Home Selling Tips • January 19, 2026

How to Sell a House With Negative Equity

by Angie Hartmann

How to Sell a House With Negative Equity

How to sell a house with negative equity is a challenging situation that some Alberta homeowners face when their mortgage balance exceeds their home’s current market value. While this scenario became less common in recent years due to rising property values, economic shifts, market corrections, or buying at market peaks can leave homeowners “underwater” on their mortgage. Here’s what you need to know about your options in Airdrie, Cochrane, and throughout Alberta.

Understanding Negative Equity

Negative equity occurs when you owe more on your mortgage than your home is worth. For example, if you owe $450,000 but your home’s current value is $420,000, you have $30,000 in negative equity. This can happen due to market downturns, purchasing with minimal down payment, or significant mortgage penalties and fees accumulating over time.

Your Options for Selling

Bring Cash to Closing

The most straightforward way to sell a house with negative equity is to bring the difference in cash to closing. Using the example above, you’d need $30,000 plus closing costs (realtor commissions, legal fees, penalties) to complete the sale. At Property Sisters, we calculate these exact numbers so you understand your total financial obligation before listing.

Negotiate a Short Sale

A short sale occurs when your lender agrees to accept less than the full mortgage amount. This requires lender approval and typically only happens when you can prove financial hardship, such as job loss, divorce, or medical issues. In Alberta, lenders aren’t obligated to approve short sales, and they may pursue you for the deficiency (the remaining balance). We can help you navigate conversations with your lender and prepare the necessary documentation.

Pursue a Payment Plan

Some Alberta lenders allow you to sell your home and arrange a payment plan for the negative equity rather than requiring the full amount at closing. This converts the deficiency into an unsecured loan you repay over time. Interest rates and terms vary by lender, but this option preserves your ability to sell without coming up with a large cash sum immediately.

Wait for Market Recovery

If you’re not in urgent need to sell, waiting for property values to increase can eliminate negative equity over time. Alberta’s real estate markets, including Airdrie and Cochrane, have historically shown resilience and growth. We can provide market trend analysis to help you decide if waiting is a viable strategy for your situation.

Consider Rental

If selling creates too large a financial burden, renting your property might generate enough income to cover your mortgage while you wait for equity to build. We can assess rental demand in your area and help you understand if this strategy makes financial sense.

Working With Property Sisters

At Property Sisters, we approach negative equity situations with sensitivity and strategic thinking. We provide accurate market valuations so you understand your true financial position. We negotiate with buyers to maximize your sale price, reducing the gap you need to cover. We coordinate with your lender, lawyer, and financial advisors to explore every available option for how to sell a house with negative equity.

Our knowledge of Airdrie and Cochrane markets helps us price your property competitively while achieving the highest possible sale price. We’ll discuss all costs upfront, including real estate commissions, legal fees, and mortgage penalties, so there are no surprises.

Important Considerations

Selling with negative equity impacts your credit differently depending on the approach. A standard sale where you cover the shortfall typically doesn’t affect your credit. A short sale or walking away from the property can significantly damage your credit score and may result in lenders pursuing legal action for the deficiency.

Before making any decisions, consult with a financial advisor to understand tax implications and long-term financial consequences. We work alongside your financial team to ensure you’re making informed decisions that protect your financial future.

How to sell a house with negative equity requires careful planning, but with Property Sisters guiding you through the process, you’ll understand all your options and move forward with confidence.

Home Selling Tips • January 18, 2026

How to Sell a House With a Mortgage

by Angie Hartmann

How to Sell a House With a Mortgage

How to sell a house with a mortgage is a common question among Alberta homeowners, and the good news is that it’s completely standard practice. Most home sellers still have an outstanding mortgage when they list their property. Whether you’re selling in Airdrie, Cochrane, or anywhere in Alberta, the process is straightforward when you understand how mortgage payoff works at closing.

Understanding Your Mortgage Balance

Before listing your home, contact your lender to get your current mortgage payoff amount. This includes your remaining principal balance plus any accrued interest up to your anticipated closing date. Ask about prepayment penalties, as some mortgages charge fees for paying off your loan early, especially if you’re in a fixed-rate term. In Alberta, these penalties can range from three months’ interest to the interest rate differential (IRD), which can be substantial.

Calculate Your Home Equity

Your home equity is the difference between your property’s current market value and your mortgage balance.

For example, if your home is worth $550,000 and you owe $350,000, you have $200,000 in equity. At Property

Sisters, we provide comparative market analyses to help you understand your home’s current value in the Airdrie and Cochrane markets, so you know exactly where you stand financially.

The Closing Process

When you sell your house with a mortgage, the mortgage gets paid off automatically at closing through your lawyer or notary. Here’s how it works: the buyer’s funds are transferred to your lawyer, who then pays off your mortgage lender directly from the sale proceeds. You receive the remaining equity after the mortgage is paid and closing costs are deducted. This all happens on the same day, so you never need to worry about carrying two mortgages.

Timing Your Next Purchase

Many sellers worry about how to sell a house with a mortgage while simultaneously buying their next home.

There are several strategies we help clients navigate:

Bridge financing allows you to access equity from your current home before it closes, helping fund your next down payment. Alberta lenders typically offer bridge loans for 90-120 days at competitive rates.

Conditional offers let you make your purchase offer conditional on selling your current home, protecting you from owning two properties simultaneously.

Portable mortgages allow you to transfer your existing mortgage (and current interest rate) to your new property, avoiding penalties and potentially saving thousands if rates have increased.

Working With Property Sisters

At Property Sisters, we coordinate the entire process of how to sell a house with a mortgage. We work closely with your lawyer, mortgage lender, and the buyer’s team to ensure a smooth transaction. We’ll help you understand all costs involved, including real estate commissions, legal fees, mortgage penalties, and any outstanding property taxes. Our knowledge of the Airdrie and Cochrane markets ensures your home is priced correctly to sell quickly while maximizing your equity.

We also connect you with mortgage professionals who can explain your options for penalty-free mortgage transfers or help you secure financing for your next property. Our goal is to make your transition seamless, whether you’re upsizing, downsizing, or relocating.

What You’ll Need

Your lawyer will require your mortgage account information, property tax statements, and a recent mortgage statement. We’ll help you gather all necessary documentation well before your closing date to avoid delays.

Selling a house with a mortgage is standard practice in Alberta real estate. With Property Sisters guiding you through every step, you can confidently move forward knowing your mortgage will be handled professionally and your equity protected.

Mortgage & Financing • January 17, 2026

How to Buy a Home With No Down Payment

by Angie Hartmann

How to Buy a Home With No Down Payment

How to buy a home with no down payment might sound impossible, but there are legitimate pathways for Alberta homebuyers to achieve homeownership without traditional savings. While most buyers need at least 5% down, certain programs and strategies can help you get into your first home sooner than you think. Here’s what you need to know about buying in Airdrie, Cochrane, and throughout Alberta.

Use the Home Buyers’ Plan (HBP)

The Home Buyers’ Plan allows first-time buyers to withdraw up to $60,000 from their RRSP ($120,000 for couples) tax-free to use toward a down payment. If you’ve been contributing to an RRSP, this money can effectively become your down payment without requiring additional cash savings. You have 15 years to repay the funds to your RRSP. This is one of the most popular ways Albertans access homeownership without upfront savings.

Gifted Down Payments

Canadian mortgage lenders accept gifted down payments from immediate family members. If parents or grandparents are willing to help, they can provide the required 5% minimum down payment as a gift (not a loan). Lenders require a gift letter confirming the funds don’t need to be repaid. This approach is common in Alberta’s competitive markets where family support makes homeownership accessible.

Flex Down Payment Programs

Some Alberta lenders offer flex down payment programs where they loan you the down payment, which you repay through your mortgage. These programs typically require strong credit (680+) and stable income. While you’ll pay a higher interest rate on the borrowed portion, it eliminates the need for upfront savings. At Property Sisters, I can connect you with lenders who offer these specialized programs in the Airdrie and Cochrane areas.

Employer Assistance Programs

Some Alberta employers offer down payment assistance as part of recruitment or retention packages, particularly in industries facing worker shortages. This might include forgivable loans or matching contributions. If you work for a large employer, municipality, or healthcare facility, ask your HR department about homeownership assistance programs.

Consider Alternative Lenders

Credit unions and alternative lenders sometimes offer more flexible down payment requirements than traditional banks. While interest rates may be slightly higher, they can provide solutions for buyers with strong income but limited savings. I work with multiple lenders who understand the local market and can find creative financing solutions.

Working With Property Sisters

At Property Sisters, I help buyers explore every available option for how to buy a home with no down payment. I’ll review your financial situation, connect you with mortgage professionals who specialize in low and no down payment solutions, and find properties within your approved budget. My knowledge of Airdrie and Cochrane markets ensures you’re making smart investment decisions even when using creative financing.

Important Considerations

Remember that even with no down payment, you’ll need funds for closing costs (2-4% of purchase price), home inspections, legal fees, and moving expenses. You’ll also pay mortgage default insurance through CMHC, which protects lenders when down payments are under 20%.

Buying a home with no traditional down payment is possible in Alberta with proper planning and professional guidance. Let’s explore which options work best for your situation.

Mortgage & Financing • January 16, 2026

How to Buy a Home for the First Time

by Angie Hartmann

How to Buy a Home for the First Time

How to buy a home for the first time can feel overwhelming, especially in competitive Alberta markets like Airdrie and Cochrane. These thriving communities north of Calgary offer excellent schools, family-friendly amenities, and strong property values, making them ideal for first-time buyers. Here’s your step-by-step guide to navigating the home-buying process successfully.

Get Your Finances in Order
Before viewing properties, understand your budget. Check your credit score, as lenders typically require a minimum of 680 for favourable mortgage rates. In Airdrie and Cochrane, average home prices range from$450,000 to $650,000 for single-family homes, so calculate how much you can afford using the 28/36 rule: housing costs shouldn’t exceed 28% of your gross monthly income.
First-time buyers in Alberta can access the Home Buyers’ Plan (HBP), allowing you to withdraw up to $60,000from your RRSP tax-free for your down payment. You’ll need at least 5% down for homes under $500,000, though 20% down eliminates mortgage insurance costs.

Get Pre-Approved for a Mortgage
Mortgage pre-approval shows sellers you’re a serious buyer and gives you clear budget parameters. Compare rates from multiple lenders, including banks, credit unions, and mortgage brokers. In today’s market, securing a competitive rate can save thousands over your mortgage term.

Choose the Right Neighborhood
Airdrie offers newer developments with modern amenities and quick access to Calgary via Highway 2, perfect for commuters. Cochrane provides a small-town atmosphere with mountain views and historic downtown charm. Consider proximity to schools, shopping, healthcare, and your workplace when deciding between these communities.

Work With Property Sisters Realty
Understanding how to buy a home for the first time is much easier with professional guidance. At Property Sisters, I specialize in helping first-time buyers navigate the Airdrie and Cochrane real estate markets with confidence. I know local market trends, upcoming listings, and neighborhood insights that help you make informed decisions. I’ll guide you through viewing properties, structuring competitive offers, understanding contracts, and negotiating the best terms on your behalf. My goal is to make your first home buying experience smooth, stress-free, and successful.

Make an Offer and Conduct Inspections
Once you find the right home, I’ll help structure a competitive offer that protects your interests. Always include
a home inspection condition to identify potential issues with the foundation, roof, electrical, or plumbing systems. This protects your investment and provides negotiating leverage for repairs.

Close the Deal
At Property Sisters, I’ll help coordinate with your lawyer or notary to finalize all the paperwork, transfer funds, and register your property. I’ll ensure you’re prepared for closing costs including legal fees, land transfer taxes, and home insurance, typically 2-4% of the purchase price. I’ll be with you every step of the way to make sure your closing goes smoothly.

Buying your first home in Airdrie or Cochrane is an exciting milestone. With proper preparation and local expertise, you’ll confidently navigate the process and secure a property in one of Alberta’s most desirable communities.