The Complete First-Time Buyer Guide

From pre-approval to closing day.

Most first-time buyers ask what can I afford? before they ask what will a lender actually approve? — and they budget the downpayment without ever costing the closing. Here is the process in the order it really happens, in Alberta and in BC.

Step 1: The downpayment is tiered

• Up to $500,000 — 5% of the price.
• $500,000–$1,500,000 — 5% on the first $500K plus 10% on the balance. On an $800,000 home: $25,000 + $30,000 = $55,000.
• Above $1,500,000 — 20% minimum, and no default insurance is available at all.

Under 20% down is a high-ratio mortgage requiring CMHC (or Sagen/Canada Guaranty) insurance — roughly 2.8%–4.0% of the loan, added to the mortgage rather than paid in cash. Insured buyers usually get a lower rate, so stretching to exactly 20% isn't automatically cheaper.

Step 2: Pass the stress test before you shop

Every federally regulated lender qualifies you at the greater of your contract rate plus 2%, or 5.25%. Sign at 4.4% and you're underwritten at 6.4%. That rule sets your real ceiling — not a bank website's calculator.

"A pre-approval with documents in — T4s, notices of assessment, pay stubs, gift letter — is a negotiating asset. A rate quote is a screenshot."

Step 3: Stack the buyer programs

1. FHSA. $8,000 a year to a $40,000 lifetime cap. Deductible going in like an RRSP, tax-free coming out like a TFSA.
2. RRSP Home Buyers' Plan. Up to $60,000 per person, repayable over 15 years. Funds must sit 90 days before withdrawal — plan the timing.
3. Use both. A couple can assemble six figures of downpayment without triggering tax.

Step 4: Closing costs — Alberta vs BC

Alberta has no land transfer tax. You pay Land Titles registration fees only: a small base charge plus a per-thousand levy on the price and on the mortgage. On a $500,000 Calgary purchase that's typically a few hundred dollars.

BC does charge Property Transfer Tax — 1% on the first $200,000, 2% to $2,000,000, 3% above. On an $1,100,000 Burnaby home that's $20,000. The First Time Home Buyers' exemption can reduce or eliminate it; confirm eligibility before you write the offer.

Budget separately for legal fees ($1,200–$2,000), title insurance, inspection ($400–$700), tax and utility adjustments, and GST on new construction.

Step 5: Protect yourself in the offer

• Financing. Pre-approval isn't final approval — the lender still has to approve the property.
• Home inspection. Non-negotiable on resale. Poly-B plumbing, aluminum wiring and aging shingles are all findable and all expensive.
• Condo documents. Alberta: the estoppel certificate. BC: the Form B, two years of minutes, the depreciation report and the reserve-fund balance. A thin reserve fund is a future special assessment with a date on it.

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Buying your first home in Alberta or BC and want the numbers run on your actual file? Book a 20-minute chat with our team — no cost, no obligation.