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: November 2024 update

On November 15, 2024, the Canadian Real Estate Association (CREA) released the October data for Alberta’s housing market activity. The figures indicate increasing buyer demand in the province, with 6,968 homes sold — a 15.0% increase year over year.

In response to the increasing demand, Alberta's average home price surged by 10.3%, reaching $498,448. At the same time, new listings increased, with 9,304 homes hitting the market in October—up 13.2% from last year. Despite the rise in new listings, the overall months of inventory (the amount of time required to sell off all available homes for sale) decreased to 2.5 months, down by 0.4 months compared to the previous year, indicating that demand remains strong with fewer options available to buyers.

Alberta’s housing market remains firmly in seller's territory, with the sales-to-new-listings ratio (SNLR) increasing by 1.2% to reach 74.9%. CREA considers a ratio between 45% and 65% to represent a balanced market, with anything above 65% signalling a seller’s market and anything below 45% indicating a buyer’s market.

Read more: National home sales rise 30% in October

October 23, 2024: Bank of Canada announcement highlights

On October 23, 2024, the Bank of Canada announced that it would be cutting the target for the overnight rate by -0.50%, taking it from 4.25% to 3.75%. This marks the fourth time in a row that the Bank has lowered its policy rate in 2024.

• The rate cut was driven by a sharp decline in inflation, with Canada’s CPI falling to 1.6%, well below the 2% target. Weak economic growth and declining GDP per capita further motivated the Bank’s decision to ease rates aggressively.
• Variable-rate mortgage holders and those with home equity lines of credit (HELOCs) will see immediate relief, as the prime rate at most lenders falls to 5.95%, lowering the monthly payments and interest costs. 
• Fixed mortgage rates, while tied to the bond market, are expected to drop as well, with five-year bond yields sitting at 2.9%. Lenders will likely adjust fixed-rate offerings in response to these changes.
• Prime-based savings products, such as high-interest savings accounts and GICs, will see lower returns following this rate cut. Savers are encouraged to lock in rates before further reductions occur.

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