If there's one question I hear almost daily in my office, it's this: "Zenon, how much do I actually need to save for a down payment in Edmonton?" It's a great question—and the answer isn't as straightforward as you might think.
As both a mortgage broker and real estate agent here in Edmonton, I've helped lots of first-time buyers navigate this crucial first step. Let's break down exactly what you need to know about minimum down payments in our local market, without the fluff or confusing jargon.
The Basic Down Payment Rules in Canada
First, let's get the fundamentals straight. In Canada, your minimum down payment depends on the purchase price of the home:
For homes under $500,000: You need a minimum of 5% down
For homes between $500,000 and $999,999: You need 5% on the first $500,000, and 10% on the portion above $500,000
For homes $1 million or more: You need a minimum of 20% down
Let me put this into real Edmonton terms.
What This Means for Edmonton Home Buyers
The average home price in Edmonton currently sits around $380,000 (as of my latest market analysis). At this price point, your minimum down payment would be $19,000 (5% of $380,000).
But let's look at different property types you might be considering:
Starter Condo in Edmonton ($250,000)
Minimum down payment: $12,500 (5%)
Typical Semi-Detached in a Family Neighborhood ($450,000)
Minimum down payment: $22,500 (5%)
Newer Single Family Home in a Desirable Area ($650,000)
Minimum down payment: $25,000 (5% of first $500,000) + $15,000 (10% of remaining $150,000) = $40,000 total
Luxury Home in Windermere or Keswick ($1,200,000)
Minimum down payment: $240,000 (20%)
Don't Forget About CMHC Insurance
Here's something crucial that many first-time buyers overlook: If your down payment is less than 20% of the purchase price, you'll need mortgage default insurance (commonly called CMHC insurance, though there are other providers like Sagen and Canada Guaranty).
This insurance protects the lender—not you—if you default on your mortgage. The premium gets added to your mortgage amount and typically ranges from 2.8% to 4% of your mortgage, depending on your down payment size.
Let's use our $380,000 average Edmonton home as an example:
With 5% down ($19,000), your CMHC premium would be approximately $13,680
With 10% down ($38,000), your CMHC premium would drop to about $9,120
With 15% down ($57,000), your CMHC premium would be around $6,840
With 20% down ($76,000), you would pay $0 in CMHC premiums
This is why putting down 20% can save you thousands of dollars in the long run. But don't panic if that's not realistic for you—most first-time buyers in Edmonton don't start with 20% down.
Beyond the Minimum: Other Costs to Consider
When saving for a home, remember that your down payment is just one piece of the puzzle. You'll also need funds for:
Closing costs: Typically 1.5-4% of your purchase price
Legal fees: Usually $1,000-$2,000 in Edmonton
Home inspection: Around $400-$600
Property tax adjustments: Varies based on the time of year and municipality
Moving expenses: Don't forget about these!
I recommend my clients save an additional 2-3% of their purchase price beyond their down payment to cover these expenses.
Current Market Conditions in Edmonton
Edmonton's housing market has remained relatively steady compared to cities like Toronto or Vancouver, which is good news for first-time buyers. Our more reasonable home prices mean down payments are generally more attainable.
That said, competition can be fierce in certain neighborhoods and price points. Having a larger down payment can sometimes strengthen your offer in a multiple-offer situation, which we're seeing more frequently in desirable areas.
Government Programs That Can Help
If you're struggling to save enough for a down payment, you might qualify for:
Home Buyers' Plan (HBP): This allows you to withdraw up to $60,000 from your RRSP tax-free to use toward your down payment (must be repaid over 15 years).
First Home Savings Account (FHSA): This newer program allows Canadians to save up to $40,000 tax-free toward their first home.
The Bottom Line on Down Payments in Edmonton
While it's technically possible to buy with just 5% down in many parts of Edmonton, I've found that clients who can manage 10-15% often end up with:
Better mortgage rates
Lower monthly payments
More negotiating power
Less financial stress overall
That said, waiting years to save 20% might not make sense in all cases, especially if rents and home prices are both rising. Sometimes getting into the market sooner with a smaller down payment can be the right move.
What's Your Next Step?
Every home buyer's financial situation is unique. The "right" down payment amount depends on your income, savings, other debts, and long-term goals.
If you're wondering exactly how much you should save based on your personal circumstances and which Edmonton neighborhoods might be in your price range, let's talk. I offer free, no-obligation pre-qualification consultations where we can run the numbers together and create a realistic plan for your home purchase.
You can reach me at book an appointment page or call me directly at 403-597-7955. I'm here to help you navigate Edmonton's housing market with confidence, whether you're ready to buy next month or next year.
Remember, buying a home is a marathon, not a sprint. Taking the time to save properly and understand your options will set you up for success in the long run.
Zenon Komarniski is a licensed Realtor & Mortgage Broker based in Edmonton, Alberta, specializing in helping homeowners and investors buy, sell, and finance properties with confidence. With a deep understanding of Alberta’s housing market and lending landscape, Zenon provides clients with a seamless, end-to-end experience — from mortgage qualification to closing the deal. He’s passionate about helping Albertans build wealth through smart real estate decisions and strategic mortgage planning.
