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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 April 22, 2024, the best high-ratio, 5-year fixed mortgage rate in Alberta is 4.79%. The best high-ratio, 5-year variable mortgage rate in Alberta as of April 22, 2024, is 5.95%.
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 April 22, 2024, the best 5-year mortgage rates in Alberta among the Big 5 Banks are offered by RBC with a 5-year fixed rate of 4.84% and BMO with a 5-year variable rate of 6.45%.
Will mortgage rates 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. In the Bank’s third rate announcement of 2024 on April 10, it held the target for the overnight rate steady for the sixth time in a row, citing a stalled economy and slackening labour market conditions, among other factors. It noted, however, that the latest CPI reading from February of 2.8% was still above its goal of 2%, and indicated that rates would need to remain higher for longer in order to take effect. The Bank expressed confidence that inflation will have reached its 2% target by 2025, but made no specific mention of rate cuts. However, most experts believe that as high rates continue to have their intended effects of dampening inflation, the Bank will start to cut the overnight lending rate near the end of 2024 and into 2025. If this does materialize, the prime rate in Canada will come down from its current level of 7.2% and take variable mortgage rates down with it.
Fixed mortgage rates are not tied to the Bank of Canada’s rate decisions; rather, they are linked to the bond market. However, any time the Bank of Canada effects a rate hike, this causes investors’ existing bonds to drop in value, which in turn leads to bond sell-offs. These result in bond yields rising. As bond yields are the funding floor by which lenders price their fixed-rate mortgage offerings, bond sell-offs necessarily lead to higher fixed mortgage rates.
After attaining a 16-year high of 4.42% in October 2023 that forced lenders to increase their fixed mortgage rates, bond yields have been rising and falling at a head spinning pace. Optimism around slowing inflation led bond yields to fall to the low 3% range in December and January, before climbing up to 3.8% as anxious investors reacted to various economic reports from Canada, the US and beyond. Since then, bond yields cooled to the 3.3% range in February and March before rising once more to their current level of around 3.7%. With the most recent Bank of Canada rate hold on April 10 having been largely expected, the bond market has reacted minimally in response. As such, we can expect fixed mortgage rates to remain where they are for the near future.
WATCH: April 10, 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 |
---|---|---|---|
4.79% | 5 years | Fixed | Canadian Lender |
4.84% | 3 years | Fixed | Big 6 Bank |
5.04% | 4 years | Fixed | Big 6 Bank |
5.59% | 2 years | Fixed | Canadian Lender |
5.64% | 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: April 2024 update
On April 12, 2024, the Canadian Real Estate Association (CREA) came out with the latest national housing market data for the month of March 2024. The most recent figures indicate that Alberta remains an extremely competitive housing market. Some 7,671 homes were sold over the course of March in Alberta, marking a major annual increase of 17.8%, the highest of any Canadian province.
Stiff competition drove the average home price in Alberta up to $491,962, representing a year-over-year increase of 10.9%, above the previous month’s figure of $476,718. The number of new listings rose substantially on a monthly basis, with March’s total of 10,566 residential properties that came to market well above February’s total of 8,433, but was still down by -1.7% annually. These new listings did little to improve buying conditions in the highly competitive Alberta housing market, however. March’s sales-to-new-listings ratio (SNLR) came in at 72.6%, up by 12% annually and slightly higher than February. This indicates a very hot sellers’ market, where buyers are more likely to encounter bidding war scenarios and may be pressured to drop conditions from their purchase offers. According to CREA, a ratio within 40-60% is a balanced market, with above and below that threshold indicating sellers’ and buyers’ markets, respectively.
Read more: Canadian home sales were flat in March, but rate cut boost expected
April 10, 2024: Bank of Canada announcement highlights
On April 10, 2024, the Bank of Canada announced that it would keep the target for the overnight rate unchanged at 5.00% for the sixth time in a row.
- In the commentary that accompanied its announcement, the Bank pointed to several key economic indicators that drove its decision, notably a stalled economy and softening labour market conditions. Nevertheless, the Bank noted that despite the progress made in the struggle to tamp down inflation, February’s CPI of 2.8% indicated that rates need to stay high for longer in order to continue reining in inflation to the Bank’s goal rate of 2%.
- Anyone with a variable-rate mortgage or a home equity line of credit (HELOC) will need to stay patient, as the Bank did not indicate that the timing of any future rate cuts would be moved up at all.
- Canadians with fixed-rate mortgages are not directly affected by this announcement, as fixed mortgage rates are tied to the bond market rather than to the Bank of Canada’s rate decisions. While the Bank’s decisions and commentary can certainly provoke bond yields to rise or fall, with this rate hold largely expected, the bond market has shown virtually no reaction. Given that, lenders will most probably keep their fixed mortgage rates where they are for the moment.
- With the Bank sticking to its “wait and see” approach and its timetable of no rate cuts until at least the end of 2024, this announcement is unlikely to have much effect at all on home prices. Buyers and sellers are already out in force due to the prospect of rate cuts on the horizon, and are unlikely to react to this continuation of the status quo.
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