Buying a home in Alberta can feel overwhelming, especially when it comes to choosing the right mortgage. Whether you’re in Calgary, Edmonton, or a smaller community, this guide explains the process step-by-step so you can make confident decisions from pre-approval to possession day.
A mortgage is a loan secured by real estate, usually repaid over 15–30 years. In Alberta, lenders look at your income, credit history, down payment, and property type before deciding how much to lend.
You’ll repay your mortgage through regular payments that include both principal (the amount borrowed) and interest (the cost of borrowing). The two biggest factors influencing your payment are your interest rate and your amortization period - how long it will take to pay the loan off completely.
Most Alberta homebuyers choose a 25-year amortization, with payments every month, two weeks, or weekly. Shorter amortizations mean you’ll pay less interest overall, but your payments will be higher.Your lender can provide a full amortization schedule showing how each payment contributes to principal vs. interest over time.
If your down payment is under 20%, your mortgage must be insured by CMHC, Sagen, or Canada Guaranty. This insurance protects the lender, not the borrower, but it allows buyers to qualify with as little as 5% down.The insurance premium is added to your mortgage balance and varies by loan-to-value ratio.
A fixed-rate mortgage locks in your interest rate for the entire term (usually 1–5 years).
Best for: buyers who want stable, predictable payments and protection from rate increases.
Keep in mind: fixed rates are often slightly higher than variable rates but offer peace of mind.
Variable-rate mortgages rise or fall with the lender’s prime rate.
Best for: buyers comfortable with small payment changes who want to take advantage of potential rate drops.
Tip: some variable mortgages let you convert to a fixed rate mid-term.
Open mortgages allow early repayment anytime without penalty, ideal if you expect to sell or pay off the loan soon.
Closed mortgages restrict early repayment but offer lower interest rates.
If you’re building a custom home or purchasing a new build, a construction mortgage releases funds in stages (called “draws”) as work is completed.
I’ll help coordinate between your lender, builder, and lawyer to ensure each stage funds smoothly.
You can refinance your mortgage to access equity, lower your rate, or consolidate debt.
When your term ends, you’ll also have the opportunity to renew with your current lender or switch to another for better terms. I’ll compare both options for you absolutely free.
Understanding each stage helps reduce stress and keeps things on track.
Term
Definition
Principal
The amount you borrow.
Interest
The cost charged by the lender to borrow money.
Term
The length of your current mortgage agreement (usually 1–5 years).
Amortization
The total time it takes to pay off your mortgage (often 25 years).
Prepayment
Paying extra toward your principal balance, reducing interest.
Lenders use debt-service ratios to calculate how much you can borrow. Generally, your housing costs should be under 39% of your gross income.
Most lenders prefer a score of 680 or higher, though alternative lenders may accept lower scores with stronger income or equity.
5% for homes under $500,000
10% on the portion between $500,000–$999,999
20% for $1 million or more
Most closed mortgages allow annual prepayments of 10–20% of your balance without penalty. I’ll show you how to maximize those options.
No two borrowers are the same. Your best option depends on your income stability, comfort with rate changes, and how long you plan to stay in the home.I’ll help you compare lenders and products across major banks, credit unions, and monoline lenders to find the combination that best fits your goals.
“Mortgage planning isn’t just about getting approved — it’s about aligning your financing with your future plans.”
Once you understand your mortgage options, explore how they apply in your area:
Calgary Metro Mortgages →
Edmonton Metro Mortgages →
Central Alberta Mortgages →
Northern Alberta Mortgages →
Southern Alberta Mortgages →
Ready to get started?
Book a quick consultation! I’ll review your situation, outline next steps, and help you move toward homeownership with confidence.
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