# Average Mortgage Payments in Edmonton

This piece was originally published on January 23, 2017, and was updated on October 17, 2022.

Like its southern neighbour Calgary, the city of Edmonton has seen a year-over-year increase in the average price of a home. The average house price in Edmonton was \$382,200 in December, up 2.2% from the previous year, according to the Canadian Real Estate Association.

With this average home price, you might be wondering what your mortgage payment would be if you purchased a home in Edmonton.

To calculate the average mortgage payment, we need to input a few details:

• How large of a down payment should you put down?
• What is the best mortgage rate available to you?
• How long should you take out your mortgage for?
• What payment frequency are you most comfortable with?

## Down payment

With the average home price in Edmonton sitting at \$382,200, the minimum down payment calculation is simplified. For houses that cost less than \$500,000, the minimum down payment is just 5% of the home price. In this case, the minimum down payment on a \$382,200 home is \$19,110.

However, if you’re interested in purchasing a house that costs more than \$500,000, the minimum down payment can be calculated as follows:

• If the home price is \$500,000 or lower, the minimum down payment is 5% of the home price. The formula is as follows: minimum down payment = house price x 5%
• If the home price is above \$500,000 the minimum down payment is 10% of the portion of the home’s price above \$500,000 plus 5% of \$500,000 (which is \$25,000). The formula is as follows: minimum down payment = (house price -\$500,000) + \$25,000
• If the home price is \$1,000,000 or more the minimum down payment is 20% of the home price. The formula is as follows: minimum down payment = house price x 20%

By making the minimum down payment of 5%, a homeowner will incur \$14,524 in mortgage insurance. This will result in a total mortgage of \$377,614 to purchase the average home in Edmonton.

This value is calculated as follows: total mortgage required = asking price – down payment + mortgage insurance.

When deciding on the size of your down payment, consider how much mortgage insurance you will be required to pay. Insurance is only required for mortgages when the down payment is less than 20%, with the amount of mortgage insurance decreasing as the down payment amount increases. To bypass mortgage insurance on the average Edmonton home, a down payment of \$76,440 or more is needed.

## Mortgage rate

Searching for the best mortgages rate available is one of the most important things you can do. Your mortgage rate determines how much interest you will pay on your mortgage, so securing the lowest rate will ensure you pay the least amount of interest possible on your mortgage. By securing a low rate, you can save thousands of dollars over the life of your mortgage.

The two most common mortgage rate options you will come across are fixed and variable rates. With a fixed-rate mortgage, your payments will always be the same. However, if you chose a variable mortgage rate, your payments will vary as your rate will fluctuate with the prime rate.

Aside from deciding between a fixed and a variable mortgage, you’ll also have to select the term. The term can span multiple years, with the most common being five years. To calculate the average mortgage payment in Edmonton, we’ll use the best 5-year fixed rate currently on the market of 4.89%.

## Amortization period

Deciding on the length of your amortization will determine how long you’ll take to pay off your mortgage. The shorter the amortization period, the larger the portion of your payments will go to paying off the principal of your loan, rather than interest. In contrast, a long amortization period means a larger amount of total interest will be paid over the life of the mortgage.

If you’re able to handle larger payments over a shorter amortization period, you’ll pay far less interest on your mortgage. Amortization periods typically range between five and 30 years, with the most popular term for new mortgages being 25 years. This will be the period used for our calculation. You can use our amortization calculator to get a sense of what your monthly mortgage payments under different amortization length scenarios would be.

## Payment frequency

The payment frequency is how often you would like to make your mortgage payment. The typical frequencies are monthly, bi-weekly and accelerated bi-weekly. To calculate the average mortgage payment in Edmonton, we’ll use a monthly payment.

## Mortgage payment

Now that we’ve decided on a 5% down payment and have selected the best 5-year fixed mortgage rate of 4.89% with a 25-year amortization, we can use Ratehub.ca’s mortgage payment calculator to determine our payment amount: the average monthly mortgage payment for a \$382,200 home in Edmonton is \$2,173.