In This Guide
Alberta $0 Land Transfer Tax — Your Biggest Advantage
Land Transfer Tax on Your First Alberta Home ($500,000)
FHSA — First Home Savings Account
First Home Savings Account (FHSA)
The FHSA is the most powerful tool for Alberta first-time buyers. It combines an RRSP-style tax deduction with a TFSA-style tax-free withdrawal — when used to buy a qualifying first home.
- Annual contribution limit: $8,000/year
- Lifetime contribution limit: $40,000
- Contributions are tax-deductible (like an RRSP)
- Withdrawals for a qualifying home purchase are completely tax-free
- If not used for a home, can transfer to RRSP tax-free
- Must be a first-time home buyer and Canadian resident to open
Home Buyers' Plan (HBP)
RRSP Home Buyers' Plan
The Home Buyers' Plan lets first-time buyers withdraw up to $35,000 from their RRSP (per person, $70,000 per couple) tax-free to buy their first home.
- Withdraw up to $35,000 from RRSP tax-free
- Couples can each withdraw $35,000 = $70,000 combined
- Must repay to RRSP over 15 years (1/15 per year)
- If not repaid, the annual repayment is added to your taxable income
- Funds must have been in RRSP for at least 90 days before withdrawal
CMHC Mortgage Insurance
CMHC Mortgage Loan Insurance
CMHC mortgage insurance is required when your down payment is less than 20%. It protects lenders but allows buyers to purchase with as little as 5% down. The premium is added to your mortgage.
- 5–9.99% down: 4.0% premium on insured amount
- 10–14.99% down: 3.1% premium
- 15–19.99% down: 2.8% premium
- 20%+ down: No CMHC required
- Only available for homes under $1,500,000
- Alberta buyers benefit: same CMHC + $0 LTT
Home Buyers' Tax Credit
First-Time Home Buyers' Tax Credit (HBTC)
The federal HBTC provides a non-refundable tax credit of $100 × 15% = $1,500 for eligible first-time buyers in the year of purchase.
- $100 credit amount × 15% federal tax rate = $1,500 tax reduction
- Available in the tax year you buy
- Split between you and your partner if co-buying
- Must be first-time buyer (no home owned in prior 4 years)
Alberta First-Time Buyer Cost Calculator
Your Alberta First-Time Buying Costs
Best Banks for Saving Your Down Payment in Alberta
Start Saving for Your Alberta Home — Earn 3.0% While You Wait
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Open KOHO Free — 3.0% on Down Payment SavingsAlberta First-Time Buyer FAQ
Does Alberta have a first-time home buyer rebate or program?
Alberta does not have a provincial first-time home buyer rebate (unlike Ontario's LTTO rebate). However, Alberta's advantage is better: $0 provincial land transfer tax applies to ALL buyers — so there's nothing to rebate. Every Alberta buyer saves $8,000–$20,000 vs Ontario/BC equivalents.
Can I use both the FHSA and Home Buyers' Plan in Alberta?
Yes. Federal rules allow you to use both the FHSA (up to $40,000 lifetime) and the Home Buyers' Plan (up to $35,000 from RRSP) for the same home purchase. A couple could potentially access $40,000 + $40,000 FHSA + $35,000 + $35,000 HBP = $150,000 combined — plus Alberta's $0 LTT savings.
What is the minimum down payment for a home in Alberta 2025?
5% on the first $500,000 of purchase price, 10% on any amount between $500,001 and $999,999, and 20% minimum on homes $1,000,000 and over. CMHC insurance is required for any down payment under 20%.
Is there a first-time buyer advantage for new construction in Alberta?
New construction in Alberta is subject to GST (5%) on the purchase price, though there is a GST new housing rebate available for homes under $450,000 (full rebate) tapering to $0 at $450,000. Alberta has no provincial new housing rebate. The $0 LTT applies to new construction as well.