Helping Young Adults Save for a Home in Alberta: A Guide for Parents

by | May 14, 2025 | Blog, Buying A Home | 0 comments

Helping Young Adults Save for a Home in Alberta: A Practical Guide for Parents

🏡 Helping Young Adults Save for a Home in Alberta: A Practical Guide for Parents

Buying a first home is a major milestone — but for many young adults in Alberta, it’s becoming increasingly difficult to reach. With higher home prices, inflation, and stricter lending requirements, saving for that first down payment can feel like an uphill battle.

The good news? As a parent, there are many impactful ways you can help your child take the first steps toward homeownership — and it’s not all about handing over a cheque. From financial education to smart savings tools, here’s how you can support the next generation of Alberta homeowners.

💰 1. Start with Financial Education

Helping your child understand how money works is one of the most valuable gifts you can give. Even if they’re still in school or early in their career, it’s never too soon to start having open conversations about finances.

Make sure they understand:

  • How to budget and track expenses

  • The difference between good debt (like a mortgage) and bad debt (like high-interest credit cards)

  • How compound interest works — and why saving early matters

  • Why a strong credit score is critical when applying for a mortgage

Encourage questions, offer resources, and share your own financial lessons along the way.

🏦 2. Open a First Home Savings Account (FHSA)

The FHSA is a powerful, tax-advantaged tool designed specifically for first-time home buyers in Canada — including Alberta.

Key FHSA benefits:

  • Tax-deductible contributions (like an RRSP)

  • Tax-free withdrawals when used for a qualifying home purchase (like a TFSA)

  • Contribute up to $8,000 per year, to a lifetime maximum of $40,000

  • Funds must be used within 15 years of opening the account

How parents can help:

  • Encourage your child to open an FHSA as soon as they’re eligible (age 18+)

  • Offer a “matching” contribution to motivate regular deposits

  • Help them invest FHSA funds wisely to maximize growth over time

This account can dramatically accelerate savings and reduce the financial burden of a down payment.

💸 3. Encourage Consistent Saving Habits

Saving for a home doesn’t happen overnight — but consistency makes a huge difference.

Set your young adult up with:

  • Automatic transfers to a savings or FHSA account (e.g., $50–$100 per week)

  • A challenge to cut back on non-essentials (like daily coffees, takeout, or unused subscriptions)

  • Tools like budgeting apps or savings trackers

Remind them: small changes today lead to big gains tomorrow.

📈 4. Help Them Build Credit the Right Way

Strong credit is essential for mortgage pre-approval. If your child hasn’t established credit yet, consider helping them do so in a safe and responsible way:

  • Co-sign a low-limit credit card and teach them to pay the balance off monthly

  • Assist with a small personal loan to build credit history

  • Encourage regular credit score checks and help resolve any inaccuracies

Establishing a positive credit profile early can open more doors when it’s time to apply for a mortgage.

🏠 5. Explore First-Time Home Buyer Incentives in Alberta

There are several federal and provincial programs that can help make buying a first home in Alberta more affordable:

  • First-Time Home Buyer Incentive: A shared-equity program offering 5% or 10% toward a down payment

  • RRSP Home Buyers’ Plan (HBP): Withdraw up to $60,000 from an RRSP tax-free to purchase a first home

  • Local down payment assistance programs: Some Alberta municipalities offer grants, rebates, or tax incentives

Helping your child understand and apply for these programs could save them thousands.

🏘 6. Set Realistic Expectations

Today’s first-time buyers face a very different landscape than previous generations. Encourage your child to keep their options open:

  • Start with a condo or townhome instead of a detached house

  • Explore smaller communities outside of Calgary or Edmonton

  • Focus on getting into the market, not finding the “perfect” property

Getting that first home is often a stepping stone to their dream home — and that’s okay.

💬 7. Offer Emotional & Practical Support

Not all help is financial. Whether or not you can contribute to their down payment, your encouragement, advice, and support go a long way.

  • Review listings or mortgage options together

  • Connect them with a trusted REALTOR® (hi 👋)

  • Celebrate small wins like getting pre-approved or hitting savings milestones

Buying a home is both exciting and overwhelming — having someone in their corner makes a big difference.

🔍 Final Thoughts: It’s Still Possible to Buy a First Home in Alberta

Yes, it’s a tough market — but with the right support, tools, and planning, it’s not out of reach. As a parent, you can play an empowering role in helping your child achieve homeownership without sacrificing your own financial well-being.

Start the conversation today. Share this article with your family and talk about options. And if you or your young adult need guidance from a local expert, I’m here to help!

Looking for more home buying tips or personalized advice?
📩 Contact us here or explore more helpful articles on the Real Estate Advice blog.

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