First-Time Buyer Down Payment Guide for Alberta

Minimum down payment rules

• For owner-occupied purchases, the minimum is 5% on the first $500,000.
• The portion above $500,000 and below $1.5M generally needs 10% down.
• At $1.5M or more, plan for at least 20% down.
• Under 20% down usually means mortgage default insurance is required.

Where down payment can come from

• Savings with a clear bank-history trail.
• FHSA funds, subject to eligibility and withdrawal rules.
• RRSP Home Buyers Plan funds, with repayment obligations.
• Gifted funds from family, usually supported by a lender gift letter.

Do not forget closing costs

Alberta has no provincial land transfer tax, but closing still requires cash beyond the down payment.

• Budget for legal fees, title insurance, property tax adjustments, appraisal, and inspection.
• New builds may involve GST, deposits, upgrades, and different timing.
• Keep emergency cash after closing instead of draining every dollar.
• Ask early if gift funds or registered-account withdrawals affect timing.

Documentation mistakes

• Moving money between accounts without preserving the paper trail.
• Receiving a gift without a signed gift letter.
• Forgetting that down payment and closing costs are separate.
• Buying a vehicle or taking new credit while preparing for approval.