Alberta’s mortgage landscape offers distinct advantages compared to other Canadian provinces, including no land transfer tax, relatively affordable housing prices, and a competitive lending market with unique provincial institutions. This guide examines current mortgage rates, trends, and strategies to help you secure the best possible rate in Alberta’s dynamic housing market.
Current Mortgage Rates in Alberta (May 2025)
As of May 2025, Alberta’s best 5-year fixed mortgage rates for insured mortgages start at 3.84%, while 5-year variable rates begin at 3.95%. These rates represent a significant improvement from the peak rates seen in 2023, following multiple Bank of Canada rate cuts since June 2024.
Here’s a breakdown of the best available rates in Alberta:
| Term Length | Best Insured Rate | Best Uninsured Rate |
|---|---|---|
| 1-year fixed | 4.69% | 4.99% |
| 2-year fixed | 3.89% | 4.70% |
| 3-year fixed | 3.88% | 3.89% |
| 4-year fixed | 3.99% | 4.29% |
| 5-year fixed | 3.84% | 3.84% |
| 7-year fixed | 4.84% | 5.00% |
| 10-year fixed | 5.09% | 5.29% |
| 3-year variable | 4.15% | 4.30% |
| 5-year variable | 3.99% | 4.05% |
Alberta Mortgage Rate Comparison by Lender
When comparing mortgage rates across different lenders, it’s important to look at various terms and product types to find the best fit for your financial situation.
| Lender | 1-Year Fixed | 3-Year Fixed | 5-Year Fixed | 5-Year Variable |
|---|---|---|---|---|
| National Bank | 6.09% | 4.44% | 4.44% | 4.45% |
| CIBC | 5.49% | 4.39% | 4.44% | 4.75% |
| BMO | 4.94% | 4.19% | 4.25% | 4.43% |
| RBC | 5.19% | 4.29% | 4.39% | 4.55% |
| TD | 5.29% | 4.39% | 4.69% | 4.89% |
| ATB Financial | 4.99% | 4.24% | 4.19% | 4.30% |
| Servus Credit Union | 4.89% | 4.19% | 4.09% | 4.25% |
| Canadian Western Bank | 5.09% | 4.29% | 4.25% | 4.45% |
| Vision Credit Union | 4.99% | 4.29% | 4.19% | 4.35% |
| Desjardins | 6.19% | 6.29% | 4.49% | 4.60% |
Actual rates may vary based on individual financial circumstances, down payment amount, and property details.
What’s the Outlook for Alberta Mortgage Rates in 2025?
The mortgage rate in Alberta shows signs of stability with potential for further modest decreases through 2025. Albertans have seen significant rate relief after two years of rising borrowing costs. The Bank of Canada has implemented seven consecutive rate cuts, reducing the Overnight Lending Rate from 5% to the current 2.75% (April 16, 2025).
While further cuts remain possible in 2025, the pace will likely slow as the Bank maintains a cautious approach to economic uncertainty. The Bank of Canada has signalled that future rate changes will depend on evolving global trade conditions and inflation data. Fixed mortgage rates, which are influenced by bond market movements, have stabilized around 2.6%, allowing lenders to offer the lowest level of five-year fixed mortgage rates since 2022.
How Does the Alberta Housing Market Perform?
Alberta’s housing market in 2025 presents a somewhat mixed picture, with continued price growth but moderating sales activity. According to the latest CREA data from May 2025:
- Alberta’s average home price increased by 5.6% year-over-year to $524,522. This is significantly more affordable than British Columbia ($946,138).
- Sales volume decreased by 7.7% compared to the previous year.
- New listings increased by 7%, creating more balanced market conditions.
- The sales-to-new-listings ratio fell to 62.8%, indicating a shift toward a more balanced market.
| Region | Average Price | YoY Change |
|---|---|---|
| Alberta | $524,522 | +5.6% |
| Alberta West | $455,562 | +20.4% |
| Calgary | $583,000 | +0.4% |
| Edmonton | $431,100 | +11.0% |
| Lethbridge | $416,209 | +11.6% |
| Fort McMurray | $381,590 | +7.4% |
| Grande Prairie | $398,664 | +13.3% |
| Lloydminster (AB) | $321,783 | +1.6% |
| Medicine Hat | $408,189 | +21.6% |
| South Central Alberta | $306,106 | -12.8% |
Alberta’s relatively affordable home prices and competitive mortgage rates make it an attractive option for homebuyers, particularly those relocating from more expensive provinces.
Source: CREA
How Does the Alberta Housing Market Affect Mortgage Rates?
Alberta’s housing market remains relatively strong compared to other provinces, supported by:
- Strong population growth (highest in Canada)
- Significant interprovincial migration
- Relatively affordable housing compared to Ontario and BC
- Limited housing inventory creates competitive conditions
This sustained demand for housing has created a robust mortgage market with many lenders competing for business, helping to keep rates competitive despite broader economic challenges.
The Bank of Canada’s rate cuts have inspired optimism among homebuyers and stoked Alberta’s already hot housing market. However, limited housing supply will likely continue to contribute to steady price growth.
Unlike provinces such as Ontario and British Columbia, Alberta doesn’t have a land transfer tax. Instead, Alberta charges only:
- A mortgage registration fee: $50 plus $1 for every $5,000 of mortgage amount
- A property registration fee: $50 plus $1 for every $5,000 of purchase price
| Home Purchase Price | Alberta Registration Fees | Ontario Land Transfer Tax | BC Land Transfer Tax |
|---|---|---|---|
| $300,000 | $110 | $2,950 | $4,000 |
| $500,000 | $150 | $6,475 | $8,000 |
| $750,000 | $200 | $11,475 | $13,000 |
| $1,000,000 | $250 | $16,475 | $18,000 |
This substantial difference makes purchasing a home in Alberta considerably more affordable from a closing cost perspective, allowing buyers to allocate more funds toward their down payment or other expenses.
Explore mortgage rates in other regions in Canada:
Who Are the Top Alberta Mortgage Lenders?
Alberta has a broad range of mortgage lenders vying for business, from major banks to smaller credit unions.
- The Big 6 Banks: RBC, TD, BMO, Scotiabank, CIBC, National Bank
- Other Large Banks: HSBC, Laurentian Bank
- Credit Unions: Servus Credit Union, Connect First Credit Union, Vision Credit Union
- Alberta-based institutions: ATB Financial, Canadian Western Bank
Brokers in Alberta connect borrowers with various lenders, many of which don’t have physical branches:
- Butler Mortgage
- nesto: Direct-to-consumer digital mortgage platform
- First National, CMLS, and MCAP
FAQs about AB Mortgage Rates
What credit score do I need for the lowest mortgage rates in Alberta?
To get the very best advertised mortgage rates, you typically need a minimum credit score of 740. Anything above 680 is considered good, but excellent credit in the 760+ range saves you the most on interest.
Where can I get a mortgage with bad credit in Alberta?
If your credit score is below 680, subprime lenders like Home Trust or Equitable Bank may offer higher risk mortgages to borrowers with less than perfect credit. The interest rates will also be higher to offset the additional risk.
How much income do I need to qualify for a mortgage in Alberta?
There is no set income threshold, but most lenders want your debt ratios to be under 40% for gross debt service (mortgage payments + property tax + heating as % of income) and under 45% for total debt service (including other debts like credit cards). Minimum income depends on the mortgage amount and your existing debts.
Finding Your Best Alberta Mortgage Rate
Navigating Alberta’s mortgage landscape requires understanding both the current rate environment and your personal financial situation. With fixed rates currently offering better value than variable rates, and provincial lenders providing unique advantages, Alberta homebuyers have excellent opportunities in today’s market.
To secure the best possible mortgage rate, focus on improving your credit score, comparing offers from multiple lenders, and considering the services of a mortgage broker. Whether you’re a first-time homebuyer or looking to refinance, understanding Alberta’s unique mortgage market features will help you make informed decisions and potentially save thousands of dollars over the life of your mortgage.