Mortgages

Buy your first home in Alberta.

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The six steps to buying your first home in Alberta

1: Determine your down payment

The minimum down payment is 5%. Down payments less than 20% require mortgage default insurance*. If you haven’t started building a down payment, the best time to begin is now.

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2: Figure out how much home you can afford

Many factors influence the size of mortgage you can carry. Our Mortgage Affordability Calculator can estimate the maximum mortgage you will be able to afford.

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The Mortgage Affordability Calculator relies on your inputs and doesn’t take into consideration your credit score. It’s a good place to start to understand how much you will be able to afford in the early stages, helping you to determine approximately how much you’ll be able to borrow based on your estimated down payment and current rates.

You can use the results from the calculator to discuss your options in more detail with a mortgage expert as you start shopping for your first home.

If you are already shopping for your first home, it’s best to move onto the next step of getting pre-approved for a mortgage as it will give you a level of certainty with a rate hold as you shop.

3: Get pre-approved for a mortgage

You can begin house shopping with an estimated mortgage amount and payment, plus a guaranteed rate hold for 120 days. You can do this online at any time, or with a mortgage expert.

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A mortgage pre-approval is a chance for your financial institution to fully evaluate your financial and credit situation and provide you a more precise dollar amount that you can be approved for. This means you’ll have a more accurate idea of the price you can afford and you’ll have less to worry about during your dream home search. A mortgage pre-approval shows that you’re a serious buyer, helps your real estate agent understand the price range you’re working with and can make the closing process faster—that’s one step closer to your dream home.

4: Make an offer with a real estate expert

You have two options—a conditional offer which lists criteria that must be met by the buyer and/or the seller, or an unconditional offer. Both are firm and legally binding.

Conditions are terms you include in an offer to buy a home. Common conditions deal with home inspections, the sale of another property, or insurance coverage.

A financing condition makes an offer conditional on the buyer’s ability to obtain financing—that is, the offer only stands if the buyer can qualify for a mortgage on the property.

In a hot housing market, a buyer might be tempted to waive all conditions to make their offer more attractive. This carries some risk, and should be discussed with a mortgage expert and real estate professional.

5: Finalize your mortgage with an expert

Once you have firmed up your offer, you can complete your mortgage application. This will include providing information about your income, financial situation & property details.

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6: Consult a lawyer and sign your mortgage agreement

You will partner with a lawyer when buying a home. Your lawyer will make sure the transaction adheres to legalities, and will finalize the paperwork with you.

Take the next step: Talk with a mortgage expert at ATB

When buying your first home, there’s no substitute for personal guidance from an expert. Wherever you are in your journey to buying your first home, we can help.

Featured rates for first time buyers

Term Residential Mortgage Rate First Residential Mortgage
5 Year High Ratio 4.59% 4.54%
5 Year Conventional 4.94% 4.89%
5 Year Variable High Ratio 4.30% N/A
5 Year Variable 4.70% N/A

The difference between a high ratio and conventional mortgage lies in the down payment amount and the requirement for mortgage default insurance.

A high ratio mortgage requires a down payment of less than 20% of the home's purchase price (between 5% and 19.99%). In Canada, it's mandatory to purchase mortgage default insurance for high ratio mortgages.

A conventional mortgage requires a down payment of 20% or more of the home's purchase price. Mortgage default insurance is not mandatory for conventional mortgages.

When buying a home in Canada, you’re required to have a minimum down payment of the following:

5% for homes $500,000 or less
5% on the first $500,000 and 10% for any amount above that for homes $500,000 or more
20% for homes $1,000,000 or more

An ATB Residential Mortgage provides flexible terms from 6 months to 7 years, with both fixed and variable rate options. You can make lump sum payments and increase payments of up to 20% of the original mortgage amount per year. With this mortgage, you have the ability to skip payments and refinance.

An ATB Rate First Residential Mortgage is our lowest rate mortgage, for a 5-year fixed term. You can make lump sum payments and increase payments of up to 10% of the original mortgage amount per year. With this mortgage, skipped payments and refinancings are not offered.

Government programs and initiatives for first time buyers

icon illustration piggy bank for FHSA

First Home Savings Account (FHSA)

The FHSA is a registered plan designed to help Canadians save for the down payment of their first home purchase. It allows you to save to buy or build a qualifying first home tax-free (up to certain limits).

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icon illustration putting money in a jar for HBP

Home Buyers’ Plan (HBP)

The HBP is a Government of Canada program that lets you withdraw money from your RRSPs for the down payment when buying or building your first home (within certain limits).

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icon illustration to show an insured mortgage

Insured mortgages

If your down payment is less than 20%, you’ll need mortgage default insurance. ATB works with three mortgage insurers: CMHC, Sagen and Canada Guaranty.

icon illustration to show 30-year amortization

30-year amortization

The Government of Canada increased the maximum amortization period to allow up to 30 year amortization on insured mortgages for first-time homebuyers purchasing a new construction home or existing home.

icon illustration to show affordable housing

Affordable housing

ATB works with programs in Alberta to help make home affordability more accessible for first-time home buyers; the First Place Program in Edmonton and Attainable Homes Calgary.

Take the next step.

Connect with a mortgage expert on buying your first home.

Frequently asked mortgage questions by first-time home buyers

This depends on a number of factors including your income, expenses and debts. Our Mortgage Affordability Calculator makes it easy to get an estimate of the maximum home price you may qualify for, so you can start your home buying journey

Our online mortgage pre-approval provides a more accurate picture of your purchasing power. Online pre-approval can be done in two business days. You can also connect directly with a mortgage expert to get pre-approved.

Purchase and possession of an existing dwelling must be within 120 days from the date of the mortgage application.

Construction and possession of a new home must be within 180 days from the date of the mortgage application. If the build or possession extends further than 180 days, this must be reviewed with your mortgage expert as additional approvals may be required.

In Canada, if you buy a home with a down payment of less than 20%, you are required to get mortgage default insurance. ATB works with three mortgage insurers who set insurance premiums: CMHC, Sagen and Canada Guaranty. To find out more about insurance premiums and their programs, visit their websites directly.

Mortgage default insurance lets you get a mortgage for up to 95% of the purchase price of a home. It can also help you get a lower interest rate on your mortgage.

When buying a home in Canada, you’re required to have a minimum down payment of the following:

  • Properties up to $500,000 requires a minimum of a 5% down payment
  • Properties over $500,000 and under $1,499,999 requires 5% down payment on the first $500,000 and a 10% down payment on the portion over $500,000
  • Properties $1,500,000 or more requires a 20% down payment as they don’t qualify for mortgage default insurance

ATB works with three mortgage insurers: CMHC, Sagen and Canada Guaranty.

Whether your RRSP or FHSA is with ATB or another financial institution, here are the steps to access the funds for your downpayment:

Qualifying tax-free withdrawals can be deposited to any deposit account of your choice or provided to you through a bank draft.

For the FHSA the answer is simple, no. There is no requirement to repay the money back into the account.

For the RRSP, the answer is a little bit more complex. You have up to 15 years to repay to your registered retirement savings plan (RRSP) the amounts you withdrew from your RRSP under the Home Buyers' Plan (HBP). Under the current rule, your repayment period starts the second year after the year when you made your first withdrawal from your RRSP under the HBP. For more information, visit the Government of Canada website.

The mortgage process from application to final funding varies in the time it takes. For some mortgages, it can take as little as a couple of business days. Factors that impact timing may include the following:

  • Possession date
  • Property appraisals and inspections
  • Complexity of your financial situation
  • Response time for document submission

To ensure a smooth and timely process, work with an experienced ATB mortgage expert who can guide you every step of the way.

Need help?

Our Client Care team will be happy to assist.