Minimum down payment
Minimum down payment by purchase price (Canada)
| Purchase price | Minimum down payment |
|---|
| $500,000 or less | 5% of the purchase price |
| Over $500,000 and under $1.5 million | 5% of the first $500,000 plus 10% of the amount above $500,000 |
| $1.5 million or more | 20% (mortgage insurance isn't available) |
With less than 20% down, you need mortgage default insurance from CMHC, Sagen or Canada Guaranty. The premium is usually added to your mortgage. An insured mortgage can sometimes come with a lower rate than a conventional one, because the lender's risk is insured, but you also pay the premium. John can show you both scenarios side by side.
30-year amortization: since December 15, 2024, insured mortgages can be amortized over up to 30 years when at least one borrower is a first-time buyer or the home is newly built. In other insured cases the limit is 25 years. A longer amortization lowers your payment but increases the total interest you pay.
Federal programs first-time buyers can use
- First Home Savings Account (FHSA): contribute up to $8,000 a year, to a $40,000 lifetime limit. Contributions are tax-deductible and qualifying withdrawals for a first home are tax-free. (CRA details)
- RRSP Home Buyers' Plan (HBP): withdraw up to $60,000 from your RRSPs for a qualifying home and repay it over up to 15 years. You can use the HBP and the FHSA for the same home. (CRA details)
- First-time home buyers' GST rebate: on new or substantially renovated homes, eligible first-time buyers may recover up to $50,000 of GST. The full rebate applies up to $1 million, a reduced rebate between $1 million and $1.5 million, and none at $1.5 million or more. It applies to agreements signed after March 19, 2025 and before 2031. (CRA details)
- Home buyers' amount: a non-refundable federal tax credit you claim on your return for the year you buy.
Eligibility rules apply to each program and can change. Check with CRA or your tax advisor. John isn't a tax advisor.
Alberta closing costs: no land transfer tax
Alberta doesn't charge a provincial land transfer tax, so there's no first-time buyer land transfer tax rebate to claim. You pay Alberta Land Titles registration fees instead. Under the Government of Alberta fee schedule effective October 1, 2026:
- Transfer of land: $50 plus $5 for every $5,000 (or part of $5,000) of the property's value
- Mortgage registration: $50 plus $5 for every $5,000 (or part) of the mortgage amount
Example: a $400,000 home with a $380,000 mortgage works out to about $450 for the transfer and $430 for the mortgage, before legal fees. Fees change, so check the current schedule. Also budget for legal fees and disbursements, a home inspection, an appraisal if the lender doesn't cover it, property tax and utility adjustments, home insurance and moving costs.
For a full walk-through with a worked example, read closing costs in Alberta: the money buyers forget.
