Homebuying is an exciting milestone for Albertans, but it can also feel overwhelming. From understanding down payment requirements to navigating mortgage stress tests and interest rates, there’s a lot to consider. As a trusted mortgage broker in Alberta, I help homebuyers understand the process, find the best mortgage rates, and guide them step by step so they can make informed decisions.

Many first-time homebuyers ask whether now is a good time to buy. Housing market conditions in Alberta can vary between cities like Calgary and Edmonton, and even between neighbourhoods. Factors like interest rates, home prices, and local inventory all affect affordability. I work with Alberta homebuyers to assess their financial situation and determine the right timing to purchase a home.

How Much Down Payment Do Alberta Homebuyers Need?

In Alberta, the minimum down payment for a primary residence is generally 5% for homes under $500,000 and 10% for the portion between $500,000 and $1,000,000. For those considering a rental property mortgage in Alberta, non-owner-occupied properties (one you own but don’t live in) typically require a minimum of 20% down because lenders see them as higher risk. Owner-occupied multi-unit properties may qualify with a lower down payment if you live in one of the units.

Qualifying for a Rental Property Mortgage in Alberta

If you’re considering becoming a landlord, qualifying for a rental property mortgage in Alberta involves a few additional steps. Lenders review your credit score, income, and debt-to-income ratios more closely. A credit score of 680 or higher is usually required, along with proof of stable income.

Rental income from the property can help you qualify, but lenders typically include only 50 to 80 per cent of expected rent. You’ll need either a signed lease or a market rent appraisal if the property is currently vacant. Lenders may also require reserve funds to cover mortgage payments during vacancies or unexpected repairs.

Buying a Second Home and Renting Out Your First

Many Alberta homebuyers consider purchasing a second home to live in while keeping their first property as a rental. This strategy can build equity and provide long-term investment opportunities, but it requires careful planning. When your first home becomes a rental, you must update your insurance to landlord coverage and declare rental income for tax purposes.

To qualify for a mortgage on your new primary residence, lenders will consider both your personal income and a portion of the rental income from your first property. Accessing equity from your first home can also help with your down payment on the new property, which only needs to be 5%. Even with rental income included, you must pass the federal mortgage stress test to ensure you can manage both mortgages at higher interest rates.

What Alberta Lenders Look For

Whether you are buying your first home, a second home, or a rental property, Alberta lenders evaluate your credit score, down payment, income, existing debts, and the property itself. Properties up to four units are generally acceptable, but they must be in marketable condition and meet appraisal standards. Lenders also want to see that you have a stable financial situation and some reserves to cover potential vacancies or repairs.

Planning for Your Financial Future

Buying a home is about more than just finding the right property. It’s about understanding your finances, knowing what you can afford, and planning for long-term success. Whether you’re a first-time Alberta homebuyer, considering turning your home into a rental, or looking to purchase a second property, having the right guidance makes all the difference.

If you’re ready to take the next step in Alberta’s real estate market, I can help you understand your options, qualify for the right mortgage, and make informed decisions to achieve your homeownership and investment goals. Contact me today to start your journey with confidence.