What is the minimum down payment required to buy a home in Alberta?
In Canada, the minimum down payment depends on the purchase price. For homes priced at $500,000 or less, it's generally 5%. Between $500,000 and less than $1.5 million, you'll need 5% of the first $500,000 and 10% of the remaining amount. Homes priced at $1.5 million or more generally require at least 20% down. If your down payment is less than 20%, mortgage default insurance is usually required. Your lender may also have additional requirements based on your financial circumstances. It's important to know that if your down payment is less than 20%, you'll generally be required to purchase mortgage default insurance, commonly referred to as CMHC insurance. This insurance protects the lender and is an additional cost to the buyer. The premium is calculated based on your mortgage amount and down payment percentage and can usually be added to your mortgage. I always recommend speaking with a mortgage professional to understand your down payment options and the total costs involved before starting your home search.

Alberta Down Payment Rules at a Glance


  • 5% minimum on the first $500,000 of the purchase price.
  • 10% on the portion between $500,000 and $1.5 million.
  • 20% minimum for homes priced at $1.5 million or more.
  • Down payments under 20% require mortgage default insurance.

A Worked Example


On a $650,000 home, the minimum down payment would be 5% of $500,000 ($25,000) plus 10% of the remaining $150,000 ($15,000), for a total of $40,000. On a $450,000 home, 5% would be $22,500.


Mortgage Default Insurance Premiums


Insurance is provided by CMHC, Sagen, or Canada Guaranty. The premium is a percentage of your mortgage amount, and it decreases as your down payment increases. Typical premiums are:


  • 5% to 9.99% down: 4.00% of the mortgage
  • 10% to 14.99% down: 3.10%
  • 15% to 19.99% down: 2.80%

A small surcharge may apply if you choose a 30-year amortization. Unlike in some provinces, Alberta doesn't charge provincial sales tax on the premium, which is usually added to your mortgage balance.


Insured Mortgage Rules


Since December 2024, insured mortgages are available on homes priced up to $1.5 million. Insured mortgages generally have a maximum 25-year amortization, while first-time buyers and buyers of newly built homes may qualify for 30 years.


Where Your Down Payment Can Come From


Savings, investments, an FHSA, RRSP funds under the Home Buyers' Plan, and eligible gifts from immediate family are common sources. Lenders will ask for documentation showing where the funds came from.


Plan Ahead


A mortgage professional can confirm the exact down payment and insurance costs for your situation before we begin viewing homes.