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Evaluate all of Alberta’s best mortgage rates in one place. RATESDOTCA’s Rate Matrix lets you compare pricing for all key mortgage types and terms
Rates are based on a home value of $400,000
| Insured | 80% LTV | 65% LTV | Uninsured | Bank Rate | |
|---|---|---|---|---|---|
| 1-year fixed rate | 6.44% | 5.89% | 5.89% | 7.35% |
6.59%
|
| 2-year fixed rate | 5.59% | 5.59% | 5.59% | 5.84% |
6.19%
|
| 3-year fixed rate | 4.79% | 4.89% | 4.89% | 4.99% |
5.29%
|
| 4-year fixed rate | 4.79% | 4.94% | 4.89% | 4.89% |
5.19%
|
| 5-year fixed rate | 4.44% | 4.64% | 4.44% | 4.44% |
4.84%
|
| 7-year fixed rate | 5.49% | 5.84% | 5.84% | 5.89% |
5.90%
|
| 10-year fixed rate | 5.74% | 5.89% | 5.89% | 6.09% |
7.25%
|
| 3-year variable rate | 5.75% | 5.90% | 5.80% | 5.80% |
8.10%
|
| 5-year variable rate | 5.40% | 5.65% | 5.45% | 5.45% |
5.94%
|
| HELOC rate | N/A | N/A | N/A | N/A | N/A |
| Stress test | 5.25% | 5.25% | 5.25% | 5.25% | N/A |
Updated
The Alberta mortgage market exhibits unique features influenced by regional economic trends, housing demand, and interest rate fluctuations.
It’s more affordable than Ontario and B.C., which means there’s huge demand for housing in Alberta
Alberta is popular destination for prospective homebuyers. Given that affordability is much better here than in Ontario and B.C., it’s no surprise that Alberta has the highest rates of interprovincial immigration, of which many migrants arrive ready to buy a house.
The mortgage industry is competitive – which is good news for homeowners and buyers
Mortgage rates are competitive in Alberta, as there are a variety of lenders who look to provide mortgages to the prospective homebuyers in the province, who run the gamut from high earners in the oil and gas sector to newcomers from other provinces looking for more affordable homes.
The Big Six have a foothold in Alberta
Thanks to this, Alberta has one of the country’s most active mortgage markets. Provincial lenders are abundant, and the presence of all the Big Six banks injects competition into the mortgage market.
This has allowed Albertans to benefit from ample selection, and as a result, secure competitive rates.
Alberta homeowners are sensitive to interest rate changes
However, despite Alberta’s higher income per capita, the cyclical nature of the oil and gas industry make Albertans slightly more rate-sensitive than other provinces. For that reason, we encourage all to aggressively research the lowest mortgage rates possible.
Here are some of the mortgage lenders that are active in Alberta.
A-lenders serving Alberta
A-lenders cater to customers that have good credit scores and reliable sources of income. Canada’s big banks are considered a-lenders. The following banks operate in Alberta:
B-lenders serving Alberta
B-lenders cater to borrowers who don’t qualify for loans from a-lenders. This might be because they are self-employed, limited or troubled credit histories, among other things. B-lenders have more flexibility in their lending criteria. They are provincially regulated and therefore do not need to apply the mortgage stress test on loans. These are some of the b-lenders operating in Alberta:
Credit unions serving Alberta
Credit unions are member-owned and can only operate in the community their branch is located in. They are provincially regulated and are not obligated to subject lenders to the mortgage stress test. These are some of the major credit unions that serve Albertans exclusively:
Private lenders serving Alberta
These are private companies that operate outside of the regulated banking system. Though they do need to abide by some rules, they have a lot of leeway in setting their own lending terms. They are an option for borrowers who have been turned down by a or b-lenders. However, these loans are often shorter than traditional mortgage and loans and carry higher interest rates. Here are some of the private mortgage companies that operate in Alberta:
Over the past four years, Alberta’s mortgage rates have experienced fluctuations influenced by economic cycles, central bank policies, and local housing dynamics.
Fixed rates offer more value than variable rates for the first time in decades
Rates for fixed rate mortgages were lower than variable rate mortgages during the spring housing market of 2024.
In March 2022, the Bank of Canada made several rate increases in quick succession. This prompted mortgage lenders to sharply raise the rates on variable mortgages. This is because the Bank of Canada’s key interest rate influences banks’ prime rates. Variable rate mortgages change with the mortgage lenders’ prime rates
Interest rates on fixed rate mortgages, however, are set according to current bond yields. By late 2022, bond yields were lower than banks’ prime rates. This led to fixed rates being lower than variable rate mortgages; usually, the inverse is the case.
The first rate cut in four years inspires optimism, but inflation concerns remain
The Bank of Canda cut its key interest rate by 25 basis points in early June. Looking ahead, there’s a possibility variable rate mortgages could continue falling in the second half of 2024. If additional cuts are made, we may see more people opting for variable rate mortgages.
However, this scenario – lower mortgage rates all around – may not play out as quickly as many would hope. Inflation remains a persistent issue in Canada, which means the central bank may press pause on making any changes to interest rates while they observe how things play out.
Alberta’s housing market has experienced notable shifts in recent years.
1) Interest rate hikes impacted mortgage loan sizes in 2023
In 2023, the size of mortgage loans in Alberta was slightly lower year over year, Canada Mortgage and Housing Corporation (CMHC) data shows. This was likely the result of the Bank of Canada’s decision to make numerous interest rate hikes in 2022 (six in total) and 2023 (three in total). People qualify for smaller mortgages when borrowing becomes more expensive.
2) Demand is steady amid Alberta's surging population
However, one thing has remained constant in Alberta: demand for housing. Steady population growth is the main driver, which is stronger in Alberta than anywhere else in Canada. Immigration has fuelled the explosion in immigration. Housing in Alberta is currently relatively more affordable than other parts of the country, making it an attractive place for people to put down roots.
3) Interprovincial migration is shaping the housing market
In 2023, a substantial portion of Alberta’s newest residents – 27% – were interprovincial migrants, from Ontario and B.C. primarily. This is notable because interprovincial migrants, who are shut out of the real estate market in their home provinces, come prepared to buy property.
4) The 2024 housing market is shaping up to be more competitive than ever
It's no surprise then that the start of the 2024 spring housing market in Alberta was described as more competitive than the last year’s given persistently low housing inventory.
The Bank of Canada’s June 2024 decision to lower the key interest rate to 4.75% has inspired optimism amongst homebuyers and stoked the already hot Alberta housing market. It’s the first cut since 2020 and buyers are excited.
5) The Bank of Canada’s June 2024 rate cut had immediate effects for some homeowners
However, it might take some months for the rate cut to materialize into significant mortgage rate reductions for holders of fixed-rate mortgages (variable rate mortgages saw an immediate reduction). In the meantime, limited housing supply, increased demand will contribute to steady price growth.
The key findings from the Canadian Real Estate Association’s (CREA) housing market data for Alberta include a 9.3% increase in the benchmark home price to $514,200, an 8% rise in the average home price to $502,625, and significant sales growth across all property types with a 15.7% increase in transactions worth a total of $4.8 billion.
Here are more takeaways from the data.
| Date | Average price as of May 2024 | Average price in May 2023 | YoY change |
|---|---|---|---|
| Alberta (total) | $502,625 | $463,952 | 8.3% |
| Alberta West | $451,756 | $479,833 | -5.9% |
| Calgary | $587,100 | $534,700 | 9.8% |
| Central Alberta | $404,512 | $347,552 | 16.4% |
| Edmonton | $392,700 | $370,100 | 6.1% |
| Fort McMurray | $363,415 | $378,280 | -3.19% |
| Grande Prairie | $337,968 | $327,602 | 3.2% |
| Lethbridge | $378,531 | $355,167 | 6.6% |
| Lloydminster (AB) | $316,445 | $294,484 | 7.5% |
| Medicine Hat | $379,393 | $344,403 | 10.2% |
| South Central Alberta | $300,923 | $254,714 | 18.1% |
Source: CREA National Price Map
Various factors can influence your mortgage rate, including your financial situation. However, certain external factors are beyond your control and can significantly impact your mortgage. Let’s explore some of the key factors affecting mortgage rates in Alberta:
When bond yields rise, interest rates on fixed-rate mortgage tend to rise, and vice versa. This correlation exists because mortgage lenders closely tie fixed-rate mortgages to 5-year Government of Canada bond yields.
Variable rate mortgages are tied to the mortgage lenders’ prime rate, which goes up or down based on the Bank of Canada’s overnight rate (otherwise known as the key lending rate).
Market demand also plays a role in mortgage rates. As demand heats up, home prices rise. However, competition among lenders can benefit homebuyers, as banks may offer lower rates to attract business.
Beyond broader economic trends, several personal factors impact your mortgage rate:
Credit score: Lenders assess your creditworthiness based on your credit score and payment history.
Down payment: A larger down payment can lead to a lower rate, as it reduces the lender’s risk.
Rate type: Choosing between fixed and variable rates affects your payment stability.
Mortgage loan term: Opting for a longer fixed-rate term can lock in lower rates.
Personal income: Lenders evaluate your ability to make mortgage payments based on your income and debt-to-income ratio.
Home appraisals influence the mortgage rate. If the appraised value is lower than expected, your down payment percentage may change, affecting the risk and rate.
Newcomers to Canada can benefit from tax credits and provincial discounts when buying their first home. However, taking mortgage insurance into account is essential.
Understanding these factors empowers you to make informed decisions when navigating the mortgage process.
In 2020, the average size of new mortgage loans increased after the Bank of Canada lowered lending rates. The average loan amount rose from $275,343 in first three months of 2020 compared to $319,728 in the same period in 2022.
By March 2022, the Bank of Canada began raising rates again to combat inflation. Large-scale migration to Alberta coincided with this trend.
Measuring the impact of interest rate changes on borrowing in Alberta
In the first three months of 2023, the overnight rate reached 4.75%, and the average mortgage loan was $310,000. By July 2023, the third quarter of the year, the central bank raised the overnight rate to 5%. That summer in Alberta, the average mortgage loan decreased slightly (roughly 4% year-over-year), despite brisk demand for real estate.
Higher rates reduced the loan amounts people could qualify for, but this also led to higher monthly payments for borrowers, both new and renewing ones.
Housing market outlook for the remainder of 2024: affordability is slowly eroding
In June 2024, the BoC made its first rate cut in four years, reducing rates by a quarter of a percent (0.25%).
The rate cut is expected to further entice out-of-town homebuyers to purchase real estate in Alberta, which could drive prices higher Edmonton, Saskatoon, and Calgary especially.
| Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Alberta | $290,816 | $313,308 | $329,274 | $317,212 | $319,728 | $331,285 | $339,854 | $317,353 | $310,002 | $316,328 | $326,879 | $325,139 |
| Newfoundland | $189,966 | $203,051 | $219,347 | $207,769 | $214,003 | $219,188 | $232,851 | $216,426 | $214,277 | $201,389 | $221,308 | $219,016 |
| P.E.I | $204,514 | $223,267 | $231,190 | $246,930 | $242,214 | $244,884 | $251,957 | $253,908 | $231,844 | $234,853 | $240,261 | $242,693 |
| New Brunswick | $210,713 | $228,433 | $246,647 | $238,656 | $240,473 | $250,006 | $258,677 | $237,381 | $227,788 | $234,688 | $259,277 | $246,068 |
| Quebec | $157,099 | $169,670 | $182,675 | $178,892 | $179,304 | $188,394 | $203,216 | $186,699 | $182,986 | $182,092 | $207,770 | $204,382 |
| Ontario | 214,888 | 218,550 | 233,533 | 218,440 | 224,133 | 228,524 | 237,520 | 206,201 | 202,014 | 193,800 | 211,995 | 202,079 |
| Manitoba | $380,853 | $419,836 | $448,835 | $434,185 | $448,031 | $462,494 | $462,701 | $418,808 | $406,429 | $405,749 | $434,006 | $426,021 |
| Saskatchewan | $225,340 | $234,634 | $254,640 | $249,534 | $247,682 | $255,490 | $272,728 | $251,420 | $237,080 | $236,485 | $249,747 | $247,228 |
| British Columbia | $227,764 | $246,997 | $259,308 | $254,453 | $251,715 | $243,338 | $260,163 | $240,763 | $232,458 | $225,764 | $240,774 | $239,158 |
Source: Canada Mortgage and Housing Corporation
The Bank of Canada kept interest rates low in 2020 to support the economy during pandemic shutdowns. This helped stoke the economy, and many people entered the housing market during the era of COVID lockdowns. But years of cheap borrowing led to historically high inflation.
Mortgage payments began to climb in 2022 after the Bank of Canada’s first hike (from 0.25% to 0.50%). That year, Canadians would see a total of seven rate hikes.
Housing demand and migration
Pent-up demand for housing helped drive up housing prices in 2022. Alberta also experienced significant migration (both international and interprovincial) that year, resulting in a population growth of over one million people—the highest in Canadian history.
Impact on borrowers
Low interest rates led people to borrow more, resulting in higher monthly mortgage payments.
However, mortgage holders renewing in 2022 faced higher rates, further increasing their monthly payments.
Inflation and payment trends
In 2022, the rate of inflation reached 8.1% in June, a 40-year high. By the end of 2022, the central bank raised rates to 4.25%, and continued to hike rates until it reached 5% in July 2023. This caused the average mortgage payment to increase. Here’s by how much it changed:
By the end of 2023, the average payment increased by a substantial $289 per month.
Alberta’s average payment is closest to the national average, making mortgages more affordable than B.C. and Ontario, but less so than in other prairie provinces and Quebec.
| Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | |
|---|---|---|---|---|---|---|---|---|
| Alberta | $1,462 | $1,468 | $1,470 | $1,474 | $1,506 | $1,508 | $1,535 | $1,526 |
| Newfoundland | $1,083 | $1,170 | $1,333 | $1,347 | $1,411 | $1,332 | $1,438 | $1,485 |
| P.E.I | $1,178 | $1,258 | $1,412 | $1,518 | $1,422 | $1,444 | $1,521 | $1,583 |
| New Brunswick | $1,180 | $1,290 | $1,438 | $1,441 | $1,449 | $1,470 | $1,628 | $1,622 |
| Quebec | $944 | $1,026 | $1,161 | $1,162 | $1,191 | $1,178 | $1,329 | $1,370 |
| Ontario | $1,093 | $1,150 | $1,266 | $1,239 | $1,274 | $1,221 | $1,331 | $1,338 |
| Manitoba | $1,897 | $2,099 | $2,392 | $2,449 | $2,494 | $2,444 | $2,634 | $2,770 |
| Saskatchewan | $1,176 | $1,277 | $1,449 | $1,473 | $1,462 | $1,463 | $1,553 | $1,581 |
| British Columbia | $1,528 | $1,468 | $1,454 | $1,481 | $1,540 | $1,543 | $1,540 | $1,524 |
| Canada | $1,594 | $1,722 | $1,909 | $1,923 | $1,984 | $1,920 | $2,074 | $2,143 |
-
There are a few things you can do to get the lowest possible mortgage rate.
Evaluate your costs
Don't just focus on the final sale price: there are many hidden costs that you, a first-time homebuyer, need to be aware of.
Try laying out a budget ahead of time and estimating the costs you will incur. For example, legal fees and closing costs will add to your overall purchase price. There are also fees such as land transfer tax and the added expenses of insurance and everyday utility and maintenance expenses.
Remember to factor in a contingency fund for emergencies, like when you need more extensive repairs for structural issues.
Seek pre-approval on your mortgage loan
A pre-approval on your mortgage loan is a crystal ball. It can help you see the types of mortgage costs you will have and the interest rate you qualify for.
This information allows you to decide on the type of home or neighbourhood you can afford to live in.
Think long-term
Your life today will look very different than it will in the future. Suppose you are just starting out and eventually may grow your family. Does the current house you are looking at meet those needs?
What about commuting, safety of the neighbourhood, proximity to parks and schools and so on? An urban setting today may seem ideal until you realize you need more space with a yard.
It's best to evaluate not just your needs for today but also what might occur down the road.
Research homebuying incentives from the federal government
Look into the First-Time Home Buyers' Tax Credit, also known as the Home Buyers' Amount. It's a non-refundable credit of $10,000 for first-time home buyers. It results in a tax rebate of up to $1,500.
The First Home Savings Account (FHSA) allows first-time buyers to accelerate their down payment savings. The FHSA combines aspects of an RRSP with those of a tax-free savings account. Deposits are tax-deductible, and once they're in your FHSA, they can be invested in several different ways. The earnings from those investments are tax-free.
You can deposit up to $8,000 per year in your FHSA for a total of $40,000.
Find a trustworthy team of professionals
It takes a village, as the saying goes. And that is true for homebuyers. By surrounding yourself with trusted professionals such as lawyers, appraisers, real estate agents, and mortgage professionals, you can avoid unnecessary pitfalls or regrets that come without having the right team on your side.
If you're searching for a mortgage broker or agent, apply for a quote with RATESDOTCA. We'll set you up in three minutes with the mortgage provider offering your lowest rate.
Still have questions about Alberta mortgages? We answer them here.
By comparing current Alberta mortgage rates on sites like RATESDOTCA you could save thousands of dollars annually. By getting the cheapest rates from the top providers in your area, you’ll be able to make an informed decision that gets you the results you want.
RATESDOTCA is one of the best places to compare Alberta mortgages. You can compare lenders across Canada, giving you the ability to find the cheapest mortgage rates in minutes.
Rates change frequently, so checking often gives you the information you will need to make an informed decision.
The Big Six banks dominate mortgage lending in Alberta, along with ATB Financial and the big credit unions. The province’s lenders are concentrated in Calgary and Edmonton.
The best mortgage lender changes by the month, with the lowest rates and features being the key criteria. RATESDOTCA allows quick comparison of those features in its rate tables.
After Ontario and British Columbia, Alberta has the highest concentration of mortgage brokers. Most brokers are situated in the province’s metro centres of Calgary and Edmonton, but most rural areas are also well-serviced by the broker market.
Mortgage brokers play an important role in Alberta’s competitive landscape. They are a major reason why the province is routinely in the top three for most competitive mortgage rates in the country.
Alberta mortgage brokers are typically able to offer more competitive mortgage rates compared to the big banks on several mortgage types. Some of the key brokerage houses operating in the province include: Dominion Lending Centres, TMG the Mortgage Group and M3 Mortgage Group, which consists of Mortgage Alliance, Mortgage Intelligence, Verico and Invis.
Alberta is also home to True North Mortgage, one of the country’s largest independent mortgage brokers, and is served by high-volume, deep discount online brokers including intelliMortgage Inc. (a sister company of Rates.ca), Sigma Mortgage, Butler Mortgage and the like.
Like many provinces in Canada, Alberta has a strong presence of local credit unions. The province’s largest, Servus Credit Union, is ranked as the fourth biggest in Canada.
The top Alberta credit unions include:
While many borrowers across the country have never had experience dealing with a credit union, they shouldn’t be written off as a mortgage option. Compared to many of the big banks, they can sometimes offer competitive mortgage rates, particularly during limited-time rate promotions often unveiled during the spring home buying season. Credit unions also have more flexible lending rules and often superior service.
Just 10% of mortgage shoppers consulted a credit union rep in 2019, according to data from Mortgage Professionals Canada. Albeit, that’s double the percentage in 2018, when the figure was just 5%.
Make sure to explore all your options when searching for the best mortgage rates. Rates.ca compares virtually all credit unions in Alberta.
Want to know how much a mortgage will set you back each month, or how big of a mortgage you'd qualify for, or whether refinancing make sense? Our Alberta mortgage calculators have these answers and then some. When it comes to home financing it's easy to take on more debt than you planned. So crunch the numbers, keep your monthly expenditures at a comfortable level and stay on budget.
Alexandra Bosanac has been a content manager for RATESDOTCA since 2021, specializing in auto insurance. She began covering auto insurance in 2017. Alexandra has a bachelor's degree in journalism from Toronto Metropolitan University. Before joining the RATESDOTCA editorial team, she reported for the Canadian Business, the Toronto Star, the National Post, and the CBC.
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