Why Buy Your First Home in Edmonton?

Edmonton offers first-time buyers a unique combination of affordability compared to other major Canadian cities, diverse neighbourhoods, and a strong sense of community. Understanding the market here is your first step toward successful home ownership.

Step 1: Understand the Costs (Beyond the Price Tag)

Many first-time buyers are surprised by the additional costs. Here’s what you need to budget for:

  • Down Payment: The minimum in Canada is 5% of the first $500,000 and 10% for the portion above $500,000. On a $400,000 home, the minimum down payment is $20,000.
  • Mortgage Loan Insurance: If your down payment is less than 20%, you must purchase mortgage default insurance from CMHC, Sagen, or Canada Guaranty. This cost is added to your mortgage. On a $380,000 mortgage, this could be roughly $15,000.
  • Closing Costs: Budget 1.5% - 2.5% of the purchase price for:
  • Legal Fees (~$1,000 - $1,500)
  • Home Inspection (~$500 - $700)
  • Land Title Transfer Fee
  • Property Tax & Utility Adjustments
  • Moving & Initial Costs: Don't forget moving expenses, new furniture, and immediate repairs.

Step 2: Get Your Finances in Order

A. Check Your Credit Score

Your credit score significantly impacts your mortgage interest rate. Aim for a score above 680. Check your report for free through Borrowell or Credit Karma and dispute any errors.

B. Get Pre-Approved

A mortgage pre-approval is crucial. It:

  • Tells you exactly how much you can afford.
  • Locks in an interest rate for 90-120 days.
  • Shows sellers you are a serious, qualified buyer.

Step 3: Know Your Edmonton First-Time Buyer Programs

1. First-Time Home Buyer Incentive (FTHBI)

  • What it is: A shared-equity program where the government provides 5% or 10% of the home's purchase price to put toward your down payment.
  • How it helps: Lower your monthly mortgage payments without increasing your down payment.
  • Repayment: You repay the incentive after 25 years or when you sell the home, based on the property's current market value.

2. Home Buyers' Plan (HBP)

  • What it is: Allows you to withdraw up to $35,000 from your RRSPs tax-free to use for your down payment.
  • Repayment: You must repay the amount withdrawn within 15 years.

3. Alberta First-Time Home Buyer Exemption

  • What it is: A provincial program that exempts you from paying land transfer taxes on the first $500,000 of your home's value. This can save you thousands of dollars.

Step 4: Find the Right Edmonton Neighbourhood & Home

Consider your lifestyle:

  • Commute: Proximity to work or LRT lines.
  • Amenities: Access to parks, rec centres, and shopping.
  • Lifestyle: Are you looking for a quiet suburban feel (e.g., Terwillegar) or a vibrant urban core (e.g., Oliver)?
  • Future Plans: Are schools and family-friendly amenities important?

Step 5: Make an Offer & Close the Deal

  • Work with a REALTOR®: A buyer's agent represents your interests and helps you negotiate the best price and terms. Their commission is typically paid by the seller.
  • Home Inspection: Always make your offer conditional on a satisfactory home inspection. It's a few hundred dollars that can save you thousands.
  • Closing: Your lawyer will handle the final paperwork, land title transfer, and key exchange.


You Don't Have to Do This Alone

The journey to homeownership is exciting, but it's okay to have questions. We specialize in helping first-time buyers in Edmonton navigate the entire process with confidence.

Schedule a free, no-pressure consultation to get all your questions answered.

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Data last updated on November 2, 2025 at 09:30 AM (UTC).
Copyright 2025 by the REALTORS® Association of Edmonton. All Rights Reserved.
Data is deemed reliable but is not guaranteed accurate by the REALTORS® Association of Edmonton.
The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA.