First-Time Home Buyers Incentives in Alberta
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Alberta is one of Canada’s most affordable provinces, with real estate in larger cities like Calgary and Edmonton almost half the price of other major comparable cities. If you’re looking to purchase a home in Alberta, federal and provincial incentives are available to help make homeownership even more affordable. Whether you’re a current resident or looking to relocate, first-time buyers have access to support through various programs ranging from down payment assistance to tax credits.
Key Takeaways
- Alberta offers several first-time home buyer incentives designed to make homeownership more affordable.
- In addition to provincial programs, first-time home buyers in Alberta can benefit from federal initiatives like the Home Buyers’ Amount tax credit.
- Eligibility criteria vary for each program, with some requiring specific city or provincial residency to qualify for assistance.
Alberta First-Time Home Buyer Incentives
Incentives for first-time home buyers in Alberta aim to make homeownership more affordable. The First Place Program works with banks and builders to develop surplus vacant school sites in Edmonton, turning them into market-priced homes. The Attainable Homeownership Program is an affordable homeownership model that allows eligible buyers to purchase a home in Calgary that is below market price. Liberty Home Ownership is a non-profit that provides down payment assistance for Albertans that works as a shared equity model.
First Place Program
The First Place Program allows Canadian citizens who meet the eligibility criteria to purchase a townhome in Edmonton at market price with a 5-year deferral on the land portion of the mortgage. After 5 years, the owner must pay the city the total amount of the deferred land costs.
To be eligible, you must be a Canadian citizen or permanent resident, able to be pre-approved for financing, a first-time buyer in Alberta, must be a full-time occupant and resident of the unit for the first 5 years, have $25,000 or less in net worth and employed with a combined household income less than $130,000.
Attainable Homeownership Program
Attainable Homes Calgary (AHC) is an independent, non-profit organization created and owned by the City of Calgary. The Attainable Homeownership Program is a permanently affordable homeownership model that aims to help moderate-income citizens in Calgary afford homeownership. Eligible buyers can purchase a below-market home in exchange for selling it back to the program at the same price it was purchased for.
To be eligible, you must be a Calgary resident who earns less than the average income in the city and qualify for a mortgage through one of their mortgage partners. If you don’t have a down payment, the program provides a down payment loan if you can contribute $2,000.
Liberty Home Ownership
The Liberty Home Ownership program offers affordable homes at fair market value and down payment assistance for Albertans who can contribute $1,500 of the required 5% down payment, with Liberty providing the remainder. When you wish to sell the home you purchase, you share a portion of the appreciated value with Liberty so they can continue to fund the program in the future.
To qualify, you must be able to qualify for a mortgage approval with one of their approved lenders, have permanent steady employment, contribute $1,500 toward the 5% down payment and complete an online education course.
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Federal First-Time Home Buyer Programs
In addition to the programs offered in Edmonton and Calgary, first-time buyers in Alberta also have access to federal programs that can help them purchase their first home.
RRSP Home Buyer’s Plan (HBP)
The RRSP Home Buyers’ Plan allows first-time home buyers to withdraw up to $60,000 from their Registered Retirement Savings Plan (RRSP) to buy or build a qualifying home. The amount withdrawn remains tax-free if repaid into the RRSP in equal installments within 15 years. There is a 2-year grace period after withdrawal, where repayments are not required.
Home Buyers’ Amount
The home buyers’ amount is a tax credit allowing first-time buyers to claim up to $10,000 at tax time. This results in a tax refund of up to $1,500 on your income tax return.
GST/HST New Housing Rebate
The GST/HST New Housing Rebate helps to reduce the overall costs of buying a new home. When purchasing a newly built or substantially renovated home, the rebate applies to the Goods and Services Tax (GST) or Harmonized Sales Tax (HST). Rebate amounts depend on the province where the home is located and whether the rebate is available on the provincial portion of taxes in addition to the federal taxes.
Frequently Asked Questions (FAQ) on First-Time Home Buyers Incentives in Alberta
How much do first-time home buyers have to put down in Alberta?
The minimum down payment in Alberta depends on the home’s purchase price. First-time buyers should expect to put down a minimum of 5% for homes with a purchase price of $500,000 or less. For homes with a purchase price between $500,000 and $1,499,999, the minimum required is 5% on the first $500,000 and 10% on the remainder. For homes valued at $1.5 million or more, a 20% down payment is required.
What down payment is needed for Calgary’s Attainable Homeownership Program?
The Attainable Homes Program in Calgary requires qualifying buyers to put $2,000 down toward the down payment.
Can any resident qualify as a first-time home buyer in Alberta?
Some programs in Alberta, like the First Place Program, are open to Canadian citizens or permanent residents. Other programs like the Attainable Homeownership Program require you to be a resident of Calgary, and Liberty Home Ownership requires you to be an Alberta resident.
Final Thoughts
Buying a home as a first-time home buyer in Alberta gives you access to programs and incentives that can make homeownership even more affordable in the province. If you meet the eligibility requirements, these programs can help you get into your first home sooner and with less financial strain.
If you’re ready to purchase your first home in Alberta, contact nesto mortgage experts to help guide you through the process, ensuring you get the best rate and terms for your mortgage.
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