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Find the best 5-year fixed mortgage rate in Alberta

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Alberta 5-year fixed mortgage rates

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RateTermTypeProvider
Featured1.89%
5 yearFixed
CanWise Financial

CanWise Financial

4,228 reviews

CanWise Financial

Featured2.09%
5 yearFixed
motusbank

motusbank

Featured2.29%
5 yearFixed
CMLS Financial

CMLS Financial

Featured2.31%
5 yearFixed
Bank of Montreal

Bank of Montreal

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5-year fixed rates: Frequently asked questions

Who has the best mortgage rates in Alberta?

What is a 5-year fixed mortgage rate?

How much can I save comparing 5-year fixed rates?

Will mortgage rates go up or down this year?

What happens after a 5 year fixed mortgage?

Are 5-year mortgages better than other mortgage terms?

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Alberta 5-year fixed mortgage rates

Getting a mortgage is always a big commitment, no matter where you are in Canada. For Albertans, whether you live in a big city like Calgary or Edmonton or a smaller centre like Red Deer, Canmore, or Medicine Hat, your mortgage will still probably be the biggest financial commitment you ever make.

With that in mind, you'll want to make sure you're getting the right mortgage for you, with an appropriate term and rate type. 5-year fixed-rate mortgages are the most common mortgage type in Alberta, as well as across the rest of Canada, so they're the obvious place to start when comparing mortgages. That's not to say they're always the right mortgage to go with, though!

Read on to learn more about 5-year fixed mortgage rates in Alberta, and to decide whether they might be a good fit for you. Once you're ready to take the next step, use the tools at the top of this page to receive quotes from multiple mortgage providers for free.

Best mortgage rates in Alberta +

Alberta 5-year fixed mortgage rates: Quick facts

  • ~80% of mortgages in Calgary and Edmonton have fixed mortgage rates
  • 88% of Alberta mortgages outside Calgary and Edmonton have fixed mortgage rates
  • 74% of Canadians have fixed mortgage rates (Source: Statistics Canada)
  • 66% of Canadians have 5-year mortgage terms (Source: CAAMP)
  • 5-year mortgage rates are driven by 5-year government bond yields

Historical 5-year fixed mortgage rates in Alberta

One of the most important factors in choosing whether to go for a long or short mortgage term or with fixed or variable mortgage rates is the current rate environment.  If rates are rising, it makes more sense to look for a fixed-rate mortgage with a longer term, which lets you lock in today's lower rate for longer. Conversely, if rates are going down, a variable rate will let you benefit from a lower prime rate in the future. 

While there are many reasons why rates may go up or down, a quick way to tell if rates are likely to rise or fall is to see where today's rates compare to historical rates. Here are the lowest 5-year fixed rates in Canada for the last several years, compared to several other types of mortgage rates.

2016 2017 2018 2019
5-year fixed 2.09% 2.24% 2.79% 2.29%
5-year variable 1.92% 1.69% 1.85% 2.36%
1-year fixed 1.94% 1.99% 2.69% 2.49%
3-year variable 2.10% 2.10% 1.99% 2.89%
Prime Rate 2.70% 2.70% 3.20% 3.95%

Source: Ratehub Historical Rate Chart

 

The popularity of 5-year fixed mortgage rates in Alberta

5-year mortgage rates are the most popular in both Alberta and across Canada for a reason. They sit in the middle of the most widely available mortgage term lengths (1 to 10 years) so they offer a balance of long term stability (with a fixed rate) and flexibility to change to a different mortgage type or provider in the short term. 66% of all Canadian mortgages use 5-year mortgage terms, which speaks to their place as a kind of "Swiss Army Knife" of mortgages.

Fixed rates are also more popular than the alternative option, variable rates. This is because, while variable rates can often be cheaper over time, fixed rates offer a level of certainty that variable rates cannot. With a fixed rate, you'll know exactly how much your mortgage payments will be each month, which is easier to budget for.

Something fascinating about Calgary and Edmonton, in particular, is that fixed-rates are a lot more popular than they are in other Canadian capitals. While ~80% of urban Albertans have fixed-rate mortgages, only 65% of people in Vancouver and 68% of people in Toronto and Ottawa have fixed-rate mortgages.

This could be for many reasons. Albertan economies may more heavily rely on particular industries, or people in Edmonton and Calgary may move home less often. Whatever the reason, the popularity of fixed-rates in Alberta could be seen as a vote of confidence in the product.

During a long period of low mortgage rates, you'll often see the proportion of fixed-rate mortgages increase, as more borrowers lock-in low rates for the long term.

 

(Source: CAAMP)

What drives changes in 5-year fixed mortgage rates?

By and large, 5-year fixed mortgage rates follow the pattern of 5-year Canada Bond Yields, plus a spread. Bond yields are driven by economic factors such as unemployment, export, and inflation.

When Canada Bond Yields rise, sourcing capital to fund mortgages becomes more costly for mortgage lenders and their profit is reduced unless they raise mortgage rates. The reverse is true when market conditions are good.

In terms of the spread between the mortgage rates and the bond yields, mortgage lenders set this based on their desired market share, competition, marketing strategy, and general credit market conditions.

5-Year Fixed Rates vs. 5-Year Bond Yields

From 2000 - Today

5 year fixed mortgage rates vs bond yields

Should you get a 5-year fixed-rate mortgage in Alberta?

The truth is, you need to decide for yourself whether you want to take out a 5-year fixed-rate mortgage. The best way to get a great deal is to learn as much as you can about Canadian mortgages (which you're doing right now!) as well as comparing mortgage rates between multiple lenders, which you can do for free with the tools at the top of this page. 

Author bio

Jamie David

Jamie David is the Business Director of Mortgages at Ratehub.ca. A graduate of the Systems Design Engineering program at the University of Waterloo, she has over 15 years of business, marketing, and engineering experience in the financial technology, banking, education, energy and retail industries. She has worked in top organizations like TD Bank, Trading Pursuits, Petro-Canada, and the TTC. Her passion for personal finance, investing, education, and business strategy brought her to Ratehub.ca where she heads a very talented, cross-functional team that is dedicated to providing Canadians with the best mortgage experience all the way through from online search to (keys-in-your-hand) funded mortgage.

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Financial institutions pay us for connecting them with customers. This could be through advertisements, or when someone applies or is approved for a product. However, not all products we list are tied to compensation for us. Our industry leading education centres and calculators are available 24/7, free of charge, and with no obligation to purchase. To learn more, visit our About us page.

How are CanWise Financial and Ratehub.ca connected?

Both Ratehub.ca and CanWise Financial are owned and operated by Ratehub Inc. When comparing mortgage rates on Ratehub.ca, you’ll see rates from a number of lenders and mortgage brokers, including CanWise Financial. All products are sorted according to the rates available to you and the selection criteria you’ve shared with us.

We’re happy to send users to CanWise because of their great rates, trusted advice, and experienced mortgage team. Read any of their 3,300 five-star Google and Facebook reviews and you’ll see what we mean.