Why Alberta is One of Canada’s Most Affordable Provinces for First-Time Buyers
Alberta continues to be one of the most cost-effective provinces for homeownership. Unlike British Columbia or Ontario, Alberta does not charge a Property Transfer Tax (PTT) or a Provincial Sales Tax (PST). This dramatically reduces closing costs for first-time buyers.
When you purchase a home in Edmonton or Calgary, you only pay modest **Land Title** and **Mortgage Registration** fees. As of 2025, these fees remain among the lowest in Canada—typically around **$250–$300** for an average residential purchase around $600,000. This gives Alberta buyers a significant upfront savings compared to buyers in other provinces who may pay thousands in land transfer taxes.
Federal Programs for First-Time Home Buyers (2025)
1) First Home Savings Account (FHSA): Save Faster with Tax Advantages
Key Benefits:
- Combine FHSA savings with your RRSP and TFSA for maximum flexibility.
- Carry forward unused contribution room from prior years.
- Use FHSA together with the Home Buyers’ Plan (HBP) to increase your down payment.
- Open an FHSA through major banks and credit unions in Alberta.
Example: A couple in Calgary each contributes $8,000 annually for five years. They build $80,000 in tax-free funds—enough for a 10% down payment on a $800,000 home in areas like Seton or West Springs.
2) Home Buyers’ Plan (HBP): Withdraw RRSP Funds Tax-Free
Withdrawn funds must be repaid to your RRSP over 15 years, beginning the second year after withdrawal. Our team helps you integrate your HBP repayment schedule with your long-term savings and mortgage goals so you remain financially balanced.
3) 30-Year Insured Amortization and Updated Federal Mortgage Rules
**30-Year Insured Amortization:** Available to **all first-time buyers** and **all buyers of newly built homes**. This extended term lowers monthly payments and helps more Canadians qualify for a mortgage.
**Increased Insured Purchase Cap:** The insured mortgage limit has been raised from **$1.0 million to $1.5 million**, enabling buyers to purchas…
These reforms, combined with Alberta’s lower average home prices, make it easier for first-time buyers to enter the market and afford larger or newer homes without excessive monthly strain.
Alberta’s Unique Advantage: No Property Transfer Tax
One of Alberta’s biggest advantages is the complete absence of a **Property Transfer Tax**. In provinces like B.C., buyers typically pay 1–3% of a home’s purchase price in transfer tax, which could amount to $10,000–$20,000 on a mid-priced property. Alberta buyers instead pay only two small registration fees when finalizing their home purchase:
**Land Title Registration Fee:** $50 + $2 for every $5,000 of property value.
**Mortgage Registration Fee:** $50 + $1.50 for every $5,000 of mortgage amount.
Example: On a $600,000 home with a $480,000 mortgage, your total registration cost is roughly **$275**. That’s a savings of more than **$10,000** compared to what you’d pay in provinces with transfer taxes.
General Eligibility for Federal First-Time Buyer Programs
- Not have owned a home that you occupied in the past four calendar years.
- Be a Canadian citizen, permanent resident, or have valid work permit status.
- Intend to occupy the property as your primary residence within one year of purchase.
- Meet the lender’s credit and income requirements.
- Purchase a qualifying residential property in Canada (Alberta included).
Documentation Checklist for Alberta Buyers
- Government-issued ID and proof of legal status.
- Recent pay stubs and employment letter (or two years of T1s for self-employed buyers).
- Bank statements showing down payment and closing funds.
- FHSA and/or RRSP (HBP) statements.
- Offer to Purchase and MLS listing.
- Pre-approval or rate-hold letter from your lender.
Why Choose Sandhu & Sran Mortgages in Alberta
Tailored Pre-Approvals
Access to Multiple Lenders
Integrated Savings Strategy
Case Study: Edmonton Buyer Example
Meet Aman and Priya, a first-time buyer couple in Edmonton with a combined income of $130,000. By using $40,000 in FHSA savings and $100,000 from their RRSPs under the HBP, they purchased a $550,000 home in Windermere. With no property transfer tax and only $275 in registration fees, they saved over $10,000 compared to a similar purchase in B.C.—and qualified comfortably under a 30-year insured amortization plan.
Start Your First-Home Journey in Alberta
Ready to buy your first home in Edmonton or Calgary? Contact Sandhu & Sran Mortgages for a free consultation. We’ll help you understand every available federal program, calculate your affordability, and find a mortgage tailored to your long-term goals. Alberta’s combination of low taxes, federal incentives, and stable market conditions makes now the perfect time to begin your homeownership journey.