What’s the best way to buy your first home in Calgary without making costly mistakes?
Follow this clear, step-by-step plan to confidently buy your first home in Calgary without stress or surprises. Whether you're just starting to plan or you're almost ready to buy, here's exactly what you need to know.
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If you'd rather watch a video version of this guide, you can check out the full walkthrough here: Watch the Video Guide on Buying Your First Home in Calgary
Step 1: Understand Your First-Time Buyer Savings Tools
Before you even think about viewing homes, it's crucial to understand the savings tools available to you as a first-time buyer in Canada.
First Home Savings Account (FHSA): This account was designed specifically to help first-time buyers. You can contribute up to $8,000 per year, with a lifetime cap of $40,000. Contributions are tax-deductible, meaning you can reduce your taxable income by the amount you contribute. Even better, any growth within the account is tax-free, and withdrawals used to purchase your first home are also tax-free. It's like combining the best features of an RRSP and a TFSA.
Registered Retirement Savings Plan (RRSP): The RRSP has a Home Buyers' Plan (HBP) that allows you to withdraw up to $60,000 (up from $35,000) per person to buy your first home. If you're buying with a partner, that means up to $120,000 total. Unlike the FHSA, however, you must repay this amount over 15 years. If you already have an RRSP, this could be a great resource.
Both accounts can be used together, maximizing your ability to save efficiently.
Step 2: Learn the New Down Payment Rules
Canada's minimum down payment rules vary based on the price of the home:
For homes under $500,000: Minimum 5% down
For homes between $500,000 and $1 million: 5% on the first $500,000 and 10% on the remaining amount
For homes over $1.5 million: Minimum 20% down
A recent change increased the threshold for insured mortgages from $1 million to $1.5 million. This means you can now purchase homes up to $1.5 million with less than 20% down a significant shift that reduces upfront costs for many buyers.
Another update: insured mortgages can now have a 30-year amortization period (up from 25 years). This spreads payments out, lowering your monthly obligation. However, keep in mind that you’ll pay more in interest over the long term.
Step 3: Create a Savings Strategy That Works
Even if you have strong income and mortgage approval, saving for a down payment can still be a challenge. Calgary’s market has seen rapid price growth in recent years, although things are stabilizing.
A great approach is to simulate your future budget. If you're currently paying $2,000/month in rent and anticipate homeownership costs of $3,000/month, start saving that $1,000 difference now. This builds your savings while preparing you for your future budget.
Also, track your expenses closely. Use budget planners (many available affordably online) to see exactly where your money is going and where you can cut back. Creating a detailed monthly savings goal and sticking to it is one of the most powerful steps you can take.
Step 4: Get Pre-Approved for a Mortgage Early
Don't wait until you're ready to buy to speak with a mortgage broker. A pre-approval does three key things:
Tells you your actual price range
Helps you plan your down payment and closing costs
Makes your offer stronger when you find the right home
Even if you're a few years away, a broker can guide you on what to improve: credit score, debt load, savings targets, and more. This way, you can work toward qualifying for a better mortgage.
You'll also choose between a fixed-rate and variable-rate mortgage:
Fixed-rate: Payments stay the same for the term; great for budgeting
Variable-rate: Payments can fluctuate with market interest rates; historically lower cost but less predictable
The right option depends on your risk tolerance and financial goals.
Step 5: Plan for the Future You, Not Just Present You
Many first-time buyers only think about today’s needs. But since most people stay in their home for 5–7 years, it's smart to plan ahead.
Ask yourself:
Will your family grow? Kids, aging parents, etc.
Will your job or commute change?
Will you need more space, less space, or a different layout?
What lifestyle do you want to maintain? Proximity to parks, mountains, walkable areas, etc.
Answering these helps you avoid buying a home you outgrow too soon.
Step 6: Understand the Full Buying Timeline
Buying a home takes time, and rushing the process can lead to bad decisions. Here’s a general timeline:
Pre-approval: 1–2 weeks
Home search: 1–5 months (average is 1–3 months)
Offer/negotiation: 1–3 days
Conditions period: 7–14 days
Possession: 30–90 days after conditions removed
In total, plan for a 2–4 month process minimum. Work backward from your desired move-in date so you’re never in a scramble.
Step 7: Know What Goes Into a Real Estate Offer
A home offer in Calgary includes:
Price: The amount you’re willing to pay
Deposit: Paid within 3 days of offer acceptance; ranges from 3–5% of price
Conditions:
Financing: Confirms the lender approves the specific home
Inspection: Ensures the home is in good condition
Condo Review (if applicable): Third-party review of financials and bylaws
Possession Date: Typically 30–90 days after firm offer
Inclusions/Exclusions: Lists items that stay or go (appliances, blinds, etc.)
Make sure your deposit funds are ready and easily accessible, don't tie them up in investment accounts.
Step 8: Budget for Closing Costs and Extra Expenses
Your down payment isn't the only cash you'll need. You should also budget 3–5% of the purchase price for closing costs, which include:
Legal fees
Title insurance
Property tax adjustments
Home insurance
Moving costs
Condo fee adjustments (if applicable)
Example: On a $500,000 home, budget $15,000–$25,000 in closing costs.
Also consider furnishing costs. Buyers often underestimate how much it takes to furnish a new, often larger, space. Create a separate budget for that early on.
Step 9: Know the Calgary Market Metrics That Matter
Understanding the market helps you make smart, confident decisions. Key metrics include:
Average Sale Price: What homes are actually selling for, not list prices
Days on Market (DOM): How quickly homes are selling
List-to-Sale Ratio: Are homes selling for above or below asking?
Inventory Levels (Months of Inventory):
Below 2.5–3 months: Seller’s market
3–5 months: Balanced market
Over 5 months: Buyer’s market
These numbers shift by neighborhood, property type, and season, so make sure you're tracking them during your search.
Step 10: Use the "No 7s" Rating System
Every home you tour? Rate it out of 10, but you can't use 7.
6 or below: Cross it off the list
8: Has potential with minor upgrades or layout tweaks
9: Strong contender
10: Expect multiple offers, act fast
Removing 7 as a score forces you to make clearer decisions and helps top contenders stand out quickly.
Step 11: Calculate the True Cost of Ownership
Many buyers only consider the purchase price and mortgage. But homeownership involves fixed and variable costs:
Fixed:
Mortgage payments
Property taxes
Home insurance
Condo fees (if applicable)
Variable:
Utilities (heating, water, electricity)
Maintenance and repairs
Set aside 1% of the home's value annually for repairs. That’s $5,000/year on a $500,000 home. This fund will cover things like roof issues, appliance replacements, and routine upkeep.
Budgeting for these costs ensures you can truly afford the home without becoming house poor.
Final Thoughts
Buying your first home in Calgary is one of the biggest financial steps you'll ever take. But with the right roadmap, it doesn’t have to be confusing or overwhelming. Now that you know exactly what to do, when to do it, and what to expect, you're in a strong position to move forward with confidence.
I'm Ryan Hawkins, a real estate agent here in Calgary, and I help first-time buyers like you navigate this process every day. If you're ready to take the next step or even if you're just curious where to begin, schedule a quick call and let's map out your home buying journey together.
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Click below to schedule a quick call. Whether you're buying now or just gathering info, I’m here to help guide you through it all.