How to determine if you are ready to buy a home?

Buying your first home in Calgary is an important milestone that requires careful planning and an understanding of both your financial capabilities and the current state of the real estate market. In 2025, the Calgary market is experiencing a phase of balance after several years of intense growth, creating unique opportunities for both buyers and sellers.

Current state of the Calgary real estate market

As of August 2025, the Calgary real estate market has been in a state of balance for the fifth consecutive month. This marks a dramatic shift from the intense seller's market that has dominated for the past few years.

Key market indicators (July 2025):

  • Benchmark price: $582,900 (down 3.9% from July 2024)
  • Total sales: 2,099 homes (down 11.6% from the previous year)
  • New listings: 3,911 homes (up 8.5%)
  • Existing inventory: 6,917 homes (up 66.1%)
  • Months of supply: 3.30 (balanced market territory)

This change brings buyers more opportunities to negotiate and less pressure when making decisions. In July 2025, 26% of all homes sold for the asking price or above, with detached homes priced at $700,000 or less reaching nearly 35%.

Price trends by property type (July 2025)

  • Detached homes: $761,800 (down 0.8% from 2024)
  • Semi-detached homes: $697,500 (up 1.4%)
  • Townhouses: $446,200 (down 3.9%)
  • Condominiums: $329,600 (down 4.8%)

These figures show that the market is finding balance after two years of intense conditions for sellers. Canada Mortgage and Housing Corporation (CMHC) notes that Calgary needs an additional 9,000 housing units per year over the next 10 years to return to 2019 affordability levels.

Financial readiness

Determining your budget

The first step in determining your readiness to buy a home is understanding your financial situation. Hello Mortgage recommends starting with an assessment of your current financial situation, including determining the amount you can comfortably allocate to a monthly mortgage payment.

Minimum down payment requirements in Canada (2025)

  • If the purchase price is less than $500,000 → minimum 5%.
  • If the purchase price is between $500,000 and $1,499,999 → 5% of the first $500,000 + 10% of the amount over $500,000.
  • If the purchase price is $1,500,000 or more → minimum 20%.

Calculating total home ownership costs

Home ownership in Calgary includes several categories of expenses:

Mortgage payments (based on December 2024 benchmark prices with a 20% down payment and a 5.2% interest rate):

  • Detached house: ≈ $3,275/month
  • Semi-detached house: ≈ $2,970/month
  • Townhouse: ≈ $1,960/month
  • Condo: ≈ $1,460/month

Property tax (estimated monthly amounts based on December 2024 benchmark prices):

  • Detached houses: ≈ $385/month
  • Semi-detached houses: ≈ $345/month
  • Terraced houses: ≈ $230/month

Home insurance:

  • Single-family home: $130–$180/month
  • Row houses: $100–$140/month
  • Apartment: $40–$65/month

Utilities:

The 2024 budget for Calgary has approved a rate increase for utilities of $5.09/month

for garbage collection, recycling, and water services.

The city of Calgary has some of the lowest rates for property taxes and utilities among large cities in Canada. In 2025, municipal property taxes increased by 3.6%.

Programs for first-time homebuyers

Federal programs

  • Home Buyers' Plan (HBP) — allows you to withdraw funds from your RRSP or TFSA to purchase a qualifying home.
  • In 2025, first-time home buyers will have the option of choosing a 30-year mortgage amortization, which lowers monthly payments and makes housing more affordable.
  • Canada First-Time Home Buyers' Loan — provides up to $1,500 in tax refunds to eligible individuals.
  • First-Time Home Savers Account (FHSA) — allows tax-deductible contributions of up to $8,000 per year to help Canadians save for a home.

Provincial and local programs

Attainable Homes Calgary (AHC)

AHC offers a unique opportunity for moderate-income buyers. The program allows you to purchase a townhouse with only $2,000 down instead of the required 5%, and AHC will lend the rest to meet the minimum 5% down payment.

Buying a home in Calgary — a complete guide for first-time homebuyers

Income limits for AHC

  • Families: maximum $103,000
  • Couples without children: maximum $93,000
  • Single individuals: maximum $83,000

Support programs: PEAK Housing Initiatives offers grants of up to 5% of the home price, and Edmonton's First Place program allows deferral of land costs for five years.

Qualifying as a first-time home buyer

To qualify as a first-time home buyer in Alberta, you must:

  • Be a Canadian citizen or permanent resident.
  • Be at least 18 years old.
  • Not have owned property in the last 4 years.
  • Your spouse must not occupy any property you have owned in the last 4 years.
  • Be purchasing your primary residence (not rental property).

Mortgage pre-approval process

Mortgage pre-approval is a critical step in the home buying process. TD Bank emphasizes that pre-approval helps determine how much you can borrow for your home.

Benefits of pre-approval:

  • Understanding the maximum amount you can spend on a home.
  • Protection from interest rate increases for 120 days.
  • Demonstrating the seriousness of your intentions to sellers.

What you need to apply:

  • Proof of income.
  • Employment history.
  • Credit information.
  • Identification documents.
  • Current and previous address information (if current address is less than 3 years).

Mortgage stress test

All federally regulated lenders in Canada must conduct a mortgage stress test.

  • Minimum qualifying rate: 5.25%
  • Or: your contract rate + 2% (whichever is higher)

Example: If you are offered a rate of 4.04%, the lender will check whether you can pay at a rate of 6.04%.

This means that:

  • Your income must be high enough.
  • Your debt obligations must be low enough to qualify.

Calgary labor market conditions

Job stability is a key factor in home buying readiness.

As of June 2025:

  • Unemployment rate: 7.3%
  • Three-month average unemployment rate decreased from 8.2% (2024) → 7.3% (2025)
  • The region added 48,900 new jobs
  • The workforce grew by 3.8% year-over-year
  • Total employment: 1.038 million people
  • Number of unemployed: 80,300 (+24.5%)

Best areas for first-time homebuyers

Affordable options (South and Northwest Calgary)

Reeves Realty highlights 12 best areas for first-time homebuyers.

Top 5 neighborhoods:

  1. Glacier Ridge (Northwest Calgary) — new homes starting at $500,000+
  2. Livingston (North Calgary) — apartments and townhouses up to $450,000, single-family options $600,000
  3. Nolan Hill — duplexes and homes from $400,000 to $600,000
  4. Evanston — townhouses up to $450,000, larger homes from $600,000
  5. Legacy (Deep South Calgary) — duplexes and townhouses starting at $400,000

Recommended affordable neighborhoods

Alberta Property Group recommends 5 affordable neighborhoods:

Neighborhood Approximate rent
Renfrew $1,893 for one room
Coach Hill $1,500 for one bedroom
Rocky Ridge Popular, smart choice
Deer Ridge Affordable option
Beddington Heights Economical housing

Practical steps to determine your readiness

1. Financial assessment

  • Estimate your monthly income and expenses.
  • Check your available savings for a down payment.
  • Review your credit history and credit score.
  • Consider your existing debts.

2. Prepare for closing costs

Standard costs include:

  • Property appraisal.
  • Legal services.
  • Home insurance.
  • Home inspection.
  • Property transfer taxes.

3. Research the market

  • Attend open houses.
  • Explore different neighborhoods.
  • Analyze price trends.
  • Consider proximity to work, schools, and amenities.

4. Work with professionals

  • Mortgage broker — pre-approval.
  • Real estate agent — knows the local market.
  • Lawyer or notary — for legal support.

Current mortgage rates and affordability

August 2025:

  • Rates vary: 4.14% → 6.5%
  • A possible decrease to 3.6% is forecast (by December 2025).

Economic factors and forecasts

CMHC defines housing affordability as expenses that do not exceed 30% of household income.

  • In Calgary, the average cost of a home = 42% of the average income.
  • In Edmonton, it is about 34%.

Provincial support:

  • New tax bracket for incomes up to $60,000 → savings of up to $750.
  • First-time home buyer loan → refunds up to $1,500.
  • Increase in affordable housing by +15% (expected by the end of 2025).

Readiness summary

You are ready to buy a home if:

Financially

  • You have a stable income and a job.
  • You have saved up a down payment (minimum 5%).
  • You pass a mortgage stress test.
  • You have additional savings for expenses.
  • Your debt load is manageable.

Personal

  • You are ready for long-term commitments.
  • You have researched the Calgary market.
  • You have identified priorities for the neighborhood and type of home.
  • You have professional support.

Conclusion: The current balanced state of the Calgary market creates favorable conditions for first-time homebuyers. With the right preparation, 2025 could be the perfect time to enter the real estate market.