Buying your first home in Alberta

Last updated October 24, 2026

How much you need to save, the programs that help, and the steps from first call to keys.

Buying your first home is exciting, and it comes with a lot of new words. This guide walks through the money side in plain language, using the rules that apply everywhere in Alberta, from Calgary and Edmonton to Red Deer, Lethbridge and Grande Prairie.

How much down payment you need

• 5% of the first $500,000 of the price.
• 10% of the part between $500,000 and $1.5 million.
• 20% of the whole price for homes of $1.5 million or more.
• Example: for a $650,000 home, that's $25,000 plus $15,000, so $40,000.

Mortgage insurance, if you put down less than 20%

With less than 20% down, your mortgage must be insured, usually through CMHC. The cost is added to your mortgage, not paid up front: 4.00% of the mortgage with 5% to 9.99% down, 3.10% with 10% to 14.99% down, and 2.80% with 15% to 19.99% down. Alberta doesn't charge sales tax on it.

Programs that help first-time buyers

• First Home Savings Account (FHSA): save up to $8,000 a year, $40,000 in total. You get a tax deduction going in, and pay no tax coming out for your first home.
• RRSP Home Buyers' Plan: borrow up to $60,000 from your RRSP, and pay it back over time.
• 30-year amortization: first-time buyers can spread an insured mortgage over 30 years instead of 25, for a lower payment.

The stress test

To be approved, you have to qualify at a higher rate than the one you'll actually pay: the greater of your rate plus 2%, or 5.25%. It's there to make sure you could still afford the payment if rates rise.

Closing costs to plan for

Alberta has no land transfer tax, which helps a lot. You'll still pay land title and mortgage registration fees, your lawyer, and usually a home inspection and property tax adjustments. A good rule is to keep a few thousand dollars aside on top of your down payment.

The steps

• A first conversation about your goals and budget.
• Pre-approval, so you know your price range before you shop.
• Your offer is accepted, and the lender gives final approval.
• Your lawyer handles the paperwork, and you get the keys.

General information only, not financial, legal or tax advice. Rules and programs change, and lenders set their own criteria. Checked October 2026.

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