FIRST-TIME BUYERS
First Time Buyer
Buying your first home in Alberta
Your first home purchase is one of the biggest financial decisions you'll make. I'm here to help you navigate the process with clarity, confidence, and the right mortgage.
Steps to buying your first home
01
Assess your finances
Understand your income, debts, and savings. This will determine how much mortgage you can comfortably carry.
02
A mortgage pre-approval tells you your budget, strengthens your offer, and locks in a rate for a period of time.
03
Work with a realtor to find a property that fits your budget and lifestyle. Your pre-approval gives you confidence when making an offer.
04
Finalize your mortgage
Once your offer is accepted, we finalize your mortgage application, complete the appraisal, and prepare for closing.
05
Close and move in
Your lawyer handles the legal transfer, funds are disbursed, and the home is yours. Welcome home.
Minimum down payment in Canada
The minimum down payment depends on the purchase price of the home:
Homes under $500,000
- 5% of purchase price
- $500,000 – $999,999
- 5% on first $500K + 10% on remainder
- $1,000,000 and above
- 20% minimum
If your down payment is less than 20%, you'll need mortgage default insurance (often called CMHC insurance). This protects the lender and is added to your mortgage.
First-time buyer tips & programs
Canada offers several programs and strategies designed to help first-time buyers get into the market sooner. Here are some worth knowing about:
First Home Savings Account (FHSA)
The FHSA lets you save up to $8,000 per year (lifetime max of $40,000) tax-free for your first home. Contributions are tax-deductible — like an RRSP — and withdrawals for a qualifying home purchase are completely tax-free. It's one of the most powerful tools available to first-time buyers.
RRSP Home Buyers' Plan (HBP)
You can withdraw up to $60,000 from your RRSP tax-free to put toward your first home. You have 15 years to repay it. This can be combined with the FHSA for even more buying power.
First-Time Home Buyer Incentive
The federal government offers a shared-equity mortgage where they contribute 5–10% of the purchase price to reduce your monthly payments. You repay the same percentage when you sell or after 25 years.
Home Buyer's Tax Credit
First-time buyers can claim a $10,000 non-refundable tax credit on their return, providing up to $1,500 in tax relief. It's automatic — just claim it when you file.
Start saving early & keep debt low
Beyond programs, the best thing you can do is build your down payment steadily and minimize consumer debt. Lenders look at your total debt service ratios — the less debt you carry, the more home you can qualify for.
Mortgage pre-approval
A pre-approval is one of the most important steps in the home buying process. It tells you exactly how much you can borrow, locks in a rate, and shows sellers you're a serious buyer.
During the pre-approval, I'll review your income, debts, credit, and down payment to determine the best mortgage options for your situation. This process is straightforward and typically takes just a few days.
Closing costs to expect
Beyond your down payment, budget for closing costs of roughly 1.5% to 4% of the purchase price. Common costs include:
Legal fees and disbursements
Title insurance
Property inspection
Land transfer tax (varies by province)
Property tax and utility adjustments
Mortgage default insurance (if applicable)
I'll help you estimate these costs so there are no surprises on closing day.