Find the best mortgage rate in Alberta

Alberta at a glance

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

Alberta housing market: March update

The latest national February housing data was released by the Canadian Real Estate Association (CREA) on March 15, 2023. The numbers reveal Alberta’s real estate market continues to lag last year’s peak conditions by a considerable amount, with sales down -44.3%, reflecting a total of 4,563 homes trading hands.

The average home price in Alberta remains -10.6% below February 2022 levels, coming in at $427,694. However, a deep decline in the number of new listings has kept the market fairly tight for buyers. A total of 7,724 homes were listed for sale last month, marking a decline of 32.4%. That’s kept the sales-to-new-listings ratio – a metric CREA uses to gauge the level of competition within the market – at 66.1%, indicating sellers’ market conditions (a range between 40 - 60% reflects a balanced housing market, with below and above this threshold representing buyers’ and sellers’ markets, respectively). This ratio is down -5.6% from last year’s levels, indicating Alberta’s market has remained relatively hot despite a nation-wide downturn in sales activity.

The number of months of inventory – the length of time it would theoretically take to sell off all available homes for sale, assuming unchanged market conditions – has also remained relatively unchanged from last year, at 3.2. Overall, Alberta remains one of the most affordable real estate markets in Canada, despite the impact of rising mortgage rates over the course of 2022, and the early months of 2023.

Alberta 2023 home sales and price forecast

Alberta’s housing market fared somewhat better than others in Canada over the course of last year, given its comparable affordability. Home sales in Alberta in 2022 came in at 84,050 units, down just 1.8% from 2021. According to the Canadian Real Estate Association (CREA), home sales in Alberta are expected to rise by 2.7% in 2023. Alberta average home prices are expected to continue their upward trend in 2023 and 2024, but only slightly (increasing by 1.1% in 2023 and 1.8% in 2024).

 

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 homebuyer 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 homebuyer programs.

Sources:

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