Buying Your First Home in Calgary

Buying your first home is a big step, especially if it is your first home in Canada. Many of my clients are in exactly that spot, and most of their questions are the same: How much do I need for a down payment? What help is there for first-time buyers? What will it cost on closing day? Here are the answers, based on the federal and Alberta rules in place in October 2026.

How much down payment do I need?

For a home under $1.5 million, the minimum down payment is:

• 5% of the price up to $500,000, and
• 10% of the part of the price between $500,000 and $1.5 million.
• For a home of $1.5 million or more, you need at least 20% down.

Example: on a $600,000 home, the minimum is $25,000 (5% of $500,000) plus $10,000 (10% of the other $100,000), so $35,000 in total.

With less than 20% down, your mortgage must be insured, usually by CMHC. The insurance protects the lender, and the premium (from 0.60% to 4.00% of the loan, depending on your down payment) is normally added to your mortgage. Since December 2024, first-time buyers can choose a 30-year amortization on an insured mortgage, which lowers the monthly payment.

What is the mortgage stress test?

To be approved, you must show you can afford payments at a higher rate than you will actually pay: the greater of your contract rate plus 2%, or 5.25%. This is why your pre-approval amount can be lower than you expect. Get pre-approved before you start looking at homes, so you know your real budget.

What help is there for first-time buyers?

• First Home Savings Account (FHSA): save up to $8,000 a year, to a lifetime limit of $40,000. Contributions are generally tax-deductible, and withdrawals to buy your first home are tax-free. You must be a Canadian resident aged 18 to 71, and you must not have lived in a home you owned in the current year or the 4 years before.
• RRSP Home Buyers’ Plan: withdraw up to $60,000 each from your RRSPs ($120,000 for a couple) to buy your first home, and pay it back over 15 years. You can use it together with an FHSA.
• First-time buyers’ GST rebate on new homes: if you buy a brand-new home from a builder (agreement signed on or after March 20, 2025), you can get back all of the GST on homes up to $1 million, up to $50,000. The rebate gets smaller between $1 million and $1.5 million. You must be a Canadian citizen or permanent resident, at least 18, and moving in as your main home. This became law in March 2026. Full details in my GST rebate guide.
• Home Buyers’ Amount: a tax credit of up to $1,500 on your income tax return in the year you buy.

There is no general Government of Alberta first-time buyer grant right now. Some local programs exist, so ask me what fits your situation. Always confirm your own eligibility with your bank, accountant or the CRA.

What are the closing costs in Alberta?

Good news: Alberta has no land transfer tax. You do pay Land Titles registration fees: $50 plus $5 for every $5,000 of the price for the transfer, and the same formula on your mortgage amount. On a $500,000 home, the transfer fee is $550.

CMHC suggests budgeting 1.5% to 4% of the price for all closing costs. That usually covers:

• Lawyer’s fees and disbursements
• Land Titles registration fees
• Home inspection and, if needed, an appraisal
• Title insurance, if your lender asks for it
• Property tax and condo fee adjustments
• Home insurance and moving costs

What are the steps to buy?

• 1. Get pre-approved. I will help you read your approval and connect you with lenders who work with first-time and newcomer buyers.
• 2. Make your list. Budget, bedrooms, schools, commute and whether you want a basement suite.
• 3. See homes. I send you new listings the day they come up and book showings that suit your schedule.
• 4. Make an offer. Most offers include conditions for financing and a home inspection, so you are protected.
• 5. Close and get your keys. Your lawyer handles the paperwork and Land Titles, and I stay with you until possession day.

Tips for first-time buyers in Calgary

• Open an FHSA early. Contribution room only starts once your first account is open.
• Keep your credit clean before and during your purchase. Avoid new car loans or credit cards until you have your keys.
• Ask about suites. If a home has a basement suite, make sure it is legal before you count on rental income.
• Compare new and resale. The new GST rebate can make a brand-new home more affordable than you think. See my guides to Saddle Ridge, Chestermere and Airdrie to compare areas.

Ready to buy your first home? Let’s talk.

I spent five years in banking before becoming a REALTOR®, so I can walk you through the numbers step by step, in English, Punjabi, Hindi or Urdu. I help buyers across Calgary, Chestermere, Airdrie, Cochrane and Okotoks. Call or text me and we will make a plan that fits your family.