First Time Home Buyer Guide: From Dream to Keys

Short answer: To buy your first home in Calgary you need at least 5% down on the first $500,000 (10% on the portion above that), closing costs of about 1.5% of the price, and income that passes the stress test. Get pre-approved before you shop. First time buyers can use the FHSA, the RRSP Home Buyers’ Plan and, with an insured mortgage, a 30 year amortization.

Buying your first home is exciting, but also a little overwhelming. With so much information online, it’s hard to know what applies to you or who to trust.

At Lacroix Mortgage Group, we help first time home buyers in Calgary through every step. Think of this guide as your roadmap.

1. Before You Start House Hunting

Most first time buyers start by scrolling listings. That’s normal, but it can lead to stress. Before booking showings:

• Define your timeline
• Set a comfortable budget
• Check and improve your credit score
• Plan your down payment and closing costs
• Talk to a mortgage professional and get pre-approved

This preparation saves time, reduces surprises and keeps your search focused.

→ Read more: What to Know Before You Start Looking

2. How Much Can You Afford?

There are two numbers to consider:

1. Lender approval: what a lender says you qualify for, based on income, debts and Canadian mortgage rules.
2. Comfort level: the monthly payment that feels manageable for your lifestyle.

We help you balance both so your home fits your life, not just your lender’s numbers. Try our affordability calculator for a first estimate.

3. Down Payment Basics

You don’t need 20% down in Canada. The minimums are:

• 5% on the first $500,000
• 10% on the portion from $500,000 to $1,500,000
• 20% if the price is $1,500,000 or more

Funds can come from savings, your FHSA, your RRSP (Home Buyers’ Plan) or a gift from family. Don’t forget closing costs: legal fees, inspection, adjustments and moving, usually about 1.5% of the purchase price.

Since December 15, 2024, first time buyers can choose a 30 year amortization on insured mortgages, which lowers the monthly payment.

→ Read more: How Much Do I Really Need for a Down Payment?

4. Pre-Approval vs Pre-Qualification

These are not the same:

• Pre-qualification: a quick estimate, usually no documents
• Pre-approval: verified documents, a credit check and a lender review

A pre-approval strengthens your offer and gives you and the seller confidence.

→ Read more: Pre-Approval vs Pre-Qualification

5. Closing Costs

Common closing costs include:

• Legal fees and disbursements
• Title insurance
• Home inspection
• Property tax adjustments
• Moving costs

We help you budget realistically so there are no surprises on move in day. Use our closing cost calculator.

→ Read more: Closing Costs for First Time Home Buyers in Alberta

New Build? Don’t Miss the GST Rebate

If you’re buying a newly built home, the First Time Home Buyers’ GST rebate can recover up to 100% of the GST on homes priced up to $1 million, a potential saving of up to $50,000. See our GST new housing rebate guide for the details.

6. Fixed or Variable?

Choosing a mortgage isn’t about predicting rates. It’s about your lifestyle.

• Fixed rates: predictable payments
• Variable rates: potential savings and some flexibility

We explain the pros and cons based on your income, plans and comfort with risk.

→ Read more: Fixed vs Variable Mortgage for First Time Buyers

7. Timing the Market: Should You Wait?

Many first time buyers wonder whether to wait for rates or prices to drop. The “perfect time” is personal. Focus on your budget, timeline and life plans. We help you compare renting and buying so you can decide.

→ Read more: Should I Wait for Prices or Rates to Drop?

8. The Mortgage Stress Test

The federal stress test requires you to qualify at a higher rate than you’ll actually pay: the greater of 5.25% or your contract rate plus 2%. It protects you from over borrowing but lowers your maximum purchase price.

→ Read more: How the Mortgage Stress Test Works

9. Common Mistakes to Avoid

• House hunting before pre-approval
• Big purchases while your mortgage is being processed
• Underestimating closing costs
• Falling for homes outside your budget
• Choosing the lowest rate over the right long term strategy

→ Read more: Common First Time Home Buyer Mistakes

10. How We Help

• A relaxed discovery call
• Clear, simple financial explanations
• A reliable pre-approval
• Step by step support through offers, conditions and legal signing
• Ongoing guidance after you move in: renewals, refinancing and your next home

Your Next Step

Whether you’re buying soon or in a couple of years, you don’t have to do it alone. Book a call or start your pre-approval.

This article is general information, not personal financial advice. Rates, rules and programs change. Talk to a licensed mortgage broker about your situation. Lacroix Mortgage Group is licensed and powered by Mortgage Connection Inc.