Find the best mortgage rate in Alberta

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.

Alberta at a glance

• Population: 4.5 million 
• Average Household Income: $93,835
• Percentage of Homeowners: 72%
  

Alberta housing market: August 2024 update

On August 15, 2024, the Canadian Real Estate Association (CREA) came out with the latest national housing market data for the month of July 2024. The most recent figures indicate that Alberta remains a very competitive housing market, although sales have subsided somewhat. Some 8,254 homes were sold over the course of July in Alberta, less than the previous month’s total of 8,554, but still up by 6.3% on an annual basis.

With the slowdown in demand, Alberta saw home prices decline on a monthly basis, with the average home price in Alberta in July coming in at $486,828. This was less than June’s figure of $503,502, although still up by 8.2% year over year. A total of 11,494 residential properties came to market, which was slightly below June’s total of 11,848 but up by 10.3% annually. With the reduction in demand and a relatively large volume of new listings, buying conditions loosened slightly in the highly competitive Alberta housing market. July’s sales-to-new-listings ratio (SNLR) came in at 71.8%, down slightly from the 72.2% registered in June and down by -2.8% from the same period last year. That said, this is still the second highest SNLR among Canadian provinces (surpassed only by Newfoundland and Labrador). This indicates a fairly 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 45-65% is a balanced market, with above and below that threshold indicating sellers’ and buyers’ markets, respectively.

Read more: July home sales fizzle as buyers await more rate cuts

September 4, 2024: Bank of Canada announcement highlights

On September 4, 2024, the Bank of Canada announced that it would be cutting the target for the overnight rate by -0.25%, taking it from 4.5% to 4.25%. This marks the third time in a row that the Bank has lowered its policy rate, after more than four years of not having done so. 

• In the commentary that accompanied its announcement, the Bank pointed to falling inflation as the principal driver of its decision. It noted that July’s CPI had come in as expected at 2.5%, while inflation in the United States and elsewhere around the world is also declining. 
• Holders of variable-rate mortgages and home equity lines of credit (HELOC) will no doubt be thrilled to see their rates and payments go down for the third month in a row. 
• Although fixed rates are tied to the bond market rather than directly to the Bank of Canada’s rate decisions, in anticipation of a likely rate cut, some lenders had already started discounting their fixed mortgage rates in the days leading up to the announcement. With the rate cut now official, more lenders are sure to reduce their fixed mortgage rates.  
• Despite the cumulative 75-basis-point reduction, it remains to be seen whether three consecutive rate cuts will be sufficient to bring buyers back into the market. Given there’s strong anticipation of further cuts to come, many buyers may stick it out a little longer.

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:

1. Alberta.ca
2. CREA
3. Statistics Canada
4. AREA