📅 Last Updated: August 26, 2022
✏️ Written By Lisa Rennie
🕵️ Fact-Checked by Caitlin Wood

Mortgages Alberta - Compare Providers

ProviderLoan AmountRateTerm (Months)Rating
00 Up to $50,000Prime – 46.96%3 - 120
Up to $50,000
1001709683200 Dashloansup to $1,250 12%-32% 90 - 150 days
up to $1,250
231700524800 Parachute$5,000 - $25,000 24.99% - 29.99% 30 or 60
$5,000 - $25,000
151695254400 GoLoans$1250 16.06% (nominal) - 31.99% (effective) 3 - 5
$1250
111692748800 BreeUp to $250 0% Up to 61 days
Up to $250
81688083200 City Lending Centers (CLC)$150 - $1,600 10 - 35% 3 - 6
$150 - $1,600
1001686182400 Northstar Brokers$300 - $3,000 18% + fees 6
$300 - $3,000
1001686182400 Deposit My Cash Now$300 - $3,000 18% + fees 6
$300 - $3,000
1001686182400 My Next Pay$300 - $3,000 18% + fees 6
$300 - $3,000
61683676800 Windmill Microlending$15,000 6.7% Up to 60 months
$15,000
11670889600 Fora$1,000 - $10,000 19.9% - 46.9% -
$1,000 - $10,000
71666051200 Nyble$150 0% -
$150
1001643932800 FlexMoney$500 - $15,000 +18.9% APR 6 - 60
$500 - $15,000
131639094400 Loanz$1,000 - $15,000 29.9% - 46.9% APR   12 - 60
$1,000 - $15,000
301637280000 Symple Loans$5,000 - $50,000 5.75% - 22.99% Up to 84
$5,000 - $50,000
1001623369600 AfterpayVaries 0% 6 or 8 weeks
Varies
21620777600 Spring FinancialUp to $35,000 9.99% - 46.96% 6 - 60
Up to $35,000
171607558400 Helium Loans$500 - $50,000 6.99% - 46.99% 12 - 36
$500 - $50,000
1001598918400 LM Financial$1,000 - $15,000 - -
$1,000 - $15,000
1001598832000 LM Credit$500 – $15,000 + 25.99% 9 - 60
$500 – $15,000
1001595980800 FlexiLoans$200 - $1,200 25% - 32% -
$200 - $1,200
1001593561600 PayBright- 0+ 2 - 60
-
1001589155200 Moves Financial$2,500 15.65% AIR 13 - 26
$2,500
1001582243200 LendCare- - Up to 60
-
1001580947200 ECN Capital- - -
-
1001580860800 SimplyBorrowed$500 - $5,000 - 12 - 24
$500 - $5,000
1001580860800 Pebble Cash$350 - $1,000 - 2 - 12 weeks
$350 - $1,000
91580860800 Refresh Financial$1,600 - $25,000 19.99% APR 36 - 60
$1,600 - $25,000
161580774400 goPeer$1,000 - $25,000 7.5% - 31.5% APR 36 - 60
$1,000 - $25,000
1001579478400 North’n Loans$100 - $1,500 - -
$100 - $1,500
1001579478400 MDGUp to $5,000 29.78% - 44.8% 36 months
Up to $5,000
1001579219200 Loan or Credit$100 - $25,000 +4.9% -
$100 - $25,000
1001576713600 Flexiti Financial- Up to 35% -
-
181576713600 Financeit$500 - $100,000 6.99% - 14.99% 12 - 240
$500 - $100,000
1001575590400 Climb1800- 2900 15.99% 23 - 36
1800- 2900
1001562198400 Pylo Finance$500 - $15,000 15.99 - 39.99% 6 - 60
$500 - $15,000
1001560124800 Fresh Start FinanceUp to $15,000 29.99% - 46.96% 9 - 60
Up to $15,000
171545955200 MarbleUp to $20,000 18.99% - 24.99% 36 - 84
Up to $20,000
191552262400 Money Mart$1,000 - $15,000 29.9% or 46.90% 6 - 60
$1,000 - $15,000
1001569974400 Private Loan Shop$500 - $50,000 15 - 30% -
$500 - $50,000
1001551830400 Progressa$1,000 - $15,000 19% - 46.95% 6 - 60
$1,000 - $15,000
1001551398400 My Canada PaydayUp to $1,500 15% - 19% 14 days
Up to $1,500
1001551398400 Mr. Payday$100 - $1,500 15% - 17% 14 -31 days
$100 - $1,500
1001551398400 Money Provider$500 - $1,000 28% - 32% -
$500 - $1,000
1001551398400 Loan Express- - 14 days
-
181546128000 Loan AwayUp to $5,000 19.9% - 45.9% APR 6 - 36
Up to $5,000
1001551139200 Lendful$5,000 - $35,000 9.9%+ 6 - 60
$5,000 - $35,000
151551139200 LendDirectUp to $15,000 19.99% APR Open-end
Up to $15,000
1001550534400 Health Smart Financial Services$300 - $25,000 7.95%+ 36 - 60
$300 - $25,000
1001550534400 GoDay$100 - $1,500 - 14 days
$100 - $1,500
1001569974400 iCashUp to $1,500 15% - 23% -
Up to $1,500
1001550534400 Focus Financial Inc.Up to $1,500 Up to 59% APR 14 days
Up to $1,500
191550534400 FlexFi$2,500 + - -
$2,500 +
1001550534400 Eastern Loans$500 - $1,000 28% - 32% 3 -5
$500 - $1,000
1001550534400 DMO Credit$300 - $1,000 38% APR 3 - 4
$300 - $1,000
1001567555200 Cash Depot$300 - $3,000 18% + fees 6
$300 - $3,000
1001549238400 Credit 700$500 - $1,000 28% - 32% 4 - 5
$500 - $1,000
1001549238400 Credit2Go$250 - $1,000 29% APR 3 - 4
$250 - $1,000
201548720000 Ledn$500 - $1,000,000 7.9% 12
$500 - $1,000,000
1001548720000 ATB FinancialUp to $5,000 - 12 - 60
Up to $5,000
1001548720000 Amber Financial$1,000 - $50,000 4.6% – 49.96% 3 - 60
$1,000 - $50,000
1001548633600 Affirm Financial$300 - $7,500 29.9% - 39.9% 6 - 60
$300 - $7,500
1001548633600 310 Loan$50 - $1,500 - 14 days
$50 - $1,500
161545264000 Ferratum$2,000 - $10,000 18.9% - 54.9% 12 - 60
$2,000 - $10,000
1001545264000 SkyCap Financial$500 - $10,000 12.99% – 39.99% 9 – 36
$500 - $10,000
1001545264000 Fast Access Financial$500 – $10,000 Starting at 9.90% 12 - 36
$500 – $10,000
21543622400 Fairstone FinancialUp to $50,000 19.99% - 39.99% 6 - 120
Up to $50,000
101545264000 Consumer Capital Canada$500 - $12,500 19.99%+ 12 - 60
$500 - $12,500
1001545350400 LaminaUp to $1000 30% 3 - 5
Up to $1000
1001545350400 Loans SOSUp to $5,000 60% 6 - 60
Up to $5,000
1001545350400 Cashco FinancialUp to $7,000 - 6 – 60
Up to $7,000
1001545350400 UrLoan$500 - $2,500 29% - 46.95% 6 - 36
$500 - $2,500
51545350400 LoanMeNow$500 - $1000+ 28%-32% 3
$500 - $1000+
1001545350400 Captain Cash$500 – $750 28% – 34.4% 3
$500 – $750
1001545350400 BC Loans$500 – $750 23% - 34.4% 3 – 12
$500 – $750
1001545350400 Urgent Loans$300 - $1500 27% - 35% 3 - 4
$300 - $1500
41545264000 easyfinancial$500 - $100,000 Starting at 29.99% 9 - 84
$500 - $100,000
31545264000 Mogo FinanceUp to $3,500 47.72% -
Up to $3,500
101545177600 Borrowell$1,000 - $35,000 5.99% - 29.19% 36 - 60
$1,000 - $35,000
181545177600 Magical Credit$100 - $20,000 Up to 46.8% Up to 60
$100 - $20,000
1001569974400 Speedy CashUp to $1,500 15% - 23% 14 days
Up to $1,500
ProviderLoan AmountRateTerm (Months)Rating
00 Up to $50,000Prime – 46.96%3 - 120
Up to $50,000
21669852800 Driven$5,000 - $300,000 - 3 - 24 months
$5,000 - $300,000
1001648512000 2M7 Financial Solutions$10,000 - $250,000 Varies 6-12
$10,000 - $250,000
1001620345600 TD Bank- - 12 - 60
-
1001611878400 Accord Financial$5,000 - $30,000,000 - Up to 18
$5,000 - $30,000,000
171607558400 Helium Loans$500 - $50,000 6.99% - 46.99% 6 - 36
$500 - $50,000
1001598918400 Loop- - -
-
1001592438400 Core Capital Group Inc- - -
-
1001585612800 BarterPay- 0.9% - 12% 6 months - 5 years
-
1001581984000 Clearbanc$10,000 - $10,000,000 6% - 12.5% -
$10,000 - $10,000,000
1001581033600 GE Capital- - -
-
1001581033600 We Can Financial- - -
-
1001581033600 Wajax Equipment- - -
-
1001580947200 Key Equipment Financing- - -
-
1001580947200 Corl$10,000 - $1,000,000 - -
$10,000 - $1,000,000
1001580860800 Yellowhead Equipment Finance Ltd- - -
-
1001580860800 Specialty Truck Financing- - -
-
1001580860800 Travelers Financial- - -
-
1001580860800 Peel Financial- - -
-
1001580860800 Pioneer Financial Services$5,000 - $1,000,000 - -
$5,000 - $1,000,000
1001580860800 Polaris Leasing- - -
-
1001580860800 Patron West- - -
-
1001580860800 Payabilityup to $250,000 - -
up to $250,000
1001580860800 Planet Financial- - -
-
1001580688000 RiseUp to $10,000 - -
Up to $10,000
1001580256000 Merchant Growth$5,000 - $500,000 - 6 - 18 months
$5,000 - $500,000
1001579478400 Onesta- - -
-
1001579478400 Lionhart Capital$10,000- $30,000,000 Min 4.95% -
$10,000- $30,000,000
1001579478400 Lift Capital- - 12 - 120
-
1001579478400 Leaseline- - 24 to 60
-
1001579478400 Lease Direct- - -
-
1001579478400 John Deere- - -
-
1001579046400 Hitachi Capital Canada- - -
-
1001578873600 Guardian Leasing- - -
-
1001577059200 Export Development Canada- - -
-
1001577059200 Essex Lease Financial Corporation- - -
-
1001577059200 Equilease- - -
-
1001575849600 Alliance Financing Group LTD$5,000 - $150,000 15% + 6 - 24
$5,000 - $150,000
1001575849600 CanaCapUp to $250,000 - -
Up to $250,000
1001575590400 CLE Capital- - -
-
1001575590400 Canada Equipment Loan- - -
-
11545955200 SharpShooter Funding$5,000 - $150,000 Fee-Based: Starting at 9% 12 - 60
$5,000 - $150,000
1001552262400 First West Credit Union$500,000 - $10,000,000 - -
$500,000 - $10,000,000
1001548720000 ATB FinancialUp to $5,000 Prime +7% or 8% 36 - 60
Up to $5,000
1001552262400 Laurentian Bank of CanadaUp to $250,000 - Up to 10 years
Up to $250,000
1001552262400 HSBC Bank Canada- - -
-
1001552262400 National BankUp to $1,000,000 - -
Up to $1,000,000
1001551830400 Canadian Imperial Bank of Commerce (CIBC)$10,000+ - Up to 15 years
$10,000+
1001551830400 ScotiabankUp to $1,000,000 -   Up to 15 years
Up to $1,000,000
1001551830400 Bank of Montreal (BMO)Up to $500,000 - Up to 10 years
Up to $500,000
1001551830400 Royal Bank of Canada (RBC)$5,000 - $10,000 - Up to 7 years
$5,000 - $10,000
1001551398400 CWB National Leasing$3,500+ - -
$3,500+
1001551398400 Money in Motion$10,000 - $1,000,000 4% - 14% 12 - 84
$10,000 - $1,000,000
1001551139200 Lease LinkUp to $75,000 - Up to 18
Up to $75,000
1001550534400 FundThrough$500-$50,000 0.5% weekly 12 week cycles
$500-$50,000
1001550534400 Econolease Financial Services Inc.$1,000 - $1,000,000 6% - 20% -
$1,000 - $1,000,000
1001550534400 Easylease CorpUp to $5,000,000 4.5% 24 - 72
Up to $5,000,000
1001550534400 Dynamic Capital- - -
-
1001550534400 Capify$5,000 - $200,000 - -
$5,000 - $200,000
1001549411200 Canadian Equipment Finance$50,000 - $12,000,000 - 24 - 96
$50,000 - $12,000,000
1001549411200 Capital Key$5,000 - $1,000,000+ - 1 - 60
$5,000 - $1,000,000+
1001549238400 Cashbloom$5,000 - $1,000,000 - 3 - 24
$5,000 - $1,000,000
1001548720000 BFS Capital$5,000 - $5,000,000 - 4 - 18
$5,000 - $5,000,000
1001548720000 BDCUp to $100,000 6.05% + 60
Up to $100,000
1001548720000 Baron Finance$10,000+ 18% - 22% -
$10,000+
1001548720000 B2B Bank$10,000 - $300,000 4.70% - 5.45% -
$10,000 - $300,000
1001548633600 AOne Financial SolutionsUp to $5,000,000 5% - 10% 12 - 60
Up to $5,000,000
101545177600 Borrowell$1,000 - $35,000 5.6% – 25.5% 36 – 60
$1,000 - $35,000
1001545264000 iCapital$5,000 - $250,000 - 3-18
$5,000 - $250,000
1001545264000 Lendified$5,000 - $150,000 - 3 - 24
$5,000 - $150,000
61545350400 IOU Financial$5,000 – $100,000 15% + 12 – 18
$5,000 – $100,000
1001545264000 Company Capital$5,000 – $100,000 Starting at 6.87% 3 – 18
$5,000 – $100,000
51545177600 OnDeck$5,000-$250,000 8% - 29% APR 6 - 18
$5,000-$250,000
41545177600 Lending Loop$5,000 – $500,000 Starting at 5.9% 3 – 60
$5,000 – $500,000
1001545264000 SkyCap Financial$500 - $10,000 12.99% – 39.99% 9 – 36
$500 - $10,000
1001561507200 Thinking CapitalUp to $300,000 - -
Up to $300,000
ProviderLoan AmountRateTerm (Months)Rating
00 Up to $50,000Prime – 46.96%3 - 120
Up to $50,000
41632960000 SafeLendUp to $50,000 15.99% + 12 -72
Up to $50,000
61624233600 Auto Credit DealsUp to $50,000 29.99% – 46.96% 12 - 96
Up to $50,000
171607558400 Helium Loans$500 - $50,000 - 24 - 60
$500 - $50,000
1001594339200 Alphera Financial Services- - -
-
1001582761600 Go Auto- - 12 - 96
-
61582761600 Eden Park- 11.9% - 22.9% Up to 84
-
1001581033600 WeFinanceCars- + 4.9% -
-
1001581033600 Walker Financial Services- - -
-
1001580688000 Rifco- - -
-
1001579478400 National Powersports Financing- - -
-
1001579478400 LMG Finance- - -
-
1001579478400 Loans2Go- - -
-
1001578873600 iA Auto Finance- +8.99% -
-
1001578873600 Gamache Group- - -
-
1001551830400 Royal Bank of Canada (RBC)$5,000 - $10,000 - up to 84
$5,000 - $10,000
1001552262400 Laurentian Bank of CanadaUp to $250,000 - 12 - 60
Up to $250,000
1001552262400 National BankUp to $1,000,000 - up to 96
Up to $1,000,000
1001551830400 DesjardinsUp to $100,000 - 6 - 96
Up to $100,000
1001551830400 Canadian Imperial Bank of Commerce (CIBC)$10,000+ - 12 - 96
$10,000+
1001551830400 ScotiabankUp to $1,000,000 - up to 96
Up to $1,000,000
1001577059200 Daimler Truck Financial- - up to 72
-
1001577059200 DealerPlan Financial- - -
-
1001575849600 Coast Capital Savings- Starting at 4% Up to 84
-
1001575849600 Canada Auto Finance$5000 - $45,000 4.90 % - 29.95% APR 36 - 72
$5000 - $45,000
1001575849600 Credit River Capital Inc- - -
-
1001575590400 Capital Trust Financial- - -
-
1001575590400 Canadian Truck Loan- - -
-
1001575504000 Canada Car Loans- - -
-
1001574985600 Calmont Leasing- - -
-
21569974400 Car Loans Canada$7500 - $59,995 3.95% + 12 - 96
$7500 - $59,995
1001562112000 Car Creditex- Up to 49.9% -
-
1001561507200 Auto Capital Canada- - -
-
1001561507200 Carfinco- - Up to 84
-
11560124800 Canada DrivesUp to $100,000 3.99% - 19.9% 24 -96
Up to $100,000
1001551830400 Prefera FinanceUp to $30,000 - -
Up to $30,000
1001548720000 Approve Canada- - -
-
1001548633600 2nd Chance Automotive- 4.2%+ -
-
1001545264000 SkyCap Financial$500 - $10,000 12.99% – 39.99% 9 – 36
$500 - $10,000
1001545177600 Splash Auto Finance by RifcoUp to $50,000 - -
Up to $50,000
1001545177600 Carloans411$5,000 – $40,000 - 12 – 72
$5,000 – $40,000
1001545177600 AutoArriba- - Maximum 84
-
ProviderLoan AmountRateTerm (Months)Rating
00 Up to $50,000Prime – 46.96%3 - 120
Up to $50,000
1001578873600 Instant Loans Canada$1,000 - $35,000 - 24 - 60
$1,000 - $35,000
1001545264000 BHM FinancialUp to $25,000 - 12 - 60
Up to $25,000
ProviderLoan AmountRateTerm (Months)Rating
00 N/AN/AN/A
N/A
71708473600 Blue Pearl MortgageVaries Varies 1 - 10 years
Varies
51700524800 Rocket Mortgage- - -
-
1001695945600 Mortgage Intelligence- - -
-
1001695772800 QuestMortgage- - -
-
41690934400 Neo MortgageVaries 5.54%+ Varies
Varies
21688601600 nestoMin $100,000 5.34%+ 2 - 10 years
Min $100,000
31679616000 Frank Mortgage$100,000 - $2 million Fixed, variable, or adjustable rates 1 - 5 years
$100,000 - $2 million
1001627344000 Peoples Bank- 1.94% - 2.45% 12 - 60
-
21620777600 Spring FinancialUp to $35,000 - -
Up to $35,000
1001581033600 Mortgage Alliance- 2.74% - 6.30% 12 - 120
-
1001580947200 Paradigm- - -
-
1001580860800 Verico- - -
-
1001580860800 True North Mortgage- 2.64% - 4.45% 12 - 120
-
1001580860800 Tangerine$50,000+ 2.74% - 3.49% 12- 120
$50,000+
1001580860800 Think Financial- - 36 - 60
-
1001580860800 Turnedaway- - -
-
1001580860800 REICO- - -
-
1001580688000 Motusbank- 2.79% - 6.00% 6 - 60
-
1001579478400 Mortgage Architects- 2.74% - 3.70% 6 - 120
-
1001578873600 IntelliMortgage- - -
-
1001578873600 Invis- 2.69% - 3.95% 6 - 120
-
1001577059200 Equitable Bank$25,000 - $800,000 4.59% - 5.64% 6 - 60
$25,000 - $800,000
1001577059200 Dominion Lending Center- - -
-
1001577059200 Fisgard Asset Management- -- -
-
1001577059200 First National Financial LP- 2.84% - 7.30% -
-
1001574985600 CMLS Financials$100,000 - $750,000 - 12 - 120
$100,000 - $750,000
1001574899200 CHIP Reverse Mortgagemin 25,000 3.89.% - 4.84% 12 - 60
min 25,000
1001574899200 CanWise- 2.23% - 4.45% -
-
1001560124800 Centum- 2.89% - 3.79% -
-
1001548806400 Capital Direct$10,000 - $1,500,000 Varies 12 - 24
$10,000 - $1,500,000
1001548720000 Broker Financial Group Inc.- 2.41% - 3.84% -
-
1001548720000 Bridgewater Bank- - -
-
11517097600 Alpine Credits$10,000+ Based on equity -
$10,000+
ProviderServicesRating
00 Debt Consolidation Program, Debt Settlement Program, Consumer Proposal, Bankruptcy Consultation
N/A (Referrer)
1001576540800 BDO Credit Counselling, Bankruptcy, Consumer Proposal
1001576540800 Full Circle Debt Solutions Inc Credit Counselling, Debt Management Program
1001576368000 Consolidated Credit Credit Counselling, Debt Management Program
1001576454400 4Pillars Debt Restructuring, After Care - Credit Rebuilding Program, Corporate Debt Restructuring

If you plan to buy a home in Alberta, you’ll probably need to take out a mortgage to finance it. A mortgage will help you finance a purchase, which would otherwise be nearly impossible given the high prices of real estate these days. Here’s everything you need to know about mortgages in Alberta.

Pre-Approvals Are Very Helpful

Before you start house hunting in Alberta, it’s always a good idea to start out the process by getting pre-approved for a mortgage. They’re usually good for about 90 days, after which they are no longer valid. While this won’t necessarily guarantee that you’ll get final mortgage approval after you’ve made an offer on a home, it can be helpful in many ways.

Know How Much You Can Afford

For example, there’s no sense in looking at homes that are in the $800,000 range if you can only get approved for a $500,000 mortgage based on your current finances. Getting pre-approved will tell you how much you’ll likely get approved for, which can help you budget accordingly and focus only on properties in Alberta that are within your financial means.

Stand Out to Sellers

Sellers in Alberta want to be confident that the buyer they agree to sell to has the financial capability of getting approved for a mortgage. With a pre-approval letter in hand, buyers will seem more serious to sellers, which will give the sellers more reassurance. And if there is a bidding war, a pre-approval letter is absolutely necessary.

Move The Mortgage Approval Process Along

Once you find a home, put in an offer, and the deal enters escrow, the final mortgage approval process begins. But because you’ve already been pre-approved and have already submitted all documents, the process can be much smoother and more streamlined, helping to move the process along faster.

Wondering if you should spend your entire pre-approval amount when buying a home? Find out here.

Different Types of Mortgages Available in Alberta

There are a few different types of mortgages in Alberta that you may want to consider before deciding on one:

Conventional mortgages – These mortgages require a minimum 20% down payment.

Look here to know the difference between a conventional mortgage and a collateral mortgage.

High-ratio mortgages – These are conventional mortgages in Alberta that require a minimum of 5% down and come with mortgage default insurance or CMHC insurance. This policy is required by lenders in Alberta and Canada, in general, because of the higher risk associated with a higher loan-to-value ratio and protects the lender if you are unable to pay your mortgage.

Trying to get a down payment for a house in Canada? Here’s how you can accomplish that goal.

Bridge loans – These types of loans are often sought after by those in Alberta who have bad credit and are unable to secure a conventional mortgage. They’re designed to provide consumers in Alberta and Canada, in general, with short-term solutions by using their homes to boost their credit when conventional lenders turn them down for a home loan. Bridge loans give borrowers a chance to access lower interest rates on loans in the near future.

For more information about short term mortgage financing and bridge loans, look at this.

Fixed-rate mortgages – With these types of mortgages, the interest rate remains fixed throughout the term. As such, the mortgage payment amount does not change each month, making it easier for borrowers to budget. Many first-time buyers in Alberta prefer fixed-rate mortgages because of their predictable mortgage payments. They’re also ideal if interest rates are expected to increase in the near future. By locking in at today’s rate, borrowers can be protected should the rates increase over the short term.

Check out this other page to learn more about fixed and variable rate mortgages.

Adjustable-rate mortgages – These mortgages involve interest rates that fluctuate. At specific intervals, the rate is adjusted according to the current posted rate as determined by the Bank of Canada. Because the rate fluctuates, the mortgage payment amounts also change periodically. An adjustable-rate mortgage is great if the rate is expected to decrease in the near future, allowing borrowers to take advantage of lower rates. They’re also a good option for those who don’t plan to stick around in their home for very long, allowing them to get out of the mortgage once the initial fixed-interest-rate period expires.

Want to know more about fixed and variable loans in general? Try reading this.

Home equity line of credit (HELOC) – Also referred to as second mortgages, HELOCs allow borrowers in Alberta to borrow against their home. Basically, a new loan is taken out on a home that already has a mortgage on it. HELOCs allow borrowers to borrow against the equity in their home to free up money to be used for other purposes.

Mortgage Amortization Period

When you take out a mortgage in Alberta, you’ll be given a certain amount of time to repay the entire loan amount. This is known as the amortization period. The most common length of time given in Canada is 25 years. However, the amortization period can be shorter or longer, depending on what the lender is willing to offer you.

Shorter amortization periods allow borrowers to repay the loan amount sooner rather than later. But because the loan is repaid in a shorter period of time, the mortgage payments are higher. That said, the overall loan amount is cheaper because less money is put toward the interest portion of the mortgage.

Longer amortization periods are highly favourable among many borrowers in Alberta because the monthly payment amounts are smaller. Borrowers have more time to pay off their mortgage, which can take some pressure off of them to repay their loan. However, longer amortization periods are more expensive in the long run because more money is contributed to the interest portion.

Cost of Buying a House in CanadaTake a look at this infographic for more information on the cost of buying a house in Canada.

Mortgage Insurance Rules in Alberta

In order to get a mortgage, borrowers must come up with a down payment to be put toward the purchase price of the home. If a borrower in Alberta put less than 20% down on a mortgage, lenders will charge mortgage default insurance, or CMHC insurance, which is designed to protect the lender if the borrower defaults on the loan at any point throughout the term. In order to avoid paying this extra amount, at least 20% must be put down.

Click here for more knowledge about high ratio mortgages and mortgage default insurance.

Tips For Saving for a Down Payment

As mentioned already, a down payment is a crucial part of mortgages in Alberta. But considering how expensive homes in Alberta can be, it can be a challenge for borrowers to save up a sizeable amount of money to be used as a down payment. That said, there are several things you can do to save up for a down payment:

  • Prioritize your saving
  • Pay off your high-interest debt first (such as credit cards)
  • Keep your spending to a minimum
  • Borrow funds from your RRSP account
  • Look into First-Time Homebuyers Programs
  • Have your savings automated

Thinking about borrowing money for your down payment instead? Read this first.

Different Options For Mortgage Payments in Alberta

The goal of having a mortgage is to eventually pay it off in full at some date in the future. But in order to do that, you’ll be expected to make regular installment payments to chip away at that loan amount. You have different options when it comes to making mortgage payments, including the following:

  • Monthly payments – This is the most common type of payment schedule, and involves making one payment each month.
  • Bi-weekly – Instead of making one payment per month, you’ll make two payments a month for a total of 26 payments.
  • Accelerate bi-weekly – The payment schedule involves making one-half of the monthly mortgage payment every two weeks.
  • Weekly – With this schedule, your mortgage payments would be made once a week.

Read more about these mortgage payment options by clicking here.

Comparing Mortgages From Different Lenders

In order to make sure you’re getting the best mortgage product with ideal terms and rates, you’d be well-advised to compare mortgage products from different lenders. This will allow you to find the best mortgage for your particular financial situation.

Look here if you’ve been trying to compare lenders in Canada.

In order to compare mortgage offers, there are a few key components to look at, including the following:

  • Interest rate
  • Fees
  • Points to pay down (which can lower the interest rate)
  • Amortization period
  • Term
  • Pre-payment options
  • Early repayment penalties

Like any other contract, reading the fine print can help you identify any pertinent information that could influence your decision on which mortgage product to choose, so be sure to carefully review the terms before you sign on the dotted line.

Why do different mortgage lenders offer different mortgage rates? Find out here.

Credit Score Required to Get a Mortgage in Alberta

In order to get approved for a mortgage in Alberta, a certain credit score is required. In Alberta, lenders typically want to see credit scores no lower than 680. Anything lower than this could be a deterrent for mortgage approval.

Read this if you want more details about the minimum credit score for mortgage approval in Canada.

A low credit score is a reflection of a person’s financial past. Usually, a string of missed or late payments has occurred, which have contributed to a lower credit score. Borrowers with a low credit score are risky for lenders, which is why they’ll either reject these mortgage applications or charge a much higher interest rate to make up for it.

The higher the credit score, the better the chances of mortgage approval and lower interest rates.

Alternative Mortgages For Borrowers in Alberta With Bad Credit

If your credit score isn’t as high as conventional lenders would like it to be, you have options to consider:

Get a co-signer – If you can’t get approved for a mortgage on your own, having a co-signer on the mortgage can help convince the lender to accept your application. A co-signer agrees to make the mortgage payments if you fail to do so yourself. It’s a big responsibility, but a co-signer with good credit can mean the difference between a rejected and approved mortgage application.

Want to know what types of loans you can get with a cosigner? Click here to find out.

Work with a bad credit lender – There are lenders out there who deal exclusively with bad credit borrowers. These lenders place more weight on other factors aside from credit scores, such as income and down payment amounts. That said, it’s important to be careful with who you deal with, as some lenders out there could be scammers.

Need a bad credit loan in Alberta? Try looking here.

Take time to improve your credit score – If you’re not in a rush to buy a home, consider taking some time out to improve your credit score. There are many things you can do right now to give your credit score a boost, including the following:

  • Make your payments on time and in full every month
  • Don’t spend any more than 30% of your credit card limit
  • Don’t apply for too many loans or lines of credit
  • Don’t close out any old credit lines
  • Pay off debt accounts before closing them

Within a few months, you can have a higher credit score, which can make it easier for you to get approved for a mortgage with better terms and a lower rate.

To see some more alternative mortgage financing options, check this out.

Costs of Purchasing a House in Alberta

Your mortgage is a huge cost when it comes to buying a home in Alberta. But there are several other costs associated with this purchase that you should be aware of in order to budget appropriately:

  • Down payment
  • Interest
  • Home inspection
  • Appraisal
  • Real estate agent commissions
  • Legal fees
  • Survey fees
  • Title insurance
  • CMHC insurance
  • Home insurance
  • Property taxes
  • Renovations
  • Maintenance fees
  • New home warranty fee
  • Condo fees (if applicable)

There are plenty of fees associated with buying and owning a home, so make sure you’ve budgeted for them long before applying for a mortgage in Alberta.

Frequently Asked Questions

What do I need to get a pre-approved mortgage in Alberta?

A pre-approved mortgage comes with many benefits. You gain better negotiating power with a seller by showing them you’ve been pre-approved. You’ll also get to know in advance up to how much you can qualify for and get an estimate of your monthly obligation. Best of all, you get to lock in a favourable interest rate for up to 4 months, depending on the lender. In order to get your pre-approval, the lender will ask you to check your credit history. In addition, you will be asked to submit identification, proof of income, proof of closing costs and down payment, as well as info about your debts, assets, and expenses.

What are the penalties for paying my mortgage early?

Paying off your mortgage quicker can help you save on interest. If you have an open mortgage, then you can pay it off early to save on interest with no penalty of any kind. However, if you have a closed mortgage, making early payments or paying it off completely can cost you thousands of dollars in prepayment penalties. Such penalties also apply when you break your contract to transfer to another lender or if you sell your home. Some contracts allow for a prepayment privilege. This lets you make extra payments towards your mortgage to save on interest. How the prepayment privilege works and the amount you can prepay will vary based on the lender.

Where can I get a mortgage in Alberta?

The primary types of mortgage lenders are banks, credit unions and caisses populaires. Alternative options include mortgage, insurance, trust, and loan companies. They each offer different interest rates and contract types depending on the client. A licensed mortgage broker would be a good place to start. They have access to a wider range of lenders that don’t work directly with borrowers and will find the option best suited for you. They usually work on a commission from the lender and don’t take an upfront fee for their services.

Final Thoughts

Buying a home in Alberta is a big investment, and entering a contract for a mortgage is a long-term commitment. To make sure you a ready to take out a mortgage, take a long look at your finances. Speak with a financial advisor, real estate agent, and mortgage broker to see what your options are. And when you’re ready to take out a mortgage, be sure to speak with an associate at Loans Canada to help you find the ideal mortgage product for you.

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