Buying your first home in Alberta follows a clear sequence: save through tools like the FHSA and RRSP Home Buyers' Plan, confirm how much down payment you'll need under current mortgage rules, get pre-approved, shop with a RECA-licensed mortgage broker, and close, all without paying a provincial land transfer tax. Each stage has specific rules that affect how much home you can afford and how much cash you need on closing day. Here's what the path looks like from first dollar saved to keys in hand.
Saving for your down payment: FHSA and RRSP HBP
Two federal programs work together to help first-time buyers save. The First Home Savings Account (FHSA) lets you contribute up to $8,000 per year, to a lifetime limit of $40,000, and unused contribution room carries forward, capped at $8,000 in any single year. Contributions are tax-deductible, and withdrawals for a qualifying first home purchase are tax-free. The RRSP Home Buyers' Plan (HBP) lets you withdraw up to $60,000 tax-free from your RRSP toward a first home, which you then repay over 15 years. For withdrawals made from January 1, 2026 onward, you get a two-year grace period before repayment starts, giving you more breathing room after closing before those repayments begin. Many first-time buyers use the FHSA and the HBP together, drawing from both accounts toward the same down payment, since they are separate programs with separate contribution and withdrawal limits.
How much down payment you'll need
Minimum down payment in Canada is tiered by purchase price. You need 5% down on the portion of the price up to $500,000, 10% on the portion between $500,000 and $1.5 million, and 20% or more at or above $1.5 million. For example, on a $600,000 home, that works out to 5% of the first $500,000 plus 10% of the remaining $100,000. Insured mortgages, the kind that let you put down less than 20%, are only available on homes priced under $1.5 million, a cap that took effect December 15, 2024. Above that price, or with less than 20% down on a home under $1.5 million, you'll need a conventional, uninsured mortgage instead, which carries its own qualifying rules.
The 30-year amortization advantage for first-time buyers
Since December 15, 2024, insured mortgages can be amortized over 30 years instead of the previous 25-year maximum. This longer amortization is available to all first-time buyers on any home, and separately, to all buyers of new construction regardless of whether it's their first home. A longer amortization spreads your payments out, which lowers your monthly payment and can help your affordability calculation stretch further. It also means more interest paid over the life of the mortgage, so it's worth weighing the lower monthly payment against the longer-term cost with your broker.
Alberta's cost advantage: no land transfer tax
Unlike several other provinces, Alberta does not charge a land transfer tax on home purchases. Instead, the Alberta Land Titles Office charges a registration fee: $50 plus $5 for every $5,000 of property value, or part thereof. This fee applies twice, once to register the transfer of title and once to register the mortgage itself. Even combined, that fee structure is a fraction of what land transfer tax costs in provinces that charge it as a percentage of purchase price. It's worth noting that as of 2026, there is no active Alberta provincial first-time buyer grant program. So the land transfer tax exemption, not a cash grant, is the province's main structural cost advantage for buyers, and it applies automatically, with no application process required.
From pre-approval to closing day
Once you know your savings and down payment target, a pre-approval confirms roughly how much you can borrow and locks in a rate for a set window while you shop for a home. From there, an accepted offer moves you into financing conditions, a home inspection where applicable, an appraisal, and final mortgage approval from your lender. On closing day, you'll cover your down payment, Alberta's land titles registration fees, legal fees, and any other closing costs such as adjustments for prepaid property tax, then take possession of your new home.
Why work with a RECA-licensed mortgage broker
Mortgage brokerages and brokers operating in Alberta are regulated by the Real Estate Council of Alberta (RECA) under the Real Estate Act. A RECA-licensed broker can walk you through how the FHSA, HBP, down payment tiers, and amortization rules apply to your specific purchase, and compare options across multiple lenders rather than one bank's products. A broker can also help you understand exactly what you'll owe on closing day, including Alberta's land titles fees, so there are no surprises.
Have questions about your situation? An advisor can walk you through it.