Understanding Calgary’s Current Mortgage Rates & What They Mean for You

Tim Lacroix • January 30, 2025

Navigating the world of mortgage rates can feel overwhelming, especially in a dynamic and ever-evolving housing market like Calgary. Whether you're a first-time buyer, refinancing your current home, or looking to invest in real estate, understanding the current mortgage landscape is critical for making informed decisions.

In this post, we’ll break down what mortgage rates are, what influences them, the current trends in Calgary, and how the right mortgage broker—like the Tim Lacroix Mortgage Team—can help you secure the best rate for your needs.

What Are Mortgage Rates, and Why Do They Matter?

A mortgage rate is the interest charged by a lender on the loan you take out to purchase a home. It directly impacts how much you’ll pay over time for your home, affecting your monthly payments and total loan cost.

There are two main types of mortgage rates:

Fixed Rate: The rate stays the same for the entire term of your mortgage. It offers predictability and stability, which is great for budgeting.
Variable Rate: The rate fluctuates with the Bank of Canada’s prime lending rate. These can start lower than fixed rates but come with risk if rates rise.

Even a small difference in rates—say, 0.5%—can translate into thousands of dollars over the lifespan of your mortgage.

Factors That Influence Mortgage Rates in Calgary

Mortgage rates are influenced by a mix of national, international, and local factors. Here are a few:

Bank of Canada Overnight Rate
The Bank of Canada (BoC) sets the benchmark interest rate, which directly affects the prime rate that lenders use to set variable mortgage rates.
Inflation and Economic Trends
When inflation is high, the BoC may raise rates to cool down spending. In turn, lenders increase mortgage rates. Economic growth, employment rates, and consumer confidence all play a role.
Bond Yields
Fixed mortgage rates often follow the trends of 5-year Government of Canada bond yields. When bond yields go up, so do fixed mortgage rates.
Lender Competition
Some lenders offer competitive rates to attract new clients. Working with a mortgage broker can give you access to these offers.
Credit Score and Down Payment
Your personal financial profile also affects your mortgage rate. The higher your credit score and down payment, the better your chances of securing a low rate.

Current Mortgage Rate Trends in Calgary (2025)

As of May 2025, Calgary's mortgage market is stabilizing after a period of volatility in 2023–2024. Here's what we're seeing:

5-Year Fixed Rates: Currently range between 4.79% and 5.29% for prime borrowers.
5-Year Variable Rates: Average between 5.40% and 5.75%, slightly higher due to continued caution around inflation control.
1–3-Year Fixed Rates: Attractively priced for short-term borrowers, around 5.09% to 5.49%.

With inflation now trending toward the Bank of Canada’s 2% target, we could see gradual rate cuts later in 2025—especially if economic growth remains steady.

What This Means for Calgary Homebuyers

If You’re Buying a Home

Now is a good time to secure a shorter fixed term or consider variable rates if you believe rates will drop in the near future. Fixed rates offer security, while variable rates could save you money if you're flexible and willing to watch the market.

If You’re Renewing Your Mortgage

Many homeowners coming off ultra-low pandemic-era rates are facing higher renewal rates. It’s crucial to start shopping around early—up to 120 days before your renewal date—to lock in the best available deal.

If You’re Refinancing

If you’ve built equity in your home, refinancing can be a smart move to consolidate debt or fund home renovations. Even with slightly higher rates, refinancing could still be cheaper than carrying high-interest debt like credit cards.

Tips for Securing the Best Mortgage Rate

Improve Your Credit Score
Lenders reward borrowers with strong credit profiles. Pay bills on time, reduce your debt-to-income ratio, and correct any errors in your credit report.
Increase Your Down Payment
Putting down more than the minimum 5% (for homes under $500,000) can lower your risk in the lender’s eyes, potentially qualifying you for a better rate.
Consider Different Terms and Rate Types
A 3-year fixed might be better than a 5-year fixed depending on rate trends. Or, a variable rate could suit short-term plans.
Use a Mortgage Broker
Brokers like the Tim Lacroix Mortgage Team have access to exclusive rates from banks, credit unions, and alternative lenders—and they work for you, not the banks.

Why Work With the Tim Lacroix Mortgage Team?

With decades of combined experience in Calgary’s real estate financing, our team understands the local market inside and out. We go beyond interest rates and focus on:

Customized strategies for your specific financial goals
Pre-approval and rate hold options to protect against market shifts
Hands-on guidance from application to approval
Exclusive lender access with more flexibility than traditional banks

We’re not just helping you get a mortgage—we’re helping you build a foundation for financial growth and stability.

Looking Ahead: Mortgage Rate Forecasts for 2025

Most economists expect rates to gradually decline in late 2025 and into 2026, depending on inflation trends and global economic stability. Timing your mortgage decisions could save you thousands. But don’t wait too long—home prices in Calgary are also on the rise.

Whether rates go up or down, the key is preparation. Talk to our team early so we can explore your best options before it’s time to buy, renew, or refinance.

Ready to Explore Your Mortgage Options?

At the Tim Lacroix Mortgage Team, we help Calgarians like you navigate the complexities of the mortgage world with clarity, confidence, and care. Whether you're ready to make a move now or just need advice for the future, we’re here to support you every step of the way.

Book a Discovery Call today at https://calendly.com/mikeshanks/discovery-initial-call-15-mins?month=2025-05

Or visit us at https://calgarymortgagebroker.net/ to learn more.

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