Alberta offers some of the most affordable housing in Canada, making it an attractive destination for first-time home buyers. Whether you're drawn to Calgary's urban energy, Edmonton's arts scene, or the quieter charm of Red Deer and Lethbridge, getting into the housing market here is more achievable than in many other provinces.
But affordability doesn't mean the process is simple. From understanding down payments to navigating mortgage options and Alberta-specific programs, there's plenty to know. This guide walks you through everything you need to buy your first home in Alberta in 2026.
The Alberta Housing Market in 2026
Alberta's housing market has rebounded strongly in recent years, fueled by economic growth, interprovincial migration, and relatively affordable prices compared to BC and Ontario. The market remains active but balanced, giving buyers good opportunities without the frenzy of past years.
Calgary
Strong demand, diverse neighborhoods, and steady appreciation. Popular with young professionals and families.
Average home: $550,000-$650,000
Edmonton
More affordable than Calgary with excellent value. Growing tech and healthcare sectors attracting newcomers.
Average home: $400,000-$500,000
Red Deer & Lethbridge
Smaller cities with strong community feel and highly affordable housing options for first-time buyers.
Average home: $350,000-$450,000
Rural Alberta
Acreages and small-town living with significantly lower costs and wide-open spaces.
Average home: $250,000-$400,000
Market Insight:
Alberta's economy is diversifying beyond oil and gas, with tech, renewable energy, and healthcare driving growth. This makes the housing market more stable and attractive for long-term homeownership.
Down Payment Requirements in Alberta
Alberta follows federal down payment rules, and with lower average home prices, your required down payment is more manageable than in other provinces.
Minimum Down Payment Structure:
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5%
First $500,000 of purchase price
For a $450,000 home = $22,500 down payment
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10%
Portion between $500,000-$999,999
For a $600,000 home = $25,000 + $10,000 = $35,000 total
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20%
Homes $1 million and above
Rare in Alberta, but required for luxury properties
CMHC Insurance:
If you put down less than 20%, you'll need mortgage default insurance from CMHC, Sagen, or Canada Guaranty. This protects the lender and gets added to your mortgage amount.
For a $450,000 home with 5% down ($22,500), insurance costs approximately $17,100, making your total mortgage around $444,600.
Programs Available to Alberta First-Time Buyers
While Alberta doesn't have as many provincial programs as some other provinces, first-time buyers can still access valuable federal incentives.
First Home Savings Account (FHSA)
Contribute up to $8,000 per year (lifetime max $40,000) to this tax-free savings account specifically for first-time home buyers.
Key Benefits:
- • Contributions are tax-deductible (immediate tax savings)
- • Withdrawals for home purchase are tax-free
- • Investment growth is tax-free
- • Can combine with Home Buyers' Plan (HBP)
Home Buyers' Plan (HBP)
Withdraw up to $35,000 from your RRSP for a down payment, tax-free. You have 15 years to repay it to your RRSP.
If you're a couple, you can each withdraw $35,000 for a combined $70,000 down payment boost.
First-Time Home Buyers' Tax Credit
Claim up to $10,000 on your tax return for a federal tax credit of $1,500 (15% of $10,000).
It's not a huge amount, but every bit helps with closing costs and moving expenses.
GST/HST New Housing Rebate
If you're buying a newly built home, you may qualify for a partial GST rebate on homes under $450,000. This can save you thousands on new construction purchases.
Choosing Your Mortgage Type in Alberta
Understanding mortgage types helps you pick the best option for your situation and financial goals.
Fixed-Rate Mortgage
Your interest rate stays the same for the entire term (typically 1-5 years). This gives you predictable payments and protects you from rate increases.
Best for: Buyers who want payment certainty and budgeting stability. Most popular choice in Alberta.
Variable-Rate Mortgage
Your rate fluctuates with the Bank of Canada's prime rate. If rates drop, your payment drops. If they rise, so does your payment.
Best for: Buyers comfortable with some risk who believe rates will stay stable or decrease over their term.
Hybrid Mortgage
Split your mortgage between fixed and variable rates. This balances stability with flexibility.
Best for: Buyers who want some protection from rate increases while benefiting if rates drop.
Your Credit Score Matters
Lenders use your credit score to determine if you qualify for a mortgage and what interest rate you'll get. Higher scores mean better rates and lower monthly payments.
Credit Score Ranges:
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740+
Excellent credit. Qualify for best rates and terms.
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680-739
Good credit. Qualify for competitive rates from most lenders.
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620-679
Fair credit. May qualify but at higher interest rates.
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<620
Poor credit. Limited options, may need alternative lenders.
Quick Tips to Improve Your Score:
- • Pay all bills on time, every time
- • Keep credit card balances below 30% of limits
- • Don't close old credit accounts (longer history is better)
- • Avoid applying for new credit in the 6 months before applying for a mortgage
Don't Forget Closing Costs in Alberta
Beyond your down payment, budget 1.5-4% of the purchase price for closing costs. On a $450,000 home, that's $6,750-$18,000.
Legal Fees
$1,200-$2,500 for lawyer services and land title registration
Home Inspection
$400-$600 (highly recommended for all properties)
Appraisal Fee
$300-$500 if required by your lender
Title Insurance
$250-$400 (one-time fee for protection)
Property Insurance
First year's premium due at closing ($800-$1,500)
Property Tax Adjustments
Reimbursing seller for prepaid taxes
Good News for Alberta Buyers:
Unlike BC and Ontario, Alberta has NO land transfer tax or property transfer tax. This saves you thousands compared to other provinces!
Final Tips for Alberta First-Time Buyers
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Start saving early: Use the FHSA and RRSP Home Buyers' Plan to maximize your down payment.
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Explore different neighborhoods: Calgary and Edmonton have diverse areas at various price points—find what fits your budget and lifestyle.
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Get pre-approved: Know your budget before house hunting to avoid disappointment and move fast when you find the right home.
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Consider total housing costs: Property taxes, utilities, and maintenance—Alberta's costs are generally lower than other provinces.
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Take advantage of no land transfer tax: This is a significant advantage Alberta buyers have over BC and Ontario!
Alberta offers first-time buyers a fantastic combination of affordability, opportunity, and quality of life. With the right preparation and knowledge, you'll be unlocking the door to your first Alberta home before you know it!