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Have questions or comments about the services I offer? Please use this form to send me an email. I am always happy to provide you with the answers you need.
Allison Kehler-Tolley
Dominion Lending Centres
469 40th Street South
Lethbridge, AB
Main Office
FAQ
What is the minimum down payment required to buy a home in Alberta?
In Canada, the minimum down payment is 5% for homes priced up to $500,000. For homes between $500,000 and $999,999, you need 5% on the first $500,000 and 10% on the remaining amount. Homes over $1 million require a 20% down payment.
What are the benefits of working with a mortgage broker instead of a bank?
A mortgage broker provides access to multiple lenders, often securing lower rates and better terms than banks. Brokers also tailor mortgage solutions to your financial situation and work for you, not the lender.
How does mortgage pre-approval work in Alberta?
A pre-approval determines how much you can afford, locks in an interest rate for 90–120 days, and strengthens your offer when house hunting. It requires income verification, credit checks, and debt assessments.
Are there any first-time homebuyer incentives in Alberta?
Yes, first-time homebuyers in Canada can benefit from the First-Time Home Buyer Incentive (a shared equity program), the Home Buyers’ Plan (HBP) allowing RRSP withdrawals, and the First-Time Home Buyers’ Tax Credit.
Do I need mortgage loan insurance, and how does it work?
If your down payment is less than 20%, you’ll need mortgage default insurance (CMHC, Sagen, or Canada Guaranty). This protects the lender and allows you to qualify with a lower down payment.
What is the difference between a fixed-rate and a variable-rate mortgage?
A fixed-rate mortgage locks in your interest rate for the term, ensuring predictable payments. A variable-rate mortgage fluctuates with the Bank of Canada’s prime rate, which may lower your payments but also carries some risk.
Can I get a mortgage in Alberta if I’m self-employed?
Yes, self-employed individuals can qualify, but you may need to provide two years of tax returns, bank statements, and a higher down payment if you can’t verify steady income.
What are closing costs, and how much should I budget for them?
Closing costs typically range from 1.5% to 4% of the home’s purchase price and include legal fees, land transfer tax (no provincial land transfer tax in Alberta), home inspection, title insurance, and property tax adjustments.