First-Time Home Buyer Alberta 2025 — Programs, Benefits & $0 LTT

Q: 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.

Q: 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.

Q: 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%.

Q: 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.

Alberta First-Time Buyers: The Most Advantaged in Canada First-time buyers in Alberta (Calgary and Edmonton) face lower prices than Toronto or Vancouver AND pay $0 provincial land transfer tax. Combine federal FHSA tax deductions, the Home Buyers' Plan and CMHC insurance and you have a powerful set of programs working in your favour.

Alberta $0 Land Transfer Tax — Your Biggest Advantage

Land Transfer Tax on Your First Alberta Home ($500,000)

Alberta (Calgary or Edmonton) $0

British Columbia (PTT) ~$8,000

Ontario (provincial LTT) ~$6,475

Toronto (Ontario + Toronto LTT) ~$12,950

Your Alberta Savings vs Toronto Up to $12,950 saved

FHSA — First Home Savings Account

First Home Savings Account (FHSA)

Up to $8,000/year tax deduction

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

FHSA + Alberta No LTT = The Best First-Time Buyer Scenario in Canada An Alberta first-time buyer who maximizes the FHSA for 5 years contributes $40,000 tax-deductible, grows it tax-free and withdraws it tax-free — then pays $0 land transfer tax on their Calgary or Edmonton home. No other province offers this combination.

Home Buyers' Plan (HBP)

RRSP Home Buyers' Plan

Up to $35,000 from RRSP

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

Required for <20% down payment

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)

Up to $1,500 tax credit

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

Purchase Price: $520,000 Down Payment %: 10%

Best Banks for Saving Your Down Payment in Alberta

Best Accounts for FHSA & Down Payment Savings 2025 KOHO: 3.0% on everyday balance, $0 fees — best for daily banking + savings. EQ Bank: 3.75% FHSA and TFSA — best pure savings rate. Both are far superior to TD, RBC, Scotiabank, BMO or CIBC offering 0.01% on savings.

Start Saving for Your Alberta Home — Earn 3.0% While You Wait

KOHO pays 3.0% interest on your down payment savings with $0 fees. On $30,000 saved, that's $900/year — vs $3 at TD or RBC. Use code 45ET55JSYA for a $100 bonus.

Open KOHO Free — 3.0% on Down Payment Savings

Alberta 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.