Mortgage Tip Sheet

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Important to Know: Mortgage Tip Sheet

Number one tip is just to work with the mortgage person no matter who they are. Transaction can go a lot smoother if the mortgage professional and the realtor are in conversation.

Get Clients pre-approved. Even if they’re doctors sometimes there are surprises.

The property within our Edmonton real estate parent communities is 5% up to $500,000 and 10% from 500,001- $999,999. 20% down is required as soon as the property value hits $1,000,000. Remember if the client is buying the property for a rental, then 20% is required.

Everyone on the mortgage, including co-signors, must be on the purchase contract.

When a client puts 20% it is normal for the lender to require an appraisal. If you are doing an unconditional offer but they are still getting mortgage on the property. Make sure there is a term that allows the appraisal access with a reasonable time. Less than 20% there is a 95% chance an appraisal will not be needed.

Clients who are getting a divorce must have a separation agreement. If the client isn’t pre-approved, try and get two weeks for financing.

If they are pre-approved talk to the broker. All files aren’t the same, but we can usually get a pre-approved client done in a couple days.

Client must have a work permit to buy a home which expires in 183 days minimum.

If you ever have a listing that needs work don’t say handyman special or fixer-upper in the description. Lenders and mortgage insurers are looking for that.

If you are not a first-time home buyer, you can still put 5% down if you are moving into the property.

Lenders don’t like anything less than 100 AMP. Be aware of older houses.

Anything below 500 sq ft for condos is a tough sell to lenders. Anything that is below 650 sq ft for houses is tough but doable.

Mortgage Nerd Stuff:

5-year Canada Bond Yield is a big indicator of what fixed mortgage rates are doing. The official Bank of Canada overnight rate policy directly impacts variable rate mortgage trends.

If someone is putting 5% down and has no debt, they would be approved for a little less than 4x their income.

If they are putting 20% then it will be a little less than 5x their income.

Any type of variable income such as commission, business income, overtime, or part-time work with non-guaranteed hours will need 2-year history.

If someone has 20% down, then we use B lending and might be able to use 1 year’s income. We can even use Tips from waiters or waitresses, but they need 20% for a down payment.

Mortgage Stress Test. Lenders qualify borrowers with the stress test. This means the mortgage payment we use on the application is 5.25% or 2% higher than the rate they are getting. For example, clients have a mortgage rate of 5%. We use 7% to qualify them. This is so people are prepared if they renew at a higher rate

Thinking about buying a new home? If you’re not paying cash, then you’ll probably need a mortgage.

The first step in the home buying process is to consult with a mortgage lender about your financing options. The process is simple. Fill out the form below and we will connect you with local lenders that can guide you through your pre-approval journey.

The form does not pull your credit history, therefore it does not impact your credit score.

Review our ultimate guide to buying a home in Edmonton for a complete process overview

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Buyer Resources

Your Expert Partner

Navigating this entire process is why our clients hire us. It’s our job to manage every detail, provide expert advice, and get you the best possible result. Learn more about the value we provide in our guide: Why Use a Realtor®?

What Our Clients Are Saying

  • u0022Matt is an expert negotiator and didn’t stop working until my property sold for what I wanted. My property was sold during the pandemic as well. I think that alone speaks volumes for his dedication.u0022
    Daniel Svedberg
    Source: Google

  • u0022We had the pleasure of working with Matt u0026amp; Melanie… They are a very ambitious duo, who were always willing to work hard on our behalf… I highly recommend to anyone looking for a realtor!!!u0022
    Arlene Zander
    Source: Google

  • u0022The Matt Ferguson real estate team got me the house of my dreams within my budget! Will be forever grateful for this amazing team and all their hard work!u0022
    Crystal Jacob
    Source: Google

  • u0022Matt Ferguson and his team have been wonderful and have helped me find my dream home. I would recommend them in a heartbeat… very professional and responsive.u0022
    Amanda C
    Source: Google

  • u0022Matt and his team made the selling process so easy and stress-free. From the initial consultation to the final closing, everything was handled with professionalism.u0022
    Chris Johnson
    Source: Google

  • u0022As a first-time home buyer, I was incredibly nervous. Matt walked me through every step of the process with patience and expertise. I couldn’t have done it without him.u0022
    Jessica L.
    Source: Google

  • u0022Highly recommended. The team’s knowledge of the Edmonton market is second to none. They helped us find a great investment property that cash-flowed from day one.u0022
    Mark T.
    Source: Google

  • u0022True professionals from start to finish. They gave us honest advice about pricing and preparation, and it paid off. Our house sold in a week for over asking price.u0022
    Sarah and Tom P.
    Source: Google

  • u0022The communication was fantastic. We were never left wondering what was happening. Matt was always available to answer our questions, no matter how small.u0022
    Emily R.
    Source: Google

  • u0022We were relocating to Edmonton and knew nothing about the city. Matt’s team was an incredible resource. They helped us find the perfect family-friendly neighbourhood and a home we love.u0022
    The Chen Family
    Source: Google

FAQs

If you’re ready to sell or have more questions, you can contact us here.

Why are houses so cheap in Edmonton?

Houses are relatively cheaper in Edmonton compared to other Canadian cities because of its overall lower cost of living, which includes affordable housing, lower taxes, and a strong economy that can support higher salaries. While the housing market is under pressure due to high demand from population growth, it remains more affordable on a national scale.

How much is an average house in Edmonton?

The average house price in Edmonton varies by reporting agency and property type, but it is approximately $452,849 for a typical home or $460,685 for all residential types as of late 2025. A detached home has a higher average of $574,872, while townhouses are in the range of $200,000 to $350,000.

Is it worth buying a house in Edmonton?

Yes, buying a house in Edmonton is potentially worth it due to its affordability, which is significantly lower than in other major Canadian cities, and potential for investment and quality of life. It is especially worthwhile if you plan to stay for five or more years, as buying typically makes more sense for long-term residents.

Where is the cheapest place to live in Edmonton?

The cheapest areas for housing in Edmonton are often found in the north and southeast parts of the city, particularly in older neighborhoods or newer developments in the north.

Is $80,000 a good salary in Edmonton?

Yes, $80,000 is a good salary in Edmonton, as it is significantly higher than the median household income and provides a comfortable living after taxes.

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