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Posted in buying an acreage
ACREAGE LAND FOR SALE

RURAL LAND AROUND CALGARY  |  ACREAGE LIVING

Big City living in Calgary isn’t for everyone, some people like to look up at stars instead of the city lights. So moving out of a City or suburbs to a rural area might be next on your bucket list. If it is, here are a quick glance at what you need to look at, but we always advise to talk to a lender who understands rural sales, we can suggest a few.

  • How many acres are we talking? 5-10 acres is usually easier for a buyer because the mortgage generally qualifies parallel to a regular city home. The minimum down payment will normally be 5% of the purchase price if the property is under $1 Million.  Over a million and a minimum down payment will be 20%. Remember that an appraisal will be required in most instances, and a lender will generally only give value for up to 10 acres, the house and garage.  "Outbuildings" such as shops, barns, and Quonsets are almost always not included in the value of an appraisal.   

  • Zoning of the property must comply if we are treating it as a regular residential mortgage vs. agricultural land. "Country Residential" is commonly the zoning for these types of properties.  Rural is a larger acreage frequently 40, 80, or 160 acres (160 acres =1/4 section). Agricultural land is for farming use and cannot be financed by normal mortgage companies or banks.

  • Septic tanks and wells are typically found on acreages, which means a water potability test must be completed and a septic certificate is required from the municipality to confirm best practice. The lender needs to know that the water is safe. (Your realtor will help you with this.)

  • Potability reports are needed for all well water and flow rate, this will be required either upfront with the lender approval or at the lawyers before closing. We don’t suggest leaving it that late, it should be done before waiver day, before the conditions are lifted. No suprises!

  • Note. The income generated from a Calgary area acreage will not be included to help you qualify for a mortgage. Remember, if a lot of the income is being generated by the owner from  things like mineral rights, or leasing to a farmer, this may raise a red flag to lenders who could consider this more like a farm or business loan instead, which is a completely different process. 

There are lots to consider before you purchase the land to build your Calgary Dream Home, so take your time and speak to your lender, make sure they have a rural loan expert on hand, then call us.

Direct: 403-850-0669 info@calgarydreamhomes.com

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Posted in buying while selling
Buying a Calgary Home While Selling Your Current one.


Are you in the position where you want to find a new home – but need a buyer for your current home? Fortunately there are a few options for people who are buying one home while selling another:


Buying using financing

If you need the equity in your current home to purchase another home, you will need financing to buy before you sell. Most people with a firm sale on their current home go for a short term bridge loan. Yes, it is a high-interest loan intended to help you fund your down payment and other costs that you will repay when your sale goes through.


Another option is a home equity loan, which creates a lien on your property.  The bank has the right to repossess your home if you can't pay it back. Of course reducing the equity in your home whilst increasing your debt, won't look good on a mortgage application.


Selling with a delay

You have to have your timing right, but the best way to get approved for a mortgage is to have a buyer lined up for your house with a waiver to buy in place. Give yourself a longer possession period, your buyer is already ready to move and won't want to wait for you to find a new place. Buyers may agree to a relatively long closing period, maybe include in the contract, closing time can be reduced subject to agreement by buyer and seller.


Have a contingency plan

You may make the purchase of your new home subject to the sale of your own. This buyers clause is not always acceptable by a seller, especially if the seller has only just listed his property and is seeing a lot of action on it. You'll still be responsible for the deposit, but you'll get it back if the sale falls through. Unfortunately, this isn't a very great deal for the seller, they may be trying to manage the timing on a home purchase as well. With a “subject to the sale of the buyers home” you may have to show that your home is priced competitively to persuade the seller to accept your offer.


If you are going to need to make a home sale and a home purchase at the same time, we will need to go over your options with you.


Contact us today on 403-850-0669.

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Categories:   buying an acreage | buying while selling | SOLD
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