Best Mortgage Rates In Alberta For February 2025

We reviewed 100 mortgage lenders that do business both online and in-person throughout Canada. The lenders we reviewed represent some of the largest mortgage lenders by volume in Canada, which includes banks, credit unions and online lenders. Lenders that didn’t operate in Alberta or provide their mortgage rates were not eligible for review.

Our conventional rates (rates that are uninsured) were generated through publicly available posted rates on the lender’s website, but also through the following borrower profiles that we presented to the lender anonymously by phone or online:

Profile 1

• Property Type: Single-Family Home
• Property Usage: Primary Residence
• Purchase Price: $790,000
• Down Payment: 20% ($158,000)
• Credit Score: 700-719
• Postal Code: N2L 1V6 (Waterloo, Ontario)

Profile 2

• Property Type: Single-Family Home
• Property Usage: Primary Residence
• Purchase Price: $1,300,000
• Down Payment: 20% ($260,000)
• Credit Score: 700-719
• Postal Code: V6A 2W5 (Vancouver, British Columbia)

Profile 3

• Property Type: Single-Family Home
• Property Usage: Primary Residence
• Purchase Price: $300,000 ($60,000)
• Down Payment: 20%
• Credit Score: 700-719
• Postal Code: S4P 3C8 (Regina, Saskatchewan)

Profile 4

• Property Type: Single-Family Home
• Property Usage: Primary Residence
• Purchase Price: $440,000 ($88,000)
• Down Payment: 20%
• Credit Score: 700-719
• Postal Code: B3S 0J1 (Halifax, Nova Scotia)

Our scores out of five are scored based on the following factors:

• Rate – 75%
• Timeliness – 5%
• Prepayment privileges – 5%
• Penalty calculation type – 10%
• Availability of discounted rates – 5%

Though these rates are accurate at the time of publication, they are intended only to provide a ballpark figure and sample of the rates a lender may offer in that province for that particular mortgage term. That does not mean that you will qualify for the above rates or that the lender in question hasn’t changed those rates since publication. Please consult a mortgage lender or broker to get the best rate possible for your particular property-buying circumstance and financial situation.

Fixed-rate mortgage rates are priced off of Government of Canada 5-year bond yields that fluctuate daily. Five-year fixed mortgage rates are typically 1.5% above the 5-year yield, though this spread can vary between 1% and 2%. This means if bond yields go up, fixed-rate mortgage rates also go up. Periods of high inflation (which occur when the CPI is above the Bank of Canada’s 2% target) cause bond yields to rise; conversely, when inflationary pressures cool, bond yields also come down. For example, in 1981 when the CPI averaged 12.5%, Canada experienced the highest inflation in 33 years. In September 1981, bond yields hit 18.78% and the 5-year fixed mortgage rate hit 21.75%.

As of February 10, 2025, the 5-year benchmark bond yield is 2.705%, down 100.39 basis points (or 1.0039%) from one year ago and down 25.95 basis points this year.

Variable-rate mortgages are affected by the Bank of Canada’s (BoC) monetary policy, namely interest rate hikes and cuts that occur eight times a year. The prime rate, or the rate the banks use to set the interest rates on their variable-rate products, is currently 5.20%, though some banks may post a different rate. For example, TD Bank’s prime mortgage rate is currently 5.35%. Variable rates will be quoted as plus or minus compared to the prime rate.

On June 5, 2024, the Bank of Canada cut its key interest rate by 25 basis points to 4.75%, its first rate cut in over four years. Then on July 24, the central bank cut rates by another 25 basis points to 4.5%, again on September 4 to 4.25%, and then by 50 basis points on October 23 to 3.75%. On December 11, 2024, the Bank cut rates by another 50 basis points to 3.25% and most recently on January 29, 2025, the bank cut rates to 3%. The BoC is widely expected to implement more rate cuts in 2025.

Related: How Mortgage Rates And Interest Rates Work

According to the Alberta Real Estate Association’s (AREA) December 2024 market trend summary report , increased sales in detached and semi-detached homes   nudged sales up 2.8% year-over-year, with the total average residential price tracking at $493,828, up 7.9% from December  2023. By comparison, the national average price was $676,640, up 2.5% on a year-over-year basis. Inventory levels in the province are still tight, with only 2.91 months of supply in December, down 14% year-over-year.

“Grande Prairie, Medicine Hat, and Red Deer continue to have the tightest conditions in the province, with most regions having less than 2 months of supply,” notes the report. “All regions except Medicine Hat and Fort McMurray experienced year-over-year average price growth, led by Grande Prairie (25%), Red Deer (19%), and Calgary (13%).”

Out of the province’s major housing markets, Calgary remains the most expensive, with the average residential house costing $605,074, up 13% year-over-year. Edmonton takes second place as the priciest market with a $417,652 price tag, up 12% since December 2023. Red Deer rounded out third place at $388,139, up 19% year-over-year. Grand Prairie saw the biggest year-over-year growth of 25%, up to $363,598, while Medicine Hat experienced the biggest drop, at $312,993, down 3%. 

At its most recent rate announcement on January 29, 2025, the Bank of Canada (BoC) cut its key interest rate by 25 basis points to 3%, its sixth consecutive rate cut, marking the end of quantitative tightening. While smaller than the last two “supersized” 50 basis point cuts, the BoC was widely expected to continue rate cuts with this announcement.

“Inflation has been close to the 2% target since last summer. Monetary policy has worked to restore price stability…Lower interest rates are boosting household spending and economic activity is picking up,”  said BoC Governor Tiff Macklem in his press conference opening statement. However, he added that the threat of U.S. tariffs created uncertainty with the central bank’s projections, which were not incorporated into their outlook or most recent Monetary Policy Report: “The potential for a trade conflict triggered by new U.S. tariffs on Canadian exports is a major uncertainty. This could be very disruptive to the Canadian economy and is clouding the economic outlook.”

Headline inflation has eased from 8.1% in June 2022 to 1.8% in December 2024 and now firmly sits within the central bank’s 1% to 3% target. In recent months, business and consumer expectations have normalized and there is no longer evidence of broad-based inflationary pressures, noted Macklem; even shelter price inflation, which has been historically elevated, is slowly coming down.

However, at the time of its announcement, Macklem said that U.S. President Trump’s threat to impose 25% tariffs on Canadian imports and a long-lasting and broad-based trade conflict would “badly hurt economic activity in Canada.”  

“Unfortunately, tariffs mean economies simply work less efficiently—we produce and earn less than without tariffs,” said Macklem. “Monetary policy cannot offset this. What we can do is help the economy adjust.”

He added, ”As we consider our monetary policy response, we will need to carefully assess the downward pressure on inflation from weakness in the economy, and weigh that against the upward pressure on inflation from higher input prices and supply chain disruptions.”

Since the central bank’s announcement, President Trump announced that he is moving ahead with a 25% tariff on Canada and Mexico as of Tuesday, February 4, 2025. In response, Canada announced retaliatory tariffs of 25% on $155 billion of U.S. goods. Economists responded that Trump’s move could throw Canada into recession and cause unemployment to surge. 

BMO chief economist Douglas Porter wrote in a research note that while the bank previously forecast two more cuts in April and July, bringing the benchmark rate to 2.5%, “We now look for the quarter-point pace to continue each meeting until October, thus ending at 1.5%.” National Bank chief economist and strategist Stéfane Marion wrote that there is a “strong argument for an emergency or inter-meeting interest rate cut by the BoC” of at least 50 basis points, followed by two additional 25 basis point cuts in March and April, bringing the policy target rate to 2% by spring.

However, after some last-hour negotiations with Prime Minister Trudeau, Trump has announced a 30-day pause on imposing tariffs on Canada and Mexico.

The next scheduled rate announcement is on March 12, 2025.

Related: The Bank of Canada Cuts Key Interest Rate to 3%

Canada’s inflation rate came in line with the Bank of Canada’s expectations though slightly lower than analysts’ forecasts, slowing to 1.8% in December. The deceleration was driven mainly by the fed’s GST/HST holiday that brought down prices for restaurant food and alcohol. Excluding food, December’s inflation rate rose 2.1%.

On a monthly basis, the CPI declined 0.4% in December. The bank’s preferred measures of core inflation also edged down slightly month-over-month, with CPI-median at 2.4% (versus 2.6% in November) and CPI-trim at 2.5% (versus 2.6% in November).

Canadians paid less when dining out in December, with prices down 1.6% year-over-year (marking the index’s first annual decline) and 4.5% compared to November 2024. Prices for alcohol purchased from stores also declined in December, down 1.3% compared with a 1.9% increase in November. Prices fell 4.1% month-over-month.

Prices for toys, games (excluding video games) and hobby supplies decreased 7.2% year-over-year, while the children’s clothing index fell 10.6% in December compared to the same month in 2023.

A note about the GST/HST holiday: Prices in the CPI are final prices, including taxes paid by consumers, meaning that CPI changes due to changes to any taxes. The federal government announced a temporary GST/HST break on certain goods from December 14, 2024 to February 15, 2025; affected goods include food, alcoholic beverages and tobacco/cannabis products, children’s clothing and footwear, diapers, car seats and toys, games, books, newspapers and Christmas trees. Approximately 10% of the all-items CPI is affected by the tax exemption. The impact of the tax break will continue into January 2025 as the full month is impacted, compared to only 18 days in December.

Statistics Canada will release the January CPI figures on February 18, 2025. 

Related: Inflation Rate Slows To 1.8% In December

Current average mortgage rates in Alberta are approximately:

• 3-year variable: 5.18%
• 3-year fixed: 5.10%
• 5-year variable: 4.65%
• 5-year fixed: 4.69%
• 10-year fixed: 6.50%

Rates as of February 10, 2025

According to Forbes Advisor Canada, the best mortgage rates in Alberta are:

• 3-year variable: 4.55% (Dominion Lending Centres, The Mortgage Centre)
• 3-year fixed: 4.24% (nesto Inc.)
• 5-year variable: 4.14% (nesto Inc.)
• 5-year fixed: 3.94% (nesto Inc.)
• 10-year fixed: 5.75% (Dominion Lending Centres, The Mortgage Centre)

Rates as of February 10, 2025.

In addition to the term of a mortgage(how long it lasts before a new contract is agreed upon, typically between one and five, seven and 10 years) there are also different types of mortgages—each suited for different consumer needs.

Open vs Closed Mortgage

Open mortgages allow homeowners to pay off their mortgage with few or -no penalties—through monthly payment increases or lump sum contributions. Though paying off a mortgage faster is appealing to many Canadians, open mortgages typically come with higher interest rates than closed mortgages to reflect this flexibility.

In contrast, closed mortgages come with lower interest rates on mortgages of similar length. But, they also come with prepayment penalties if you choose to contribute more than your agreed-upon monthly payment or contribute a lump sum amount. Keep in mind that while closed mortgages are less flexible overall, many lenders allow borrowers to pay off a certain amount of their mortgage each year, penalty-free. These are called prepayment privileges and their standard percentage is around 10% to 20% of the initial principal amount.

Related: Understanding Open and Closed Mortgages

Fixed Mortgages

Fixed mortgages are ideal for borrowers who want predictability and less risk when it comes to their mortgage. These have set interest rates that stay the same throughout the mortgage’s term. This means your monthly payments will stay the same, too. Note that fixed mortgage rates conventionally have higher interest than variable rates (though currently you’ll see lenders offering variable rates at a higher rate than fixed due to complicated factors such as inflation, bond yields and the future trend of interest rates), and typically come with greater penalties if you choose to break your mortgage contract. Keep in mind that fixed mortgages can be either open or closed, depending on your lender and personal goals.

Variable Mortgages

Variable rate mortgages come with much more flexibility than fixed rate mortgages. Rather than locking in a rate at the beginning of a term, variable mortgages rates are based on a lender’s prime interest rate. These mortgages are ideal for consumers who want to take advantage of potential savings in a low interest rate environment.

Note that variable mortgages may have fluctuating rates, but these still have set monthly payments. If the interest rate increases, less of your payment goes toward the principal amount of your loan and more towards paying off the interest accrued. When interest rates climb so high that no part of your monthly payment goes toward the principal, then your mortgage is considered to have a negative amortization period, meaning that your loan balance is, in fact, increasing.

Though the rates listed above are the best in Alberta according to our research, there are a myriad of factors that affect what kind of rate you can negotiate with a lender. Below is a short summary of the most common factors that affect your mortgage interest rate.

Your Down Payment

When purchasing a home, you are required to pay a portion of the overall price known as a down payment. With conventional mortgages, this amount is 20% of the price of the home. So, on a home worth $500,000, you would pay $100,000 upfront.

If you choose to pay less than 20% down, you will have to pay for mortgage default insurance. This is insurance that protects the lender by promising to compensate them should you default on your mortgage payments. If you are buying a home with an insured mortgage, your rates will typically be lower than conventional mortgages, as lenders are protected by the insurance you purchased.

Your Amortization Period

Your amortization period, or the amount of time it takes to pay off your mortgage in full, can also affect your mortgage rate, though it is less common. A typical amortization period is 25 years and is the maximum amount of time offered if you put down less than 20% for a down payment. Homebuyers who have a mortgage that is uninsurable because the amortization period on the mortgage is greater than 25 years and not eligible for mortgage insurance, are subject to higher mortgage rates.

Your Property Usage

Whether or not your home purchase is a rental property or a primary residence will affect the rates lenders offer you. Generally speaking, lenders set higher rates for rental/investment properties compared to residences because they are uninsurable and come with higher risk for lenders.

Your Mortgage Type

As mentioned above, the type of mortgage you have—fixed, open, closed or variable—will affect the rate lenders will offer you, and if that rate will change over time. In general, while your mortgage rate decreases with the length of your term (i.e. a 1-year term is usually lower than a 5-year term) a variable rate mortgage may (in today’s mortgage market) be slightly higher than a fixed rate mortgage of the same term.

Additionally, if you are refinancing a new mortgage—rather than renewing—you will likely face higher rates, as lenders take on more risk with refinancing transactions.

Your Employment Status

As with the other previously mentioned factors, risk plays a pivotal role. Your lenders will review your employment status to determine the risk they will take on if they offer you funds for a home purchase. While you may be able to get a mortgage if you are in a brand new position, or are newly self-employed, you could be facing higher mortgage rates as a result.

Moreover, if you are self-employed, make sure that you have been working for your business for at least two to three years before applying for a mortgage. Otherwise, you could have a difficult time getting financing, or will only qualify for astronomical rates.

Your Credit Score

As a way to determine the risk involved with giving you a mortgage, lenders will pull a credit check and review your credit score to see if you are reliable when it comes to paying your debts on time. If you have no credit score, or a poor one, you may have a hard time getting a mortgage—or if you do get one, it may be from an alternative or private lender that has less than ideal rates.

Your Debts

Though your debt is a factor considered by lenders as part of your credit history, it is even more important when you are qualifying for a mortgage. When determining if you can make your monthly mortgage payments, lenders will calculate two difference debt service ratios:

• Gross Debt Service (GDS) – The percentage of your monthly income that covers your housing costs alone. This ratio should not exceed 39%.
• Total Debt Service (TDS) – The percentage of your monthly income that covers your housing costs and any other debts. This ratio should not exceed 44%.

These calculations will determine, in part, whether or not you can borrow with a particular lender. Lenders that have highly competitive rates typically have higher risk standards, which may prevent potential homebuyers with poor debt service ratios from accessing lower rates.

According to AREA’s most recent market trend summary report, the total average residential price tracked at $493,828, up 7.9% year-over-year.

If you make a 5% minimum down payment, or $24,691, you’ll need a $487,902 mortgage that includes $18,765 mortgage default insurance.

If you make a 20% down payment of $98,766, you’ll need a mortgage for $395,062 and no mortgage default insurance.

Unlike other provinces, Alberta does not charge a land transfer tax. Instead, there is a Land Titles Office registration fee based on the value of the property being purchased ($50, plus $2 for every $5,000 of property value) and a mortgage registration fee (also $50 base fee, plus $1.50 for every $5,000).

However, in the 2024 Budget announced in March, the government proposed a new Land Titles Registration Levy that would have the same $50 base fee, but the levy would increase to $5 per $5,000 of property value for both property transfers and mortgage registrations.

Assuming a $450,000 home purchase with a 10% down payment and a $405,000 mortgage, under the current fee structure the cost would be $401.50, and under the new levy, the fees will cost $955. However, this is still lower than other provinces that charge a straight land transfer tax.

Aside from working on paying off your debt, keeping a clean credit history, ensuring your amortization period does not disqualify you for default insurance and maintaining a robust employment record, simply meeting with lenders and mortgage brokers in your area is likely the best way to get the best rate for you.

In addition to its housing market nuances and solid rates, Alberta has a few key regulations surrounding housing that consumers should be aware of.

Alberta Mortgage Lender Regulations

Banks, loan and trust companies are federally regulated under the Office of the Superintendent of Financial Institutions (OSFI) and the relevant pieces of legislation, such as the Bank Act and the Trust and Loan Companies Act. These acts, and OSFI, both set out and enforce the various regulations required upon all Canadian domestic banks and trust companies—including Alberta lenders.

Note that Alberta does have some Alberta-only government lenders, such as ATB Financial, that while created under their own legislation, are still subject to the same rules and regulations.

Alberta Mortgage Broker Regulations

The Real Estate Council of Alberta (RECA) is the independent authority in the province that sets, regulates and enforces real estate transaction, management and brokerage standards across the province. More specifically, the RECA derives its authoritative power from the Real Estate Act, and administers this act on behalf of the Government of Alberta.

Some specific regulations that mortgage brokers must follow include:

• Licensing. In order to work as a mortgage professional in Alberta, you need to complete the Mortgage Associates Program delivered by the Alberta Mortgage Brokers Association (AMBA), with an exam delivered by the RECA.
• Brokerage Standards. Mortgage brokerages across Alberta have certain standards they must meet according to the RECA regulations, such as ensuring any additional fees paid by borrowers must be disclosed in writing.

Arguably the best, and most efficient, way to save on your mortgage is to simply do your research and follow the points we mentioned above. This may mean:

• Working on your credit history and raising your credit score
• Setting money aside for a higher down payment
• Ensuring you have a stable job, or a stable source of income, for at least two to three years
  Weigh your options with multiple mortgage brokers or lenders

While making sure you get the lowest rate possible is important, so are other factors like prepayment penalties. If you are in a financial position where you have excess cash—or are expecting some soon—choosing an open mortgage so you can pay it down faster is a prudent choice. When it comes time to make a decision, do not rely simply on your own research, get trusted insights from industry professionals.

As with other provinces, Alberta has a host of first-time home buyer programs to help new homeowners achieve their homeownership goals. Here are the most notable.

First Home Savings Account: Officially released in April 2023, the First Home Savings Account (FHSA) allows first-time home buyers to save up to $40,000 total—$8,000 annually —towards a new home. The funds stored in the FHSA are both tax-deductible and tax-free, meaning the funds are never taxed so long as they are used for a home purchase, and you get tax deductions for depositing funds—similar to RRSPs.

Home Buyer’s Plan. The Home Buyer’s Plan (HBP) allows first-time buyers to withdraw $35,000 from their RRSPs tax-free. However, keep in mind, these funds need to be repaid to your RRSP within 15 years.

First-Time Home Buyer Incentive. The First-Time Home Buyer Incentive is a shared-equity mortgage with the Government of Canada, which allows homebuyers to reduce their down payment by 5% to 10%, depending on the type of home being purchased. Note that because the government owns a portion of the mortgage, this incentive will need to be repaid to them after 25 years or when the property is sold—whichever comes first. The deadline for new applications and resubmissions to this program is now March 21, 2024. No new approvals will be granted after March 31, 2024. After this date, the program will be discontinued. Read our Feds Scrap First-Time Home Buyer Incentive Program article to learn more.

In June 2024, the Bank of Canada (BoC) cut its key lending rate by 25 basis points to 4.75%, its first cut in four years. The central bank again cut rates by 25 basis points in July and September, and on October, 22 the Bank cut rates by 50 basis points to 3.75%. On December 11, 2024, the Bank once again cut rates by 50 basis points to 3.25%. Most recently, the BoC cut rates to 3% on January 29, 2025. Because mortgage rates are based on a bank’s prime lending rate, which is derived from the Bank of Canada overnight rate, mortgage rates have already started to decline as well.