Compare The Best Mortgage Rates In Calgary

Your Guide To Getting The Best Mortgage Rates In Calgary

Comparemortgages.ca is your one-stop shop if you’re looking for the best mortgage rates in Calgary. You can rest assured that you will always get the best interest rate up front, and we will help you better understand how to navigate mortgages in any kind of market.

About Calgary

At the point where the Bow and Elbow Rivers meet in the sunny eastern foothills of Canada’s Rocky Mountains is where you would find Calgary. It boasts a surrounding area of profound beauty with a natural environment rich in various resources. Quality of life is great and housing is available for this city’s 1,635,000 inhabitants, serving as the paramount urban center of all southern half of Alberta’s province.

This cosmopolitan city with skyscrapers dotting its skylines has its designation as Canada’s oil industry center to thank for its rapid development. However, it still lives up to the western culture-born nickname “Cowtown,” apparent from the massive July rodeo and festival, the Calgary Stampede, which originates from the farming exhibitions the city once hosted.

Compare Calgary 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 Calgary

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 range of terms given by various banks, such as three-year and five-year offerings, and not just the interest rate.

About the Calgary Housing Market

By the first quarter of 2020, the Calgary Real Estate Board (CREB) statistics showed a year-over-year 4.35% sale increase, priming the Calgary housing market to enjoy the best first quarter in a long time. However, it came as no surprise when a good amount of this optimism was derailed by the spread and impact of COVID-19. The average home price in Calgary as of July 2020 was $466,357 – seeing a 3% increment from the exact month a year prior when the sum of prices for single-family, condos, and attached homes came in at only $452,805.

Calgary Mortgage Brokers

Are you looking to purchase in Calgary? Speaking with someone who has an extensive understanding of the market and can help you successfully navigate mortgage rates in Calgary or mortgage Calgary is advisable. Go right ahead and submit an application online, and you will be in touch with one of our team members shortly after, who would be more than willing to help identify the product that most suits your needs.

What are the Different Types of Mortgages?

Open vs. Closed Mortgage

You can prepay any amount of an open mortgage at any time without incurring a prepayment penalty. To cover the flexibility of being able to pay off an open mortgage whenever you choose, higher mortgage rates in Calgary apply. On the other hand, a closed mortgage has a more enticing interest rate since you are restricted in how much prepayment you may contribute to your mortgage each year.  

Fixed Mortgages

Although Canadian homeowners in Calgary often lean towards a 5-year fixed rate when looking for mortgages, there are better options for some. Generally, those who prize consistency most—such as those with intense monthly payments demands or more conservative dispositions—find release in the unchanging interest rate and payments that accompany fixed-rate mortgages. Millennials in particular may want to focus on this choice if their mortgage expenses pose a notable burden compared to their income. A fixed-rate loan maintains these elements throughout the life of the mortgage, up to ten years, providing an attractive solution to many scenarios.

Variable interest rate mortgages

Throughout your term, interest rates of variable mortgages, such as the 5-year variable rate in Calgary, may rise and fall. Your rate may be lower if you pick a variable interest rate over a fixed rate. However, two categories of variable mortgages exist: a) variable rates with fixed payments and b) variable rates with variable payments.

Fixed payments with a variable interest rate

In general, under this option, the payment remains fixed over time despite variations of the interest rate.

If the interest rate goes up, more of your payment goes towards the interest, and less to the principal.

If the interest rate goes down, more of your payment goes towards to the principal. This means, you pay off your mortgage faster.

Adjustable payments with a variable interest rate

Adjustable payments, true to their name, have payment amounts changing as interest rates in Calgary  change. A fixed portion of the payment goes to the principal. As interest rates change, the monthly payment goes up. 

What Affects My Mortgage Rate in Calgary?

Qualifying for the lowest interest rate in Calgary depends mostly on factors like income and credit score. A borrower’s interest rate may increase depending on the risk they pose. Rate is undoubtedly not the most crucial factor in a mortgage, as many rock-bottom mortgage rates in calgary often come from no-frills mortgage products. To put it another way, even if a borrower is eligible for the lowest rate, they frequently have to forgo additional advantages like prepayments and porting rights when choosing the lowest-rate program.

In addition to rounding up mortgage payments or making lump sum payments as bonuses, raises, or other income is received during the year, there are several additional strategies to save money throughout the mortgage term besides choosing the lowest rate.

Down Payment

If you have to pay mortgage default insurance on top of your usual mortgage payments, it will depend on how much of a down payment you have. Any time you put less than 20% of the property’s value down as a down payment, mortgage default insurance is necessary.

Amortization Period

Your mortgage payment will be reduced if spread out over a longer period on a longer amortization term (the maximum is 25 years on mortgages with less than a 20% down payment and 30 years on mortgages with 20% or higher down payments). However, higher interest rates in Calgary might accompany longer amortizations. As your mortgage is paid off over a longer period of time, you will pay more in interest. .

Property Usage

Purchasing a property that you yourself plan to occupy is referred to as owner-occupied and is understood to be your primary dwelling. You will pay higher mortgage rates in Calgary  if you’re purchasing an investment property that you plan to rent to others than on your personal house. According to the rationale behind this, people will often pay the mortgage on their principal property before any rental properties. Lenders thus include more risk in the rates for rental properties.

Mortgage Type

Your mortgage rate will depend on the sort of mortgage you choose, such as variable vs. fixed and open vs. closed. Each option is an individual decision based on several considerations.

For example, while comparing open and closed mortgages, it’s crucial to keep in mind that open mortgages are more expensive due to the freedom to pay the loan off at any moment without incurring fees.

While fixed mortgages have historically been more expensive than variable mortgages, some people still prefer the security of knowing their payment would remain the same over the course of their mortgage.

Your Credit Score

A credit score of 680 or higher is required for approval by a standard mortgage provider. With a maximum score of 900, the better the score is over 700, borrowers will be eligible for the lowest mortgage rates in Calgary. For those who have lesser scores, there are still solutions accessible, but in these cases, you should anticipate higher rates and shorter durations.

How to Apply for a Mortgage in Calgary 

You will be required to submit a variety of documents  when applying for a mortgage to demonstrate your job, income, down payment, and overall financial situation, including your assets and obligations. 

Meet with a mortgage expert.

Compared to shopping directly with one bank or lender, having a mortgage specialist look out for your best interests while navigating the plethora of mortgage options available today gives you a significant edge.

Acquire all necessary documents.

Before interacting with your mortgage expert, gather as many documents  as you can to facilitate a speedy preapproval or final mortgage approval.

Required documents include:

  • Proof of Identity 
  • Employment Verification
  • Income Verification 
  • Proof of Assets
  • Confirmation of Down Payment
  • List of Debts/Liabilities
  • Purchase and Sale Agreement 
  • Real Estate Listing
  • Credit Report
  • Mortgage Insurance Information
  • Appraisal Report
  • Property Insurance 
  • Legal Representation 
  • Survey of Property

Apply for mortgage financing

Your mortgage specialist will be able to select the most suitable  lender offering, including mortgage features and rate, to meet your unique needs once they have all the necessary paperwork in hand, and then submit your application for approval.

Finalize and sign your mortgage

To guarantee funding is in place when you take possession of your new home, you must review and sign the final mortgage documentation with your real estate lawyer  prior to your mortgage closing date.

Learn About Rates & Mortgages In Calgary

Our Frequently Asked Questions (FAQ) section is here to help you make educated decisions on the best mortgage rates in Calgary every time.

Why compare Calgary mortgage rates on Compare Mortgages?

Comparing mortgage rates in Calgary on Compare Mortgages guarantees that you get the most recent rate information, which can effectively help you save on your mortgage throughout your homeownership journey. 

When you are comparing mortgage rates in Calgary, ensure that you evaluate similar mortgage types (variable rate vs fixed rate) and terms (three or five years) so that you are not simply looking at rates; you are comparing similar products.

Mortgage rates and features see variations based on the specific lender, therefore, you would only get a clear comparison by evaluating similar offerings. 

Are Calgary mortgage rates higher than other cities?

Calgary mortgages today would see variations based on the lender or bank offering the product. With Compare Mortgages’ advanced technology, we get an accurate overview of the entire market at any point in time to guarantee that you always have access to the most current mortgage rates in Calgary. This way, you are able to make guided decisions about whether to leave your rate or lock it in. 

Should I get a fixed-rate or variable-rate mortgage in Calgary?

The choice of a variable rate, like the 5-year variable rate in Calgary or the fixed-rate mortgage hinges on how much risk you can tolerate and your level of comfort. 

If you have a preference for being able to know ahead how much mortgage payments you would be making monthly, then a fixed rate would be a good call given that payments remain the same. A fixed-rate remains the same through the term that you select (1-10 years).

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.