How much do you really need down for your first home in Alberta?

Many first-time buyers assume they need 20% down. You don't, as long as your mortgage is insured. Here are the federal rules, worked out on real Alberta prices.

Canada's minimum down payment rules

The minimum depends on the purchase price:

• Up to $500,000: 5% of the price.
• $500,000 to under $1.5 million: 5% of the first $500,000, plus 10% of the portion above $500,000.
• $1.5 million or more: 20%. Insured mortgages aren't available at this price, so you'd need a conventional mortgage.

With less than 20% down, your mortgage must have mortgage default insurance (from CMHC or a private insurer). The premium is a percentage of the mortgage (FCAC lists a range of 0.6% to 4.5%), usually added to the loan, and the smaller your down payment, the higher the premium. The $1.5 million insured price cap took effect December 15, 2024.

What that means in Calgary and Edmonton

Using the latest benchmark prices published by the local real estate boards for September 2026:

• Calgary, residential benchmark $566,700 (CREB): 5% × $500,000 = $25,000, plus 10% × $66,700 = $6,670. Minimum down: about $31,670.
• Greater Edmonton Area, MLS® HPI composite benchmark $423,100 (REALTORS® Association of Edmonton): 5% × $423,100. Minimum down: about $21,155.

A benchmark price describes a typical home, not the home you'll buy. Prices differ a lot by property type and neighbourhood. In Calgary, for example, the September 2026 apartment benchmark was $291,400, where the 5% minimum would be about $14,570. Plug in your own target price using the rules above.

For other parts of the province, see areas served across Alberta.

30-year amortization for first-time buyers

Since December 15, 2024, first-time buyers (and buyers of newly built homes) can choose a 30-year amortization on an insured mortgage instead of the usual 25 years. Spreading payments over more years lowers your monthly payment, which can help you qualify. The trade-off: you pay more interest over the life of the mortgage. Many mortgages allow prepayments, so you can still pay it down faster later.

Minimum down or 20% down?

With 20% or more down, you usually don't need mortgage default insurance, so there's no premium added to your balance, and a smaller mortgage means less interest over time. FCAC points out that the bigger your down payment, the more you may save. The trade-off is time: saving to 20% on a $566,700 home means about $113,340, compared with about $31,670 at the minimum. Some buyers wait and save; others buy sooner with less down. Either can make sense. What matters is a payment you're comfortable with and a cushion left over for repairs and emergencies after closing. Note that a lender may still require insurance with 20% down in some cases, for example if you're self-employed or have a poor credit history.

The minimum isn't the whole picture

• Closing costs: plan for another 1.5% to 4% of the price. Alberta has no land transfer tax, but legal fees, Land Titles fees and adjustments still add up. See closing costs in Alberta.
• The stress test: you qualify at the higher of your contract rate plus 2% or 5.25%, so your income and debts matter as much as your down payment.
• Where the money comes from: savings, a gift from a family member, an RRSP withdrawal under the Home Buyers' Plan (up to $60,000), or a First Home Savings Account (up to $8,000 a year, $40,000 lifetime). Lenders will ask to see where your down payment came from, usually with recent account statements.
• Self-employed? Some lenders ask for a larger down payment depending on how income is documented. See self-employed mortgages.

Find your number

A pre-approval puts real numbers on your situation: price range, down payment, insurance premium and payment. See first-time home buyer mortgages in Alberta for programs and steps, or start with pre-approval.