First-Time Home Buyer’s Guide to Alberta & Saskatchewan

Buying your first home is a big deal—especially in provinces like Alberta and Saskatchewan, where you’ll find a balance of affordability, government programs, and diverse housing options. Below is a step-by-step look at how the home-buying process works and what you need to know to make your first purchase easier and smarter.

1. Know Your Budget (Pre-Approval)

• Why It’s Important:
  A mortgage pre-approval tells you exactly how much money a lender is willing to give you. This helps you set a price range before you start looking at homes.

• How It Works:

  1. Contact a mortgage broker or bank.
  2. Provide financial info (income, debts, etc.).
  3. Get a letter confirming your maximum loan amount.

• Bonus:
  If you lock in a rate now but interest rates drop later, many lenders will let you switch to the lower rate before you finalize your mortgage.

2. Government Programs & Incentives

Below are some money-saving programs you should know about:

1. First-Time Home Buyers’ Tax Credit

   • A non-refundable credit that can save you up to $1,500 on your taxes.

2. Home Buyers’ Plan (HBP)

   • Withdraw up to $35,000 from your RRSP ($70,000 if you’re buying with a partner) without paying taxes upfront.
   • You pay it back into your RRSP over time.

3. First Home Savings Account (FHSA)

   • Combines RRSP and TFSA benefits: contributions are tax-deductible, and withdrawals (for your first home) are tax-free.
   • You can contribute up to $8,000 a year, with a lifetime max of $40,000.

4. 30-Year Amortization (New Builds)

   • For some newly built homes, insured mortgages can sometimes be stretched to 30 years.
   • Means lower monthly payments but more interest in the long run.

5. No Land Transfer Tax in Saskatchewan

   • You pay smaller registration fees instead, which can save money at closing.

3. Pick the Right Realtor

• Why It’s Free for You:
  Typically, the seller pays both realtors’ commissions. As a buyer, this means you get expert help at no direct cost.

• How They Help:

  • Show you homes matching your budget and wish list.
  • Handle paperwork and negotiate deals on your behalf.
  • Guide you on local market trends in Calgary, Edmonton, Regina, Saskatoon, and beyond.

4. Finding Your Perfect Home

• Make a List:

  • Must-Haves: Location, number of bedrooms, nearby schools, etc.
  • Nice-to-Haves: Finished basement, big backyard, extra garage space.

• Market Differences:

  • Alberta: Typically higher home prices than Saskatchewan, but still cheaper than Ontario or BC.
  • Saskatchewan: Often more affordable homes, and no formal land transfer tax.

• Urban vs. Rural:

  • Urban: Close to jobs, amenities, public transit—but can be pricier.
  • Rural: More land and lower prices, but fewer conveniences.

5. Making an Offer

When you find the right home:

1. Offer Price: Decide how much to bid. In a seller’s market (high demand, low supply), you might need to offer close to or above asking.
2. Possession Date: Day you officially get the keys—must be a business day.
3. Deposit (also called “earnest money”): Usually paid within a few days of the seller accepting your offer. It goes towards your down payment if the deal closes.
4. Conditions:
   • Financing: Protects you if your lender doesn’t finalize the loan.
   • Inspection: Lets you back out or renegotiate if the home has major issues.
   • Sale of Current Home: If you need to sell your place first (less common for first-timers).

6. Condition Period

• What It Is:
  A window (often around 7–10 days) where you check off your conditions. If all is good, you waive them, and the sale becomes “firm.”

• Typical Checks:

  1. Financing: Lender confirms the house and your finances are okay.
  2. Inspection: A professional inspects the property for any serious problems.
  3. Condo Docs (if applicable): Review building finances and bylaws to avoid surprises like special assessments.

7. Getting Ready to Move

• Timeline:
  After you waive conditions, you might have a few weeks or months until possession. Use this time to:

  • Transfer accounts (utilities, internet, etc.).
  • Arrange movers or rent a truck.
  • Confirm your final financing details with your lender.

• Stay Steady:
  Avoid changing jobs or making large purchases (cars, furniture on credit) before possession day, as it can mess up your mortgage approval.

8. Possession Day (Closing Day)

• What Happens:

  • Your lawyer and lender handle final paperwork and money transfer.
  • You get the keys, typically around noon, but delays can happen.

• Tip:
  Don’t schedule movers or delivery trucks exactly at 12:00. Funding can take extra time.

• Celebrate:
  You’re officially a homeowner!

Alberta & Saskatchewan: Pros & Cons

Pros

• Affordable Options: Generally cheaper than Ontario or BC.
• No Land Transfer Tax in SK: You pay small registration fees instead.
• Economic Growth: Alberta’s tech and energy rebound; Saskatchewan’s strong resources sector.
• Programs & Incentives: Plenty of help for first-timers (tax credits, mortgage insurance flexibility).

Cons

• Economic Fluctuations: Oil and agriculture can shift quickly, affecting jobs and home prices.
• Competitive Urban Markets: Calgary, Edmonton, Saskatoon, Regina can see bidding wars if inventory is low.
• Extra Closing Costs: Inspection, lawyer fees, registration fees (SK) or possible land transfer-related costs (AB).
• Location Trade-Offs: Rural affordability vs. fewer amenities.

Next Steps & Future Resources

Want more details? Consider these articles:

1. First Home Savings Account (FHSA)
   • Step-by-step on how to open, contribute, and withdraw tax-free.
2. 30-Year Amortization: Pros & Cons
   • Lower monthly payments vs. paying more interest overall.
3. New $1.5M Insured Mortgage Cap
   • How it helps buyers with under 20% down in competitive markets.
4. Condo Living vs. Single-Family Homes
   • Comparing fees, maintenance, lifestyle, and resale value.
5. How to Navigate a Seller’s Market
   • Tips for winning in a bidding war and staying within budget.
6. Leveraging Equity
   • Refinancing tips for renovations, investments, or debt consolidation.

Simple Conclusion

Homeownership in Alberta or Saskatchewan is within reach—just follow these steps, lean on government programs, and work with professionals who know the local markets. Preparation is key:

1. Get pre-approved,
2. Explore incentives,
3. Find a trusted realtor,
4. Lock down the perfect home with a solid offer,
5. Check all conditions,
6. Get ready to move,
7. Celebrate your new space!

If you have questions or need tailored advice, reach out to a local real estate expert or mortgage broker. The more you know, the smoother your journey to becoming a first-time home buyer will be.