Alberta first-time home buyers

Buying your first home?
Start with the numbers.

A pre-approval shows what a lender may lend. It does not show what payment still leaves room for the rest of your life. Settle your budget, down payment, closing costs and mortgage terms before you write an offer.

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Three things to settle before you make an offer.

A budget you can live with

Lenders look at your housing costs and other debts against your income, and qualify you at the higher of your contract rate plus 2% or 5.25%. Your own budget should also cover property tax, heating, condo fees and the savings you want to keep.

Down payment and cash to close

Your down payment is only part of the cash you need. Legal fees, registration, inspection, adjustments and moving costs come due around closing, and an emergency reserve should still be there after you move in.

Terms beyond the rate

Compare term length, fixed or variable, prepayment privileges, how the penalty is calculated and whether the mortgage can move with you. These matter most if your plans change in the next few years.

Key numbers for Alberta buyers.

Minimum down payment: 5% of the first $500,000, plus 10% of any portion between $500,000 and $1.5 million. Homes priced at $1.5 million or more need at least 20% down.
Mortgage default insurance: Required when you put down less than 20%. The premium is usually added to the mortgage. Common premium rates are 4.00% of the loan with 5% to 9.99% down, 3.10% with 10% to 14.99% down and 2.80% with 15% to 19.99% down.
30-year amortization: First-time buyers can choose a 30-year amortization on an insured mortgage. The payment is lower, but the premium rises by 0.20% and you pay more interest over time.
No land transfer tax: Alberta charges Land Titles registration fees instead: $50 plus $5 for every $5,000 of value, once for the transfer and once for the mortgage. On a $500,000 home with a $450,000 mortgage that is about $550 plus $500.
FHSA and Home Buyers' Plan: A First Home Savings Account allows $8,000 of contribution room a year, up to $40,000. The RRSP Home Buyers' Plan lets each buyer withdraw up to $60,000. Rules and timing apply, so confirm the details with your financial institution or tax adviser.

If your down payment is coming from outside Canada.

Lenders want to follow the money from start to finish. When funds come from Korea or another country, I line up the original account history, any balance certificate, the remittance record and the Canadian deposit so each step connects. Gifted funds also need a signed gift letter. Doing this before you transfer the money is easier than reconstructing it during the approval.

Frequently asked questions

How much do I need for a down payment in Alberta?

At least 5% of the first $500,000 of the price and 10% of the portion above $500,000. If the price is $1.5 million or more, you need at least 20%. Plan for closing costs on top of the down payment.

Is a bigger down payment always better?

Not always. A larger down payment lowers the mortgage and can remove the insurance premium, but leaving yourself without cash for closing costs or emergencies can create a different problem. Look at your whole cash plan.

Does Alberta have a land transfer tax?

No. Alberta charges Land Titles registration fees for the transfer and the mortgage, which are much smaller. Your lawyer will confirm the exact amounts.

Can a first-time buyer get a 30-year amortization?

Eligible first-time buyers may qualify for an insured mortgage with up to 30 years of amortization, subject to lender and insurer criteria. A longer amortization can lower payments but typically increases total interest; an insurance premium surcharge may apply.

Sources: FCAC — Buying a home · FCAC — Down payment · CRA — First Home Savings Account · CRA — Home Buyers' Plan

Kyungman Kim · Reviewed November 8, 2026 · General information only. It is not mortgage advice or an approval, and lender rules and programs can change.

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Buying your first home?Start with the numbers.