The Best Financing Options for Calgary Homebuyers

Buying a home in Calgary is an exciting journey, but it can also be overwhelming—especially when it comes to financing your new property. Whether you're a first-time buyer or a seasoned investor, understanding your financing options is crucial to making the right choice for your future. With various mortgage products and lending programs available, it’s essential to know which option suits your needs best.
At Robert LeBlanc Property Management & Real Estate, we work closely with clients to help them navigate the real estate market and secure the financing they need. Here’s a look at some of the best financing options for Calgary homebuyers.
1. Conventional Mortgages
A conventional mortgage is the most common type of home loan for Calgary buyers. Typically, this type of mortgage requires a down payment of at least 20% of the home’s purchase price. However, if you can’t put down 20%, you’ll need to get mortgage insurance, which protects the lender in case you default on the loan.
- Pros:
- If you have a sizable down payment, you may benefit from lower interest rates and avoid mortgage insurance.
- Once you have 20% equity, you can eliminate mortgage insurance and lower your monthly payments.
- Cons:
- Requires a significant down payment, which can be difficult for first-time homebuyers or those with limited savings.
2. High-Ratio Mortgages (With Mortgage Insurance)
A high-ratio mortgage is designed for buyers who have a smaller down payment—usually less than 20% of the purchase price. In this case, you’ll be required to purchase mortgage default insurance from providers like the Canada Mortgage and Housing Corporation (CMHC), Genworth Financial, or Canada Guaranty.
- Pros:
- Allows buyers to purchase a home with a smaller down payment, which can be especially helpful for first-time buyers or those who don’t have a large savings fund.
- The insurance protects lenders, which makes it easier for homebuyers to qualify for the mortgage.
- Cons:
- The cost of mortgage insurance is added to your monthly mortgage payments, increasing your overall housing costs.
- Higher monthly payments due to the mortgage insurance premium.
3. First-Time Homebuyer Programs
If you’re a first-time buyer in Calgary, there are several programs designed to help make the homebuying process more affordable:
- First-Time Home Buyer Incentive (FTHBI): The Canadian government offers a shared-equity mortgage to help first-time buyers. With this program, you can receive 5% of the purchase price for an existing home or 10% for a new home to go toward your down payment. In return, the government shares in the home’s appreciation (or depreciation) over time.
- First-Time Home Buyer’s Tax Credit: You may also be eligible for a tax credit of up to $5,000, which provides a tax benefit on your home purchase.
- RRSP Home Buyers' Plan: Under this program, you can withdraw up to $35,000 from your RRSPs (Registered Retirement Savings Plan) to use as a down payment on your first home. The funds must be paid back within 15 years.
- Pros:
- These programs can help reduce the financial burden of buying your first home by lowering your down payment or offering tax credits.
- Cons:
- You may have to meet specific criteria to qualify for these programs, and there could be restrictions based on income, location, or home price.
4. Variable-Rate Mortgages
A variable-rate mortgage offers a rate that fluctuates with the market. While your monthly payment can remain the same, the portion that goes toward interest can change depending on interest rate movements. If rates go up, your monthly payments could increase. If rates go down, you’ll pay less in interest.
- Pros:
- Generally, variable-rate mortgages offer lower initial interest rates compared to fixed-rate mortgages, which can save you money in the short term.
- You may benefit if interest rates decrease over time.
- Cons:
- The fluctuating interest rate could increase your payments over time if the Bank of Canada raises its rates.
- Less stability than fixed-rate mortgages, which can be a concern if you have a tight budget.
5. Fixed-Rate Mortgages
A fixed-rate mortgage locks in your interest rate for the term of the loan, which can range from 1 to 10 years. The benefit of a fixed-rate mortgage is that you know exactly how much you’ll pay each month, regardless of what happens with interest rates.
- Pros:
- Predictable payments make it easier to budget and plan long-term.
- Protection from rising interest rates during your mortgage term.
- Cons:
- Typically comes with a higher interest rate than a variable-rate mortgage, especially if the rate is locked for a longer period.
- Less flexibility if you want to take advantage of dropping interest rates.
6. Bank and Credit Union Mortgages
When it comes to mortgage lenders, banks and credit unions are among the most common options. Banks offer a wide range of mortgage products with competitive rates, while credit unions can offer more personalized service and often have flexible terms.
- Pros:
- Competitive interest rates from banks.
- Credit unions may be more willing to work with you if you have a non-traditional income or a lower credit score.
- Cons:
- Banks may have more rigid qualification criteria.
- Credit unions may have limited availability depending on where you live.
7. Private Mortgages
If you’re unable to secure financing through a traditional lender, a private mortgage might be an option. Private lenders are individuals or companies who offer loans outside the traditional banking system. These are usually short-term loans with higher interest rates and can be a solution for those who need quick access to funds or have poor credit.
- Pros:
- Easier to obtain than traditional mortgages, especially if you have poor credit.
- Flexible terms and conditions.
- Cons:
- Higher interest rates and fees.
- Shorter repayment periods, which could make it harder to keep up with payments in the long term.
Conclusion
Buying a home in Calgary comes with a variety of financing options that can be tailored to fit your needs and financial situation. Whether you’re a first-time buyer looking to take advantage of government programs or you’re more comfortable with a fixed-rate mortgage, there are financing options for every type of homebuyer.
At Robert LeBlanc Property Management & Real Estate, we understand the Calgary real estate market and are here to help you navigate your financing options. If you're ready to start your home-buying journey, contact us today, and let us help you find the perfect property and financing solution to fit your needs.









