Alberta is one of the most affordable places to buy a home in Canada, especially in Calgary and Edmonton. But being able to afford a home is not just about the price. It also depends on how much you need for a down payment, whether you qualify for a mortgage, and what financial help is available. This guide from BestMO breaks down the programs and benefits designed to help first-time home buyer Alberta.
What are the Alberta first-time home buyer requirements?
To qualify as a first-time home buyer in Alberta, you and your spouse should not have owned a home in the past four years. Here’s what most programs require:
- Canadian citizenship or permanent residency
- The home must be your primary residence (not a rental property)
- You must qualify for a mortgage with an approved lender
- Your household income must fall within program limits
- You need a credit score of at least 600
Each program has its own twist on these first-time home buyer rules. For instance, Edmonton’s First Place Program requires your net worth to be under $130,000. The Attainable Homes Calgary program focuses more on income levels specific to Calgary’s market. Meanwhile, Liberty Home Ownership looks at a steady employment history and requires you to complete an online education course before buying. We will detail each program in the next section.
The minimum down payment requirements for first-time home buyers in Alberta are similar to the general rules across Canada:
- 5% for homes under $500,000
- 5% on the first $500,000, then 10% on amounts up to $1,499,999
- 20% for homes priced at $1,500,000 or more
What are the Alberta-only first-time home buyer programs?
Alberta takes a different approach from other provinces when it comes to helping first-time buyers, as it barely charges any land transfer fees. The province supports three main programs that directly reduce your upfront costs.
First Place Program (Edmonton)
The First Place Program in Edmonton turns old school properties into brand-new townhomes sold at market prices.
To qualify, you must:
- be a first-time buyer
- have a household income under $130,000
- have a net worth under $25,000 (not counting RRSPs, your car, or your down payment savings)
- agree to occupy and reside in the house for at least five years
- be qualified for a pre-approval (with or without the help of a co-signer)
The program defers land costs for 5 years. After this period, the buyer pays the deferred land value to the City of Edmonton. (source)
Attainable Homes Calgary
Attainable Homes Calgary (AHC) sells homes below market value to qualified buyers. When you are ready to move, you sell the house back to AHC at your original purchase price.
While you will not build equity through appreciation, you can get into homeownership with just $2,000 down. This program works well if your priority is stable housing rather than investment returns.
Income limits depend on your household:
- Singles: up to $83,000
- Couples: up to $93,000
- Families: up to $103,000
Liberty Home Ownership – Down payment assistance program
Liberty Home Ownership operates across Alberta as a shared equity program. You contribute $1,500 toward the down payment, and Liberty covers the rest of the standard 5%. When you sell, you share a portion of your home’s increased value with Liberty, which helps fund the program for future buyers.
You are not limited to specific developments or cities to qualify for the first-time home buyer incentive in Alberta. You buy at fair market value and can choose from various property types. The main requirements include steady employment, mortgage qualification with their approved lenders, and completion of their homebuyer education course.
Federal first-time home buyer benefits Alberta
Beyond provincial programs, several federal initiatives can significantly boost your buying power. These benefits apply across Canada, and Alberta residents can combine them with local programs for maximum savings.
First Home Savings Account
The First Home Savings Account (FHSA) combines the best features of RRSPs and TFSAs specifically for buying your first home. Anyone aged 18-71 who has not owned a home in the past four years can open this account and contribute up to $8,000 annually (maximum $40,000 lifetime). These contributions reduce your taxable income just like RRSP contributions. When you withdraw funds to buy your first home, you pay no tax on the withdrawal, unlike regular RRSP withdrawals.
Home Buyers’ Plan
The Home Buyers’ Plan lets you borrow from your future self by accessing your RRSP savings. The funds must sit in your RRSP for at least 90 days before withdrawal, and you have 15 years to repay the amount back into your RRSP. Miss a repayment, and that amount gets added to your taxable income for the year.
First-Time Home Buyers’ Tax Credit
You can claim $10,000 on your tax return, which translates to a tax reduction of up to $1,500 (at the 15% tax rate). While $1,500 will not cover your down payment, it helps offset moving costs, lawyer fees, or those first few mortgage payments. Couples can split the credit however they choose, as long as the total does not exceed $10,000.
GST/HST New Housing Rebate
The GST/HST New Housing Rebate returns up to 36% of the GST you paid, with a maximum rebate of $6,300. Your home must serve as your primary residence, and you will need to keep all documentation for six years.
How do first-time buyers in Alberta apply for a mortgage?
Preparing for the first-time home buyer in Alberta application process requires systematic financial preparation.
Step 1: Improve your credit score and reduce debt
A score above 650 opens doors to better rates and more options. Below 600, you will face limited choices and higher rates. So, order your free credit report and check for errors.
Lenders also calculate your debt service ratios to offer better mortgage terms. As a result, you need to prioritize targets:
- Credit card balances
- Car loans
- Student loans
- Lines of credit
Even small reductions improve your borrowing power.
Step 2: Calculate your budget
The average Alberta household dedicates different percentages of its income to housing:
- Calgary: 39% of median income
- Edmonton: 29% of median income
Unlike other provinces charging thousands in land transfer taxes, Alberta keeps fees minimal:
Land title transfer: $50 base + $2 per $5,000 of home value
Mortgage registration: $50 base + $5 per $5,000 of mortgage
Therefore, to consider your budget, you should factor in:
- Monthly mortgage payments
- Property taxes
- Utilities and insurance
- Maintenance and repairs
- Your other financial goals
- Home inspection costs
- Legal fees
- Land title fees
- Moving costs
Use automatic transfers to move money into savings immediately after each payday. Consider the FHSA for tax-advantaged savings.
Step 3: Get mortgage pre-approved
Mortgage pre-approval shows sellers you are serious and locks in your rate for up to 120 days.
Lenders will verify:
- Employment history (usually 2 years)
- Income stability
- Down payment source
- Overall financial picture
You should also choose your mortgage type carefully. An open mortgages allow you to pay off the entire balance at any time without penalties, but they charge higher rates. A closed mortgage offers lower rates but restricts prepayments and charges penalties for early termination of the term. Or you can also consider the convertible mortgage as a temporary solution.
For more insights, discover first-time home buyer guides for other Canadian provinces:
- First-Time Home Buyer BC
- First-Time Home Buyer Ontario
- First-Time Home Buyer Saskatchewan
- First-Time Home Buyer PEI
- First-Time Home Buyer Nova Scotia
- First-Time Home Buyer Manitoba
- First-Time Home Buyer Newfoundland and Labrador
- First-Time Home Buyer Quebec
- First-Time Home Buyer New Brunswick
- First-Time Home Buyer Nunavut
FAQs about first-time home buyer Alberta
Can I use multiple first-time buyer Alberta programs together?
Yes. You can combine federal programs like the FHSA and Home Buyers' Plan with one provincial program. For example, you might use FHSA savings and HBP funds for your down payment while participating in the First Place Program.
What happens if I sell home before first time home buyer Alberta requirements end?
Each program has different rules. First Place requires five years of residency. Attainable Homes Calgary requires selling back at your purchase price. Liberty shares appreciate based on their equity contribution. Breaking these agreements can trigger penalties or repayment requirements.
Do I qualify if my spouse owned a home before?
For federal programs, if either spouse owned a home in the past four years, neither qualifies as a first-time buyer. Some first-time home buyer Alberta programs may have different rules, so check specific program guidelines.
How long does the Alberta buying process take?
From pre-approval to closing takes 30-60 days in Alberta's market. However, saving your down payment and improving your financial position can take months or years. Start preparing early.
The bottom line
First-time home buyers in Alberta must save money, improve their credit, and navigate complex programs. Every dollar of debt you eliminate and every point you raise your credit score brings homeownership closer. With Alberta’s affordable prices and minimal land fees, your dream is more attainable than you might think.
