Can I Afford to Buy a New Home in Alberta?

First-time buyers: you’re closer than you think. You don’t need a 20% down payment. 5% gets you in the door on homes under $500,000. The bigger question is how much mortgage you qualify for, which depends on your income, existing debts, and the federal stress test. Use the calculator below to find your number in under a minute

Most first-time buyers think they can’t afford it.

You don’t need 20% down. In Alberta, the minimum down payment is 5% on homes under $500,000. Between $500,000 and $999,999, it’s 5% on the first $500,000 and 10% on the remainder. A 20% down payment is only required on homes $1,000,000 and over.

Alberta also has no provincial land transfer tax — unlike BC or Ontario, where that cost alone can add tens of thousands to a purchase. It’s one of the real financial advantages of buying here.

Find your number.

Enter what you know — leave blank what you don’t. Income and down payment together give the most useful picture, but the calculator works with whatever you have.

The stress test.

Every mortgage applicant in Canada must pass the federal stress test. You qualify at the higher of your actual rate plus 2%, or 5.25% — whichever is greater. It’s not a lender preference. It’s a federal rule that applies everywhere.

In practice, it means you qualify for less than the headline rate would suggest. The calculator uses the stress test rate automatically, so your result reflects what you’ll could be approved for.

Don’t forget GST.

New homes in Alberta are subject to 5% GST on the purchase price. On a $600,000 home, that’s $30,000.

A partial rebate applies for primary residences. And if you are a first-time buyer who signed after March 20, 2026, you may qualify for a full GST rebate on homes under $1,000,000, which is worth up to a savings of $50,000. Learn more about the first-time home buyers rebate program here.

CMHC insurance: what it costs.

If your down payment is under 20%, mortgage default insurance is mandatory in Canada. The premium is calculated as a percentage of your mortgage and added to your balance.

• 5% to 9.99% down — 4.00% premium.
• 10% to 14.99% — 3.10%.
• 15% to 19.99% — 2.80%.
• 20% or more — no insurance required.

On a $500,000 mortgage with a 5% down payment, the premium adds roughly $385 to your monthly payment. For most buyers, it’s a reasonable cost of getting into the market sooner.