Investment Property Mortgages – Edmonton & Calgary (Alberta)

Investment (non‑owner‑occupied) purchases are under tighter underwriting than principal residences. Expect the following:

• Minimum Down Payment: Plan for at least 20% for 1–4 unit non‑owner‑occupied properties; higher equity may be required depending on risk profile.
• Insurance & Amortization: Most investor files are uninsured. Lenders may offer up to 30‑year amortizations on uninsured products case‑by‑case. Recent federal 30‑year insured amortization changes primarily benefit first‑time buyers and new‑build purchasers; pure investment purchases generally don’t use insured structures.
• Rates & Buffers: Investor rates are often modestly higher than owner‑occupied. Lenders apply conservative vacancy/expense assumptions.
• Rental Income to Qualify: Commonly 50–80% of market/lease rent is counted for qualification; the exact percentage is lender‑policy dependent.

Alberta has no provincial land transfer tax. Instead, you’ll pay Land Titles registration fees when title transfers and mortgages are registered:

• Title Transfer Fee: $50 base + $5 for every $5,000 (or portion) of the property value.
• Mortgage Registration Fee: $50 base + $5 for every $5,000 (or portion) of the mortgage amount.
• Illustration (approximate): On a $600,000 purchase with a $480,000 mortgage
  • Transfer fee ≈ $50 + ($600,000 ÷ $5,000 × $5) ≈ $650
  • Mortgage fee ≈ $50 + ($480,000 ÷ $5,000 × $5) ≈ $530
  • Total Land Titles fees ≈ $1,180 (plus legal, appraisal, and other third‑party costs).

Regulations evolve; verify current municipal bylaws and any condo/strata rules before purchasing for STR use.

• Calgary (in force 2025): Business licence required; select the correct category (Primary Residence vs Non‑Primary Residence). Amended bylaws expanded the STR definition (up to 180 consecutive days) and require licence numbers on ads.
• Edmonton: Business licence required per dwelling; licence number must appear on advertisements. Development/Building permits may be needed for listings with multiple sleeping units. No city‑wide principal‑residence requirement as of late 2025.

• Confirm zoning and suite legality (for secondary suites) and register where required.
• Review condo bylaws, minutes, budgets, and any rental/STR rules.
• Obtain realistic rent comps; remember lenders may haircut rents (50–80%).
• Stress‑test cash flow for rate changes, vacancies, special assessments, and maintenance.
• Set aside contingency reserves to improve approval odds and portfolio resilience.