First-Time Buyers • Calgary • Alberta
The short answer. On a $566,700 home, Calgary’s September 2026 benchmark price, the minimum down payment is about $31,700. That is 5% of the first $500,000 ($25,000), plus 10% of the remaining $66,700 ($6,670). Budget for closing costs and mortgage default insurance too.
Many first-time buyers think they need 20% down. You do not, but the rules have a few steps. Here is how it works.
The Minimum Down Payment Rules
| Purchase price | Minimum down payment |
|---|---|
| Up to $500,000 | 5% |
| $500,000 to $1,499,999 | 5% of the first $500,000, plus 10% of the rest |
| $1.5 million and up | 20% |
Calgary Examples
| Home price | Minimum down payment |
|---|---|
| $400,000 | $20,000 |
| $566,700 (Calgary benchmark) | $31,670 |
| $700,000 | $45,000 |
Less Than 20% Down? Plan for Mortgage Insurance
With less than 20% down, your mortgage needs default insurance from CMHC, Sagen or Canada Guaranty. The premium is a percentage of your mortgage, and it is usually added to your mortgage rather than paid up front.
With 5% down on the benchmark home, the mortgage is about $535,000. A 4% premium adds roughly $21,400 to the balance. Put more down and the premium percentage drops.
Do Not Forget Closing Costs
Alberta has no land transfer tax, which helps. You will still need cash for legal fees, a home inspection, title insurance, property tax adjustments and moving. Lenders want to see about 1.5% of the purchase price set aside for these.
Ways to Build Your Down Payment
- 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 are tax-free.
- RRSP Home Buyers’ Plan: withdraw up to $60,000 per person ($120,000 for a couple), repaid over 15 years.
- A gift from family: most lenders accept a gifted down payment from immediate family with a signed gift letter. See How to Help Your Kids Buy a Home.
- Buying new? First-time buyers may qualify for a GST rebate. See First-Time Home Buyers’ GST Rebate on New Homes.
What This Means For You
On a typical Calgary home, you need more than 5% but far less than 20%. Pair your FHSA and RRSP savings and you may be closer than you think. Get pre-approved, so you know your real number before you fall in love with a listing. Also see Can First-Time Buyers Get a 30-Year Mortgage?
FAQ
Can I buy a home in Calgary with 5% down?
Yes, on the first $500,000 of the price. Above that, you need 10% on the portion over $500,000.
Can I use my FHSA and RRSP together?
Yes. You can use both for the same home purchase if you qualify as a first-time buyer.
Is a down payment gift allowed?
Yes, from immediate family, with a signed gift letter confirming it does not need to be repaid.
What credit score do I need?
Requirements vary by lender. See How Can I Improve My Credit Score?
Ready to Find Your Number?
Get pre-approved with our team in Calgary, Airdrie, Cochrane, Fort McMurray or the Columbia Valley. Call (403) 466-6654 or email info@advancedmortgage.ca.
Cheers,
Trevor
(403) 466-6654 • info@advancedmortgage.ca • Mon–Fri 8 AM–8 PM, Sat–Sun 10 AM–6 PM (MT)
