Mortgage Help

Down Payment
In Canada, and specifically Alberta, the typical minimum down payment is 5 percent for homes up to $500,000. For homes priced above that, the portion over $500,000 requires a 10 percent down payment. If you put down 20 percent or more, you can avoid CMHC mortgage insurance. Your down payment reduces the total amount of your mortgage loan, so the more money you put down, the lower your payments will be or the more expensive a home you may qualify to purchase.

Loan Term
In Alberta, mortgage amortization periods are typically 25 or 30 years, but the term refers to how long your interest rate is locked in. Most buyers choose a 5-year term. Your loan term can affect your interest rate and monthly payments. Choose from 5-year fixed, variable, or other options in the calculator.

Loan Type
There are several types of mortgage loans in Canada, but the most commonly used are fixed-rate and variable-rate mortgages. Fixed-rate mortgages keep the same interest rate for the entire term, so your monthly payments remain consistent. This gives you stability and allows you to estimate your total interest costs in advance. Variable-rate mortgages change based on the Bank of Canada's prime rate. They typically start with a lower interest rate than fixed-rate mortgages and adjust over time. For example, with a 5-year variable, the rate can fluctuate throughout the term. The main benefit of a variable-rate mortgage is the potential for lower payments at the start.

Interest Rate
This field is pre-filled with the current average mortgage rate in Alberta. Your actual rate will vary depending on factors like your credit score, income, down payment, and lender. For personalized guidance, connect with a licensed Alberta mortgage broker or advisor.

Property Tax Rate
The mortgage payment calculator includes estimated property taxes based on the home's value. In Central Alberta, property tax rates typically range between 0.9 percent and 1.1 percent. You can update this number in the advanced options based on the specific municipality.

Home Insurance
Home insurance or homeowners insurance is often required by mortgage lenders. It protects your property against damage or loss and typically includes liability coverage. In Alberta, premiums usually range from $900 to $2,000 annually. You can edit this figure in the advanced options to reflect your actual quote.

HOA Fees
A homeowners association fee (HOA fee) is a monthly amount paid by owners of certain types of residential properties such as condos, townhomes, or homes in communities with shared amenities. HOAs use these fees for services like landscaping, snow removal, and facility upkeep. In Alberta, HOA fees vary depending on the development and can range from $50 to $400 or more each month.