Content reviewed: October 2, 2026
A guide to home financing in Alberta
Plan for your down payment, mortgage approval and closing costs. This guide covers common financing considerations for owner-occupied homes; investment properties and commercial mortgages require a separate assessment.
Step by step
Plan cash needs and monthly costs separately
Budget for legal services, title and mortgage registration, inspection, insurance, adjustments and moving as well as the down payment. Check Alberta Land Titles for current registration charges.
Visit the official resource ↗Prepare documents and seek preapproval
Lenders typically review your income, employment, assets, debts, credit history and source of down payment. Preapproval helps establish a budget, but final approval depends on the property and a review of your complete application.
Visit the official resource ↗Understand the down payment and insurance
The table shows common minimums; a lender may require more. Below 20%, mortgage default insurance is usually required. It protects the lender and is different from property insurance.
Visit the official resource ↗Compare the full mortgage terms
Compare fixed or variable rates, term, amortization, prepayment privileges and penalties. The term is the length of the current contract; amortization is the expected repayment period.
Visit the official resource ↗Confirm final approval and conditions
Discuss financing conditions with your agent and lawyer. For new uninsured purchase mortgages at federally regulated lenders, the usual stress test is the higher of the contract rate plus two percentage points or 5.25%. Preapproval alone is not a reason to waive financing conditions.
Visit the official resource ↗Complete legal and funding requirements
Provide funds and documents as instructed by your lender and lawyer. Confirm insurance, funding conditions and possession. Tell the lender about changes in income or debts before funding.
Visit the official resource ↗Minimum down payments at a glance
| Purchase price (CAD) | Common minimum down payment |
|---|---|
| Up to $500,000 | 5% of the purchase price |
| Above $500,000 and below $1,500,000 | 5% of the first $500,000 + 10% of the remainder |
| $1,500,000 or more | 20% of the purchase price |
Example: a $700,000 owner-occupied home
An illustration of the down payment only. Mortgage insurance, closing costs and cash reserves are extra; this is not an approval or eligibility assessment.
Sources
All amounts are in Canadian dollars. Rules reflect the review date; your lender and insurer determine eligibility, down payment and rate.