Find the best mortgage rate in Alberta

Getting a great rate is the best thing you can do to save money on your mortgage over time. A rate of just 0.3% more can cost you an extra $60 to $100 per month on a typical mortgage. That’s $3,600 to $6,000 over a 5-year term. 

Mortgages can also vary widely on rates, terms, and conditions. Banks, credit unions, and other mortgage providers all have different solutions that cater to specific financing needs.

Comparing not just the rate but also the rate features and service of providers is the best way for you to get the best mortgage rate that suits your needs.

It's hard to get the best mortgage rate when you don't know what rates are available across the different providers. Moreover, connecting with each provider to find out what rate you qualify for can be tedious and time-consuming. At Ratehub.ca, we makes it easy for your to choose better by showing you the best mortgage rates in Alberta all in one place. We compare rates and mortgage options from the Big 6 banks, smaller banks, credit unions, as well as the top mortgage brokers in Alberta, all at no cost to you.

It depends. Fixed rates suit some people, while variable rates suit other people. Fixed rates are popular due to the stability they offer, but variable rates can offer more savings over time, depending on market conditions.  When deciding, consider your appetite for risk, your financial situation, the market conditions, and the length of your mortgage term. 

If you're worried about rates rising, then fixed rates might be the right choice for you.  However, if you're sure rates will go down during your mortgage term - and your household budget can manage increases in your monthly payment - then variable rates could be more appealing. 

A fixed-rate mortgage will have the same rate locked in for your entire contract, while variable-rate mortgages can change over the course of your term. Variable rates will change alongside your lender’s prime rate.

To account for the risk of a rate rise, variable mortgages normally have lower rates than fixed mortgages at the start of a mortgage term. Fixed rates, though higher at the start of a term, are a great option if you want predictable mortgage payments.

In Alberta, fixed rates are more popular, used on the overwhelming majority of mortgages. In Calgary and Edmonton in particular, around 80% of mortgages use fixed rates. (Source: Statistics Canada).

Learn more by reading our guide to fixed and variable mortgages.

Prepayment options let you increase the size of your monthly payments, or make additional payments towards your mortgage principal (thereby decreasing your amortization period). Depending on the type of mortgage you get, your lender may allow you to increase your monthly payments by a set percentage, make a lump sum payment towards your principal, or both. The percentage by which you can make a lump sum repayment is based on your mortgage’s initial principal value.

Open mortgages often have higher rates, but allow you to make changes to your mortgage payments without restriction. An open mortgage also allows you to make unrestricted lump-sum payments to reduce the principal of your mortgage.

Closed mortgages generally have lower rates than their open counterparts. They are the most popular choice in Alberta. You can usually make some increases to monthly payments or make lump-sum payments, but the amounts are restricted and penalties for overpayment could apply.

Rateholds allow you to lock in Alberta’s current mortgage rates for a certain number of days, to benefit from low rates. For example, a 90-day ratehold would allow you to lock in your current mortgage rate offer for 90 days before your mortgage renewal date or mortgage closing date.

If rates fall, your lender will typically honour the lower rate. Keep in mind that for variable-rate mortgages, you won’t be locking in the rate itself, but the rate’s relation to prime.

Mortgage brokers are free to you, and can help you get a better mortgage rate, so you don’t have anything to lose by speaking to one. A mortgage is one of the largest financial commitments you’ll ever make, so getting a great deal can save you thousands of dollars over time.

One of the great benefits of using a mortgage broker to find a mortgage is that brokers often have access to lower rates than those that are advertised. This is thanks to special arrangements they have with lenders, as well as bulk discounts.

Not only does a mortgage broker offer their expertise and knowledge of what mortgages are on the market, they can also offer personalized advice on things like your down payment, credit score and financial situation, as well as what size mortgage you can afford.