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Alberta Mortgage Payment Calculator

Use this free calculator to estimate your monthly mortgage payments and the overall cost of your home loan.

Editor’s Note: On July 24, the Bank of Canada lowered its overnight rate to 4.50%, a decrease of 0.25 percentage points. The change will likely lead to some relief for homeowners with variable rates. Learn more about the rate cut.

Nerdy Tip: Using the Compare function of our Alberta mortgage payment calculator can give you a fuller sense of what your potential mortgage costs might be. You can get a side-by-side view of the different mortgage payments that result from applying different down payment amounts, mortgage rates and amortization lengths.

NerdWallet's Alberta Mortgage Calculator

Mortgage Details

Location Details

Mortgage Summary

Estimated Payment

The following items show your expected payment schedule over the full amortization period.

Doughnut chart

$2,763

Monthly Payment

Principal & Interest
$2,762.62
Mortgage Insurance
$0
Mortgage details
Home Price
$500,000
Down Payment
$25,000 (5%)
Total Loan Cost
$828,787.10
Loan Amount
$475,000
Total Interest Cost
$353,787.10
Interest Rate
5%
Mortgage Term
5 Years
Amortization Period
25 Years
Payment Frequency
Monthly
No. of Payments
300

Amortization Schedule

Balance remaining in undefined

Payments Breakdown

Year
Total Paid
Principal Paid
Interest Paid
Balance
2024$33,151.48$9,866.97$23,284.52$465,133.03
2025$33,151.48$10,366.48$22,785.00$454,766.55
2026$33,151.48$10,891.29$22,260.20$443,875.26
2027$33,151.48$11,442.66$21,708.83$432,432.60
2028$33,151.48$12,021.94$21,129.54$420,410.66

Term Total

$165,757.42$54,589.34$111,168.08$420,410.66

The line above displays the totals at the end of your mortgage term. At this time, you will renew your mortgage and choose among the rates that are available. The following analysis assumes you will lock in the same rate for the remainder of the amortization period, which may not be possible.

2029$33,151.48$12,630.55$20,520.93$407,780.11
2030$33,151.48$13,269.98$19,881.51$394,510.13
2031$33,151.48$13,941.77$19,209.72$380,568.36
2032$33,151.48$14,647.57$18,503.91$365,920.79
2033$33,151.48$15,389.10$17,762.38$350,531.69
2034$33,151.48$16,168.18$16,983.31$334,363.51
2035$33,151.48$16,986.69$16,164.79$317,376.82
2036$33,151.48$17,846.64$15,304.84$299,530.18
2037$33,151.48$18,750.13$14,401.36$280,780.05
2038$33,151.48$19,699.35$13,452.13$261,080.70
2039$33,151.48$20,696.63$12,454.85$240,384.06
2040$33,151.48$21,744.40$11,407.08$218,639.66
2041$33,151.48$22,845.21$10,306.27$195,794.45
2042$33,151.48$24,001.75$9,149.73$171,792.70
2043$33,151.48$25,216.84$7,934.65$146,575.86
2044$33,151.48$26,493.44$6,658.04$120,082.42
2045$33,151.48$27,834.67$5,316.81$92,247.75
2046$33,151.48$29,243.80$3,907.68$63,003.95
2047$33,151.48$30,724.27$2,427.22$32,279.68
2048$33,151.48$32,279.68$871.80$0.00

Even if you’re not ready to purchase a home in Alberta tomorrow, a mortgage payment calculator is a powerful learning tool that can help you:

Other mortgage calculators to inform your home buying decision

Average home prices in Alberta

Average home prices in Alberta

The average residential home price in Alberta was $507,706 in May, according to the Alberta Real Estate Association — 8% higher than last April. Detached homes cost $597,719 on average (+7.8% year-over-year), and apartments cost $296,599 on average (+9.6% yoy). The average residential sale price in specific markets includes:

Mortgage payment terminology you’ll need to know

Amortization is the projected time you’ll need to pay off your mortgage. Borrowers with down payments of less than 20% can’t choose amortization periods longer than 25 years under Canada’s current lending guidelines.

Your mortgage term is how long the contract with your current mortgage lender lasts. Five-year terms are the most common, but terms between one and 10 years are also frequently available. You’ll have to renew your mortgage once your term expires, possibly at a different interest rate or with a different lender.

A down payment is the amount of cash you pay upfront for the house (your mortgage covers the difference). For example, if you buy a house for $400,000, you might choose to make a down payment of 20%, or $80,000. You’d need to take out a mortgage for the remaining amount — $320,000.

The size of your down payment can vary, but it must meet minimums based on the price of your home.

Purchase priceMinimum down payment required
Less than $500,0005% of the purchase price
$500,000 to $999,9995% of the purchase price for the first $500,000; 10% for the portion above $500,000
$1 million or more20% of the purchase price

Variable mortgage rates vs. fixed mortgage rates

With a variable-rate mortgage, your interest rate rises and falls with your lender’s prime rate. If you choose a variable-rate mortgage with fixed payments, the monthly payment stays the same even if interest rates increase or decrease, but the amount going toward the principal adjusts. If rates rise, for example, more of the payment will go toward covering interest, and you’ll pay down the principal more slowly.

With a fixed-rate mortgage, the principal and interest portion of your monthly payments will remain the same for the duration of your mortgage term, regardless of what happens with your lender’s prime rate. 

Payment frequency

The more frequently you make your mortgage payments, the faster you’ll pay off your mortgage. Mortgage payment frequencies typically include:

4 ways to reduce your monthly Alberta mortgage payment

1. Look for a lower interest rate

When it’s time to renew your mortgage, you may have the option to negotiate a lower mortgage interest rate. Any reduction can help; a mortgage with a 4.5% interest rate might not appear much better than a 4.65% rate, for example, but shaving even a few percentage points off can save you thousands of dollars over the course of your mortgage.

2. Make a bigger down payment

Reduce the amount you need to finance with a mortgage by increasing your down payment (though, we get it — that isn’t always an option). A smaller loan leads to lower monthly payments and paying less in interest overall. In some cases, a larger down payment can also help you secure a lower interest rate from your lender.

3. Choose a longer amortization period

Spreading your mortgage out over a longer amortization period results in smaller monthly payments, though the total amount you’ll pay in interest will be higher. 

4. Refinance

Refinancing your home loan can also reduce your monthly mortgage payment, especially if the rate you can get today is lower than when you started your mortgage.

If you’ve owned your home for a while, have stayed on top of your mortgage payments and have good credit overall, you’ll put yourself in the best position for the lowest rates.

When you refinance, you essentially begin a new mortgage. That gives you an opportunity to negotiate a lower interest rate and a new payment schedule, both of which can help lower your monthly obligations. 

There can be costs to refinancing before your current mortgage is up, however. Review your current agreement to see what limitations you might face — those costs can sometimes outweigh any savings a lower rate would bring.

Frequently asked questions about Alberta mortgage payments

How much is the monthly payment on a $250,000 mortgage?

Your monthly mortgage payment will depend heavily on your amortization period and the interest rate offered by your lender. Say you have a $250,000 mortgage, which could buy a $312,500 home with a 20% down payment ($62,500):

  • With an interest rate of 4% and an amortization period of 25 years, the monthly payment would be about $1,315. Shorten the amortization period to 20 years, and the monthly payment would be $1,511.
  • With an interest rate of 6% and the same 25-year amortization period, that loan would cost almost $1,600 monthly. Repay over 20 years, and the monthly payment would be $1,780.
How much house can I afford with my salary?

Lenders don’t just look at your salary in isolation — instead, they consider how much stress a mortgage payment could be. For example, a person with monthly student loan payments could very well be approved for a lower maximum loan amount than an otherwise identical applicant without a monthly debt payment. 

More specifically, lenders look at two debt service ratios:

  • Gross debt service (GDS) ratio = The percent of your pre-tax household income going towards housing costs, which include mortgage payments, utilities and property taxes. Your GDS ratio should not exceed 39% of your pre-tax household income.
  • Total debt service (TDS) ratio = Your GDS plus any other debts. Your TDS ratio should not be more than 44% of your pre-tax household income.

DIVE EVEN DEEPER

The Best Mortgage Rates in Alberta

The Best Mortgage Rates in Alberta

Compare Alberta mortgage rates from Canada’s top lenders and brokers in minutes. Easily find the best mortgage rate for your needs.

What First-Time Home Buyers In Alberta Need to Know

What First-Time Home Buyers In Alberta Need to Know

There are several incentive programs available for first-timers in Alberta. Combined with some thoughtful planning, this assistance can improve your chances of landing that elusive first home.

Compare the Best 5-Year Fixed Mortgage Rates in Canada

Compare the Best 5-Year Fixed Mortgage Rates in Canada

Compare customized 5-year fixed mortgage rates from Canada’s best lenders and brokers for free. Find the lowest mortgage rate and apply for the home loan that best fits your needs.

Fixed vs Variable Mortgage Rate: Which Is Better For You?

Fixed vs Variable Mortgage Rate: Which Is Better For You?

With a fixed-rate mortgage, your interest rate and payments won’t change during your mortgage term. But they might if you opt for a variable-rate mortgage.

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