Find the best Calgary mortgage rates

See the best Calgary mortgage rates, all in one place.

Current mortgage rates in Calgary

Comparing mortgage rates in Calgary

Calgary is the largest city in the province of Alberta, with a population of 1.5 million (as of 2023). The population of Calgary greatly increased 6.20% year-over-year, and increased 13.4% in the last 5 years owing to a spike in immigration. 

Mortgage rates in Calgary is the interest rate at which lenders (banks, credit unions and other financial institutions) offer mortgages to home buyers in Calgary. The mortgage and housing market in Calgary stands out as a beacon of stability in Canada’s shifting real estate landscape. While rising interest rates have impacted markets nationwide, Calgary shows a remarkable resilience, powered by its unique local factors and economic dynamics.

Unlike the cooling real estate markets in Ontario and British Columbia, Calgary’s housing sector has maintained momentum since 2022. This stems from unprecedented international immigration and interprovincial migration, with newcomers attracted to Calgary’s more affordable housing options compared to other major Canadian cities of Toronto and Vancouver. While this surge in demand has led to a competitive market, abundance of housing supply is something Calgarians are grappling with just like everywhere else in the country.

The Calgary Real Estate Board (CREB) shared that, in September 2024, the benchmark price of an average home in Calgary was $596,900 (5.5% increase compared to Sept. 2023). While new listings on the market increased by 15.5% compared to the same period last year to 3,687 listings, the average sales declined by 17.6% to 2,003 around the same time.

While the mortgage landscape is shaped by the Bank of Canada’s monetary policy, borrowing has become more challenging for Canadians in the last two years. Having said that, your mortgage rate is impacted by your financial situation, personal or family income, income-to-debt ratio, inflation, overall economic situation and other factors.

How to get the best mortgage rate in Calgary

To get the best mortgage rate in Calgary, you will have to do your research and get your finances in order. Here are some tips to help you secure the best mortgage rate as a homebuyer in Calgary: 

• Improve your credit score: Purchasing a property would possibly be the biggest investment you’d make. So, choose wisely and take stock of your finances. Make sure your credit history is good (700 range), you have paid off other debt and you have a strong income stream. A lender will consider you a good client if you have a strong credit score and less debt.

• Save for a larger down payment: A larger down payment means the lender will assume less risk with your mortgage. A lender may even offer a lower interest rate to a home buyer who has saved up for a larger (20% or more) down payment for their home, which can eventually reduce the size of your mortgage.
• Compare mortgage lenders and rates: Comparing rates from various lenders is the best way to secure a better rate. Depending on the lender and your financial situation, your rate may vary. So, before you decide on the lender, make sure to compare all options available to you. 
• Get pre-approved: Before going out in the market to buy a property, it is a good idea to get a pre-approved mortgage. This will help you get a clearer picture of the amount of money you can spend to purchase a home,  how much mortgage you can afford, your monthly expenditure and your interest rate.
• Consider different mortgage types: You might have a preconceived notion about a mortgage type that you feel is best for you. But stop and think again. By considering all the options available in the market, you might be in for a surprise that another option works best for your financial situation. That’s why you should take some time to run the numbers and consider all options before fixing on one.

• Negotiate terms: Some lenders may not budget on the rate, but you could still push for certain terms on your mortgage, like one-time lump sum payment towards principal amount once a year, or something else. Don’t hesitate to ask your lender for improving terms on your mortgage.
• Check for special programs: While looking for Calgary mortgage rates, you can also consider looking up some federal government programs to support home buyers, especially first-time home buyers.
• Consult a mortgage broker: If you are new to the home buying experience, we recommend working with a professional who can help you navigate the route to ownership. Avoid any last minute surprises and misleading clauses by working with a mortgage professional who knows about the processes and things you should be vary of in the process.
  

City of Calgary’s closing costs

Closing costs are a crucial part of your home-buying budget that vary across Canadian provinces. Many Calgary homebuyers underestimate these additional expenses, which can lead to financial strain during the final stages of their purchase.

Typically, closing costs in Calgary range from 1.5% to 5% of your home's purchase price, not including your down payment. To put this in perspective, when purchasing a $500,000 home with a 20% down payment ($100,000), you should prepare for additional closing costs that may include:

• Lawyer and legal fee: May be around $1,100 - $1,800. A real estate lawyer handles crucial aspects of your home purchase, including title searches, document preparation, and mortgage registration. The fee includes the lawyer's time and various disbursements required for the transaction.
• Land Transfer Tax: Alberta's land transfer tax rates are among the lowest in Canada, making Calgary a more affordable city for property purchases compared to cities like Toronto or Vancouver where transfer taxes can run into tens of thousands of dollars.
• Government registration fee: This $200 fee covers the registration of your new property title and mortgage with the Alberta Land Titles Office, ensuring your ownership is officially recorded.
• Mortgage Insurance: Mortgage loan insurance is the premium amount a lender pays to protect itself from the buyer’s failure to pay mortgage. The lender passes on this cost to the homebuyer. Any homebuyer who pays less than 20% down payment has to pay mortgage loan insurance.
• Title Insurance: This one-time $200 premium protects you and your lender against various property ownership risks, including title fraud, survey issues, and title defects.
• Home Inspection:  While optional, a professional home inspection, which costs around $300 -$550, is highly recommended to identify potential issues with the property before purchase. The cost varies based on the home's size and complexity.
• Estoppel certificate fee: This is $100. In case of condominium purchases, this document outlines the condo corporation’s financial status, rules, and any pending special assessments.
• Home Insurance: Around $1000+ annually (depending on the location). Buying home insurance before closing a house is mandatory in Canada. Annual premiums vary significantly based on factors like property location and flood risk assessment, age of the home and construction materials, coverage and deductible choices, claims history and insurance score, security systems and safety features of the home.

Apart from the above, the buyer must be ready to pay if additional potential costs come up, like:

• Property tax adjustments (varies based on purchase timing)
• Utility setup fees and deposits
• Moving expenses ($500 - $3,000+)
• Immediate repairs or renovations
• Appliances or furniture, if needed
• Mortgage appraisal fee ($300 - $500)
• Property maintenance tools and equipment

Rebates for Calgary’s first-time home buyers

The Government of Canada offers some special programs to support eligible home buyers and first time home buyers to help buy their first home in the country. Some provincial governments also offer rebates to offset the cost of purchasing a home. Here are some such programs:

• Government of Canada’s Home Buyers' Amount offers eligible homebuyers a valuable non-refundable tax credit of up to $1,500 to help offset the costs of purchasing their first home.
• Through the GST/HST new housing rebate, you can recover a portion of the sales tax paid when buying your new home, putting money back in your pocket during the home buying process.
• The recently enhanced Home Buyers' Plan now allows you to withdraw up to $60,000 tax-free from your RRSP to buy your first home, an increase from the previous limit of $35,000, effective for withdrawals made after April 16, 2024.
• The First Home Savings Account empowers you to save up to $40,000 tax-free for your home purchase, with an annual contribution limit of $8,000, making it easier to build your down payment while enjoying tax benefits. Beyond these federal programs, your provincial or territorial government may provide additional home buying incentives and programs to make homeownership more accessible in your region.

Frequently asked questions about Calgary mortgage rates

Still have more questions about Calgary mortgage rates? We can help.

Shivani Kaul Writer

Shivani Kaul Writer

Shivani Kaul is a seasoned freelance writer and editor specializing in insurance, mortgage, and finance.

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