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Posted On Aug 06, 2025

A Friendly Guide to Buying Your First Home in Alberta 

1. Start Saving — You’ve Got This

Save a little bit each payday by setting up an automatic transfer. Even small amounts add up fast. Try putting money into a TFSA, FHSA, or RRSP:

  • The First Home Savings Account (FHSA) lets you save up to $8,000 a year, and anything earned is tax-free—up to a lifetime limit of $40,000
  • With the Home Buyers’ Plan (HBP), you can withdraw up to $60,000 from your RRSP (tax-free) to use as a down payment—just remember to pay it back over 15 years

2. Know About Property Taxes

In Alberta, property tax is based on your home's assessed value and the city’s tax rate. In Edmonton, for example:

  • You’ll get your assessment in January and a bill in May. Payment is usually due by late June unless you're enrolled in a monthly plan like TIPP .
  • Ask your lawyer to explain how property taxes are adjusted when you buy. If the tax isn’t included in your mortgage, make space in your budget for it.

3. Why Pre‑Approval Matters

Getting a mortgage pre‑approval gives you a clear view of what you can afford. Here’s how it works:

  • A lender reviews your income, credit, and savings, then gives you a certificate showing how much they’re willing to lend and for how long—typically valid for 90–120 days .
  • It helps you shop with confidence, and sellers treat you more seriously because you’re ready to go.
  • Bonus: In Canada, first-time buyers can now get 30-year amortization with mortgage insurance if their down payment is under 20% — this makes monthly payments more manageable

4. Decide Your Down Payment

In Alberta:

  • For homes under $500,000, you need at least 5% down.
  • For prices between $500,000 and $1.5M, it's5% on the first $500K, and 10% on the rest.
  • If you want to skip mortgage insurance, aim for 20% down

5. How to Track Your Progress

  • Create a simple monthly budget that includes savings toward your down payment and property taxes.
  • Cut back where you can—maybe fewer takeout meals, or smaller streaming subscriptions.
  • Celebrate your wins along the way: even small deposits into your savings deserve recognition!

6. Insurance and Closing Costs

  • Home insurance is essential. It protects your home and your belongings—and some lenders will require it before closing.
  • Closing costs (lawyer fees, insurance, adjustments) usually add about 1%–1.5% of the purchase price on top of your down payment—keep that in mind before moving day.

Quick Emotional Encouragement ❤️

Buying a home feels big—and sometimes scary. But remember: every dollar saved, every document gathered, and each step taken gets you closer to owning your own home. You’re learning, growing, and finally investing in yourself.


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