Kurt Woock
Beth BuczynskiDisclaimer: The rates displayed do not include any taxes, fees, insurance, or other additional charges. These rates are estimates and are not guaranteed. The actual rate and loan terms you receive will depend on our partner’s assessment of your creditworthiness, loan amounts, and other relevant factors. Please note that any potential savings figures provided are estimates based on the information you and our advertising partners have provided. Terms and conditions apply.
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Calgary mortgage rate update: February 2025
Variable mortgage rates in Calgary inched down shortly after the Bank of Canada announced a 25-basis point cut to its overnight rate on January 29, 2025. Variable rates are now 0.25% lower than they were prior to the announcement, and are down near 4% at some brokerages. Variable rate offers at most major banks are closer to 4.5%.
The Bank of Canada’s next rate decision will be announced on March 12. Another 25-basis point decrease is likely, but what the Bank ultimately decides will depend on the state of the economy, including the impact of any tariffs imposed by the United States.
Tariffs and any retaliatory measures taken by Canada would result in bond market turmoil, which could impact fixed mortgage rates. If government bond yields increase substantially, fixed rates will rise as well. If yields fall, fixed-rate mortgage shoppers could be in line for some better rate offers.
That’s what we’ve seen so far in February. Three- and five-year fixed rates are now available for under 4% at some mortgage brokerages, but one-year fixed rates are generally still over 5%.
According to the Calgary Real Estate Board, the benchmark price for homes sold in Calgary in January 2025 was $583,000, up 2.8% year-over-year. Sales over that period were down almost 12%, the result of the rapid price increases and shrinking supply Calgary, and much of Alberta, have experienced over the past two years.
Buyers are getting some help in the form of increased listings. New listings in January increased by 35.5% year-over-year, while active listings rose by almost 69%.
Calgary home sales and price forecast
According to Re/Max Canada, Calgary’s market should see more rapid growth in 2025 compared to 2024. The average sale price rose by 3.7% in 2024 and is expected to increase by another 5% in 2025, which would take it to just over $622,000.
Sales in Calgary showed a minor increase in 2024 — just 0.1% higher compared to 2023. Re/Max expects sales to increase by 2% in 2025.
How to get the best mortgage rate in Calgary
Whether you’re buying in Calgary, Edmonton, Red Deer or some other community in Alberta, following these tips will put you in a position to get the best possible mortgage rate.
1. Save up a significant down payment
A bigger down payment means you’ll have more equity on day one of home ownership. It also means you can borrow less, and smaller mortgages are less risky in the eyes of a lender — exactly what you want when trying to score a lower interest rate. Proving that you have the ability to save a substantial amount of cash may signal to lenders that you know how to prioritize your spending, too.
2. Strengthen your credit score and lighten your debt load
When lenders encounter a low credit score, they generally come to two conclusions: Either the person has difficulty keeping on top of their debt obligations or they have a short, untested credit history. Either scenario could make a lender think twice about offering you a mortgage, let alone one with a low interest rate.
If you have a strong credit score, but are carrying lots of debt, lenders may still be hesitant to offer you a competitive rate because your credit utilization ratio is too high. (It’s recommended that this ratio be no higher than 30-35%.) Lenders may even ask you to completely pay off one or more of your outstanding balances before they can make you a reasonable offer.
Paying off a substantial chunk of debt with little notice can be difficult to do, so it’s best to whittle your debt down before reaching out to a lender or mortgage broker. It should make the pre-qualification process easier.
3. Consult a mortgage broker
Using a mortgage broker can lighten the burden of hunting for the best mortgage rate. Experienced mortgage brokers have relationships with multiple lenders and can compare their offers with your homeownership goals in mind.
Working with a broker isn’t legally required. You can always fund your next real estate purchase in Calgary by working with one of Canada’s Big Six banks or an alternative lender. But these institutions will only offer their own products.
A mortgage broker can advocate on your behalf when dealing with lenders. Brokers can negotiate lower rates and better terms for their clients, and when they know a person’s personal and financial history — the good, the bad and the improving — they can use that information to convince a lender of their client’s creditworthiness.
Where can you get a mortgage in Calgary?
Being a large city with an active real estate market, Calgary has no shortage of financial institutions that offer mortgages, including:
- Canada’s major banks: RBC, TD, BMO, Scotiabank, CIBC and National Bank.
- Alternative lenders like True North Mortgage, Paradigm Quest, MCAP, and First National.
- Private lenders including MortgageTree, Freedom Capital, and Private Capital Mortgage Ltd.
You can also consider applying for a mortgage with one of Alberta’s many credit unions, including Servus Credit Union, Vision Credit Union, and Bow Valley Credit Union.
Credit unions often offer their members competitive interest rates, and if borrowers can provide a down payment of at least 20%, they may not have to pass the mortgage stress test when applying for a home loan.
Frequently asked questions about Calgary mortgage rates
Mortgage rates are expected to decrease somewhat in the first half of 2025. The Bank of Canada might reduce its overnight rate another two times, which would lower variable mortgage rates by 0.5% versus today’s levels. Fixed mortgage rates will likely continue hovering between 4% and 4.5%. for much of next year.
As of February 2025, 5% would be considerably higher than what many lenders are offering for both fixed and variable mortgage rates in Calgary.
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