Short answer: Most Calgary new builds bought from a builder use a completion mortgage. You pay the builder's deposits from your own funds, and the mortgage is advanced on possession day once the home is finished. Because possession can be months away, lenders usually re-check your income, credit and the appraisal before funding, and a standard rate hold may run out first. A newly built home that will be your primary residence may also qualify for the federal First-Time Home Buyers' (FTHB) GST/HST rebate of up to $50,000, a CRA tax rebate. In Alberta, every new home must come with a minimum warranty.
Completion mortgage vs. construction (draw) mortgage
| Completion mortgage (buying from a builder) | Construction / progress-draw mortgage (you own the lot) | |
|---|---|---|
| Who builds | A licensed builder sells you a finished home | You hire a builder, or build with an owner-builder authorization |
| When funds advance | One advance on possession day | In stages as work is completed and inspected |
| Deposits | Paid by you to the builder before possession | Your equity usually goes in first, then draws |
| Rate risk | The rate hold may expire before possession | Interest is charged on each draw as it is advanced |
| Insured option | Yes, if you qualify | CMHC allows progress advances for new construction |
Source: CMHC, Homeowner mortgage loan insurance (purchase).
Down payment and insurance example (illustration only)
This example uses CREB's September 2026 City of Calgary total residential benchmark price of $566,700 (CREB, Oct 1, 2026). It is not a quote.
| Step | Amount |
|---|---|
| Purchase price | $566,700 |
| Minimum insured down payment: 5% of $500,000 + 10% of $66,700 | $31,670 |
| Mortgage before insurance (about 94.4% loan-to-value) | $535,030 |
| CMHC premium at 90.01–95% loan-to-value (4.00%, CMHC premiums) | $21,401.20 |
Builder deposits usually count toward your down payment. Keep records of each deposit, because the lender will want proof of where the money came from.
Rate holds and long possession dates
The Financial Consumer Agency of Canada says pre-approval rate holds typically last 60 to 130 days, depending on the lender, and that a pre-approval does not guarantee final approval (FCAC). If possession is further out than that, ask about lenders' new-construction or extended rate-hold options, and plan for your rate to change. More on how holds work: pre-approval rate holds in Alberta.
Rates move. On October 28, 2026, the Bank of Canada raised its policy rate by 0.25 percentage points to 2.50%. Its next scheduled decision is December 9, 2026 (Bank of Canada). You still qualify at the greater of your contract rate plus 2% or 5.25% (OSFI).
GST on a new home: the FTHB GST/HST rebate
According to the Canada Revenue Agency, an eligible individual buying or building a newly built or substantially renovated first home for use as their primary residence can recover up to 100% of the GST paid, to a maximum of $50,000. The rebate is gradually reduced for homes valued between $1 million and $1.5 million, and there is no rebate at $1.5 million or more (CRA). Eligibility rules apply. Confirm with the CRA and your lawyer how GST is shown in your purchase contract.
Alberta new home warranty: the minimums
| Coverage | Minimum term |
|---|---|
| Labour and materials | 1 year |
| Delivery and distribution systems (electrical, plumbing, heating, ventilation, air conditioning) | 2 years |
| Building envelope | 5 years (builders can buy 2 more years) |
| Major structural components | 10 years |
Source: Government of Alberta, New home warranty: overview.
Coverage starts when the home is first occupied, when occupancy is permitted or when title transfers, whichever comes first. All residential builders constructing new homes in Alberta since December 1, 2017, need a valid builder licence, which you can check in the provincial Builder Registry. First home? See first-time home buyers in Alberta.
Next steps
- Start your pre-approval online (secure Pineapple application, opens in a new tab)
- Book a 30-minute phone call
- Book a 1-hour appointment
- Call or text 403-438-0761
A pre-approval is not a guarantee of final mortgage approval. Buying elsewhere in Alberta? See Calgary mortgage services, or John's local sites for Airdrie, Olds and Mountain View County, Red Deer and Edmonton.
John Antle, Sub Mortgage Broker - Team Lead, Pineapple National Inc.
General information only, not personalized financial or mortgage advice. Please speak with a licensed mortgage professional about your situation. General information only, not personalized financial advice. All mortgages subject to lender approval. A pre-approval is not a guarantee of final mortgage approval. Tax rebate eligibility is determined by the CRA; get tax and legal advice for your situation.
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