Find the best Edmonton mortgage rates

Are you looking to buy a home and need to know where to find the best mortgage rates in Edmonton? With so many banks and other mortgage lenders to choose from, finding the lowest rates is no easy task. Compare the best Edmonton mortgage rates using our rates table.

Best Edmonton mortgage rates

Comparing mortgage rates in Edmonton

Edmonton’s housing market remains more affordable than other major Canadian cities in 2024; however, prices have increased steadily due to low inventory and rising demand. According to RE/MAX, during the first half of 2024, the average Edmonton housing price rose 7.4% across all property types, to $440,446. 

It all adds up to a seller's market, and if mortgage rates continue to drop, as is expected, Edmonton housing prices should continue their upward trend. Still, prices in Alberta’s second-largest city remain more affordable than in Calgary, where the average sale price reached $602,653 as of July 31, 2024. 

Given the increase in housing prices and the competitive market in Edmonton, finding the best possible mortgage rate will be critical if you're in the market for a home. The terms you manage to secure will depend on your specific situation and the type of mortgage you need. 

Here are some tips for finding the best mortgage rate in Edmonton. 

How to get the best mortgage rate in Edmonton

1. 1.

   Improve your credit score: Generally, mortgage lenders offer their lowest rates to borrowers with the highest credit scores because they are less likely to default on their loans. If your credit is not where you’d like it to be, you can take steps to improve your score before applying for a mortgage. This includes ensuring any delinquent payments are up to date, limiting new credit inquiries, which can lower your score, and reducing the amount of credit debt you owe. 

2. 2.

   Save for a larger down payment: A larger down payment may not lead to a lower mortgage interest rate, but it can reduce your mortgage loan insurance premiums and save you thousands of dollars. Mortgage loan insurance protects the lender against default and is required for mortgages with less than 20% down payment. The highest premiums are charged for mortgages with only 5% down, so the larger your down payment, the less you will pay. Of course, a larger down payment means a smaller mortgage, which will save you money. 
   

3. 3.

   Compare mortgage lenders and rates: People often assume their primary bank will offer them the best possible mortgage rate upfront. However, this is often not the case. To ensure you’re getting the best possible mortgage rate in Edmonton, take the time to shop around and compare rates with different lenders. 
   

4. 4.

   Consider different mortgage types: The mortgage with the lowest rate might not be best for you. You must consider other features that are important to you and your situation. For example, during a period of falling mortgage rates, you might be better off choosing a variable-rate mortgage over a fixed-rate. Or, if you plan to sell your home shortly, you might not want to commit to a lengthy mortgage term, even if it offers the lowest rate. 

5. 5.

   Consult a mortgage broker: According to the CMHC, 48% of consumers used a mortgage broker instead of going directly through a mortgage lender in 2024. Mortgage brokers offer several advantages. Because they have access to dozens of mortgage lenders, they are well-positioned to find you the best mortgage rate. They also have the knowledge and experience to help you choose the right mortgage for your situation. If you’re unsure about the mortgage process or lack the time or energy to do the legwork, a mortgage broker might be the perfect solution.  
   

6. 6.

   Get pre-approved: Once you’ve decided on a lender or narrowed your options, it’s time to get pre-approved for a mortgage. You’ll want to take this step before you start home shopping. While a pre-approval isn’t final, it will determine how much house you can afford, and you’ll be able to lock in an interest rate for up to four months or longer. It will also let realtors know you are a qualified homebuyer. 
   

7. 7.

    Negotiate terms: Congratulations! Your offer to purchase has been approved. It’s now time to obtain final approval through your mortgage lender. Before signing the dotted line, ensure you are comfortable with the mortgage terms, including the type of mortgage (fixed or variable, open or closed), term length, amortization, interest rate and applicable fees. Remember that there is still room to negotiate some of these terms.

8. 8.

   Check for special programs: Depending on where you live, you may qualify for various homebuyer grants or incentives. For example, the Government of Canada offers financial incentives, including the Home Buyer’s Plan and GST/HST New Housing Rebate. 
   

City of Edmonton’s closing costs

When you buy a home, you will incur expenses over an above the properties purchase price. These are known as closing costs, and they are incurred by the buyer and seller of a property.  Closing costs can include everything from legal fees, land transfer taxes or fees, appraisal fees, CMHC premiums and more. Some closing costs are specific to the province or city where you’re buying a home. If the city is Edmonton, you’ll want to be aware of the following closing costs:

• Alberta land transfer fee: Alberta levies a land transfer fee when you purchase a property in Edmonton or elsewhere in the province. While the cost has been minimal compared to the land transfer taxes imposed in other provinces, it is increasing. As of October 20, 2024, the variable fee will become $5 for every $5,000 of property value. There is also a $50 flat fee, which remains unchanged. 

• Alberta mortgage registration fee: Besides the land transfer fee, there is an additional charge for mortgages in Alberta, which is calculated similarly. As of October 20, 2024, the cost is $50 plus $5 for every $5,000 (or part thereof) of the mortgage amount.

Sample calculation: Suppose you purchase a home in Edmonton for $500,000 with a mortgage of $400,000. Using the new rates, you would end up paying $1000 in land transfer and mortgage registration fees. 

Land Transfer Fee: $500,000/5,000=100 X $5 =$500

$500 + $50 (flat fee) = $550 

Mortgage Registration Fee: $400,000/$5,000 = 80 X $5 = $400

$400 + $50 (flat fee) = $450 

Total fees: $550 + $450 = $1000

• CMHC insurance: If your down payment is less than 20%, you must obtain mortgage default insurance. This insurance covers the lender if you ever default on the mortgage and enables financial institutions to issue mortgages with down payments as low as 5% of the purchase price. CMHC premiums are calculated as a percentage of the mortgage amount and can be as high as 4% for a mortgage with 5% down. While you can pay the fee upfront, most homebuyers finance it with the mortgage. 

• Legal fees: When buying a home, you’ll need to hire a real estate lawyer to review your mortgage contract, facilitate the property transaction, and make any changes to the land title. The cost typically ranges from a few hundred to a few thousand dollars. 

Rebates for Edmonton’s first-time home buyers

Below is a list of government grants and incentives available to first-time homebuyers in Edmonton. The list includes programs from the City of Edmonton as well as the Government of Canada. 

• Edmonton First Place Program

First Place is a program established in the City of Edmonton in 2006 to help eligible first-time homebuyers in Edmonton purchase their first home. To qualify, you must be able to obtain a mortgage pre-approval with a downpayment of at least 5% over a 25-year amortization. You can use a co-signer to qualify. Your annual household income must be below $130,000 and your personal net worth $25,000 or less. 

After you purchase the property, you have to reside in the home as the primary occupant for the first five years. In other words, you can’t buy the house and then turn it into a rental property six months later. 

While this is a City of Edmonton program, you don’t need to contact the city to apply. Instead, contact a participating builder or a mortgage lender who is familiar with the First Place program.

• PEAK Housing Initiative (DISCONTINUED)

The PEAK program was a downpayment assistance program supported by the Government of Alberta, CMHC, Habitat for Humanity and Trico Residential. The program was successful in helping over 100 Alberta individuals and families purchase a home, but it has since been discontinued due to a lack of housing inventory.  

• Home Buyers Plan

The Home Buyers Plan (HBP) is a federal government program that allows you to borrow money from your RRSP for the purpose of buying or building a qualifying home. Any monies borrowed must be repaid to your RRSP over a 15-year period. The HBP withdrawal limit was increased from $35,000 to $60,000 in 2024, to make it easier to purchase a first home in Canada. 

To qualify, you must meet the following conditions: 

• You must be the annuitant of the RRSP plan. 
• You must be considered a first-time homebuyer (unless the home is being purchased for a specified disabled person). 
• You must have a written agreement in place to purchase or build a home. 
• You must be a Canadian resident from the time you make the HBP withdrawal to when you buy the home. 
• you must occupy the home within one year after you purchase or build it. 

For the purposes of the HBP, you are considered a first-time homebuyer if you did not own a qualifying home in the current calendar year prior to the HBP withdrawal or during the four preceding years. You can visit the Home Buyers Plan website for a full list of program terms and conditions. 

• First Home Savings Account (FHSA)

The First Home Savings Account is a government-sponsored savings account designed to help you save for your first home. The account combines the best features of an RRSP and Tax-Free Savings Account (TFSA) by allowing you to deduct your contributions up to a specific limit each year, and withdraw the funds tax-free when you’re ready to buy a home. 

The annual FHSA contribution limit is $8,000 up to a lifetime maximum of $40,000. The criteria for making a tax-free withdrawal for the purchase of a home is similar to the Home Buyers Plan rules (must be considered your first-home, must have a written agreement to purchase or build a qualifying home, etc.) 

• Home Buyers Amount

The Home Buyers Amount is a federal tax credit that allows you to claim up to $10,000 for the purchase of a qualifying home. To be eligible, the following must be true: 

• You or your spouse purchased a qualifying home during the tax year. 
• You did not live in a home that you or your spouse owned during the year you acquired your new home, or the preceding four years. (You are considered a first-time home buyer). 

The home for which you are claiming the tax credit must be registered in your or your spouse’s name. Qualifying properties include detached and semi-detached houses, condos, mobile homes, townhouses and most apartments. 

• GST/HST New Housing Rebate

If you have purchased a new or pre construction home, or have made extensive renovations to an existing home, you may be eligible for a rebate on the GST paid. Eligibility requirements include: 

• The home must be located in Canada 
• Purchased from a qualifying home builder 
• Owner-built home

For resale properties, the home must have undergone extensive renovations with at least 90% or more of the interior having been removed or replaced. 

Frequently asked questions about Edmonton mortgage rates

Colin Graves Freelance Writer

Colin Graves Freelance Writer

Colin Graves is a Winnipeg-based financial writer and editor whose work has been featured in publications such as Time, MoneySense, MapleMoney, Retire Happy, The College Investor, and more. Before becoming a full-time writer, Colin was a bank manager for over 15 years.

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