Current Mortgage Rates in Alberta

These are our current mortgage rates in Alberta, they are updated daily to reflect the best mortgage deals in the Alberta market. They are fully discounted wholesale mortgage rates, so there is no need to negotiate them further. If you pay more than this, you are paying too much. For private and sub-prime mortgage rates, you need to discuss your situation with a broker directly, as these rates vary depending on the deal. Cash back mortgages depend on the percentage of cash taken and the lender, so please contact for details.

Mortgage TermsPosted Bank Mortgage RatesRateDeals.ca
Variable Rate- High Ratio 3.20% 2.35%
1 year Fixed - High Ratio 3.49% 2.74%
2 Year Fixed - High Ratio 3.09% 2.54%
3 Year Fixed - High Ratio 3.39% 2.65%
4 Year Fixed - High Ratio 3.89% 2.94%
5 Year Fixed- High Ratio 4.84% 2.94%
5 Year Fixed - No Frills 4.84% 2.94%
5 Year Fixed - Conventional 4.84% 3.04%
10 Year Fixed 5.79% 3.74%
Bank of Canada Qualifying Rate 4.84% 4.84%

Please Note: These rates quoted are for high ratio mortgages. Conventional mortgages often carry higher interest rates. All rates you find online will also be high ratio quotes, due to the tiered structure of mortgage rates today.

You may occasionally come across lower rates online from our competitors, however even though we have access to these rates, we do not advertise any ‘No Frills Mortgages‘ that we would not recommend for our clients.

Be Careful of the Small Print and the Backend Costs of a Mortgage

prepayment privileges

This is not really a huge factor for most buyers, as they simply do not use them; 90% of buyers assume they will use them, while 90% of buyers do not. This is still a factor however when comparing mortgage terms. Mortgages with smaller privileges should be offering lower rates.

is your mortgage portable?Another misconception in the market is that you are going to stay in your house forever; chances are you won’t (statistically speaking). Most buyers stay less than 5 years in their new home, so be sure that the mortgage you get can be moved to your new property. This is very important and can save you thousands of dollars down the road. If your mortgage is not portable, you will have penalties when you sell your home down the road.

mortgage penaltiesThis is a big one, and one that is becoming much more of an issue over the past couple of years. Some lenders (mostly the big banks) have found a way to increase the interest rate differential on their mortgages, simply by changing the way they calculate it, costing their clients tens of thousands in additional penalties. If you are considering taking a mortgage with your bank, talk to us first as there are questions you need to ask.

mandatory mortgage life insuranceNo mortgage has mandatory life insurance, however many bankers will insist on their clients taking it, telling their clients that it is not optional (its a profit center for the bank). Mortgage life insurance is not always the best product, nor is it the cheapest. We have an obligation to offer you mortgage life insurance, but you are never under any obligation to take it. A stand alone insurance policy is always going to be your best option to insure your mortgage. Another example of where you might have received the lowest current mortgage rates in Edmonton but the effective rate after adding in the insurance cost makes the mortgage less than a great deal.

Should I Take a Closed Mortgage or an Open Mortgage?

A mortgage will either be open or closed. An open term means you can pay the mortgage down or off at any time without penalties. A closed term is one in which there are limitations to how much you can pay down on your mortgage without incurring a penalty. Generally a closed mortgage (fixed terms) will have a 3 month interest or interest rate differential (ird) penalty (whichever is greater).

In terms of rates, closed mortgages will always be the lowest interest rate. Open mortgages carry a premium due to the flexibility they offer the client and due to the potential costs to the lender should you pay the mortgage off quickly. The lenders incur some upfront costs on setting up a mortgage and if the mortgage is paid out too quickly they may not recoup these costs.

So if all the mortgages have the same penalties, what do you need a mortgage broker for? Well it’s in the fine print that you have to dig for this information. Many of the banks have now started to use tricks in order to make the ird higher, meaning you will more often than not have an ird penalty versus a 3 month interest penalty. These penalties can be significant and will be the most costly mistake a client can make in choosing a new lender. The lowest current mortgage rates, may not be the best deal unless you understand these costs. We do more than just get you cheap mortgage rates!

todays mortgage rates edmontonUnderstanding the Difference Between Variable and Fixed Rate Mortgages

Variable rate mortgages (vrm) are by far the most tricky terms to understand of our mortgage rates in Edmonton. Some compound their interest rates monthly, while others calculate semi-annually. Some variable products guarantee a specific discount or guarantee the going ‘wholesale’ rate if you choose to lock the product into a fixed rate. Some lenders however don’t discuss this at all. On variable rate products, this is the main area of concern, what is my rate guarantee upon locking into a fixed term?

Fixed term mortgages on the other hand tend to be more straight forward, what you see is generally what you get. The only caveat to that however is the mortgage penalty. A number of the big banks now use funky math to calculate the penalties on their fixed rate mortgages, so you have to understand this before signing on the dotted line. You can educate yourself further in our knowledge center.