Buying A Home
Most of the work of buying a first home happens before you look at a single listing. Here is the order to do it in, a year out, six months out and three months out, with the Alberta numbers that actually apply here.
The short answer. Start with your monthly payment, not the price. Open a First Home Savings Account early, because its room only begins the year you open it. Check your credit, save your down payment and your closing costs, and get pre approved before your first showing. Alberta has no land transfer tax, so closing costs here are lower than most first time buyer advice assumes.
First time buyers rarely lose a home because of the offer. They lose it, or overpay for it, because something that needed a few months was left until the week they found the house: a credit report error, a down payment still sitting in an investment, a pre approval that did not match the price range.
So here is the preparation, in the order it pays to do it.
01. A Year Out: Open The Accounts.
First Home Savings Account. You can contribute up to $8,000 a year, to a lifetime limit of $40,000. Contributions are tax deductible, and a qualifying withdrawal to buy your first home is tax free. Your contribution room only begins in the year you open the account, so opening one early starts the clock even if you cannot fill it yet.
RRSP Home Buyers’ Plan. You can withdraw up to $60,000 from your RRSP toward a first home and repay it over 15 years. For a first withdrawal made in 2026 through 2028, repayments start in the fifth year after the withdrawal rather than the second.
Your credit. Order your free credit reports from Equifax Canada and TransUnion Canada and look for anything that is not yours. Corrections take time, which is why this belongs a year out and not a week out. Pay every bill on time and keep card balances well below their limits.
02. Six Months Out: Know Your Number.
Decide the monthly payment your household is comfortable with, including property tax, utilities and, for a condo or townhouse, the condo fee. A lender will tell you the most you can borrow. That figure is a ceiling, not a target.
Lenders also qualify you at a higher interest rate than the one you will pay. It is called the stress test, and it checks that the payment still works if rates are higher when you renew.
| Purchase price | Minimum down payment |
|---|---|
| $500,000 or less | 5% of the purchase price |
| $500,000 to $1.5 million | 5% of the first $500,000, plus 10% of the amount above $500,000 |
| $1.5 million or more | 20% of the purchase price |
Put down less than 20% and your mortgage will need mortgage default insurance, which your lender arranges. First time buyers may also qualify for a 30 year amortization on an insured mortgage. Ask your lender.
If family is helping with the down payment, ask your lender now what they will need. A signed gift letter, and the money sitting in your own account before you buy, are the usual starting points.
03. Three Months Out: Pre Approval And Closing Costs.
Get pre approved before your first showing, not after you find the house. A pre approval is a lender’s written review of your income, credit and down payment, with a maximum amount and, usually, a rate held for a set period. Expect to provide recent pay stubs, an employment letter, Notices of Assessment, and statements showing where your down payment came from.
Then set aside your closing costs, separately from your down payment:
| Cost | In Alberta |
|---|---|
| Land transfer tax | None. Alberta does not have one. |
| Land Titles registration | A $50 base fee plus $5 per $5,000 of property value, and the same again per $5,000 of mortgage. Your lawyer confirms the figure. |
| Legal fees | Ask your lawyer for a written quote, including disbursements. |
| Home inspection | Paid by you during the condition period. |
| Adjustments | Property tax and any condo fee are shared by the days each side owns the home. |
| GST | Generally on new builds, not resale homes. |
Your deposit is separate
Have your deposit ready before you write an offer. It is paid shortly after your offer is accepted and is applied to your purchase on possession day.
04. The Month You Start Looking: Your Must Haves.
Write down everything you would love in a home, room by room. Then circle the three to five things you will not give up. We bring that short list to every showing, and if a home misses one, we will say so, even when the rest of it is lovely.
Buying a condo? Read the condo documents properly during your condition period, ask whether parking and storage are titled or assigned, and get an inspection anyway. Everything inside your door is yours to repair. Tara holds the CCS® (Certified Condominium Specialist) designation, so ask what to look for.
05. The Free Guide That Covers The Rest.
Our Buyer’s Guide picks up where this post leaves off: worksheets for your numbers and your wish list, what your lender will ask for, what goes into an Alberta offer, the condition period and possession day.
Free Buyer’s Guide
Buying A Home, From Budget To Keys.
24 pages, in the order a purchase actually happens. Free to download. No form, no email.
Want the plain language version first? Read Buying Your First Home in Calgary or Airdrie, see how mortgage pre approval works, or join the list for our next Raising Homeowners family seminar in Airdrie.
The cheapest first home mistakes to fix are the ones you find a year before you buy.
Common Questions.
How much do I need saved to buy my first home in Calgary or Airdrie?
The minimum down payment in Canada is 5% of the first $500,000 of the price and 10% of the portion between $500,000 and $1.5 million, plus closing costs. Alberta has no land transfer tax, so closing costs here are mostly legal fees, the Land Titles registration fee, an inspection and adjustments.
When should I open a First Home Savings Account?
As early as you can. You can contribute up to $8,000 a year, to a lifetime limit of $40,000, and your contribution room only begins in the year you open the account.
When should I get pre approved?
Before your first showing. A pre approval tells you what a lender will lend and usually holds an interest rate for a set period, and sellers will want to know you have one.
Do I need a home inspection on a condo?
We recommend one. Everything inside your unit is yours to repair, and an inspection is the time to find out what you are taking on. Read the condo documents during the same condition period.
What closing costs should I budget for in Alberta?
There is no land transfer tax. Budget for the Land Titles registration fee, legal fees and disbursements, a home inspection, property tax and condo fee adjustments, GST if the home is newly built, and moving and setup costs.
Want A Plan For Your First Purchase?
Tell us where you are, a year out or a month out, and we will tell you what to do next and what can wait. Call or text 403.809.4639.
Federal program figures checked against the Government of Canada and the Canada Revenue Agency on 14 October 2026. Programs have eligibility rules and change from time to time; confirm yours with your lender or financial advisor. This post is general information, not financial, tax, legal or mortgage advice.