Mortgage rates in Alberta vary from time to time depending on some factors affecting the economy. In order to get the best mortgage rates in Alberta, you need to compare those rates from various banks and lending institutions. There are also conditions stipulated on the contract that may be beneficial or aggravating to your situation.
CompareMyRates.ca helps you find the current best mortgage rates in Alberta in one easy to use location. A right mortgage in Alberta can help you save thousands of dollars over the term of your mortgage. With our mortgage rate comparison tool, you get the best mortgage rates in Alberta from leading Canadian banks, mortgage brokers Alberta & credit unions at a click of a button.
Why should you Compare Mortgage Rates in Alberta?
Looking for the best mortgage rates Alberta? CompareMyRates.ca provides the most up to date, current rates, simply choose your Province, select applicable choices and compare the best rates in the industry. CompareMyRates.ca helps you connect with a mortgage broker who can identify the best deal for your home purchase or mortgage refinancing. Compare mortgage rates in Alberta and get a detailed, accurate comparison of the best mortgage rates Alberta.
How to choose the best Mortgage Rate in Alberta:Fixed Mortgage Rates vs. Variable Mortgage Rates
Fixed Mortgage Rate Alberta: A fixed rate means that your interest rate remains the same (fixed) for the entire term (duration) of the mortgage. Generally, this means the percentage of interest will be a little higher since the lending institution may be losing money in the future if the interest rates rise.
A fixed rate mortgage provides a buyer with the serenity of knowing the cost of their interest will stay the same over time. This means your payment and the amount that goes towards reducing the principal (original mortgage amount) will remain the same over time as well.
Variable Rate Alberta: A variable rate means the percentage of interest that you are repaying will vary based on the changes in the interest rate(s) of the overall market. Typically, fluctuations in your interest rate will not alter your monthly payment, but will vary the amount of your monthly payment that goes towards reducing your principal (original loan amount).
This means if overall interest rates go down you will actually be paying off your mortgage more quickly. On the other hand, if interest rates increase, you will be paying off your mortgage in Alberta more slowly. Accepting a variable rate does involve a certain amount of risk but can work to the advantage of the buyer over time.
Popular Mortgage Rates
Finding the Lowest Mortgage Rates in Alberta
No matter which province or territory you reside in, finding the best mortgage rate can save you thousands of dollars. Obviously, there are not many people who can purchase property without taking out a home loan. Taking our a home loan lets you buy, live in and/or use a home without needing to come up with the full dollar amount at the time of purchase. Usually, the amount of the loan is equal to the majority of the home's worth, but the downfall of this is that you will be required to pay interest on the loan. Most lenders insist on a down payment, i.e., a payment equal to a portion of the property's worth. For instance, if a home is worth $200,000 and the buyer would need to make a down payment of 10%. This would equal a $20,000 down payment ($200,000 x 10%). To make up the balance, the lender would loan you $180,000 ($200,000 minus the $20,000 down payment).
What are the different rate options available for my mortgage in Alberta
There are a wide variety of rate options available for rate type and terms. Most popular rates in Canada are 5 Year Fixed, 5 Year Variable & 3 Year Fixed, You should consult your mortgage broker who can help you assist in making the right decision on choosing the rate that would suit your financial situation and needs.
Alberta Mortgage & Housing Market Outlook
Alberta's housing starts are forecast to increase by 15.3 percent to 29,200 units in 2012, following a 6.5 percent decrease in 2011 to 25,325 units. These robust gains are a result of
a number of factors. Firstly, the economy is projected to show relatively strong growth over the forecast period. In 2011,
These robust gains are a result of a number of factors. Firstly, the economy is projected to show relatively strong growth over the forecast period. In 2011, the real gross domestic product is expected to rise by 3.1 percent, followed by 3.5 percent in 2012.Note, however, a pullback in oil prices during the summer, along with various wildfires, briefly slowed economic conditions, but these effects have dissipated. Secondly, employment growth is projected at 3.4 percent in 2011, lowering the unemployment rate from 6.5 percent to 5.6 percent. By 2012, the unemployment rate is expected to be lowered to 5.1 percent.
Secondly, employment growth is projected at 3.4 percent in 2011, lowering the unemployment rate from 6.5 percent to 5.6 percent. By 2012, the unemployment rate is expected to be lowered to 5.1 percent.
As a result, this will put upward pressure on Alberta's housing sector. Finally, the demographic outlook for Alberta is positive. With an improving economy generating jobs, it is expected more migrants will choose Alberta as their home. Last year was a 15-year low for migration to Alberta. Moving forward, expect significant growth in migration this year with further gains in 2012.These gains are also expected to put upward pressure on the demand for housing within the province.
Single Starts: Single-detached starts are projected to decline about ten percent in 2011, as builders mitigate the risk of rising inventories. Over the balance of the forecast period, demand for single-detached homes will improve with a growing economy and job creation. In 2012, single detached starts are expected to rise by over 15 percent to 18,400 units.
The number of single-detached units under construction in August was at approximately half the level reported five years ago. However, with the inventory of complete and unabsorbed units up from the previous year, builders have been cautious about expanding production.
Multiple Starts: More affordable condominium projects are now competing with the resale market and enticing some renters to move into new condominium units. After a slow start to this year, the pace of multi-family starts has picked-up and is expected to edge past last year's level of production. In 2012, demand is expected to improve with rising incomes and new household formation, raising the level of multifamily production by 14.6 percent to 10,800 units.
Resales: The number of MLS? sales in Alberta is projected to increase by over six percent in 2011 to 52,800 units.In 2012, MLS? sales are projected to rise to 53,900 units. Prices: Most of Alberta's major urban centers remain in buyers' market conditions as indicated by a sales-to-new listings ratio that has fluctuated around 50 percent this year.
The average resale price in 2011 is expected to rise fractionally above last year's average, with much of the price movement attributed to compositional effects. As Alberta's economy generates employment and attracts more migrants, demand will rise and improve market balance. The average resale price in Alberta is projected to rise by more than two percent in 2012 to $362,700.
Source: Canada Mortgage and Housing Corporation (CMHC)