Find the Best Mortgage Rates in Alberta

Your Guide to Getting the Best Mortgage Rates in Alberta

You can rely on comparemortgages.ca to be your one-stop shop for the best mortgage rates in Alberta. 

About Alberta

Of the three Prairie provinces, Alberta, located in western Canada, is regarded as the most westerly. To the west, the Canadian Rocky Mountains serve as a border, while the east borders comprise extensive prairies and badlands. The Northwest Territories are towards the north, and Alberta’s closest southern neighbor is the state of Montana in the United States. It is worth noting that both share an international peace park (Waterton-Glacier International Peace Park).

Key facts about Alberta:

  • While Calgary is the largest city in Alberta, it is Edmonton, the second-largest city that serves as the capital. It also serves as the governmental, cultural, and educational hub. It is nicknamed “Canada’s Festival City” because of the year-round slew of festivals it hosts.
  • The northern part of the province has a significant tree population compared to the southern part, which is practically treeless to a reasonable extent and mainly consists of plains. Nearing the slopes of the Rocky Mountains, there are more trees. Then at the mountain’s foothills, bodies of forest timber are present
  • Jasper National Park boasts the largest land mass, at 11,000 square kilometers, and is the Canadian Rockies’ largest national park. The park houses the glaciers of the Columbia Icefield, lakes, hot springs, mountains, and waterfalls. 

Compare Alberta Mortgage Rates

Below is a table displaying the best rates from the five largest banks in the country. You can easily compare the rates offered by major Canadian lenders and  banks including TD Bank, RBC, CIBC, HSBC, and Scotiabank. We take care of the research to guarantee you the lowest possible rates upfront every time.

Compare Big Bank Rates in Alberta

It can be time-consuming and frustrating to compare rates by yourself. With us, you can find everything you need in one convenient location. Also, ensure that you consider the mortgage product term length and type when comparing rates. For instance, if you are in the market for a fixed-rate mortgage, it is essential to examine the a range of terms given by various banks, such as three-year and five-year offerings, and not just the interest rate.

About the Alberta Housing Market:

The major causal factor that led to a surge in 2022 within the Alberta housing market was an increase in demand triggered by the 2021 inter-provincial migration, where there were many buyers from British Columbia and Ontario, causing the demand to rise despite the supply remaining low. 

The Calgary and Edmonton markets have seen an influx of first-time homebuyers and investors thanks to Alberta’s housing prices remaining below the national average (and significantly lower than prices in larger markets like Vancouver and Toronto).

As we enter a new year, we see a balanced market with price cuts may be underway.

First-Time Home Buyer Programs in Alberta

There are many first-time home buyer programs and incentives specifically aimed at helping reduce the financial burden that first-time homebuyers have to shoulder. In addition to offsetting some of the costs that accrue during the home-buying process, these programs can also help with downpayment funding which is one of the significant aspects of buying your first home.

Open vs Closed Mortgage

An open mortgage allows for prepaying any amount of your mortgage at any given time without a prepayment penalty. The trade-off for this flexibility that an open mortgage provides is the higher interest rate on your mortgage.

Conversely, a closed mortgage has a lower and more attractive interest rate because the flexibility allowed in an open mortgage is missing here. Instead, there is a cap on the extra mortgage payment that you can make per year. 

Fixed Mortgages

With a fixed rate mortgage, your interest rate stays unchanged through the entire term of your mortgage.

In fact, the most common choice Canadian homeowners make is the five-year fixed-rate mortgage. However, despite its widespread popularity, this does not necessarily imply that it is the ideal one. Fixed-rate mortgages can be a good idea for conservative homebuyers working with a tight monthly budget or having their eyes set on a stable payment schedule. 

Variable interest rate mortgages

A variable interest rate sees fluctuations through the term, increases or decreases. If you opt for variable mortgage rates of the available mortgage rates in Edmonton 2023, you could end up with a lower rate than if you had opted for a fixed rate. 

There are two versions of variable interest rate mortgages:

  1. Variable rates with adjustable payments 
  2. Variable rates with fixed payments

Fixed payments with a variable interest rate

For this option, despite variations in interest rate, the payment on your mortgage remains the same over time. 

If there is a reduction in interest rate, more payment goes towards paying off the principal. This implies that your mortgage is being paid off faster.

If there is an increase in interest rate, the principal sees less payment going in its direction, while a bigger portion goes towards interest payment.

Finally, if market interest rates rise to a specific percentage or trigger point, your lender may increase your payments. This increment ensures you can still repay your mortgage at the end of the amortization period. Your mortgage contract would have the specific trigger point highlighted.

Adjustable payments with a variable interest rate

Adjustable payments, true to their name, have payment amounts changing as interest rate changes. A fixed portion of the payment goes to the principal. As interest rates see changes, the portion going to interest sees a similar change. 

This way, you would be able to tell the portion of the principal you would have paid when the term of your mortgage ends.

Land transfer tax in Alberta

There are two factors involved in calculating Alberta’s land title transfer fees: 

  1. Your home’s value
  2. Your mortgage amount 

Rates are outlined in the chart below:

Charged on Property Value$50 base + $2 for every $5,000 or portion thereof of the property value
Charged on Mortgage Amount$50 base +$1.50 for every $5,000 or part thereof of the mortgage amount

What Affects My Mortgage Rate in Alberta?

Your income and credit score can play a major role when qualifying for a low-interest rate in Alberta. The higher the risk involved in borrowing, the higher the interest rate could be. 

Down Payment

How much you make as a down payment determines whether you would also have to pay mortgage default insurance alongside your recurring mortgage payments on your mortgage. If you make a down payment of less than 20% of the property’s value, you must pay mortgage default insurance.

Amortization Period

If you select a longer amortization period, your individual mortgage payment will be lower because it’s spread out over a longer period of time. Longer amortizations typically come equipped with higher interest rates. You’ll also pay more interest the longer you take to pay off your mortgage.

Property Usage

Purchasing a home you intend to make your primary residence and live in is considered owner-occupied. If you were purchasing a property you intend to rent to another, or more appropriately, an investment property, you would be saddled with a higher interest rate than your primary residence. This is because lenders rationalize that people prioritize paying the mortgage on their primary residence over a rental property. As a result, lenders tack on some additional risk for rental property rates.

Mortgage Type

Your mortgage rate would also be impacted by your choice of mortgage – such as open vs. closed or variable vs. fixed.

The choice of either option is personal and usually dependent on several factors.

For instance, for open vs. closed mortgages, you should note that open mortgages would feature a higher rate than closed mortgages due to the flexibility that borrowers enjoy since they can choose to pay off their mortgage in Alberta anytime without a penalty. Similarly, fixed-rate mortgages have steady payments but higher penalties for breaking your mortgage compared to variable-rate mortgages.

Your Credit Score

Borrowers with a credit score of 680 and above are regarded as the ideal candidate for a traditional mortgage lender. The higher above 700 the score is – with a maximum score of 900, the better the chances of getting the best rates.

Learn About Rates & Mortgages in Alberta 

Our Frequently-Asked Questions (FAQ) section curates the most commonly asked questions we get daily across Alberta and gives detailed answers.

What are today’s mortgage rates in Alberta?

The mortgage rate in Alberta today is bank or lender-specific, which would vary for each product. Thanks to the advanced technology that our site uses, we can always access the most recent rate information concerning Alberta mortgage rates, ensuring that you have this at your disposal.  

Why compare Alberta mortgage rates on comparemortgages.ca?

Comparing mortgage rates with us allows you to tap into current information. This knowledge would help you save money throughout your homeownership journey.

Should I get an open or closed mortgage in Alberta?

Your financial situation is the primary determinant of whether you should opt for a closed or open mortgage in Alberta. You should note that open mortgages see higher pricing, mainly because they offer the flexible option of paying the mortgage off at any time without a prepayment penalty. 

Should I use a mortgage broker or lender in Alberta?

Generally, a mortgage broker is an intermediary between the lender and the borrower. They are professionals who compare all the offerings from lenders available, including banks, trust companies, and credit unions, as well as private and alternative funding specialists. They then take this knowledge and use it to negotiate the best mortgage.

Should I try to find a mortgage with a rate hold in Alberta?

If you have plans to buy Alberta property sometime in the future, it would be an excellent call to have a lender get a rate hold for you so that when you are shopping for your dream home, you don’t have to fret about the possibility of interest rates rising.

How comparemortgages.ca Works

Here at comparemortgages.ca we have one mission: make comparing and finding your low mortgage rate easy as can be. We do this by providing access to 20+ top banks, lenders, and brokers in Canada and pulling in the best rates in one shot for you. 

We also know that finding a low rate is just the start of your journey, so once we find that for you, we make the mortgage process seamless by putting you in contact with the best broker or lender to lower your monthly mortgage payment. . 

All that plus we give you the tools needed to negotiate the best rates you deserve to save big on your biggest financial purchase in life – your mortgage.