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Rates are based on an average mortgage of $300,001
| Insured | 80% LTV | 65% LTV | Uninsured | Bank Rate | |
|---|---|---|---|---|---|
| 1-year fixed rate | 4.99% | 5.60% | 5.60% | 6.69% |
6.79%
|
| 2-year fixed rate | 5.67% | 5.30% | 5.30% | 6.04% |
6.39%
|
| 3-year fixed rate | 4.79% | 4.94% | 4.94% | 4.94% |
5.55%
|
| 4-year fixed rate | 4.94% | 4.94% | 4.94% | 5.09% |
5.29%
|
| 5-year fixed rate | 4.74% | 4.79% | 4.79% | 4.94% |
4.84%
|
| 7-year fixed rate | 4.94% | 5.29% | 5.29% | 5.09% |
5.90%
|
| 10-year fixed rate | 5.74% | 5.89% | 5.89% | 5.84% |
7.25%
|
| 3-year variable rate | 6.10% | 6.70% | 6.70% | N/A |
8.60%
|
| 5-year variable rate | 5.90% | 6.10% | 6.10% | 6.25% |
6.59%
|
| HELOC rate | 7.20% | 7.20% | 7.20% | 7.20% | N/A |
| Stress test | 6.74% | 6.79% | 6.79% | 5.25% | N/A |
Updated
High interest rates in Canada over the past year and a half have affected all housing markets. In Calgary, the most recent numbers show that sales have slowed, mostly due to a winter slowdown, combined with the overall market cooling since the record-breaking years during the pandemic.
However, there were still 2,171 sales in October 2023, a 17% increase over the same time last year, according to the Calgary Real Estate Board. New listings also increased in October, compared to the previous year, reaching 2,684 units – which is an increase of 23.7%. The unadjusted benchmark price for homes grew 9.7% to $571,600. Inventory, however, was down by 18% since last October.
Condominium sales were the driving force behind the increase in sales in the latter half of 2023, as more people sought out affordable housing. There were 727 new listings and 641 sales in October of 2023. The unadjusted benchmark price for condos was $316,000 that month – a gain of 16% year-over-year.
Detached homes saw an improvement both in sales and new listings in October 2023, with an increase to 976 and 1,302, respectively. Inventory levels for homes priced below $700,000 went down in October 2023, while homes priced above $1,000,000 saw a slight increase. The unadjusted benchmark price for detached homes reached $697,600 in October 2023 – a 12% increase year-over-year.
Semi-detached homes saw 235 new listings and 179 sales in October 2023, with the sales-to-new listings ratio sitting at 76% - which is relatively high. Inventory levels, however, are almost half of what they usually are in October and the lowest they’ve been in October since 2005. The unadjusted benchmark price for semi-detached homes in October 2023 was $628,700 – a 13% increase year-over-year.
Finally, row homes saw 420 new listings in October and 375 sales, with the sales-to-new listings ratio being 89%. As is the case with semi-detached homes, inventory levels have not been this low since October 2005. The unadjusted benchmark price for row homes in October 2023 was $425,000 – a 19% gain year-over-year.
Calgary has always been an important corporate city in Canada, especially for people working in the oil and gas sectors. It is the largest city in Alberta, with a population of more than 1.3 million people. It is also Canada’s third largest city. It’s not the most affordable city in Canada in terms of real estate prices, but it’s also nowhere close to being the least affordable one, especially when compared to places like Vancouver and Toronto.
You can compare mortgage rates from top lenders in Calgary via RATESDOTCA. The process is fast, simple and free. All you need to do is enter information about your downpayment, the terms of your mortgage and the area you are looking to buy – and we’ll do the rest.
According to the Canada Mortgage and Housing Corporation (CMHC), the average scheduled monthly mortgage payment for homeowners in Calgary for the second quarter of 2023 is $2,036. That’s up 0.15% from the previous quarter and up a whopping 20.3% from the second quarter of 2022 – mostly due to higher interest rates.
The Bank of Canada predicts that by 2025 and 2026, the median rates for fixed and variable mortgages will be 4.4% and 4.5%, respectively. That means homebuyers who took out loans in 2020 and 2021 will see their monthly payments increase by $420, or 30% when their mortgage is renewed.
| 2022 Q2 | 2022 Q3 | 2022 Q4 | 2023 Q1 | 2023 Q2 | |
|---|---|---|---|---|---|
| Canada | $1,722 | $1,909 | $1,923 | $1,984 | $1,922 |
| Alberta | $1,601 | $1,800 | $1,856 | $1,907 | $1,907 |
| Calgary | $1,692 | $1,941 | $1,971 | $2,033 | $2,036 |
The average value of new mortgage loans has taken a dip, not only from quarter to quarter, but year-over-year. As interest rates have risen, new loans have dwindled, with the expense of taking a new mortgage preventing more buyers from getting into the market.
From the first quarter of 2023 to the second quarter of 2023, the value of new loans declined from $320,298 to $314,864 or 1.7%. Year-over-year, however, that decline amounted to 14%, as interest rates started to climb.
According to the Canadian Real Estate Association (CREA), Calgary’s unemployment rate in October 2023 was 5.8% – 9.7% below the peak from June 2020. The number is also below the long-run average. With more people holding full-time jobs, more families can afford bigger downpayments on their homes. However, higher interest rates in 2023 have also led to longer amortization periods – which banks usually grant to homeowners with stable incomes (i.e. full-time employees). Though the standard maximum amortization period allowed in Canada is 25 years, a downpayment of over 20% can lead to an extension. With many Calgarians opting for longer amortization periods due to high interest rates, plus bigger downpayments, less money goes toward the mortgage itself (i.e. the principal). As a result, mortgage values are lower, despite payments and home prices being higher.
| 2022 Q2 | 2022 Q3 | 2022 Q4 | 2023 Q1 | 2023 Q2 | |
|---|---|---|---|---|---|
| Canada | $366,163 | $363,654 | $325,612 | $320,298 | $314,864 |
| Alberta | $331,285 | $339,854 | $317,353 | $310,002 | $316,597 |
| Calgary | $358,516 | $371,194 | $336,715 | $331,194 | $339,372 |
If you’re a first-time homebuyer, here’s what you can do to make housing more affordable for yourself:
Calgarians have historically been perceived as less-rate sensitive compared to homebuyers in other regions of the country. That’s due to a large percentage of the workforce being blue-collar, high-wage earners in the oil and gas sectors.
But things have changed with the internet making it easier to find the best rates. That’s forced mortgage brokers and lenders to compete harder for mortgage business.
Speaking of brokers, Calgarians have no shortage of options when it comes to mortgage brokerages. The largest traditional broker networks in the city include Dominion Lending Centres, TMG the Mortgage Group and M3 Mortgage Group.
Some of the top deep-discount brokers servicing Calgary include:
The city’s biggest lenders include:
These lenders are all reasonably competitive, but only one can have the best deal at any given time. Fortunately, we track all these lenders, making that comparison easy.
Like most housing markets in Alberta, Calgary’s mortgage market is heavily influenced by the health of the energy sector, primarily oil and gas. The city’s economy is also driven by tourism thanks to its proximity to the Rocky Mountains and its annual Calgary Stampeded rodeo that draws crowds from around the world.
Housing has historically boomed when the oil and gas industry is performing well. But since oil prices plummeted in 2014-15 and 2020, Calgary’s housing market has suffered due to rising job losses. Like most other regions, housing and mortgage demand are expected to remain weak into 2021 before starting to recover in 2021 or 2022.
Compared to more rural communities in Alberta, homes in Calgary are easier to sell and have higher prices. Nonetheless, mortgage underwriters often exercise slightly more caution with Calgary deals given ongoing difficulties in the oil and gas sector, which create risk of defaults, home price weakness and higher losses.
Mortgage default rates in the province stood at 0.52% as of January 31, 2020. Again, much of this is due to lost incomes from the struggling oil and gas industry. By comparison, the default rate was just 0.09% in Ontario and 0.15% in British Columbia.
If you’re a Calgarian in the market for a mortgage, you might be considering a mortgage from your bank thinking the “convenience” of having all your accounts in one place seems appealing. Well, you might want to think again.
These days, roughly 90% of consumer banking is done online and banks no longer have a monopoly on convenience. In fact, you’d be remiss to complete the mortgage process without first comparing rates. There are two key reasons for this: it’s easy, and it can save you a bundle of money.
If you compare Calgary’s best mortgage rate against the worst rate, that difference can span a full percentage point or more. If you took the first offer from your bank at the mid-part of that range, you’d be leaving thousands of dollars on the table given an average size mortgage.
It’s a well-known fact that Canada’s big banks are not the most transparent companies when it comes to pricing mortgages. Getting the best rate in Calgary truly requires legwork and comparison. That said, banks do tend to have lower pricing on uninsured mortgages and HELOCs versus competitors.
One option is to work with a mortgage broker. They’ll shop several lenders for you to find you the best mortgage rate in the city. But keep in mind brokers don’t get paid from all lenders, so they won’t offer a comprehensive market picture.
One thing they can do, if you deal with a competitive one, is use part of their commission to “buy down” your rate. It never hurts to ask a broker to do this in order to win your business.
In general, the best time to shop rates in Calgary is during the busy spring homebuying season. That’s when most lenders offer their sharpest mortgage deals. Just remember: the goal is to minimize your total borrowing costs. That means settling on the optimal combination of the lowest rate and the best flexibility, given your five-year goals.
Got more questions about getting a mortgage in Calgary? We got you covered.
By comparing rates on RATESDOTCA, you could save thousands of dollars annually. By going this route, you'll be making informed decisions based on all the choices available – rather than jumping on the first mortgage offer you see.
RATESDOTCA is one of the best places to compare mortgage rates in Calgary. Lenders across Canada, such as the Bank of Nova Scotia, TD Bank, National Bank, RBC, BMO, and many others, are compared directly to one another to help you find the best deal possible on your Calgary mortgage.
Rather than going into the process blindly, having sites like RATESDOTCA compare mortgage rates allows you to have up-to-date knowledge well before you make the life-changing decision of purchasing a home. In fact, RATESDOTCA is updated with the latest rates on the market constantly – so don’t be shy to check back frequently for new deals.
Mortgage rates are influenced by many factors. As an individual, you will be assessed for your ability to pay back your mortgage, the type of home you are buying, its condition, location and more. So, from that point of view, mortgages can vary greatly, even within a single neighbourhood.
However, because Calgary is a major metropolitan area, and has many lenders vying for your business, mortgage rates would not necessarily be higher in the city compared to other areas in the province. Also, the real estate market is relatively liquid, making rates competitive no matter where you look. This means that rates in Calgary may in fact be lower than in other parts of Alberta due to the potentially higher number of competitors.
Engaging a mortgage broker before renewing can help you make a better decision. Mortgage brokers are an excellent source of information for deals specific to your area, contract terms, and their services require no out-of-pocket fees if you are well qualified.
Here at RATESDOTCA, we compare rates from the best Canadian mortgage brokers, major banks and dozens of smaller competitors.
Joel Kranc is a freelance writer and content provider who has worked with RATESDOTCA since 2019. He holds an MA in political science from the University of Toronto and a film certificate from New York University.
He has been published in and worked for such companies as CNN, Rogers Media, Institutional Investor Magazine, The Globe and Mail, Infrastructure Investor, BenefitsPRO Magazine, Global Finance Magazine, With Intelligence, the CPP Investment Board, Hospitals of Ontario Pension Plan, and many more financial services and industry publications.
He is the author of "Retirement Planning in 8 Easy Steps," which, when released in 2015, was No. 11 on the Publisher's Weekly US Bestseller List for Business and Finance, beating out Mark Cuban's "How to Win at the Sport of Business."
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