First-Time Buyer Guide For Alberta

The First Home Savings Account (FHSA)

An FHSA lets you save for your first home with a tax deduction going in and tax-free withdrawals coming out, as long as it's used for a qualifying home. You get $8,000 of contribution room a year, up to $40,000 total.

To count as a first-time buyer, you can't have lived in a home you or your spouse owned in the current year or the four calendar years before.

The Home Buyers' Plan (HBP)

The HBP lets you borrow from your own RRSP to buy your first home. The limit is currently $60,000 per person, so a couple can potentially use up to $120,000.

You pay it back to your RRSP over 15 years. For first withdrawals made between 2022 and 2028, repayments don't start until the fifth year after the withdrawal.

Down Payment And Amortization

You need at least 5% down on the first $500,000 and 10% on the portion between $500,000 and $1.5 million. With less than 20% down, mortgage default insurance gets added to your mortgage.

First-time buyers can get a 30-year amortization on an insured mortgage, which lowers the monthly payment (you pay more interest over time, though).

What's Different In Alberta

Alberta has no land transfer tax. You'll pay modest land titles registration fees, plus legal fees, an inspection and adjustments for things like property tax. Our closing cost calculator on the Mortgage page breaks it down.