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What first-time buyers in Calgary need to know before they start

Buying Your First Home in Calgary

Calgary is one of the more accessible major markets in Canada for a first purchase, and there are several federal programs built specifically for first-time buyers. Here is what applies, what it is worth, and what to sort out before you start looking.

How Much Down Payment You Actually Need

The minimum is tiered by purchase price:

Under $500,000 — 5% of the purchase price
$500,000 to $1,499,999 — 5% of the first $500,000, plus 10% of the rest
$1.5 million and above — 20% of the purchase price

On a $450,000 Calgary condo that is $22,500. On a $650,000 home it is $40,000 — $25,000 on the first $500,000, plus $15,000 on the remaining $150,000.

Three Programs Worth Knowing About

First Home Savings Account (FHSA)Contribute up to $8,000 a year to a lifetime maximum of $40,000. Contributions are tax-deductible going in, and withdrawals for a qualifying first home come out tax-free. It is the most useful of the three for most people.
Home Buyers' Plan (HBP)Withdraw up to $60,000 per person from your RRSP toward a first home. You have a five-year grace period before repayment starts, then fifteen years to pay it back. A couple buying together can access up to $120,000 between them.
First-Time Home Buyers' Tax CreditA $10,000 non-refundable credit claimed on your tax return the year you buy, worth up to $1,500 back. Small, but it is free money and easy to miss.

One Alberta Advantage Worth Knowing

Alberta does not charge a provincial land transfer tax. Buyers in Ontario and British Columbia often pay thousands at closing for it. Here you pay land titles registration fees instead, which are a fraction of that. If you are moving from another province, budget accordingly — your closing costs will likely be lower than you are expecting.

The Stress Test

You have to qualify at a higher rate than the one you will actually pay — whichever is greater of your contract rate plus 2%, or 5.25%. This is why getting pre-approved before you start looking matters. It tells you what you can actually borrow rather than what you hope you can.

Not Sure Where You Stand?

You do not need to have your financing sorted before you talk to us. Tell us roughly where you are at and we will walk you through what is realistic in Calgary right now, which communities fit your budget, and what your next step should be.

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REAL BROKER | REAL ESTATE PARTNERS TEAM
Dusko Sremac
#101 7710 5th St SE
Calgary, AB T2H 2L9
587-578-7653
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