Best Mortgage Rates in Alberta
Compare Alberta mortgage rates from Canada’s top lenders and brokers in minutes.8Twelve has partnered with over 65 Canadian mortgage lenders to provide competitive rates on over 7,000 mortgage products. 8Twelve can quickly match you with a lender and mortgage type that meets your needs — even if your financial situation is unique.
Alberta mortgage rate update: May 2025
Mortgage rates in Alberta have been fairly stable in May. Since there’s no Bank of Canada interest rate decision scheduled this month, most recent rate movement has been limited to fixed rates.
And it’s not as if fixed rates are all that volatile. There have been some marginal increases in three- and five-year fixed rates at some lenders, but mortgage brokerages are still offering fixed rates for below 4%. As of May 12, 2025, you can find three-year fixed rates for as low as 3.69% and five-year fixed rates for 3.99%.
Fixed rates are more likely to increase than decrease in the coming weeks. Government bond yields, which determine fixed mortgage rates, have been slowly edging upward. When yields increase over a sustained period of time, lenders typically respond by raising their fixed rates.
The best variable mortgage rates in Alberta, which are currently around 4%, should be stable until at least June 4, when the Bank of Canada is scheduled to make its next rate announcement. The Bank is expected to reduce its overnight rate by 0.25%, which would reduce variable mortgage rates by the same amount.
Read more about the Bank of Canada's latest rate announcement.
The BoC makes policy interest rate announcements eight times a year. Here's what you need to know.
Historical trend: New mortgage loans in Alberta
The average mortgage rate in Alberta
There’s no single average for mortgage rates in Alberta. Even if you had access to all the current mortgage rates being offered by lenders in Alberta, it wouldn’t be much help when you’re mortgage shopping. That’s because the mortgage offer you receive is always specific to you and takes into account multiple factors like your credit score, the type of mortgage you want and the amount you need to borrow.
Think about the “average mortgage rate” the way you would Alberta’s average home price. It’s interesting data to have, but it’s not necessarily relevant to your own home buying journey.
2025 Alberta mortgage rate forecast
Variable mortgage rates
After the Bank of Canada’s fifth consecutive overnight rate cut on December 11, 2024, variable mortgage rates were down 1.75% since June. That’s a lot of action from a central bank with a conservative reputation.
The Bank likely won’t be as aggressive in 2025, as it has to wait for its most recent cuts to work their way through the economy. The overnight rate might decrease by another 50 basis points in the first half of 2025, which would bring variable mortgage rates down by another 0.5%.
Fixed mortgage rates
Because they’re determined by the government bond market, which is driven by investors’ decisions, fixed mortgage rates can be difficult to project over the long-term.
The mortgage brokers NerdWallet spoke to at the end of 2024 all expect fixed mortgage rates to remain relatively static for the next several months. That assumption, however, flies in the face of evidence from the government bond market. Bond yields, which determine fixed mortgage rates, cratered for three weeks straight starting on November 21. When yields fall consistently, it gives lenders the wiggle room to lower their fixed rates.
So, fixed rates could fall to begin the year, but lenders might keep them at current levels for a strategic reason: Lower fixed rates might entice home buyers away from the more expensive variable-rate mortgages they’ve been gobbling up to end 2024.
Alberta housing market update
Average home prices in Alberta
Sales fell 15.2% in April compared to a year ago, according to the Alberta Real Estate Association, as tariff-related economic uncertainty kept buyers on the sidelines across Canada. The average residential home price in Alberta was $525,135 in April — up 5.2% since April 2024. Detached homes cost $615,114 on average, and apartments cost $299,408 on average. The average residential price in specific markets includes:
Calgary: $645,572.
Edmonton: $443,382.
Lethbridge: $404,282.
Alberta home sales and price forecast
The Canadian Real Estate Association’s most recent housing market forecast, released on April 15, contained mostly downgraded expectations. In Alberta, CREA’s year-over-year home sales estimate for 2025 was revised down, from a 2.3% increase to a 0.5% decrease. The projected average sale price for the province also declined, from $534,861 to $513,924.
Alberta first-time home buyer programs
Some first-time home buyers in Alberta can take advantage of assistance programs offered by both regional and government programs. For example, Attainable Homes Calgary (AHC) helps people with a household income of up to $131,424 fund a down payment. If you sell your home later, you repay AHC the loaned amount plus a portion of any equity appreciation.
Land transfer taxes in Alberta
Alberta’s government charges a fee to process the transfer of the property title: a $50 base fee plus $2 for every $5,000 of the sale price. So, a $400,000 home would cost $210.
Guide to Alberta mortgage rates
Types of lenders in Alberta
Mortgage lenders in Alberta tend to fall into four categories, which include:
Large chartered banks such as Scotiabank, RBC and TD.
Credit unions such as Bow Valley Credit Union and connectFirst Credit Union.
B lenders that work with borrowers with lower credit scores, such as MCAN and Equitable Bank.
Private lenders, who typically deal with borrowers in need of short-term funding.
Crunch the numbers with our mortgage calculators
How Alberta lenders determine mortgage rates
The mortgage rate you’re offered in Alberta will be based on two primary factors; one based on the state of the economy and one based on your financial situation.
Economic factors
Variable mortgage rates are influenced by the Bank of Canada’s overnight rate. When the overnight rate increases or decreases, a lender’s prime rate follows suit. Variable mortgage rates are based on a lender’s prime rate, so as the prime rate rises or falls, so do variable rates.
Fixed mortgage rates are determined by activity in the government bond market, particularly the yields on one-, three- and five-year bonds. Fixed mortgage rates follow the movement of those yields.
Your financial situation
Factors specific to you also affect the rates you’re offered. These include:
Your credit score.
Your income.
Your total debts.
The loan type you choose.
The amount you’re borrowing.
The term length and amortization period of your loan.
Lenders look for signs of risk when assessing these aspects of your finances. The riskier they perceive you to be as a borrower, the higher the rate they’re likely to offer you.
» COMPARE: Current Mortgage Rates in Calgary, Alberta
How to qualify for a lower mortgage rate in Alberta
While some factors that affect rates are beyond your control, there are things you can do to encourage lenders to offer you the best mortgage rates. For example, you can:
Improve your credit score. To start, pay down any outstanding debt and pay off every bill in full.
Increase your income. This isn’t always easy, but any additional income will improve your financial position.
Decrease your total debts. Lenders consider your total debt load when determining the details of your loan.
Consider all your options. See if adjusting the loan type, the term length or the amortization period of your loan could help.
Factors that affect mortgage affordability in Alberta
A home’s price and the rate you’re offered aren’t the only factors that affect how much mortgage you can afford. You’ll also have to account for the following components, which play a role in all mortgages.
Debt service ratios
Lenders use debt service ratios to determine how much of your income goes toward paying debt. If those ratios are too high, you may not qualify for the mortgage amount you need.
Car loans, credit cards and lines of credit are all examples of debt that require regular payments. Decreasing some of these balances, or relying less heavily on credit, can help you lower your debt service ratios.
The mortgage stress test
You will have to pass the mortgage stress test if you want a home purchase funded by a federally regulated financial institution.
The rules of the stress test say you must qualify for a mortgage at a minimum qualifying rate of either 5.25% or the rate you’re offered plus 2%, whichever is higher. If a lender offers you a rate of 5%, for example, you’ll have to demonstrate you can afford the same mortgage at 7%.
You may be able to avoid the stress test if you apply for a mortgage with a lender that is not federally regulated, like a credit union.
Your down payment
Your down payment is a critically important factor in determining mortgage affordability. The more you can put down, the less you’ll need to borrow. Your monthly mortgage payment will likely be smaller, and you’ll pay less in interest.
Mortgage term
The term is the length of time your mortgage contract is valid. In Canada, mortgage terms can run anywhere from six months to as long as 10 years.
Chances are that your mortgage will have multiple terms during the amortization period until you pay it off in full. Once your mortgage term ends, you can pay your loan off in full, renew it or refinance it.
Amortization period
A mortgage’s amortization period is the time it will take to pay off the loan in full. In Canada, the most common amortization period is 25 years. If your down payment is less than 20%, you can’t have an amortization beyond 25 years.
If your down payment is greater than 20%, you may find some lenders willing to offer amortization periods of up to 35 years.
Why would you want a longer amortization period? The longer your mortgage lasts, the smaller your monthly payment will be. You’ll pay more in interest, but that might be a worthwhile trade-off if it helps you keep your home.
Frequently asked questions
What's a good mortgage rate in Alberta right now?
What's a good mortgage rate in Alberta right now?
As of May 2025, you can find fixed mortgage rates in Alberta for around 3.7%, while variable mortgage rates are closer to 4%. The rate offers you receive depend on factors like your credit score, total debt level and income, and whether you apply for your mortgage with a Big Six bank or through a mortgage broker.
Will mortgage rates come down in 2025?
Will mortgage rates come down in 2025?
Mortgage rates may decrease further in the first half of 2025. The Bank of Canada might reduce its overnight rate again in June, which would lower variable mortgage rates by 0.25% versus today’s levels. Fixed mortgage rates will likely continue hovering between 3.75% and 4.25% for much of the year.
Sources
NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines.
- Government of Alberta. Land Titles Act. Accessed Sep 11, 2024.
Sources
NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines.
- Government of Alberta. Land Titles Act. Accessed Sep 11, 2024.
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