Maybe you’re considering moving out of your parent’s house, downsizing, or you’re renting and ready to buy your first place. So, where’s the first place you should start looking for your first place?
Rohit Communities has partnered with the City of Edmonton for the First Place Program initiative, a program that makes owning your first home easier than ever! How, might you ask? Well, buyers are offered the opportunity to defer land cost payments for five years interest free, meaning more money goes towards your mortgage principal and your monthly payments are lower than they would be with a similarly priced non-First Place Program townhome. In other words, you will save up to $200 on your monthly mortgage payment for the first five years!
Do the Math!
Because the cost of land is taken off the total price of your home for the first five years, you save money! See the difference for yourself, check out this cost savings comparison below between buying First Place and buying non-First Place of the same cost:
|First Place||Non- First Place|
|Cost of Home||$282,000.00||$282,000.00|
|Down Payment (Assuming minimum 5%)||-$14,100.00||-$14,100.00|
|Less Cost of Land Deferred for 5 years||-$37,000.00||None|
|Cost of Mortgage Being Paid in First 5 Years||$230,900||$267,900|
|Amortization Period||25 Years||25 Years|
|Payment Amount per Month||$1063.32||$1,233.71|
|Savings per Month||$170.39||$0|
|Total Savings in 5 Years||$10,223.40||$0|
*Using an interest rate of 2.75% (5 year variable), and a 25 year amortization with monthly payments.
Prices and values are approximate as of October 19, 2017.
Location, Location, Location!
You know what they say about buying a home…location matters! First Place Program townhomes are located in mature neighbourhoods with all the amenities and transportation routes already in place! The Program was created with the goal of transforming and revitalizing underdeveloped school sites within Edmonton and bringing in brand new, beautiful townhomes for people who want their first home to be attainable and a great investment.
Do You Qualify?
The First Place Program has certain criteria. To be eligible, you:
- Must be able to qualify and obtain pre-approved financing for the value of the property and provide a minimum 5% down payment – see your financial lending institution for more details
- Must be first time home buyer in Alberta
- Applicants must agree to be full time occupants and residents of the home for five years
- Must have a net personal worth less than $25,000, excluding a primary vehicle, locked-in or group RRSP and the down payment you have saved for the unit
- Must be a Canadian citizen or have permanent resident status
- Must be employed and have a combined income of less than $117,000. Combined income refers to those holding the mortgage and title to the home
- Applicants may use a “co-signer” to qualify for and obtain their first mortgage approval.