For BuyersBuying a Home
How much do I need for a down payment?
In Canada, the minimum is 5% on the first $500,000 of the purchase price, and 10% on the portion between $500,000 and $1 million. Homes over $1 million require 20% down. A larger down payment lowers your monthly costs, and reaching 20% lets you avoid mortgage default (CMHC) insurance.
Should I get pre-approved before looking at homes?
Yes. Pre-approval gives you a clear budget and shows sellers you're serious. It also helps you avoid falling in love with a home outside your price range, and locks in a rate to protect you if rates rise.
What extra costs should I budget for when buying?
Beyond your down payment, plan for closing costs (legal fees, title insurance, adjustments), a home inspection, moving expenses, and ongoing costs like utilities and property taxes. Good news for Alberta buyers: Alberta has no land transfer tax, just modest land title registration fees, which keeps closing costs lower than in most provinces.
Do I need a real estate agent to buy?
While you can search online, a buyer's agent helps you find the right home, negotiate price, handle the paperwork, and protect your interests, typically at no cost to you, since the seller usually pays the commission.
How long does it take to buy a home?
On average, 30 to 60 days from accepted offer to possession, though timing depends on your financing, inspections, and market conditions.
What's the difference between pre-qualification and pre-approval?
Pre-qualification is a rough estimate based on information you provide. Pre-approval is a firmer commitment from a lender after they verify your details, and it carries far more weight with sellers.
What's included in closing costs?
Typically around 1.5% to 4% of the purchase price. In Alberta this covers legal fees, title insurance, land title registration fees, and any lender fees, but not a land transfer tax, which Alberta doesn't have.
Can I use my RRSP for a down payment?
Yes. Under the federal Home Buyers' Plan, first-time buyers can withdraw up to $60,000 each ($120,000 for a couple) from their RRSP tax-free toward a home. The withdrawal must be repaid to your RRSP over time.
Should I buy new construction or resale?
New builds offer modern finishes and warranties but often longer timelines. Resale homes come with established neighbourhoods, mature trees, yards, and usually faster move-in. The right choice depends on your priorities, timeline, and budget.
Do I need a home inspection?
Yes, even if the home looks perfect. An inspection protects you by uncovering hidden issues, foundation, roof, electrical, plumbing, before you're committed. It's a small cost that can save you a great deal.
