I had a conversation with a renter recently that I think a lot of people can relate to.
They wanted to buy a home, but they were waiting until they had a 20% down payment saved. They knew they could buy with less, but they had always been told it was better to wait and avoid paying CMHC mortgage insurance.
And honestly, I get it. Nobody wants to pay an extra cost if they can avoid it.
But when we started talking about what that insurance might actually add to a monthly mortgage payment, and how much longer they would be paying rent while saving the rest, they realized they had never seen the numbers side by side.
Because for some buyers, the cost of waiting may be worth considering alongside the cost of mortgage insurance. And once you understand both, you might find you have more options than you thought.
Maybe buying with a smaller down payment lets you get into a home sooner. Maybe you have 20% saved but would rather keep some money for updates to an older home. Or maybe, after looking at everything, you decide that renting and saving for a while longer still makes the most sense for you.
The point is, you get to make that decision with the facts in front of you.
And if owning a home in Edmonton is something you have been dreaming about, let’s take a look at what could be possible in 2027.
First, what is CMHC mortgage insurance?
When you buy a home with less than 20% down, you will generally need mortgage default insurance. You might hear people call this “CMHC insurance,” although CMHC is one of several mortgage insurers in Canada.
The insurance protects the lender if the borrower defaults. The premium is usually added to your mortgage, which means you pay for it over time as part of your mortgage payment.
For many buyers, the question is not whether the insurance has a cost. It does. The question is what that cost looks like in real monthly numbers, and how it compares with waiting longer to buy.
What does mortgage insurance actually add to your payment?
Let’s use a $450,000 home as an example.
With 5% down, your down payment would be $22,500. That leaves a mortgage of $427,500 before insurance.
Using CMHC’s standard 4% premium for this down payment range, the insurance premium would be $17,100. If it is added to the mortgage, your starting balance would be $444,600.
Now let’s turn that premium into a monthly number.
At a hypothetical 4.5% interest rate over a 25-year amortization, the principal and interest payment on $444,600 would be approximately $2,461 per month.
Using the same rate and amortization, the payment on $427,500 without the premium would be approximately $2,366 per month.
That is a difference of roughly $95 per month in this example.
But now we have something useful to discuss: what does that monthly insurance cost mean for you compared with continuing to rent while you save?
These examples are general information, not financial advice or a mortgage approval. A mortgage professional can help you compare the options available to you.
Want to see how different down payments might change the numbers? Try the 5%, 10%, 15% and 20% Down Payment Comparison to compare the estimated insurance premium, mortgage payment and savings you keep available.
Could an insured mortgage have a lower interest rate?
Yes, sometimes.
Because mortgage default insurance reduces the lender’s risk, an insured mortgage can sometimes come with a lower interest rate than an uninsured mortgage.
That does not make the insurance premium disappear, but it is one more reason to compare actual mortgage options instead of assuming that putting 20% down will always give you the best rate.
Imagine looking at the same purchase with 5%, 10%, 15% and 20% down. Each option could leave you with a different payment, mortgage balance, insurance premium and amount of savings after closing.
What does it cost to wait until you have 20% down?
Let’s go back to that $450,000 home.
A 5% down payment is $22,500. A 20% down payment is $90,000. The difference is $67,500.
If you could save an additional $1,500 per month, it would take 45 months to save that difference.
Now imagine you are paying $1,800 per month in rent. Over those 45 months, you would pay $81,000 in rent.
This example assumes the home price and rent stay the same, your savings earn no return, and you do not need to use those savings for anything else. In real life, those numbers can change.
For some buyers, waiting will still be the right choice. For others, it may be worth exploring whether they can comfortably buy sooner.
You do not need to guess. You can compare the options and decide what feels right for you.
How long would it take you to save 20%? Explore your own timeline with the Down Payment Savings Timeline.
Spending $2,000 a month on rent? What could you buy instead?
If you are paying $2,000 a month in rent, you might be curious what that same monthly budget could look like as a homeowner.
That does not mean a $2,000 mortgage payment equals $2,000 in rent. When you own, you also need to plan for property taxes, insurance, utilities, maintenance and, where applicable, condo fees.
But once you look at the full monthly picture, you can start exploring what might be possible within a budget that feels comfortable to you.
Compare My Rent to a Homeownership Budget
What if you have 20% saved already?
Let’s say you have worked hard to save $90,000. Putting all of it down on a $450,000 home would generally allow you to avoid the borrower-paid mortgage insurance premium and start with a smaller mortgage.
But what if that leaves you with little money for moving costs, an emergency fund, a new appliance or work the home needs?
You could consider putting down less and keeping some savings available. That comes with a larger mortgage and an insurance premium, so you would want to understand how it changes your monthly payment.
There is no single answer that fits everyone. Your job is to find the balance that lets you enjoy your home and feel comfortable with your finances after possession.
Not sure how much to keep available? Start with the First-Home Savings Checklist for a look at closing costs, moving expenses and planning for life after possession.
Could an older Edmonton home be the right first home?
Edmonton has established neighbourhoods filled with mature trees, character homes, bungalows, parks and access to the river valley. Some homes have already been updated. Others might need a little imagination and a plan.
A home with an older kitchen or a paint colour you would never choose may still have the layout, lot and location you have been looking for. You can change the paint. You can update a kitchen over time. The street, the lot and the neighbourhood are much harder to recreate.
And remember, you do not have to do everything at once. Sometimes living in a home for a while is the best way to figure out what you want to change.
If this sounds like you, take a look at Buying a Home in Edmonton? Stop Chasing Perfect.
Love a neighbourhood, but wondering where else to look? Explore the Edmonton Neighbourhood Guide for communities that may offer some of the same things you love.
Can you include renovations in your mortgage?
You may be able to.
A purchase-plus-improvements mortgage can allow an eligible buyer to include approved improvements in their mortgage when buying a home. CMHC Improvement is one option lenders may use.
If you find a home you love that needs work, this is something to discuss before writing an offer. The lender may require quotes and approval, and funds may be released after the work is completed and verified. You may need savings or temporary financing to pay for the work up front.
It is one more option worth asking about as you decide whether to use savings, finance improvements or make changes over time.
First-time home buyer programs worth exploring
If buying your first home is on your mind, a few federal programs may help you save or reduce certain costs. Each program has its own eligibility rules, but knowing they exist is a great place to start.
First Home Savings Account
A First Home Savings Account, or FHSA, helps eligible first-time buyers save for a qualifying home.
Generally, you receive $8,000 of participation room in the year you open your first FHSA, up to a lifetime limit of $40,000. Contributions are generally tax-deductible, and qualifying withdrawals to buy a home are tax-free.
A detail worth knowing: your participation room starts when you open your first FHSA. It does not accumulate for years before the account is opened.
Learn more about FHSAs from the Canada Revenue Agency.
Home Buyers’ Plan
The Home Buyers’ Plan allows eligible buyers to withdraw up to $60,000 from their RRSPs to buy or build a qualifying home.
You may be able to use both the Home Buyers’ Plan and a qualifying FHSA withdrawal for the same home. The key difference is that a Home Buyers’ Plan withdrawal generally needs to be repaid to your RRSP over 15 years.
For eligible first withdrawals made from 2026 through 2028, the CRA says repayments begin in the fifth year following the withdrawal.
Read the CRA’s Home Buyers’ Plan information.
First-Time Home Buyers’ Tax Credit
Eligible buyers may be able to claim the federal Home Buyers’ Amount on their tax return.
It is based on an amount of up to $10,000 and reduces the federal income tax you owe. The tax savings depend on the credit rate for the year you buy. It is a non-refundable credit, so it reduces federal income tax payable.
A qualifying purchase can be an existing home or a home under construction.
See the CRA’s Home Buyers’ Amount details.
First-time home buyers’ GST rebate
If you are considering a new home, eligible first-time buyers may qualify for a federal GST rebate.
For a qualifying home valued at or below $1 million, the rebate can provide up to $50,000 in federal GST relief. The maximum amount gradually decreases for homes valued between $1 million and $1.5 million. Certain substantially renovated homes may also qualify.
If you are comparing a new build with an existing home, ask how GST and any rebate are reflected in the builder’s quoted price. Then look at the whole purchase: the location, lot, features, possession date and what is included.
Review the CRA’s first-time home buyers’ GST/HST rebate guide.
A 30-year insured mortgage amortization
Eligible first-time buyers may be able to choose a 30-year amortization on an insured mortgage, including for a qualifying resale home.
A longer amortization generally reduces the required monthly payment. The trade-off is that you will generally pay more interest over the life of the mortgage if the other assumptions stay the same.
It is worth asking to see a 25-year and a 30-year option side by side.
Wondering which programs might apply to you? Start with the First-Time Home Buyer Programs Checklist for questions to bring to your mortgage and tax professionals.
Where do interest rates fit into your decision?
Interest rates are an important part of the conversation, especially when they feel uncertain.
On October 28, 2026, the Bank of Canada raised its policy interest rate to 2.50%. That is not necessarily the mortgage rate you will be offered. Fixed and variable mortgage rates are influenced by different factors, and the options available to you depend on your circumstances and lender.
You do not need to predict exactly what rates will do before you start asking questions. You can look at the options available now, understand what payments feel comfortable, and make a plan that leaves room for the rest of your life.
Explore My Comfortable Home Budget
You might have more options than you think
If you have been renting while working toward a 20% down payment, that is an accomplishment. Saving takes work, and there is nothing wrong with continuing if that is the right plan for you.
But if you would love to own a home and have been waiting because you thought 20% was the only responsible choice, let’s look at the numbers.
You might discover that buying is closer than you thought. You might decide you want more time to save. Either way, you will have the information to make that decision for yourself.
Curious where you stand? Take a few minutes to explore your savings, budget and goals with Am I Closer to Buying Than I Think?.
That is how Olga and I approach every buyer: as an individual, with your own goals, finances, timeline and idea of what home looks like.
Meet Olga Klimko, Mortgage Professional
When buyers want help understanding their financing options, one of the mortgage professionals I recommend is Olga Klimko at Sage Door Mortgage.
Olga takes the time to understand your goals, finances and circumstances, then helps you compare the mortgage options available to you. She welcomes questions, whether you are buying your first home or just starting to figure out what could be possible. You do not need to have found a home or be ready to make an offer to start the conversation.
Olga Klimko
Mortgage Professional | Sage Door Mortgage
Connect with Olga or start a mortgage application
Let’s find your first Edmonton home
If you are dreaming about moving from renting into a home of your own in 2027, I would love to help you explore what is possible.
Maybe you have a favourite neighbourhood. Maybe you are deciding between a condo and a house. Maybe you are curious about an older home you could make your own, but you are not sure where to start.
I’m Caitlin Heine, an Edmonton REALTOR® and the owner of ICONIC YEG. I can help you explore neighbourhoods, compare homes and understand what to look for along the way.
Reach out to me, and let’s talk about your goals and what your next step could look like!
Caitlin Heine, REALTOR®
ICONIC YEG | RE/MAX Real Estate