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Compare mortgage rates in Alberta.

We know that hunting for the best mortgage rates in Alberta can be a challenge.

Don’t worry, though — we’re here to save you time during your search and money on your mortgage payments. LowestRates.ca brings Albertans the best mortgage rates from the top brokers and banks in the province.

Our free, no-obligation service lets you find and compare the lowest current mortgage offers available in Alberta on any given day.

Keep reading to learn more about the state of Alberta’s housing market and how you can benefit from comparing Alberta mortgage rates on LowestRates.ca.

Lower mortgage rates = bigger savings.

It’s important to compare the mortgage market before signing a contract to ensure you secure the best rate possible. At LowestRates.ca, we consistently provide our users in Alberta with the most current information about the best mortgage rates in the province.

In 2019, our 5-year fixed Alberta mortgage rates averaged just over 2.6%, whereas the bank-posted mortgage rates averaged over 5%.

The difference amounts to hundreds of thousands of dollars saved over the life of your mortgage loan depending on the cost of your home.

On average, LowestRates.ca’s 5-year fixed mortgage rates in Alberta are more than two percentage points lower than the bank rate. On a $400,000 mortgage with a 25-year amortization period and a down payment of 20%, the difference would add up to savings of:

$568 per month
$6,816 per year
$170,400 in a lifetime

5-year fixed mortgage rate from LowestRates.ca in Alberta vs 5-year bank rate

MonthOur average rateAverage bank rate
02/193.28%5.34%
03/193.10%5.34%
04/192.86%5.34%
05/192.77%5.34%
06/192.62%5.34%
07/192.49%5.19%
08/192.35%5.19%
09/192.38%5.19%
10/192.45%5.19%
11/192.35%5.19%
12/192.39%5.19%
01/202.60%5.19%
02/202.44%5.19%

Source: Bank of Canada and LowestRates.ca.

Variable or fixed rate: Which one lets me save more in Alberta?

Since February, 2019, 5-year variable mortgage rates in Alberta have remained steady around the average rate of 2.67%. During the same period, 5-year fixed rates have inched down from above 3% to lower than 2.5%. The average 5-year fixed mortgage rate offered on our site last year was 2.62%.

Since 2015, variable rates have generally beat out fixed rates on LowestRates.ca. That trend appears to be reversing itself. Currently, whether you go with a fixed or variable rate on LowestRates.ca, you’re getting a great deal. Our 5-year fixed rates and our 5-year variable rates have been battling it out over the past year. At the moment, fixed and variable rates in Alberta are separated by just 0.05 percentage points.

As of February 2020, our average 5-year fixed rate is actually a fraction of a percentage point lower than our average 5-year variable rate. On a $400,000 mortgage with a 25-year amortization period and a down payment of 20%, selecting a fixed rate would save you:

$10 per month
$120 per year
$3,000 in a lifetime

Our fixed mortgage rate in Alberta vs our 5-year variable rate

MonthOur average 5-year fixed rateOur average 5-year variable rate
02/193.28%2.68%
03/193.10%2.67%
04/192.86%2.69%
05/192.77%2.68%
06/192.62%2.68%
07/192.49%2.64%
08/192.35%2.65%
09/192.38%2.64%
10/192.45%2.65%
11/192.35%2.67%
12/192.39%2.70%
01/202.60%2.70%
02/202.44%2.70%

Source: LowestRates.ca

Focus On

Alberta’s housing market.

While the housing market heats up in other parts of Canada, current home prices in Alberta remain relatively affordable.

In one year, the average price of a detached single-family home in regions like Calgary and Edmonton only fluctuated by a few thousand dollars.

The price of a single family home in Calgary ranged from $466,000 to $468,000 throughout 2019.

Prices are lower in Edmonton, with the value of a single family detached home ranging from $369,000 to about $374,000 throughout 2019.

Single-detached family home prices in Alberta year-over-year

 CalgaryEdmonton
01/19$468,900$374,200
02/19$466,800$370,500
03/19$465,400$371,800
04/19$466,000$372,000
05/19$466,000$372,100
06/19$466,000$372,000
07/19$466,200$371,900
08/19$467,300$371,600
09/19$467,600$371,100
10/19$466,300$371,000
11/19$466,000$371,900
12/19$466,700$370,500
01/20$466,500$369,000

Source: Canadian Real Estate Association MLS® HPI Tool

Values for other forms of housing are seeing similar trends in Alberta. The average price of an apartment and townhouse in Alberta fluctuated only by a few thousand dollars in 2019.

Apartment prices by Alberta region

 CalgaryEdmonton
01/19$251,800$194,000
02/19$251,200$192,100
03/19$249,300$190,300
04/19$248,800$190,100
05/19$247,700$190,600
06/19$246,900$189,200
07/19$247,200$187,800
08/19$247,600$186,700
09/19$246,600$186,700
10/19$247,800$186,600
11/19$247,900$187,400
12/19$248,200$186,900
01/20$246,000$187,600

Source: Canadian Real Estate Association MLS® HPI Tool

Townhouse prices by Alberta region

 CalgaryEdmonton
01/19$286,100$216,200
02/19$287,300$215,900
03/19$287,100$216,300
04/19$286,300$214,600
05/19$285,600$215,500
06/19$285,900$216,400
07/19$287,700$215,900
08/19$287,800$216,400
09/19$283,900$215,600
10/19$282,500$214,700
11/19$281,700$214,800
12/19$283,300$216,000
01/20$282,800$216,700

Source: Canadian Real Estate Association MLS® HPI Tool

Your Alberta mortgage questions, answered.

Looking for more information about Alberta mortgages? Check out our Help Centre.

What’s the difference between a mortgage term and an amortization period?

Mortgage term: A mortgage term is the length of time you’re locked into your current mortgage contract. These include the rate, lender and other terms and conditions. At the end of your term, you’ll have the option to renew your mortgage contract at a new rate. This process repeats itself until you’ve paid off the principal of your mortgage loan. While the most common mortgage term in Canada is five years, terms can range from six months to 10 years.

Amortization period: The amortization period refers to the amount of time it will take you to pay off your entire mortgage loan. The maximum amortization period is 35 years in Canada, but many people don't have that long. If your down payment was less than 20%, your maximum amortization period is 25 years.

What’s the difference between variable and fixed mortgage rates?

When looking for the best mortgage rates in Alberta, you’ll need to decide whether you’d like to go with a fixed rate or a variable rate. But, what’s the difference? A fixed rate means that your interest rate doesn’t change for the duration of the mortgage term. A variable rate means that your rate will be adjusted according to market conditions. One isn’t better than the other. It all depends on your tolerance for risk, as variable rates may change, and which option yields you more savings at the time you’re looking to buy a home.

Customers can complete a quote for either a variable mortgage rate or a fixed mortgage rate on LowestRates.ca. In 2019, our fixed rates averaged out to be slightly lower. Overall, our fixed rates and our variable rates were largely equal in terms of savings.

What factors determine my Alberta mortgage rate?

A number of factors go into determining what interest rate Alberta lenders may offer you on your mortgage. These include the size of your down payment along with your debt service ratios.

Your down payment: Your down payment will be the primary factor Alberta lenders will look at to determine whether you’ll be able to pay back your mortgage. When it comes to your down payment, more is better.

Your debt service ratios: While your down payment is significant, it’s not the only factor that matters when determining your mortgage rate. Alberta lenders will also look at your debt service ratios to determine whether you’ll be able to handle your monthly mortgage payments.

  • Gross Debt Service Ratio (GDS): Your GDS ratio represents the ratio of your salary to your housing costs. This metric gives lenders an idea of whether your housing costs will be more than you can handle. Housing costs include your mortgage, property taxes, heating and 50% of your condo fees (if applicable). The lender will then divide the sum of these payments by your current annual gross income. If the result is more than 35%, this indicates to your lender that you’re able to handle your housing costs.
  • Total Debt Service Ratio (TDS): Your TDS ratio is another metric that comes into play when determining your mortgage rate. Since your GDS is calculated using your housing costs, your TDS ratio is calculated using everything else. Your TDS ratio comprises the costs included in your GDS ratio, as well as other monthly payments you’re locked into. These may include credit card debt, loan payments, and car payments. The total is then divided by your gross annual income. If the result is less than 42%, your lender will assume you can make your monthly payments.

How can I get the best mortgage rate in Alberta?

Shop around: Shopping around and comparing the market is one of the most effective ways to secure the lowest mortgage rates in Alberta. While the bank you’ve been with for years may be the first place you go in your search for the best Alberta mortgage rates, you shouldn’t stop there. Lenders you haven’t worked with before will be trying to win your business, and have an incentive to give you a better deal.

Reduce your other debts: Your TDS ratio calculates whether your income can support the full weight of your debt obligations. Paying off debt before applying for a mortgage will help you secure a better mortgage rate. Debt repayments should be less than 42% of your monthly expenses.

Use a broker: While many prospective homeowners go to their bank, using an Alberta-based mortgage broker can help you navigate the housing market. A broker will know the local market, and on top of that, they’re not tied to an institution. This means they can show you rates from several different lenders in Alberta, which also gives them a leg up when they’re negotiating your mortgage contract. LowestRates.ca will connect you with an Alberta mortgage broker when you compare quotes on our site.

How much does getting the best mortgage rate in Alberta matter?

Securing a low mortgage rate in Alberta is a great way to save money on your housing costs in the long term. However, the lowest mortgage rate isn’t the only thing to look for in your mortgage contract.You’ll want to think about features such as prepayment privileges, penalties and portability when finalizing your contract.

What if I want to pay off my mortgage early? Or break it?

The flexibility of your mortgage contract is something to be aware of during negotiations. Features such as prepayment privileges, penalties and portability can make a big difference. After all, this is a decades-long commitment./p>

  • Prepayment privileges: What if you want to pay off your mortgage early? Not all banks and lenders offer the same prepayment terms, so it’s important to address this early in your negotiations if it’s important to you.
  • Penalties: If you ever need to break your mortgage, you may wind up paying thousands of dollars in penalties. To avoid getting caught off guard, it’s important to discuss penalties early in the negotiation process.
  • Portability: It’s possible you won’t live in your current house for the full duration of your amortization period. This is where mortgage portability comes in. A portable mortgage is one that can be transferred to a new home and combined with an additional mortgage loan.

What else should I know about getting a mortgage in Alberta?

Land title transfer fee: Alberta is subject to Canada-wide mortgage regulations. Unlike many other provinces, however, Alberta charges residents a land title transfer fee instead of a land transfer tax when buying a home. This fee is significantly smaller than the land transfer taxes imposed on homebuyers in other provinces. The fee is charged in two places: on the property value and on the total mortgage amount.

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