First-Time Home Buyer Guide Alberta (2025 Edition)
Step-by-step advice, expert tips, and local insights to help you confidently navigate the journey to homeownership.
Congratulations
on stepping into the world of homeownership!
Buying your first home is an exciting and life-changing decision. Whether you're ready to leave renting behind or looking to plant roots in Alberta’s vibrant cities like Calgary, Edmonton, Red Deer, or smaller towns across the province, this comprehensive guide will walk you through every step of the home-buying process.
At Alberta Mortgage Expert, we’ve helped thousands of first-time buyers find their dream homes. Let us help you too. Let’s break down the process, making it easy to understand and navigate.
Step 1: Get Pre-Approved for a Mortgage
Know What You Can Afford Before You Start House Hunting
Before you dive into browsing listings and dreaming of your ideal home, it’s essential to understand your budget. A mortgage pre-approval helps clarify your buying power, potential monthly payments, and the mortgage rate you qualify for.
Why Pre-approval is Important
Establish Your Budget: Determine how much you can comfortably afford.
Increased Credibility with Sellers: Pre-approval signals you're a serious buyer, especially in competitive markets like Calgary and Edmonton
Lock In a Rate: Pre-approval locks in your mortgage rate for 90–120 days, protecting you from interest rate hikes
Our Process:
We assess your credit score, income, and debt
We recommend mortgage options tailored to you—not just the bank’s rates
We lock in your rate
Pro Tip: Avoid any big purchases or new debt while your mortgage application is in progress.
Step 2: Understand the Upfront Costs of Buying a Home
It’s More Than Just the Down Payment
First-time buyers often underestimate the full financial commitment involved. While the minimum down payment may be 5%, there are other costs to plan for. Let’s break it down:
Here’s What You Need to Know:
Down Payment: Minimum of 5% of the purchase price (higher for homes over $500K)
Closing Costs: Budget 1.5–4% of the purchase price for legal fees, title insurance, and more.
Home Inspection: ~ $400–$600 (recommended but optional)
Appraisal (if required): ~ $300–$500
Moving Costs: Variable based on distance and services
Understanding these costs in advance can prevent any financial surprises.
Step 3: Explore First-Time Home Buyer Incentives in Alberta
Government Programs to Help You Buy Your First Home
As a first-time buyer in Alberta, you have access to several programs that can make your home purchase more affordable. Let’s take a look at the most popular options:
1. First-Time Home Buyer Incentive (FTHBI)
A shared-equity mortgage with the government, offering 5% or 10% of the home's purchase price. You repay the incentive when you sell the home.
2. RRSP Home Buyers' Plan (HBP)
You can borrow up to $35,000 tax-free from your RRSP to use as a down payment.
3. First Home Savings Account (FHSA)
A new tax-free savings account allowing you to save up to $40,000 for your first home purchase.
By layering these programs, you can maximize your benefits.
Step 4: Start House Hunting in Alberta
Finding the Perfect Home with the Right Team
Now, the fun part begins! But before you fall in love with a home, it’s important to stay within your budget. Your pre-approval will be your guide throughout the process.
Tips for House Hunting:
List Your Priorities: Focus on your “must-haves” vs. “nice-to-haves”.
Research Neighborhoods: Consider commute times, schools, amenities, and potential growth in the area.
View Homes in Person: Pictures can be deceiving, so try to see the property firsthand.
Ask About Additional Costs: Don’t forget property taxes, utility costs, and potential future developments in the area.
We can connect you with trusted Alberta Mortgage Expert who know the Alberta market.
Step 5: Make an Offer & Finalize Your Mortgage
Turning Your Dream Home Into Reality
Once you find your dream home, our mortgage brokers will help you make an offer. If it’s accepted, it’s time to finalize your mortgage and move forward.
What to Expect:
Submit your updated documents (income, bank info, and purchase agreement).
We confirm the lender, rate, and terms.
You sign a mortgage commitment.
A home appraisal may be required.
Set your closing date and inform your lawyer.
Our team works closely with your lawyer to ensure everything stays on track.
Step 6: Closing the Deal on Your New Home
The Final Step in Becoming a Homeowner
On closing day, you’ll meet with your lawyer, sign the legal documents, and transfer funds. Once everything is finalized, you’ll receive the keys to your new home!
What Happens on Closing Day:
Pay the remaining down payment and closing costs (via your lawyer's trust account).
Receive the keys and begin your new chapter as a homeowner!
You Don’t Have to Navigate This Alone
We're With You Every Step of the Way
At Alberta Mortgage Expert, we’ve guided thousands of first-time buyers through the mortgage process. Our advice is always free, and our loyalty is always to you. Book your consultation to know more.
NEED HELP GETTING STARTED?
Come meet our team and discover how our expertise and personalized services can help you reach your homeownership goals with confidence.
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