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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 | 4.99% | 5.99% | 5.99% | 5.99% |
7.49%
|
| 2-year fixed rate | 6.09% | 6.34% | 6.34% | 6.34% |
7.09%
|
| 3-year fixed rate | 5.64% | 5.89% | 5.89% | 5.79% |
6.70%
|
| 4-year fixed rate | 5.54% | 5.69% | 5.69% | 5.54% |
6.49%
|
| 5-year fixed rate | 5.24% | 5.54% | 5.54% | 5.54% |
5.84%
|
| 7-year fixed rate | 5.90% | 6.05% | 6.05% | 6.00% |
6.70%
|
| 10-year fixed rate | 6.30% | 6.39% | 6.39% | 6.00% |
7.25%
|
| 3-year variable rate | 6.10% | 6.50% | 6.50% | 6.10% |
8.60%
|
| 5-year variable rate | 5.99% | 6.10% | 6.10% | 6.25% |
6.95%
|
| HELOC rate | 7.70% | 8.20% | 8.20% | 7.40% | N/A |
| Stress test | 6.99% | 7.44% | 7.44% | 7.49% | N/A |
Updated November 15, 2023
Alberta is one of Canada’s three prairie provinces and boasts a population of nearly five million as of 2023.
Thanks in part to its historically strong energy sector, particularly oil and gas, Alberta is among the most active mortgage markets in Canada, alongside British Columbia and Ontario. This has allowed Albertans to benefit from ample competition in the mortgage market and as a result, secure competitive rates.
Alberta is one of the provinces where mortgage shoppers can find the most competitive mortgage rates. This is due in part to the higher incomes that traditionally came from the oil and gas sectors. They allow for bigger mortgages, which are more highly coveted.
Rates are also sharp thanks to the competitive mortgage broker market in the province, as well as competition from brokers outside of Alberta.
Some say the higher income per capita in the province, as well as lower educational levels (percentage with post-secondary education), make Albertans slightly less rate-sensitive than other provinces. But we think this is a generalization that does not reflect our readership. We encourage all to aggressively research the lowest mortgage rates possible.
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
The First-Time Home Buyer Incentive is a shared-equity program managed by the federal government. If you qualify, you can borrow up to 10% of a home's purchase price from the government, which can be used as a down payment.
Homeowners must repay the incentive when they sell the house or after 25 years. Repayment can also be triggered if you and a co-owner split up and want to buy out the other. If you choose to port your mortgage, meaning you transfer your existing mortgage to a new home, you must also pay the government back.
You might also investigate the First-Time Home Buyers' Tax Credit, also known as the Home Buyers' Amount, which is 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.
Alberta’s housing market showed strength in the first half of 2023, although it was markedly cooler than the previous year.
As of July 2023, total home sales amounted to 46,041, 15% higher than the long-term trend, according to the Alberta Real Estate Association (AREA). However, in June, the association noted that year-to-date sales were down 25% over record highs in 2022.
One shining light for the housing market has been a resilient labour force and a migration of workers into the province. These forces have also created a lot of demand and shrunk the housing inventory down to levels not seen since 2006, AREA noted in its July update. That month, new listings were down by more than 24.1% annually.
Tight inventory also caused home prices to rise in the summer, reaching an average price of $455,923, an increase of 3.9% over last year.
The national economy has not yet dipped into recession, and labour markets remain tight. Also, home prices are falling slightly with higher rates, so more buyers may once again enter the market.
In Alberta, the value of new mortgage loans has been declining as rates have come up. In Q3 of 2022, new mortgage loans averaged $339,454; for Q4, they were $317,359, and in Q1 of 2023, they fell to $310,027.
The inverse effect is seen in the average monthly payment for new mortgage loans. In Q3 2022, payments averaged $1,800; in Q4, they were $1,956, and in Q1 2023, average monthly payments rose to $1,907.
| Date (Year End) | # of Mortgages | # in Arrears | % in Arrears |
|---|---|---|---|
| 2022 | 605,348 | 2,220 | 0.37% |
| 2021 | 606,671 | 2,862 | 0.47% |
| 2020 | 598,829 | 2,977 | 0.50% |
| 2019 | 584,503 | 3,023 | 0.52% |
| 2018 | 580,928 | 2,814 | 0.48% |
| 2017 | 584,881 | 2,544 | 0.43% |
| 2016 | 579,086 | 2,661 | 0.46% |
| 2015 | 576,074 | 1,687 | 0.29% |
| 2014 | 568,000 | 1,512 | 0.27% |
| 2013 | 557,784 | 2,162 | 0.39% |
| 2012 | 529,757 | 2,616 | 0.49% |
| 2011 | 518,743 | 3,761 | 0.73% |
| 2010 | 506,296 | 4,193 | 0.83% |
| 2009 | 491,767 | 3,666 | 0.75% |
The Alberta economy was quite strong for the decade leading to about 2014 and grew by an average annual rate of 3.64%, which was more than 50% higher than the national average. This was mostly fueled by the booming oil and gas sector as more capital was poured on the flame of economic growth.
However, oil prices began to collapse in 2014 and Alberta’s economy saw an average annual decline of 0.12% through 2019, the year prior to the pandemic.
Relating this to the percentage of mortgage arrears, the chart shows that arrears started increasing right around that oil price collapse. In 2016, as recession took hold in the province, mortgage arrears began climbing even further.
These past few years have seen improvement and expansion due to commodity price royalties. As the economy has improved, so have the mortgage arrears, even as mortgages have increased to more than 600,000 for the year ending 2022.
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, such as the Bank of Nova Scotia, TD Bank, National Bank, Desjardins, Home Trust and many more, giving you the ability to find the cheapest mortgage rates in minutes.
RATESDOTCA 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. Rates.ca 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.
Monthly average payments for new loans in Alberta have been on the rise over the last few quarters, according to data from the Canada Mortgage and Housing Corporation (CMHC). In Q3 2022, payments sat at $1,800 per month; in Q4, they were $1,856; in Q1 and Q2 of 2023, they rose to $1,907.
Below are the average payments for Alberta's two major cities as of Q2 2023:
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.
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