Alberta First-Time Home Buyer Guide (2025)

Buying your first home in Alberta is exciting — but it can also feel overwhelming with all the programs, rules, and costs involved. The good news? As a first-time home buyer in Alberta, you may qualify for special incentives, lower down payment options, and expert guidance to make the process easier.

Here’s a complete guide, including answers to the most common questions Alberta first-time buyers ask.

What is considered a “first-time home buyer” in Alberta?

In Alberta, you’re considered a first-time home buyer if:

You’ve never owned a home before, or
You haven’t lived in a home you (or your spouse) owned in the last 4 years.

This definition matters because it determines whether you qualify for federal programs like the First-Time Home Buyer Incentive (FTHBI) or the RRSP Home Buyers’ Plan (HBP).

How much down payment do I need for my first home in Alberta?

The minimum down payment in Canada (including Alberta) is:

5% on the first $500,000 of the purchase price
10% on the portion between $500,000–$999,999
20% if the purchase price is $1M or more

Example: On a $400,000 home in Edmonton, you would need just $20,000 (5%) for a down payment.

Are there special programs for Alberta first-time buyers?

Yes. Several programs are available to help you enter the housing market:

RRSP Home Buyers’ Plan (HBP): Withdraw up to $35,000 from your RRSP tax-free for a down payment.
First-Time Home Buyer Incentive (FTHBI): Federal program where the government provides a shared-equity loan of 5% (resale homes) or 10% (new builds).
GST New Housing Rebate: If you buy a new build, you may qualify for a partial GST rebate.
Local municipal incentives: Some Alberta cities occasionally offer rebates or grants for first-time buyers.

What closing costs should I expect in Alberta?

Besides your down payment, budget for:

Legal fees & disbursements: $1,200–$1,800
Home inspection: $400–$600
Title insurance: approximately $300
Property tax adjustments & utilities setup

A safe rule: Plan for 1.5–2% of the purchase price in closing costs.

How much can I afford as a first-time buyer?

Your affordability depends on your GDS/TDS ratios (gross debt service and total debt service). Most lenders use:

GDS: housing costs ≤ 39% of your gross income
TDS: housing + all debts ≤ 44% of your gross income

Example: If you earn $80,000/year with little debt, you could typically afford a home around $350,000–$400,000 (depending on rate, down payment, and property taxes).

What documents do I need to get pre-approved?

Here’s a first-time buyer checklist:

Government-issued ID
Recent pay stubs (30 days)
T4s and NOAs (last 2 years)
Employment letter
Bank statements for down payment (90 days history)
Info on debts (car loans, credit cards, lines of credit)

Why should I use a mortgage broker as a first-time buyer?

Working with a broker (like Garett Martin Mortgages) gives you:

Access to multiple lenders, not just one bank
Better odds of approval if you’re new to credit or have student loans
Guidance on programs and rebates you may qualify for
Free service for most residential mortgages (the lender pays the broker)

Key Takeaways for Alberta First-Time Buyers

Minimum 5% down payment required on homes under $500K
Programs like the FTHBI and HBP can reduce upfront costs
Budget 1.5–2% for closing costs on top of your down payment
A mortgage broker can simplify the process and save you money

Ready to buy your first home in Alberta?
Contact Garett Martin Mortgages today:

Helping Alberta’s First-Time Buyers Become Homeowners