Smart Mortgage Planning for Central Alberta Buyers

Down Payment
In Alberta, the minimum down payment is 5% for homes up to $500,000. For the portion of a home’s price above $500,000, a 10% down payment is required. If you put down 20% or more, you can avoid CMHC mortgage insurance. A larger down payment reduces your overall loan amount, which means smaller monthly payments or the ability to qualify for a higher-priced home.

Loan Term
A mortgage term is the length of time your interest rate is locked in, most commonly five years in Alberta. Mortgage amortization (the total length of the loan) is usually 25 to 30 years. Your chosen term impacts your interest rate and monthly payments. Fixed, variable, and other term options are available to suit your needs.

Loan Type
Most homebuyers in Alberta choose either a fixed-rate or variable-rate mortgage. A fixed-rate mortgage keeps the same interest rate for your entire term, giving you steady and predictable payments. A variable-rate mortgage is tied to the Bank of Canada’s prime rate, often starting lower than fixed rates but adjusting over time. The right choice depends on whether you prefer consistency or are comfortable with some fluctuation.

Interest Rate
The calculator is pre-filled with Alberta’s average mortgage rate, but your actual rate will depend on your credit, income, down payment, and lender. For advice tailored to your situation, it’s best to speak with a licensed Alberta mortgage broker.

Property Tax Rate
Property taxes are part of homeownership. In Central Alberta, rates usually range from 0.9% to 1.1% of the home’s value, depending on the municipality. The calculator includes an estimate, but you can adjust the number for a more accurate picture.

Home Insurance
Most lenders require home insurance. It protects your home against damage or loss and usually includes liability coverage. In Alberta, annual premiums generally range from $900 to $2,000. Enter your actual quote into the calculator for the best estimate.

HOA Fees
If you are buying a condo, townhome, or a home in a community with shared amenities, you may pay a homeowners association fee. These fees cover services like landscaping, snow removal, and upkeep of shared spaces. In Alberta, HOA fees can range from $50 to $400 or more each month depending on the development.