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.
What are the current mortgage rates in Alberta in 2024?
As of February 14, 2024, the best high-ratio, 5-year fixed mortgage rate in Alberta is 4.89%. The best high-ratio, 5-year variable mortgage rate in Alberta as of January 25, 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 February 14, 2024, the best 5-year mortgage rates in Alberta among the Big 5 Banks are offered by TD, CIBC and RBC with a 5-year fixed rate of 5.14% and RBC with a 5-year variable rate of 6.59%.
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.
It seems that we can be cautiously optimistic in this department. In the Bank’s first rate announcement of 2024 on January 24, it held the target for the overnight rate steady for the fourth time in a row, citing weak GDP numbers, slackening consumer spending and falling business investment. It noted, however, that the latest CPI reading from December of 3.4% was well above its goal of 2%, and indicated that rates would need to remain higher for longer in order to take effect. There was little to indicate that more rate hikes were on the horizon, but rate cuts were not mentioned, either. 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, slowing inflation sent bond yields down to the low 3% range in late December and early January, allowing lenders to reduce their fixed mortgage rates. Then, a number of key reports were released indicating persistently robust economic figures, and bond yields rose to 3.8% in response. In consequence, some lenders have already begun raising their fixed mortgage rates. In the long term, should inflation resume trending downward, bond yields will likely follow, and with them, fixed mortgage rates.
WATCH: January 24, 2024 Bank of Canada announcement
Compare current mortgage rates across the Big 5 Banks and top Canadian lenders. Take 2 minutes to answer a few questions and discover the lowest rates available to you.
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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.
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Alberta at a glance
- Population: 4.5 million
- Average Household Income: $93,835
- Percentage of Homeowners: 72%
January 24, 2024: Bank of Canada announcement highlights
On January 24, 2024, the Bank of Canada announced that it would keep the target for the overnight rate unchanged at 5.00% for the fourth time in a row.
- In the commentary that accompanied its announcement, the Bank pointed to several key economic indicators that drove its decision, notably soft GDP figures, weakening consumer spending and a reduction in business investment. Nevertheless, the Bank also noted that despite the progress made in the struggle to tamp down inflation, December’s higher-than-expected CPI of 3.4% indicated that rates need to stay high for longer in order to continue reining in inflation.
- Anyone with a variable-rate mortgage or a home equity line of credit (HELOC) will be happy to see their rates not going higher, but will probably be disappointed that the Bank made no mention of rate cuts in its accompanying commentary.
- 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. However, in the wake of December’s surprisingly elevated CPI, many lenders had been maintaining their fixed mortgage rates as they waited for signals from the Bank that rate cuts might be on the horizon. Given the relative lack of new information provided by the Bank, these lenders may now start thinking about raising their fixed mortgage rates.
- With the Bank essentially sticking to its “wait and see” approach adopted in the last months of 2023, this announcement will have little impact on the housing market. Were the Bank to indicate that rate cuts were on the way, home prices would rise almost immediately.
Alberta housing market: February 2024 update
On February 14, 2024, the Canadian Real Estate Association (CREA) came out with the latest national housing market data for the month of January 2024. The most recent figures indicate that Alberta remains an extremely competitive housing market. Some 4,539 homes were sold over the course of January in Alberta, marking a major annual increase of 33.5%, the highest of any Canadian province.
Stiff competition drove the average home price in Alberta to $471,887 in January, representing a year-over-year increase of 12.4%, and noticeably above December’s figure of $450,279. A total of 6,841 residential properties came on the market, up slightly by 2.3% from the same time in 2023 and significantly more than the 4,203 residential properties newly listed in December, though buying conditions remain quite challenging. January’s sales-to-new-listings ratio (SNLR) came in at 71.1%, up by 4.1% annually and essentially unchanged from December. 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.
Alberta home sales and price forecast
Home sales in Alberta will accelerate this year, according to a forecast from the Canadian Real Estate Association (CREA). The projections call for a total of 84,915 homes to trade hands over the course of 2024, marketing an 11% increase from 2023’s total. With the Bank of Canada expected to begin cutting rates in the second half of 2024 and into 2025, recovery will continue, with CREA predicting 91,829 sales that year, an increase of 8.1% from 2024.
The average home price in Alberta is expected to climb as well, forecast to come in at $478,886 in 2024, up by 6.3%. This is predicted to rise by a further 8.8% to $520,837 in 2025 as lower rates bring in buyers from the sidelines.
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.
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