Alberta's Mortgage Advantage: No Land Transfer Tax
Alberta is one of the few provinces in Canada with no provincial land transfer tax. While Ontario and BC buyers pay thousands in land transfer taxes at closing, Alberta homebuyers avoid this cost entirely — keeping more money available for a larger down payment or faster mortgage paydown.
This makes Alberta one of the most affordable provinces for the upfront costs of buying a home, even as Calgary and Edmonton have seen significant price growth in recent years.
An Ontario buyer purchasing a $700,000 home pays approximately $9,475 in land transfer tax. An Alberta buyer purchasing the same home pays $0 — that's money that can go directly toward the mortgage.
Alberta Mortgage: Sample Payments
| Home Price | Down Payment (20%) | Mortgage Amount | Monthly Payment (6.25%, 25yr) |
|---|---|---|---|
| $450,000 | $90,000 | $360,000 | $2,404 |
| $600,000 | $120,000 | $480,000 | $3,205 |
| $750,000 | $150,000 | $600,000 | $4,006 |
| $1,000,000 | $200,000 | $800,000 | $5,341 |
Alberta Mortgage Market Overview
Calgary has experienced some of the strongest price growth in Canada in recent years, driven by interprovincial migration, a strong energy sector, and relatively more affordable prices compared to Vancouver and Toronto. Edmonton remains one of Canada's more affordable major cities for homebuyers.
Alberta's mortgage market operates under the same federal rules as the rest of Canada — CMHC insurance requirements, stress test rules, and amortization period limits all apply equally to Alberta buyers.
Alberta Mortgage Insurance
If your down payment is less than 20%, you'll need CMHC mortgage default insurance regardless of province. The premium rates are the same nationally:
- 5–9.99% down: 4.00% premium on the insured amount
- 10–14.99% down: 3.10% premium
- 15–19.99% down: 2.80% premium
The premium is added to your mortgage balance, not paid upfront. In Alberta (unlike some provinces), no provincial sales tax applies to CMHC premiums.
Paying Down an Alberta Mortgage Faster
Alberta's combination of no land transfer tax, lower average prices than BC/Ontario, and no provincial income tax creates favourable conditions for accelerating mortgage paydown. More of your income stays in your pocket and upfront purchase costs are lower.
Use our Extra Payment Calculator to model how quickly you could pay off your Alberta mortgage with extra monthly payments.
Refinancing in Alberta
Alberta homeowners refinancing their mortgages benefit from the same absence of provincial transfer taxes that new buyers enjoy. There is no land transfer tax on refinancing in Alberta, reducing one of the traditional barriers to switching lenders for a better rate.
Use our Refinance Break-Even Calculator to determine if refinancing your Alberta mortgage makes financial sense.
Alberta Property Taxes
Alberta municipalities set their own property tax rates, and they tend to run lower than in Ontario or BC. Calgary's residential rate is typically in the 0.6–0.7% range of assessed value, and Edmonton's is similar — though exact rates vary by municipality and change annually. Property tax isn't part of your mortgage payment itself unless your lender collects it through a tax escrow account, which is common for buyers with less than 20% down.
First-Time Buyer Programs Available to Albertans
Alberta doesn't run its own land transfer rebate program, since the province doesn't charge a land transfer tax to begin with. Alberta buyers can still use the federal programs available across Canada:
- First Home Savings Account (FHSA): Contribute up to $8,000/year (lifetime max $40,000) tax-free toward a first home.
- Home Buyers' Plan (HBP): Withdraw up to $60,000 from your RRSP tax-free to fund a first home purchase.
- GST/HST New Housing Rebate: A partial rebate on GST paid for new-construction homes, which matters more in Alberta since new builds make up a larger share of the market than in Ontario or BC.