Condo vs House Mortgage in Calgary: Key Financing Differences

Calgary offers first-time buyers a legitimate choice: you can buy a condo for $250,000 to $450,000, or stretch into a house at $500,000 and up. Both are homeownership, but the financing is not the same. Down payments work differently, qualification is calculated differently, and lenders impose different rules on condos than they do on houses.

If you are deciding between a condo and a house, understanding these mortgage differences will help you make a smarter decision.

Down Payment Rules: Same Percentages, Different Entry Points

The minimum down payment requirements are the same for condos and houses:

• 5% down on the first $500,000 of purchase price
• 10% down on any amount between $500,000 and $1,000,000
• 20% down required for purchases over $1,000,000

Where condos and houses differ is the actual dollar amount you need to save. A $350,000 condo requires a $17,500 down payment (5%). A $550,000 house requires $30,000 (5% on the first $500K, 10% on the remaining $50K). The percentage is the same, but the barrier to entry is much lower with a condo.

This is why condos are the most common entry point for first-time buyers in Calgary. You can get into the market faster with less cash saved, start building equity, and upgrade to a house later when you have more down payment and higher income.

How First-Time Buyer Incentives Apply

Both condos and houses qualify for the First Home Savings Account (FHSA) and the Home Buyers' Plan (HBP). You can contribute up to $8,000 per year to an FHSA (up to $40,000 lifetime), and you can withdraw up to $60,000 from your RRSP under the HBP without paying tax on the withdrawal.

These programs work the same regardless of property type, so there is no advantage or disadvantage to choosing a condo over a house in terms of accessing government savings programs.

CMHC Insurance: Condo-Specific Requirements

If you put down less than 20%, your mortgage requires CMHC insurance (or insurance from Sagen or Canada Guaranty). The insurance protects the lender if you default, and it allows you to access financing with a smaller down payment.

The insurance premium is the same percentage for condos and houses — it is based on your loan-to-value ratio. But CMHC has additional requirements for condos that do not apply to houses.

Condo Approval by CMHC

Not every condo building is automatically eligible for CMHC-insured financing. CMHC maintains a list of approved condo buildings, and if the building you want to buy in is not on that list, the lender has to submit the building for approval before your mortgage can be insured.

This approval process reviews the building's reserve fund, the percentage of owner-occupied units versus rentals, whether the condo corporation is involved in any lawsuits, and whether the building meets CMHC's construction and safety standards.

Most established condo buildings in Calgary are already CMHC-approved, but newer buildings, buildings with financial issues, or buildings with high rental ratios can face delays or outright declines.

Reserve Fund Minimums

CMHC requires condo corporations to maintain adequate reserve funds for future repairs and maintenance. If the reserve fund is below CMHC's threshold, the building may not qualify for insured financing. This is a common issue with older buildings or buildings that have deferred maintenance.

When you are shopping for a condo, ask your realtor whether the building is CMHC-approved. If it is not, you need to factor in potential delays or the possibility that you will need 20% down to avoid insurance altogether.

How Condo Fees Affect Your Qualification

This is the big difference that most buyers do not understand until they run the numbers. Condo fees directly impact how much mortgage you qualify for, and the impact is significant.

GDS and TDS Calculations

Lenders use two debt service ratios to determine your maximum mortgage:

• Gross Debt Service (GDS): Your housing costs (mortgage payment, property taxes, heating, and 50% of condo fees) cannot exceed 39% of your gross income.
• Total Debt Service (TDS): Your housing costs plus all other debt payments cannot exceed 44% of your gross income.

Notice that condo fees are included in your housing costs at 50% of the actual fee. If your condo fee is $400/month, the lender adds $200 to your monthly housing costs when calculating your GDS ratio.

Real Impact on Buying Power

A $400/month condo fee reduces your maximum mortgage by approximately $40,000 to $50,000, depending on current interest rates and amortization. A $600/month condo fee can reduce your Buying Power by $60,000 to $75,000.

This is why two buyers with identical income and down payment can qualify for very different purchase prices depending on whether they are buying a condo or a house. The house has property taxes and utilities, but no condo fees. The condo has lower property taxes and no exterior maintenance costs, but the condo fee eats into qualification room.

Example: $100,000 Household Income

Let us say you earn $100,000/year, have no other debts, and have saved a 5% down payment. Here is roughly what you can afford:

• Buying a house: Maximum purchase price around $460,000 to $480,000
• Buying a condo with $300/month fee: Maximum purchase price around $420,000 to $440,000
• Buying a condo with $500/month fee: Maximum purchase price around $390,000 to $410,000

Same income, same down payment, different outcomes based on condo fees.

Property Type Rules and Lender Restrictions

Lenders treat condos differently than houses in terms of underwriting policy. Some restrictions apply to condos that never apply to houses.

Minimum Square Footage

Some lenders will not finance condos smaller than 500 or 600 square feet. Micro-condos and studio units can be difficult to finance, especially if you are putting down less than 20%. This is a risk management decision — smaller units are harder to resell if the lender has to foreclose.

Age-Restricted and Hotel Condos

Age-restricted condos (55+ buildings) and hotel condos (units in a hotel that can be rented out as short-term rentals) face additional restrictions. Many lenders will not finance these properties at all, or they require 20% to 35% down.

If you are looking at a non-traditional condo, confirm with your mortgage broker that financing is available before you make an offer.

Rental Ratio

CMHC and most lenders want to see that at least 50% of the units in a condo building are owner-occupied. If more than 50% of the building is rented out, the building is considered investment-grade, and financing becomes more difficult.

This is rarely an issue in Calgary's established condo buildings, but it can be a problem in newer developments or buildings marketed primarily to investors.

Calgary Market Context: What You Get for Your Money

Calgary's condo market offers good value compared to Toronto or Vancouver, but there is still a meaningful price gap between condos and houses.

Typical Condo Prices

• Downtown Calgary condos: $250,000 to $450,000 (1-bedroom to 2-bedroom units)
• Beltline and inner-city condos: $300,000 to $500,000
• Suburban condos: $200,000 to $350,000

Condo fees in Calgary typically range from $250/month to $600/month, depending on the building's age, amenities, and size.

Typical House Prices

• Starter homes in established communities: $500,000 to $650,000
• New builds in suburban communities: $600,000 to $800,000
• Inner-city detached homes: $700,000 and up

Property taxes on a $550,000 house in Calgary run approximately $3,600 to $4,200 per year. Heating, utilities, and maintenance are additional and vary widely depending on the age and size of the home.

Where Each Option Makes Sense

Condos make sense if:

• You want to live in the core (Beltline, East Village, downtown)
• You are a first-time buyer with limited down payment
• You want lower maintenance and no yard work
• You travel frequently and want building security
• You are buying as an investment property for rental income

Houses make sense if:

• You have a larger down payment and higher income
• You want more space, privacy, and control over your property
• You have kids or pets and need a yard
• You plan to stay long-term and want better appreciation potential
• You are willing to handle exterior maintenance and repairs

Investment Angle: Condo vs House as a Rental Property

If you are buying a property as an investment, the math changes. Rental income qualification, cash flow, and appreciation trends all differ between condos and houses.

Rental Income Qualification

Lenders allow you to use 50% to 80% of projected rental income to offset the mortgage payment when calculating your debt ratios. The exact percentage depends on whether you are living in the property or renting it out entirely, and whether the property is already tenanted or vacant.

Condos are easier to rent out and tend to have more stable rental demand in Calgary's core. Houses in the suburbs can sit vacant longer, but they attract families willing to pay higher rent for more space.

Cash Flow Comparison

A $350,000 condo with a $400/month condo fee might rent for $1,800/month. After mortgage, condo fees, property taxes, and insurance, you might break even or have slight negative cash flow.

A $550,000 house might rent for $2,400 to $2,600/month. After mortgage, property taxes, insurance, and maintenance reserves, you also might break even or have slight negative cash flow.

In both cases, Calgary's rental market does not typically generate strong positive cash flow in the first few years. The investment thesis is based on mortgage paydown and long-term appreciation, not immediate rental yield.

For more on rental property financing, see investment properties.

Appreciation Trends in Calgary

Historically, detached houses in Calgary appreciate faster than condos over long time horizons. Condos are more sensitive to oversupply, and Calgary has seen periods where condo inventory exceeded demand, leading to flat or negative price growth.

Houses, especially in established inner-city communities, have shown more consistent appreciation. Land value drives house prices, and land is finite. Condos can always be built higher or denser, which limits long-term price growth.

If your primary goal is wealth building through real estate appreciation, houses have a better track record in Calgary. If your goal is affordable entry into the market with lower maintenance, condos are the better starting point.

Comparison Table: Condo vs House Financing

Which Is Right for You?

The decision between a condo and a house comes down to your financial situation, lifestyle priorities, and long-term goals.

Choose a Condo If:

• You have saved 5% to 10% down but not enough for a house
• You want to live in Calgary's core or near transit
• You prefer low-maintenance living
• You are a first-time buyer looking to build equity and upgrade later
• You are comfortable with condo fees in exchange for amenities and convenience

Choose a House If:

• You have 10% to 20% down and strong income
• You want space, privacy, and land
• You plan to stay long-term and want better appreciation
• You are willing to handle maintenance and repairs
• You have a family or pets and need a yard

Both are legitimate paths to homeownership. Neither is objectively better. The right choice depends on your numbers and your priorities.

Next Steps

If you want to know exactly how much you qualify for — whether you are buying a condo or a house — start with the affordability calculator. It will give you a rough range based on your income and debts.

If you are considering a condo with less than 20% down, use the CMHC calculator to see what your insurance premium will be and how it affects your monthly payment.

And if you want a precise answer based on your actual financial situation, reach out for a pre-approval. It takes 15 minutes, it is free, and it gives you a real number to work with. Learn more at first-time buyers.

Calgary's real estate market offers options at multiple price points. The key is understanding how financing works for each option and choosing the path that fits your budget and goals. Whether you start with a condo or go straight to a house, the important thing is that you start building equity instead of paying rent.

For more on how much you can realistically afford in Calgary, check out how much house can I afford.