Alberta Mortgage Rates
Need a mortgage in Alberta? Quickly compare mortgage rates from Canada’s top bank and non-bank lenders.Editor’s Note: The Bank of Canada will make its next overnight rate decision on Wednesday, Sept. 17. Analysts expect the BoC to lower its overnight rate for the first time since March. NerdWallet will make updates as more information becomes available.
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Alberta mortgage rate update: September 2025
September could be an interesting month for mortgages in Alberta.
Government bond yields, which lenders use to price their fixed mortgage rates, have trended down in the first week of the month. When yields dip for a sustained period of time, it generally gives lenders room to lower their fixed-rate offers.
We haven’t seen much movement yet. Three- and five-year fixed rates are still around 3.9% at mortgage brokerages, with some offering three-year terms as low as 3.69%. Fixed rates are generally well over 4% at Canada’s Big Six banks.
Variable rates could decline as soon as September 17, when the Bank of Canada will announce its next overnight rate decision. Disappointing GDP and unemployment numbers are strong arguments in favour of a rate cut, even though inflation remains well above the Bank’s target of 2%.
If the Bank reduces the overnight rate by 0.25%, the country’s lowest variable rates will drop to around 3.7%.
Rate cuts and lower bond yields are generally signs of a lagging economy, so even if affordability improves for buyers in September, we may not see housing demand pick up until buyers see more stability in the economy.
Whether fixed rates rise further in the coming weeks is hard to predict, especially in the current economic climate. But it's a definite possibility. If you're considering getting a fixed-rate mortgage this summer, get pre-approved and lock in a rate as soon as possible.
Read more about the Bank of Canada's latest rate announcement.
The BoC makes policy interest rate announcements eight times a year. Find out how its latest decision might impact Canada's housing market.
What’s a good mortgage rate in Alberta right now?
As of September, most three- and five-year fixed mortgage rates are hovering around 3.9% at brokerages, but they're well over 4% at most big banks. Variable rates are generally 4% or higher.
Government bond yields, which lenders use to set fixed mortgage rates, have fallen in the first week of September. If yields continue that trend, fixed rates are more likely to fall than rise in the short term.
2025 Alberta mortgage rate forecast
Mortgage rates may decrease further in the second half of 2025.
The Bank of Canada is expected to reduce its overnight rate again twice before the end of the year, which would lower variable mortgage rates by at least 0.5% versus today’s levels.
Fixed mortgage rates will likely continue hovering between 3.75% and 4.25% for the remainder of 2025.
Alberta housing market update
The average price for an Alberta home was $502,684, a slight increase of 1.6% compared to August 2024. The number of homes for sale increased, as new listings outpaced sales by nearly 4,000, according to the Alberta Real Estate Association. In general, excess supply has a positive effect for buyers.
Buyers in Grande Prairie, Medicine Hat and Lethbridge may not relate to the province-wide averages: they face a declining supply, and year-over-year prices in those cities rose by at least 10%.
Alberta home buyer resources
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 charges two fees: one to process the transfer of the property title and another to register your mortgage.
- You'll pay $50 plus an additional $2 per $5,000 of the property's purchase price for the title transfer.
- For the mortgage registration, you'll pay $50 plus $1.50 for each $5,000 of your mortgage amount.
Mortgage calculators
Frequently asked questions
How do Alberta lenders determine mortgage rates?
How do 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.
Will mortgage rates come down in 2025?
Will mortgage rates come down in 2025?
The Bank of Canada overnight rate has been unchanged since March. If the bank lowers the rate, lower variable mortgage rates will follow. Fixed mortgage rates will likely continue hovering between 3.75% and 4.25% for much of the year.
How do you qualify for a lower mortgage rate in Alberta?
How do you 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.
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Clay Jarvis