Most first-time buyers save hard for a down payment and then get blindsided by everything else. The truth is your purchase needs five separate pools of cash, and treating them as one is the fastest way to feel stretched the day you get the keys.
The five buckets
- Down payment. In Canada the minimum is 5% on the first $500,000 and 10% on the portion from $500,000 to $1.5M.
- Closing costs. Typically 1.5%–4% of the price: legal fees, title insurance, adjustments and an inspection. These come from separate funds — not your down payment.
- Post-closing cushion. The money you want left in the bank the day after you move in. Naming this number keeps you out of "house-poor" territory.
- Emergency reserve. Three to six months of core expenses, untouched by the purchase.
- Moving & setup. Movers, utilities, immediate repairs and the furniture you'll actually need.
Why it matters in Alberta
Good news: Alberta charges no land transfer tax, so a lot of the closing-cost math you'll read online (written for Ontario or BC) overstates what you'll pay here. But the other four buckets still apply. Buyers who plan all five buy with confidence; buyers who plan one buy with stress.
Your move
Split your savings into named buckets today — even rough numbers. If your down payment quietly has to cover closing costs too, your real price range is lower than you think.