How Much Do I Need to Save to Buy a Home in Edmonton?

The summer is flying by, and August in the rearview mirror, many Edmontonians are starting to think about what the rest of the year might look like. If buying a home is on your mind, one of the biggest questions is often: How much should you actually have saved before making a purchase? Between your down payment, closing costs, moving expenses, and an emergency fund, there are several costs to consider beyond the purchase price. Whether you're a first-time buyer, planning your next move, or simply preparing for the future, this week's post breaks down how much you should aim to save before buying a home in Edmonton, along with a helpful market update, practical real estate tips, and a look at some of the exciting things happening around the city this week.

How Much Do I Need to Save to Buy a Home?

So, how much should you actually have saved before buying a home? Well the truth is that there is not a magic number and everyone's situation is different. Some people are moving up to a larger home and have steady careers, others are trying to break into the market and buy their first home. Regardless of where you are in life, if you are looking to purchase a home this is a question that you'll be asking.

Down Payment

The first portion of money will be for a down payment. This is the money that you put down to buy the home. Unless you are buying a home 100% in cash the down payment will be needed. When purchasing a home for a residence, the minimum down payment is 5% for homes under $500,000. For homes under $1,500,000 and over $500,000 you will have to put own 10% on any additional cost over $500,000. For homes over $1,500,000 you will have to put down 20%.

What does this mean? For a home that costs $500,000 the minimum you can put down is $25,000. For a home that cost $750,000 the minimum you can put down is $50,000 which is broken down to 5% of 500,000 ($25,000) and 10% of $250,000 ($25,000). For a home costing $2,000,000 the minimum down payment would be $400,000.

However, there is a catch. For homes of any price if you put down 20% or more you will avoid mortgage insurance or CMHC although there are special cases where they still may require it. Mortgage insurance is there to protect the lender in the case that you default on your mortgage. The premium for mortage insurance can range based on your mortgage amount. Typically, the bigger your down payment the lower the cost of the mortgage insurance.

So how much should you put for a down payment? Well as a buyer you get to decide that! If you have the financial ability to put 20% or more down while still maintaining a healthy emergency fund, it can be a great option. However, putting every dollar you have into your home just to reach 20% may not be the best choice. For some, the most they will be able to put down is 5% in which case they may be restricted in the price of home that they can look for. Generally, putting more money down will reduce your monthly payments and the amount of interest you pay over time. However, it's important not to put so much into your down payment that you leave yourself without enough savings for emergencies and other expenses.

Closing Costs

Your down payment isn't the only money you'll need when buying a home. It's also important to budget for closing costs, which are the additional expenses that come with completing your purchase.

Some common closing costs include legal fees, land title registration, home inspections, appraisals, property tax adjustments, and other administrative fees. The exact amount will depend on your specific purchase and whether you're buying a resale home or a new build.

As a general rule, it's a good idea to have an additional 1.5%–3% of the purchase price set aside for closing costs. For example, on a $500,000 home, that could mean having roughly $7,500–$15,000 available beyond your down payment.

Planning for these costs ahead of time can help prevent an unpleasant surprise when it's time to close. The last thing you want is to have enough saved for your down payment but not enough to comfortably cover everything else that comes with purchasing a home.

Moving Costs

Once you've purchased your home, there are still a few expenses to consider before you're fully settled in. Moving costs can add up quickly, especially if you hire professional movers, need to rent a truck, or are moving a long distance. If you do decide to hire professionals it is a great idea to speak with them first and get an idea of the cost so you can properly budget for it.

You may also find yourself spending money on things you didn't originally budget for, such as new furniture, appliances, window coverings, small repairs, tools, or other household items. Even if your new home is move-in ready, there will likely be a few things you'll want or need shortly after moving in.

While these costs will vary significantly from person to person, having a few thousand dollars set aside for moving and initial expenses can give you some breathing room. It's much easier to enjoy your new home when you're not worried about every unexpected expense that comes up during the first few weeks.

Emergency Fund

Whether you are buying a home or not an emergency fund is a crucial part of financial peace. Emergencies aren't really a matter of if, but when. Having an emergency fund means you'll be better prepared when something unexpected happens.

When you purchase a home you add a new list of things that can go bad. If you were renting before you now have to think about the fridge, stove and other appliances as well as the furnace, hot water tank and more. Over time, appliances and major systems such as furnaces, hot water tanks and roofing will eventually need repairs or replacement, and those expenses can be significant when they happen.

On top of regular costs there is also the chance that your source of income goes away. Whether that means you lose your job, illness, or major car repair. Having an emergency fund of 3-6 months of expenses can save you and bring you a lot of peace of mind.

Before purchasing a home, try living on your future homeowner budget for a few months. Include your projected mortgage, property taxes, utilities, insurance, groceries, transportation, maintenance and other regular expenses. If you can comfortably handle that budget while continuing to save, you'll have a much better idea of whether you're financially ready. Also remember that that number should be used to calculate your needed emergency fund.

Extras

Buying a home comes with so many extra little costs that you wont see coming. Got an extra room? Might want an extra bed or desk. Got a bigger dining room? Might want a bigger table. Got a bigger living room or master bedroom? Might want that dream couch or king bed. Maybe your new home has a lawn or landscaping. If it's your first time you are going to need a lawn mower and some tools. If you decide to put in some shelves in the garage you may need some power tools and lumber. The truth is that it all adds up. Having an extra $5,000–$10,000 available can give you the flexibility to take care of these purchases without dipping into your emergency fund.

In Summary

In summary, your down payment is not the only money you need to buy a home. Many buyers make this mistake and find themselves scrambling and stressed after closing. Before you purchase, run the numbers and understand what you will actually need. There may be ways to save money on moving or closing costs, but it's always better to over-budget than underestimate. Being left with extra money at the end can feel like a Christmas present, but being left short can be a nightmare that leaves you wishing you had waited a little longer.

So, how much should you save? As a general starting point, think about your down payment + closing costs + moving/initial expenses + 3–6 months of living expenses + extras. The exact number will be different for everyone, but having these four areas covered can put you in a much stronger financial position when you're ready to buy.

Edmonton Real Estate Market Update

August is over and September is here! It feels like summer just started but the leaves are changing colour, temperatures are dropping and the days are getting shorter. Over the next 2-4 weeks we should see a slight increase with the back to school fall rush!

The market has shown some signs of life over the past couple weeks but remains slower leaving sellers in a difficult position and buyers with decisions to make!

🏡 Average residential selling price: $475,000 (+2.6% year-over-year)

📈 Inventory: Up 22.2% compared to the same time last year.

🤝 Buyers: More choice and negotiating power than they had a year ago.

💰 Sellers: Well-priced homes are still attracting strong interest, making accurate pricing more important than ever.

Edmonton remains one of Canada's more stable real estate markets. Buyers have more options, sellers can still achieve great results, and success often comes down to having the right strategy, not trying to perfectly time the market.

Keep an eye out for the full August market update coming soon!

What’s Happening in Edmonton This Week?

Edmonton’s calendar is packed with events that showcase the city’s culture, creativity, and community spirit. Here are some of the key happenings from August 31 to September 6:

1. Golden Bears Football Home Opener (September 4 @ 6:30):

Come down to Foote Field to watch the Golden Bears take of the Reigna Rams in their home opener!

2. Beethoven's Fifth (September 4 @ 6:30)

Experience a live orchestral performance of Beethoven's Fifth Symphony at the Heritage Amphitheatre in William Hawrelak Park on Friday.

3. Jubilations Dinner Theatre: Back To The '80s: The Magic Mix Tape (August 28 - November 1)

Come enjoy the live show and multi-course meal with music and more!

AC Galo Corner

Blake Reimer Real Estate is proud to announce that they have partnered with AC Galo Soccer team here in Edmonton.

After coming in first this season in league play AC Galo played in the playoffs last weekend and won their first game qualifying them for provincials in Calgary as the number 1 seed out of Edmonton!

Playoff Game Details:  

• Date: September 5-7, 2026

• Location: Maxwell Soccer Center in Calgary

  
  

Come out and enjoy the games! GALO ROLL!!!!

Edmonton’s real estate market is full of opportunites for both buyers and sellers. Now is your time to beat the fall rush and find that home you've been looking for! Whether you are a buyer or a seller I have resources to help you with your transaction!

Check out the buyers resources here

Check out the sellers resources here