI). Lenders use this metric to gauge risk; aim for a low DTI to qualify for better mortgage terms. You’ll also want to check your credit score: a score above 660 is acceptable, but over 760 opens the door to the best offers.
Understand the difference between pre-qualification and pre-approval: pre-qualification gives you an estimate; pre-approval offers an official lending amount and interest rate. Finally, plan for your down payment (typically 5–20%, with >20% avoiding insurance) and closing costs (roughly 3–4% of the purchase price) so there are no surprises at the finish line.
