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Current Alberta mortgage rates
The rate table shows 5-year fixed mortgage rates in Alberta. To compare other rate types and terms, click on the filters icon beside the down payment percentage.
As of:
Alberta mortgage rates: FAQ
What are the current mortgage rates in Alberta in 2024?
As of September 24, 2024, the best high-ratio, 5-year fixed mortgage rate in Alberta is 3.99%. The best high-ratio, 5-year variable mortgage rate in Alberta as of September 5, 2024, is 5.3%.
Use our rate tables above to compare the best mortgage rates available in Alberta right now. Our rate tables are updated regularly through the day, and instantly reflect mortgage rate changes across mortgage providers.
What is the best bank rate in Alberta right now?
As of September 5, 2024, the best 5-year mortgage rates in Alberta among the Big 5 Banks is offered by CIBC and RBC with a 5-year fixed rate of 4.64% and TD with a 5-year variable rate of 5.59%.
Will mortgage rates continue to go down in 2024?
In light of the way the cost of borrowing took off over the course of 2022 and 2023, it’s no surprise that borrowers and aspiring homeowners across Canada are anxiously waiting to see if 2024 brings improved affordability.
It seems that we can be cautiously optimistic in this department. In the Bank’s seventh rate announcement of 2024 on October 23, it announced that it would cut the target for the overnight rate by -0.50%, following three consecutive decreases from June to September. This took the target for the overnight rate from 4.25% to 3.75%, and was accompanied by commentary indicating that declining inflation in Canada was the principal driver of its decision. Most experts believe that as high rates continue to have their intended effects of dampening inflation, the Bank will keep cutting the overnight lending rate through the end of 2024 and into 2025. If this does materialize, the prime rate in Canada will come down from its current level of 5.95% and take variable mortgage rates down further with it.
Fixed mortgage rates are not tied to the Bank of Canada’s rate decisions; rather, they are linked to the bond market. When the Bank raises rates, existing bond values drop, leading to sell-offs that push bond yields higher. Since bond yields serve as the basis for lenders' fixed-rate pricing, rising yields result in higher fixed mortgage rates.
Bond yields have fluctuated significantly in recent months. The yields dropped by about 30 basis points in the days leading up to the central bank’s June 5 announcement, but rose once more in the wake of an unexpectedly high May CPI. In anticipation of the October 23 rate cut, bond yields fell again, settling around 2.9%, prompting even more lenders to discount their fixed mortgage rates, with others likely to follow.
WATCH: October 23, 2024 Bank of Canada announcement
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Guide to mortgage rates in Alberta
Jamie David, Sr. Director of Marketing and Mortgages
Our rate tables allow you to view the most current mortgage rates in Alberta instantly, all in one place. By comparing the rates and products offered by the Big 5 Banks, top mortgage brokers, smaller banks and credit unions, you can find the best mortgage to suit your needs and save thousands of dollars.
Best mortgage rates in Alberta +
Rates updated:
Rate | Term | Type | Provider |
---|---|---|---|
4.09% | 3 years | Fixed | Big 6 Bank |
4.14% | 5 years | Fixed | Canadian Lender |
4.29% | 2 years | Fixed | Big 6 Bank |
4.49% | 4 years | Fixed | Big 6 Bank |
5.34% | 7 years | Fixed | Big 6 Bank |
Alberta at a glance
- Population: 4.5 million
- Average Household Income: $93,835
- Percentage of Homeowners: 72%
Alberta housing market: November 2024 update
On November 15, 2024, the Canadian Real Estate Association (CREA) released the October data for Alberta’s housing market activity. The figures indicate increasing buyer demand in the province, with 6,968 homes sold — a 15.0% increase year over year.
In response to the increasing demand, Alberta's average home price surged by 10.3%, reaching $498,448. At the same time, new listings increased, with 9,304 homes hitting the market in October—up 13.2% from last year. Despite the rise in new listings, the overall months of inventory (the amount of time required to sell off all available homes for sale) decreased to 2.5 months, down by 0.4 months compared to the previous year, indicating that demand remains strong with fewer options available to buyers.
Alberta’s housing market remains firmly in seller's territory, with the sales-to-new-listings ratio (SNLR) increasing by 1.2% to reach 74.9%. CREA considers a ratio between 45% and 65% to represent a balanced market, with anything above 65% signalling a seller’s market and anything below 45% indicating a buyer’s market.
Read more: National home sales rise 30% in October
October 23, 2024: Bank of Canada announcement highlights
On October 23, 2024, the Bank of Canada announced that it would be cutting the target for the overnight rate by -0.50%, taking it from 4.25% to 3.75%. This marks the fourth time in a row that the Bank has lowered its policy rate in 2024.
- The rate cut was driven by a sharp decline in inflation, with Canada’s CPI falling to 1.6%, well below the 2% target. Weak economic growth and declining GDP per capita further motivated the Bank’s decision to ease rates aggressively.
- Variable-rate mortgage holders and those with home equity lines of credit (HELOCs) will see immediate relief, as the prime rate at most lenders falls to 5.95%, lowering the monthly payments and interest costs.
- Fixed mortgage rates, while tied to the bond market, are expected to drop as well, with five-year bond yields sitting at 2.9%. Lenders will likely adjust fixed-rate offerings in response to these changes.
- Prime-based savings products, such as high-interest savings accounts and GICs, will see lower returns following this rate cut. Savers are encouraged to lock in rates before further reductions occur.
How do I get the best mortgage rate in Alberta?
Alberta’s lucrative oil and gas industry, among other draws, beckons thousands of Canadians to move there every year. As such, it’s no surprise that it’s also home to a thriving mortgage industry, with numerous lenders vying for your business. In addition to the Big 5 Banks and other national banks and credit unions, Alberta is home to a number of its own financial institutions headquartered there, including ATB Financial, Canadian Western Bank and Servus Credit Union. Numerous smaller banks, credit unions and mortgage brokerages are also players in the Alberta market. The best mortgage rates in Alberta are in the table above, updated in real-time.
However, the lowest rate is not always the best rate for you - your ideal mortgage is one that meets your needs and best fits your financial situation. Be sure to shop around between lenders and consult with a mortgage broker. They can help you navigate the different mortgage products available, and can provide you with expert, personalized advice on the pros and cons of each, all at no cost to you.
What factors affect your mortgage rate?
It’s great to see the lowest rates on offer in Alberta, but the rate you’ll actually qualify for is likely to be different than the lowest advertised rates. Some personal factors that influence your personal rate are:
- Your down payment: Every Canadian home purchase requires a cash down payment. The minimum is from 5% to 20% depending on the purchase price. If your down payment is less than 20%, you’ll have what’s called an insured mortgage, and you’ll be charged for mortgage default insurance. This covers your lender if you don't make your payments. While this costs you more, your bank will probably offer a lower rate, because your insurance reduces the risk.
- Your amortization period: You won’t be able to get insurance on a mortgage with an amortization period of over 25 years, so you’ll be charged a higher rate. That said, most mortgages in Alberta have amortization periods of 25 years or less.
- The purpose of the property: Your mortgage rates will be different if you plan to live in the new home. Rates are generally higher for mortgages on rental or investment properties.
- Mortgage type: You’ll be offered a higher rate if your mortgage is a refinance, rather than buying a new home or renewing your mortgage.
- Credit score: The best rates typically come from A lenders, which includes big banks and many credit unions. However, A lenders often won’t work with you if you have bad credit. If your credit forces you to borrow from a B lender, expect a higher rate.
Historical trends in Alberta mortgage rates
Alberta mortgage rates rise and fall, as do rates across Canada. Check out this interactive chart showing the lowest mortgage rates in Canada over the last few years to get a sense of where we are today.
Source: Ratehub Historical Rate Chart
Alberta land transfer tax
Unlike other provinces like Ontario and British Columbia, Alberta doesn’t have a land transfer tax. This makes the closing costs associated with buying a house in Alberta significantly lower than in other provinces.
In Ontario and BC, land transfer taxes add between 0.5% and 2.0% to the cost of every home, which can quickly get into the tens of thousands of dollars.
Alberta first-time home buyer programs
With no land transfer tax in Alberta, there aren’t any first-home buyer tax rebates at the provincial level. However, first-time home buyers in Alberta can access a range of federal government programs, including the first-time home buyer tax credit and the first-time home buyer incentive.
Read about those programs in our guide to Canadian first-time home buyer programs.
Sources:
Jamie David, Director of Marketing and Head of Mortgages
Jamie has 15+ years of business and marketing experience. She contributes her mortgage expertise to The Globe and Mail and authors Ratehub’s mortgage and homebuying guides. read full bio