of credit—a car loan, credit card or
student loan operating for two
years—and steady employment for
at least three months with a guaran-
teed income. Kulka was approved on
her first try at a mortgage, and she
chose to make biweekly payments,
saving thousands in interest over the
long term.
Thinking of resale potential, Kulka
opted for a home near schools in a
family-oriented community. Her
choice proved fateful: Soon after
signing the paperwork, she met her
partner, Dave. Today, they share the
home with their two-year-old son.
While it’s true that purchasing
means a person is paying into
something that’s “theirs,” it also
comes with expenses that renters
don’t have to worry about: property
taxes and homeowner’s insurance.
AMA Insurance manager Sandra
Bitter says it’s a good idea to look
into insurance rates before you buy,
noting that there’s more to it than
just the market value of a home.
Its age, location, square footage,
number of bathrooms and even
countertop materials all factor into
insurance rates. “Talk to an advisor
before purchasing to understand
what is covered and how much
insurance will cost,” she advises.
Home ownership has had its chal-
lenges: Kulka has been frustrated by
the builder when it comes to fixing
issues not covered under warranty.
Still, she says buying a home has
been worth it. “I like that I’m paying
into something that is mine. I’m
starting early. The more I pay into
it, the better my kids will be taken
care of.”
28
Winter 2018
AMA insider
Mature
Renter
Zoltan Varadi
calgary
As forty-something professionals
who rent in Calgary’s inner city,
Zoltan Varadi jokes that he and his
wife, Tanya Hagen, aren’t your typi-
cal Albertans. “We don’t even own a
vehicle, so we hit all the checkmarks
for a freak family,” he says with a
laugh. But by renting a century-old
bungalow with a big backyard in the
Sunalta neighbourhood, the couple
can enjoy a lifestyle that aligns with
their values.
The area meshes with their five-
year-old daughter Éva, two cats
and one dog—but it comes with a
hefty price tag. “We want to live in
an urban neighbourhood and enjoy
the benefits of city life
that you get from living
close to the core: access
to cultural institutions,
amenities and all the
great parks. And there
was just no way we could
afford to purchase a home
in this neighborhood.
We’d have to move much
farther away, and that’s not
something we want to do,”
Varadi explains.
There’s no doubt that
renting—especially in
Alberta’s big cities—can
present significant savings. Home
prices in Calgary averaged $468,888
in the first half of 2018, according
to the Canadian Real Estate
Association, yet online mortgage
calculators indicate an average
Calgary family making a $50,000
downpayment could comfortably
afford to spend just $374,738,
with payments of around $1,714
per month. Meanwhile, statistics
from the Canadian Mortgage and
Housing Corporation place Calgary’s
average rent for a two-bedroom
apartment at $1,258 per month.
Varadi notes that in Toronto,
where he and his wife lived before
moving to Calgary seven years ago,
high housing prices meant rent-
ing was the norm among his peers.
Today, he’s seeing more young fam-
ilies in the inner city than ever
before, and he suspects many are
renters like him.
Foregoing home ownership has