Nerdy Insight: When government bond yields continued declining in the first week of December, it meant Alberta’s best mortgage rates got a little better. Five-year fixed mortgage rates, for example, fell below 4.9% at some lenders. That still means passing a tough mortgage stress test, but Alberta’s low home prices can help buyers navigate the challenges of getting approved.
Best Alberta fixed and variable mortgage rates
Mortgage Type
Purchase Price
Down Payment
Rate Type
Province
Mortgage Term
Lender |
Lender Highlights |
Rate |
Payment |
Term |
|
---|---|---|---|---|---|
![]() Radius Financial |
|
4.89%
Fixed |
$2,602
Monthly |
5 yrs.
Term |
Explore Now |
![]() MCAN |
|
5.34%
Fixed |
$2,721
Monthly |
3 yrs.
Term |
Explore Now |
![]() MCAP |
|
5.44%
Fixed |
$2,747
Monthly |
4 yrs.
Term |
Explore Now |
![]() Radius Financial |
|
6.05%
Variable |
$2,913
Monthly |
3 yrs.
Term |
Explore Now |
![]() Equitable Bank |
|
6.10%
Variable |
$2,927
Monthly |
5 yrs.
Term |
Explore Now |
![]() B2B |
|
6.79%
Fixed |
$3,120
Monthly |
1 yrs.
Term |
Explore Now |
Disclaimer: These rates do not include taxes, fees, and insurance. Your actual rate and loan terms will be determined by the partner’s assessment of your creditworthiness and other factors. Any potential savings figures are estimates based on the information provided by you and our advertising partners. Mortgage Brokerage Licensed in ON #12984, BC #X301004, MB and AB. Homewise can pursue mortgage brokering activity in SK, NL, NS and NB.
Data source:


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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.
Historical trend: New mortgage loans in Alberta
Alberta mortgage rate forecast 2023
Fixed mortgage rates
Some mortgage analysts expect fixed rates to keep rising in the third quarter of 2023 before edging down slightly by the end of the year.
Because fixed mortgage rates in Canada are partly determined by movements in the Canadian bond market, they can be hard to predict. But keeping an eye on bond yields can sometimes tell you which direction certain fixed mortgage rates are heading. Declining yields on five-year government bonds, for example, usually indicate that five-year fixed mortgage rates may dip in the near future.
Variable mortgage rates
Variable mortgage rates follow any rise or fall in your bank’s prime rate. As a result, the amount of interest you pay can change from year to year, or even month to month. If rates fall, you’ll pay less in interest, but if rates rise, you’ll pay more. Because a variable-rate mortgage is riskier than a fixed-rate one, variable rates are lower compared to fixed rates with otherwise comparable terms.
People with existing variable-rate loans have seen their rates rise multiple times recently because the Bank of Canada has been raising rates to combat stubborn inflation — and when the BoC raises their rates, bank prime rates rise, too. The BoC likely won’t relent until inflation rates are closer to 2%. Variable rates will likely stay elevated into 2024.
Alberta mortgage rate update: December 2023
In the first week of December, three- and five-year government bond yields slid to their lowest levels in months, dragging five-year fixed mortgage rates down with them.
Five-year terms remain more affordable than one- and three-year terms, which puts Alberta’s mortgage shoppers in a real bind: A five-year term isn’t overly attractive if rates are expected decline in the next year or two, but shorter-term options may be too expensive for many borrowers to qualify for.
According to the Bank of Canada, the average posted rate for a one-year, fixed-rate mortgage was an eye-watering 8.09% as of December 6. At an average posted rate of 7.24%, three-year fixed mortgage rates might be more affordable, but they require borrowers to pass the stress test at a brutal 9.24%.
Don’t let your bank’s posted rates make you hyperventilate, though. They’re meant to be negotiated down, and should be closer to the rates found on our table above. Lenders were offering five-year fixed rates below 4.9% on certain mortgage products as of December 6.
Variable mortgage rates remain elevated after the Bank of Canada held its overnight rate at 5% on December 5. With inflation and employment both slowing, the Bank’s rate hikes may have come to an end. But the overnight rate, and variable mortgage rates, won’t be reduced until inflation is firmly under control and heading toward the Bank’s target of 2%. That might not occur until well into 2024.
The Financial Consumer Agency of Canada recently released a set of new guidelines for the country’s mortgage lenders to follow when dealing with borrowers whose finances have been pushed to the breaking point by higher interest rates. If you’re having trouble making your mortgage payments, or are having to make uncomfortable decisions to stay on top of your mortgage, reach out to your lender or mortgage broker immediately to find out what assistance or payment flexibility might be available to you.
Alberta housing market update
The average residential price in Alberta was $455,891 in October, according to the Alberta Real Estate Association. The average detached home cost $531,698 while the average apartment cost $282,004. The average residential price in specific markets includes:
- Calgary: $545,937
- Edmonton: $378,711
- Lethbridge: $348,513
Alberta home prices and sales forecast
Home prices are likely to be stable through the rest of 2023, according to real estate company Royal LePage, as limited supply offsets recent rises in interest rates.
Those hoping for a dip in prices may be disappointed. When it appears that the Bank of Canada’s rate hikes are over, experts at RE/MAX Canada expect prices to climb again — largely due to a continued shortage of available housing.
Guide to Alberta mortgage rates
Types of lenders in Alberta
A lenders. Big banks and credit unions are A lenders. You’ll need a strong credit score and to undergo a mortgage stress test before being offered a loan. Because borrowers must meet more stringent requirements, they’ll receive the best rates currently available.
B lenders. Some smaller Canadian banks and mortgage investment corporations, including Canadian Western Trust, Home Equity Bank and Home Trust, do business with people who have poorer credit scores or limited credit history. Rates are higher as a result.
Types of mortgages in Alberta
Fixed-rate mortgages. With a fixed mortgage, the interest rate stays the same for the duration of the mortgage term, even when the market fluctuates. Fixed rates typically:
- Tend to be higher than variable interest rates.
- Can provide a greater sense of certainty because they remain the same for the length of the mortgage term.
Variable-rate mortgages. Variable mortgage rates can increase or decrease throughout the length of your term, depending on your lender’s prime rate. Variable-rate mortgages typically have rates that:
- Are lower than fixed rates, and historically, they’ve been known to save borrowers money over the length of their mortgage — if rates remain the same or fall.
- Can increase, sometimes significantly, throughout a mortgage term. When interest rates go up, the monthly payment on a variable-rate mortgage can become more expensive.
» MORE: The difference between fixed- and variable-rate mortgages
Hybrid-rate mortgage. For these mortgages, one portion of your mortgage is subject to a variable rate and the other portion is at a fixed rate of interest. These mortgages:
- Can help moderate the impacts of fluctuating interest rates in a particularly turbulent or uncertain economy.
- Tend to be more difficult to transfer between lenders.
Insured vs. uninsured mortgages. You must insure your mortgage if you’re buying a home under $1 million with a down payment of less than 20%. Mortgage insurance adds to the cost of your loan. The amount you’ll pay is a percentage of your mortgage amount, and the percentage depends on your down payment — the closer it is to 20%, the smaller the percentage is.
Homes worth $1 million or more require a minimum down payment of 20%, so insurance is not required.
Short-term vs. long-term mortgages. Short-term mortgages are those that are five years or less, while long-term mortgages are those that are over five years. Shorter mortgage terms mean you need to renew your contract sooner, which can also provide flexibility. Plus, short-term mortgages often have lower interest rates than long-term mortgage rates.
Closed vs. open mortgages. The main difference between closed and open mortgages is that you can pay off an open mortgage whenever you like and not pay a penalty; if you make additional payments on a closed mortgage, you’ll generally be penalized.
Closed mortgages often offer better rates than open mortgages. But open rate mortgages may be a good option if you think you may be able to pay off your mortgage early.
» MORE: Understanding open and closed mortgages
How Alberta lenders determine mortgage rates
Alberta mortgage rates fluctuate constantly.
The two main economic factors affecting mortgage rates are the Bank of Canada’s overnight rate, which influences variable rates, and the bond market, which helps determine fixed rates.
There are also factors specific to you that affect the rates you’re offered, including:
- 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.
You can also compare mortgage rates in other provinces to get a sense of how the rate you’ve been offered in Alberta stacks up:
» 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. A higher credit score generally results in better offers.
- Increase your income. This isn’t always easy, but any additional income will improve your financial position. Lenders look at your income to assess your ability to afford a mortgage.
- Decrease your total debts. Pay down any personal loans, student loans or other types of 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.
How to compare mortgages from Alberta lenders
Compare the annual percentage rate (APR) instead of the interest rate alone. The APR includes the interest rate, as well as any fees and other closing costs the lender charges. The APR is the most accurate way to compare how much different mortgage offers will truly cost you.
Be sure you’re comparing the same type of mortgage. For a comparison to be useful, the mortgages should have the same term, amortization period and payment frequency.
Other aspects to compare when looking for the best mortgage rates in Alberta include:
- Mortgage type.
- Ease of application.
- Prepayment penalties.
- Customer service.
- Any other fees not included in the APR.
Mortgage shopping is about more than just the rate
A low mortgage rate is usually a primary objective for buyers, but getting the lowest rate doesn’t necessarily mean you’re getting the best mortgage for your needs.
For example, you might opt for a fixed rate, which has a higher rate than a variable rate, if you’re uncomfortable with the risk of rates rising.
Or, if you expect to come into a sizable sum of money soon (via an inheritance, for example), paying a higher rate for an open mortgage, which allows you to pay it off early without penalties, could be worth it.
Factors that affect mortgage affordability in Alberta
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.
Amortization period
A mortgage’s amortization period is the length of time it will take to pay off the loan in full. The most common amortization period in Canada is 25 years. In fact, if your down payment is less than 20% of a home’s value, you’re not allowed to exceed an amortization of 25 years.
Depending on the lender, if you can provide a down payment greater than 20% you may be able to secure an amortization period of up to 35 years.
One option is to ask for the shortest amortization period possible, which means paying less interest overall and potentially saving thousands of dollars. A shorter amortization period, however, will result in higher monthly payments.
Alberta land transfer tax
Unlike other provinces, Alberta doesn’t have a land transfer tax.
The government does charge 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.
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.
Frequently asked questions for Alberta mortgage rates
As of August 2023, you could still find fixed mortgage rates for less than 5.5% and variable mortgage rates for under 6.5% for a home purchase price of $400,000 and a down payment of 10%. The rate offers you receive depend on factors like your credit score, total debt level and income.
Variable rates will remain at their current level until the Bank of Canada reduced its overnight rate. That may not happen until well into 2024. Fixed mortgage rates might soften somewhat before the end of 2023, but significant decreases may not materialize until next year.

Alberta Mortgage Payment Calculator
Use this free Alberta mortgage calculator to estimate your monthly mortgage payments, and see how rates and amortization affect total cost over time.

Mortgage Affordability Calculator: How Much Mortgage Can I Afford?
Using a mortgage affordability calculator can help set realistic home buying expectations and show where your finances might need improving.

Find the Best Mortgage Rates in Canada
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