Mortgage rates in Calgary: how they work and how to compare

Why we do not publish a single rate here

Rates change frequently and depend on your situation: your down payment, whether the mortgage is insured, the property type, your credit, the term, and whether it is a purchase, renewal, or refinance. An advertised rate may only apply to a narrow set of borrowers.

Instead of posting a figure that may be out of date, we provide personalized quotes. For the current Bank of Canada policy rate, check the Bank of Canada's own website, which is the authoritative source.

Fixed vs variable mortgages explained

A fixed-rate mortgage keeps the same interest rate for the whole term. Your payment does not change during the term, which makes budgeting straightforward. The trade-off is that breaking a fixed mortgage early can be expensive, because penalties are often based on an interest rate differential.

A variable-rate mortgage is priced at the lender's prime rate plus or minus a set amount. When prime moves, your rate moves. Some variable mortgages have payments that change; others keep the payment fixed and change how much goes to principal versus interest. Variable mortgage penalties are typically three months' interest, which is usually more predictable.

Neither is always better. The decision depends on your budget cushion, how likely you are to break the mortgage, and how you would handle higher payments. Comparing scenarios is more reliable than trying to predict rate moves.

Fixed vs variable comparison table

A general comparison. Specific features depend on the lender and product.

How the Bank of Canada affects mortgage rates

The Bank of Canada sets a target for the overnight rate, called the policy interest rate, on eight scheduled announcement dates a year. Lenders' prime rates usually move when the policy rate changes, which directly affects variable-rate mortgages and HELOCs.

Fixed mortgage rates are more influenced by bond yields, which reflect market expectations for inflation and the economy. That is why fixed rates can move between Bank of Canada announcements, and sometimes in a different direction from the policy rate.

Broker vs bank: compare total cost

A bank can only offer its own mortgage products. A broker can compare offers from many lenders, including banks, credit unions, and monoline lenders that only work through brokers. That wider comparison often helps borrowers find competitive pricing and features, but a broker is not always cheaper than going directly to a bank. Sometimes your own bank makes the best offer, and an honest broker will tell you so.

Compare total cost, not just the rate. Look at prepayment privileges, penalty calculations, portability, whether the mortgage is a standard or collateral charge, rate hold length, and any fees. A slightly higher rate with fair penalties may be cheaper than the lowest rate with strict terms if you need to break the mortgage early.

Rate holds and whether to lock in now

A rate hold reserves a rate for a set period while you shop or prepare for renewal. Hold lengths vary by lender and product, and some lenders will give you a lower rate if rates fall before funding. Always confirm the hold length and conditions in writing.

Nobody can reliably predict rates. Instead of trying to time the market, look at what payment you can comfortably afford if rates rise, how long you plan to keep the property, and the penalty if you need to break the term. Modelling a few scenarios usually leads to a better decision than guessing.

What affects the rate you are offered

Insured mortgages with less than 20% down often get lower rates than uninsured mortgages because the lender's risk is lower. Refinances and rentals often price higher. Your credit score, debt ratios, amortization, and term length also affect pricing.

You can improve your options by keeping credit utilization low, preparing documents in advance, and starting early so you can hold a rate. For renewals, start about 120 days before maturity.

Calgary borrowers benefit from the same national lenders as the rest of Canada, with some local credit unions also competing. A broker in Calgary can include those options in the comparison.

Frequently asked questions

What are current mortgage rates in Calgary?

Rates change often and depend on your situation, so we provide personalized quotes rather than posting a single number. Contact Mark for a current comparison.

Does the Bank of Canada set mortgage rates?

No. It sets the policy interest rate. Lenders set mortgage rates. Variable rates usually follow prime, which tends to move with the policy rate, while fixed rates follow bond yields more closely.

Is a fixed or variable rate better?

Neither is always better. Fixed gives payment certainty, while variable often has lower penalties and moves with prime. Choose based on your budget and plans.

Is a mortgage broker always cheaper than a bank?

Not always. A broker compares many lenders, which often helps, but sometimes your bank's offer is best. Compare the total cost including penalties and features.

How long can I hold a mortgage rate?

Many lenders offer rate holds of around 90 to 120 days on purchases and renewals, but terms vary by lender. Ask about the hold period when you get a quote.

Is a 5-year fixed the best mortgage in Canada?

It is popular, but not right for everyone. A shorter term or variable rate may suit you better depending on your plans, budget, and comfort with changing payments.

Can I negotiate my mortgage rate?

Yes. Competing quotes help, and a broker can compare multiple lenders for you. Negotiate on penalties and features too, not just the rate.

Should I lock in now or wait for rates to drop?

No one can predict rates reliably. A rate hold can protect you while you shop, and modelling scenarios helps you choose a structure you can afford either way.

How do I compare the true cost of two mortgages?

Look beyond the rate at fees, penalty calculations, prepayment privileges, portability, and charge type. If a cost-of-borrowing disclosure or APR is provided, use it to compare offers.

Official sources

• Bank of Canada: Policy interest rate
• Financial Consumer Agency of Canada: Choosing a mortgage term and interest rate
• Financial Consumer Agency of Canada: Mortgage fees: Prepayment penalties
• Financial Consumer Agency of Canada: Getting preapproved for a mortgage
• Financial Consumer Agency of Canada: Preparing to get a mortgage and the stress test