Alberta offers some of the best home buying conditions in Canada: no land transfer tax, relatively affordable home prices (Calgary averages approximately $580,000, Edmonton approximately $400,000), and competitive mortgage rates. Use the mortgage affordability calculator below to see how much home you can afford.
Mortgage affordability in Alberta
How much mortgage you can afford depends on your household income, existing debts, and the mortgage rate you qualify for. Alberta’s combination of no land transfer tax and lower home prices (outside of Calgary’s hottest neighbourhoods) makes homeownership more accessible than in Ontario or BC.
Key factors include your down payment, mortgage rate, and existing debts. Changing any input in the calculator shows its impact on your buying power.
If your down payment is less than 20%, you will need mortgage default insurance, which can be paid upfront or added to your mortgage balance.
Alberta minimum down payment chart
| Purchase Price | Minimum Down Payment |
|---|---|
| Less than $500,000 | 5% of purchase price |
| $500,000 to $999,999 | 5% of first $500K + 10% of remainder |
| $1 million or more | 20% of purchase price |
For a $400,000 home (near Edmonton’s average), the minimum down payment is just $20,000. See the down payment calculator for exact amounts.
What ratios are used to estimate mortgage affordability?
Lenders use two key ratios:
Gross Debt Service Ratio (GDS) — measures monthly housing costs relative to gross income. This calculator uses 35%.
GDS = (Mortgage Payments + Property Tax + Heating + 50% Condo Fees) / Gross Annual Income
Total Debt Service Ratio (TDS) — adds all other debts to housing costs. This calculator uses 42%.
TDS = (All Housing Costs + All Other Debt Payments) / Gross Annual Income
The CMHC maximum GDS is 39% and maximum TDS is 44%. Learn more with the debt service ratio calculator.
How much house can you afford in Alberta?
These estimates are based on a 4.5% interest rate, 25-year amortization, minimum down payment, and $750 in monthly debt obligations.
| Household Income | Estimated Affordability |
|---|---|
| $60,000 | ~$290,000 |
| $70,000 | ~$340,000 |
| $80,000 | ~$390,000 |
| $100,000 | ~$485,000 |
| $120,000 | ~$580,000 |
| $150,000 | ~$725,000 |
At $80,000, you could afford a home at Edmonton’s average price. Calgary’s average of ~$580,000 requires closer to $120,000.
How much income to buy a $400,000 house in Alberta?
Approximately $85,000 or more per year, based on a minimum down payment of $20,000, 25-year amortization at 4.5%, with $750 in monthly debt payments.
How much income to buy a $600,000 house in Alberta?
Approximately $125,000 or more per year, based on a minimum down payment of $35,000, 25-year amortization at 4.5%, with $750 in monthly debt payments.
No land transfer tax advantage
Alberta does not charge a land transfer tax, which is a major saving compared to other provinces:
| Province | LTT on $500,000 Home |
|---|---|
| Alberta | $0 |
| Saskatchewan | $0 |
| Manitoba | ~$7,150 |
| Ontario | ~$6,475 |
| British Columbia | ~$8,000 |
On a $500,000 home, Alberta buyers save $6,475 to $8,000 compared to Ontario or BC — money that can go towards your down payment or renovations.
Additional costs in Alberta
- No land transfer tax — Alberta’s biggest advantage
- Mortgage insurance — required if less than 20% down; use the mortgage insurance calculator
- Property taxes — vary by municipality; Calgary and Edmonton have moderate rates
- Closing costs — legal fees, title insurance, home inspection; typically 1.5% to 4% of purchase price
- Alberta has no PST — only 5% GST on applicable purchases; see the Alberta sales tax calculator
Frequently asked questions
How much house can I afford making $100,000 in Alberta?
Approximately $485,000 based on a 4.5% rate, 25-year amortization, minimum down payment, and $750 in monthly debt.
Does Alberta have a land transfer tax?
No. Alberta does not charge a land transfer tax, saving buyers thousands compared to most other provinces.
What is the minimum down payment in Alberta?
5% on the first $500,000, 10% on $500K-$999K, and 20% on homes $1 million or more.
Related guides
- Alberta mortgage rates
- Alberta mortgage insurance calculator
- Alberta sales tax calculator
- Alberta tax brackets
- Down payment calculator
- Debt service ratio calculator
