Anyone who has ever shopped for a mortgage knows that interest rates can vary significantly from lender to lender. But what many people don’t realize is that mortgage rates also fluctuate depending on where you live. In this blog post, we’ll take a closer look at how td mortgage rates have changed in Alberta over the past few years.
In 2015, the average five-year fixed mortgage rate in Alberta was 3.89%. By comparison, the national average was 3.67%. That may not seem like a huge difference, but it can add up over time. For example, on a $300,000 mortgage with a five-year term, you would save $24 per month—or $1,440 over the life of the loan—by getting a rate of 3.67% instead of 3.89%.
While that may not seem like a lot of money, it’s important to remember that interest rates are just one of many factors that can affect your monthly mortgage payment. Property taxes, home insurance, and changes in your personal financial situation can all have an impact on how much you pay each month.
Of course, interest rates can also go up as well as down. In 2018, the average five-year fixed mortgage rate in Alberta rose to 4.54%. That’s an increase of 65 basis points from the previous year. While that may not seem like much in percentage terms, it works out to an additional $48 per month on a $300,000 mortgage—or $2,880 over the life of the loan.
Fortunately, mortgage rates in Alberta have been on a downward trend since then. As of August 2020, the average five-year fixed rate had fallen back down to 3.34%. That’s still higher than the national average of 2.79%, but it’s a significant improvement from where it was just two years ago.
Conclusion:
Mortgage rates can fluctuate significantly from year to year—and even from province to province. If you’re shopping for a mortgage in Alberta, it’s important to compare rates from multiple lenders and to keep an eye on market trends so you can get the best rate possible.
Understanding the types of mortgages available in Alberta, as well as their associated fees and costs, can also help you make an informed decision when it comes to choosing a mortgage.
Most lenders in Alberta offer a variety of fixed-rate and adjustable-rate mortgages. Fixed-rate mortgages offer steady payments over the life of the loan; however, their interest rates tend to be higher than adjustable-rate mortgages. Adjustable-rate mortgages usually start with a lower interest rate, but they can change over time as the economy and market conditions shift.
When shopping for a mortgage in Alberta, it’s important to understand all of the fees and costs associated with your loan. These may include closing costs, appraisal fees, origination fees or points, and other miscellaneous costs. You may also be responsible for paying mortgage insurance if your down payment is less than 20% of the home’s purchase price.