Buying a home is one of the biggest financial steps you’ll ever take — and for most buyers in Edmonton, the down payment is where it all begins. Understanding how much you need, where it can come from, and how it affects your mortgage can make the homebuying process smoother and less stressful.
At Steven Murdoch Mortgages, we work with homebuyers across Edmonton and Alberta to help them understand their down payment options and find the best mortgage fit for their needs.
What Is a Down Payment?
A down payment is the portion of your home’s purchase price that you pay upfront. The rest is covered by your mortgage loan. In Canada, the minimum down payment depends on your home’s price:
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5% for homes under $500,000
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10% for the portion of the price between $500,000 and $999,999
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20% for homes priced at $1 million or more
For example, if you’re buying a $400,000 home in Edmonton, you’ll need at least $20,000 as your down payment.
Where Can Your Down Payment Come From?
Many first-time homebuyers think they need to save for years before they can buy — but there are several ways to fund your down payment:
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Personal savings — the most common source for buyers.
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RRSPs — through the Home Buyers’ Plan (HBP), you can withdraw up to $60,000 tax-free from your RRSP to use toward your first home.
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Gifts from family — as long as it’s a true gift (not a loan), this is allowed by most lenders.
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Equity from another property — for repeat buyers, existing home equity can often fund a new down payment.
Steven helps clients review all their options to ensure they’re using their money wisely and keeping their long-term goals in mind.
How Your Down Payment Affects Your Mortgage
Your down payment doesn’t just get you into your home — it also impacts your mortgage in a few key ways:
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Smaller down payment = higher mortgage amount (and higher monthly payments)
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Larger down payment = lower overall interest costs
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Less than 20% down = CMHC insurance required
Even small changes in your down payment can make a big difference in how much you’ll pay over time. That’s why Steven uses advanced mortgage tools and calculators to show buyers exactly how different down payment amounts affect their monthly costs.
Tips for Saving for a Down Payment
If you’re still working toward your goal, here are a few smart strategies:
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Automate your savings — set up automatic transfers into a “home fund.”
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Pay down high-interest debt first — freeing up more money for savings.
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Take advantage of government programs — like the First-Time Home Buyer Incentive, which can help reduce your mortgage costs.
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Explore flexible mortgage options — Steven can help find solutions that make homeownership achievable sooner than you think.
Ready to Buy in Edmonton?
Whether you’re just starting to save or you’re ready to buy your first home, Steven Murdoch Mortgages is here to help. With access to multiple lenders across Canada, Steven will find the best mortgage rates and terms to match your financial goals.
We will walk you through the process step by step — so you can buy your Edmonton home with confidence, knowing you’ve made the right financial move.
Have Questions? Contact Steven Murdoch Mortgages today!
780.983.5148
info@stevenmurdoch.ca
