TODAY'S
MORTGAGE RATES IN Alberta

Rates are heading down, but not back to pre-pandemic levels. Here's how the market is shaping up this year.

Variable Rates Expected to Shift

Variable rates are set to move the most. The Bank of Canada is holding steady at 2.75% in June, but analysts expect two more rate cuts by the end of 2025. If that happens, the prime rate could drop to 4.45%, making variable mortgages more attractive.

Fixed Rates Trending Down Slowly

Fixed rates are also trending down, just at a slower pace. They follow 5-year bond yields, which have already dropped from their 2024 highs. Most forecasts expect fixed rates to settle near 4.0% by year-end.

What This Means for Alberta Buyers

Whether you're buying, renewing, or refinancing, now's a smart time to revisit your mortgage strategy. Even a small rate shift can save you thousands over time, and in an unpredictable market, flexibility is key.

Rather than trying to time the market, focus on finding a mortgage that fits your plans, your budget, and your comfort with risk. That's where EveryRate can help—by showing you live mortgage offers from multiple lenders so you can compare and choose confidently.

Rates aren't the only thing changing. Alberta's real estate market is shifting, too. Here's what's driving demand, where prices are rising, and how tight inventory might shape your next move.

Home Prices Are Climbing

The average home price in Alberta hit $525,135 in April 2025, up 5.1% year-over-year. Calgary and Edmonton lead the way, with 13% and 10% gains, while smaller markets like Grande Prairie and Red Deer are seeing more modest growth.

• Calgary: Average price $587,000 (+13% YOY)
• Edmonton: Average price $420,000 (+10% YOY)
• Grande Prairie: Average price $380,000 (+3% YOY)
• Red Deer: Average price $350,000 (+2% YOY)

Sales Have Slowed, But Supply Is Still Tight

Sales are down 6.7% compared to last year, but inventory is still tight. Right now, there are only 2.4 months of housing supply available, far below the 4–6 months needed for a balanced market.

That limited supply puts pressure on the market. The sales-to-new-listings ratio sits at 63%, which keeps most regions in mild seller's-market territory. Buyers may see more listings than last year, but they're still competing for the best properties.

Construction Is Booming

Alberta is seeing record-level construction activity, with 68,494 housing starts recorded in May 2025 (seasonally adjusted). This is 79% above the five-year average and the highest in provincial history.

What's Driving the Market?

• Population Growth: Alberta gained 202,000 new residents in 2024, the highest in Canada

• Economic Strength: Oil and gas sector stability, plus tech and manufacturing growth

• Affordability: Still more affordable than BC and Ontario for many buyers

Alberta Real Estate: What to Expect Throughout 2025

• Price Growth: 3-5% increase expected, with Calgary leading the way
• Inventory: More new construction should ease supply pressure
• Market Balance: Moving toward buyer-friendly conditions in most areas

Whether you're buying your first home or looking for your next investment, Alberta's mix of affordability and growth potential makes it a strong market.

You need 5% down to get a mortgage. To skip mortgage insurance, you'll need 20%. The total dollar amount depends on where you're buying and how much the home costs.

To give you a ballpark idea, here's what 5% and 20% down payments look like based on average detached home prices in a few key Alberta regions:

Heads up: These numbers don't include legal fees or closing costs. Budget a little extra so you're not caught off guard.

Alberta has some great programs to help first-time buyers get into the market. Here's a quick overview of each:

Alberta PEAK Program

• What it is: A shared equity program that helps with down payments
• How it works: The province contributes up to 10% of your home's purchase price
• Eligibility: First-time buyers with household income under $117,000
• Property limit: Homes valued up to $450,000

The First Place Program in Edmonton

• What it is: Edmonton-specific program offering down payment assistance
• How it works: Provides up to $15,000 in down payment support
• Eligibility: First-time buyers purchasing in Edmonton
• Income limit: Household income under $90,000

Attainable Homes Calgary (AHC)

• What it is: Calgary program offering affordable homeownership
• How it works: Sells homes below market value to qualified buyers
• Eligibility: First-time buyers with household income under $120,000
• Property types: Townhomes and condos in various Calgary neighbourhoods

Why Alberta's Programs Stand Out

We believe Alberta offers some of the most practical and accessible first-time buyer programs in Canada, especially if saving for a full down payment has been holding you back. Whether you need help with the down payment or want to explore affordable housing options, these programs can make a real difference.

Each program has its own criteria, so it's worth reviewing the fine print. A good broker can walk you through your options and help you apply for the ones that fit your income, assets, and long-term goals.

Beyond your down payment, you'll need to budget for several other costs when buying a home in Alberta:

Legal and Closing Costs

• Legal fees: $1,500–$2,500 for a real estate lawyer
• Title insurance: $200–$400 to protect against title defects
• Home inspection: $400–$600 for a professional inspection
• Appraisal: $300–$500 if required by your lender

Property Transfer Tax

Alberta doesn't have a land transfer tax, which can save you thousands compared to other provinces. This is one of the major advantages of buying in Alberta.

Property Taxes and Insurance

• Property taxes: Vary by municipality, typically 0.5–1.5% of home value
• Home insurance: $1,200–$3,000 annually depending on coverage
• Utility setup: $200–$500 for deposits and connection fees

Budget an additional 1.5%–3% of your home's purchase price for these costs to avoid any surprises.

Alberta follows federal mortgage regulations, but there are some provincial specifics to be aware of:

Federal Requirements

• Stress test: Must qualify at 5.25% or your rate + 2%, whichever is higher
• Maximum amortization: 25 years for uninsured mortgages, 30 years for insured
• Down payment minimums: 5% for first $500,000, 10% for amounts above

Provincial Oversight

• Alberta Securities Commission: Regulates mortgage brokers and lenders
• Consumer protection: Strong provincial laws against predatory lending
• Disclosure requirements: Lenders must provide clear terms and conditions

These regulations ensure a safe and transparent mortgage market for Alberta borrowers.