First-Time Buyers in Calgary
Buying your first home in Calgary
Calgary is still one of the few major Canadian cities where a first home on ordinary income is realistic. It has also tightened considerably, which means first-time buyers face pressure to move fast and to shorten conditions — exactly when they are least equipped to judge the risk.
The basics
- Down payment. 5% on the first $500,000, then 10% on the portion between $500,000 and $1.5 million. So a $700,000 home needs $45,000, not $140,000. At $1.5 million and above there is no default insurance at all, so 20% is the minimum.
- Gifted funds are fine — with a signed gift letter and a clean 90-day trail showing where the money came from.
- Closing costs. Budget for legal fees, title insurance, an appraisal if required, and Alberta’s land titles registration fees. Alberta has no land transfer tax, which is a genuine advantage over Ontario and BC.
Programs worth knowing about
The federal First-Time Home Buyer Incentive landscape changes periodically, and the RRSP Home Buyers’ Plan and the First Home Savings Account can both be used toward a down payment. Which combination is best depends on your situation — worth ten minutes on a call rather than guessing.
The bit that actually causes problems
A pre-approval is not an approval on a specific property. The lender still has to be satisfied with the property, the appraisal and the insurance — and a suited home, an older house or a small condo can raise all three. Before you consider shortening a financing condition to win an offer, know exactly what can be confirmed in the time you have.