Term | |||||||
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October 2024 | Calgary Housing Market |
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Average Home Price | - |
Monthly Change | - |
Yearly Change | - |
Average Home Price | Monthly Change | Yearly Change |
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- | - | - |
Lenders | Insured Rates | Fixed | Variable | # of Branches | Main Branches |
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As of November 12, 2024,
With Calgary and Edmonton both being large cities within Alberta, the mortgage rates and the lenders that you will have access to will be very similar. Calgary does have a higher average home price at $494,111 compared to Edmonton at $398,220, which means that you will need a larger mortgage amount in Calgary. You may be able to get a lower mortgage rate in Calgary because of this, considering that some lenders may be more eager to negotiate to close the higher mortgage amount. Overall however, for the same mortgage amount in both cities, the mortgage rate will be almost identical.
Calgary | Edmonton | |
---|---|---|
Population (2020) | 1,306,000 | 972,223 |
Average Home Price | $494,111 | $398,229 |
Median Income | ~$85,000 | ~$86,000 |
Although the energy sector is one of the largest employers in the city of Calgary and home to multiple head offices for major Canadian oil companies, the price of oil will not directly impact mortgage rates in the city. Indirectly however, the price of oil has an impact on the demand for mortgages in Calgary. If the price of oil were to fall drastically, many oil companies employing Calgarians will be in a tougher position, meaning that naturally jobs will be lost and salaries will be stagnant. This then leads to more Calgarians feeling less hopeful about their economic future, and therefore less likely to make a large purchase, such as for a home. If the price of oil were to rise, then oil companies would be in a better position financially, which would mean more bonuses for workers, extra job security (for the time being), and an overall stronger economy in Calgary. All of this would lead to more demand for mortgages as people go to purchase a home feeling like they are in a good position financially.
Another impact the price of oil will have will be for inflation. If the price of oil is rising, there may be more inflation, while if it is falling, there may be dis-inflation. Inflation has a big impact on mortgage rates because it is a key indicator that the Bank of Canada uses when deciding on the decisions it should make regarding the overnight interest rate. If the Bank of Canada decides to move the overnight rate up or down, Canadian government bond yields will also be impacted. Since government bonds are also correlated with mortgage rates, Calgary’s mortgage rates will naturally rise or fall depending on what the Bank of Canada decides.
With Calgary mortgage rates being at some of the lowest levels ever in the city's history, a common question is “where will they go in the future?”. Although no one can say for certain where Calgary’s mortgage rates are going next, it seems most likely that they will rise in the future. The reason for this is the Canadian economy is in the process of staging a strong recovery from the COVID-19 economic crisis, and the Bank of Canada has signaled that they are potentially going to raise interest rates in 2022. Also with asset and commodity price inflation that is leading to higher prices on many goods and services, it seems most likely that interest rates, and therefore mortgage rates, will be higher a year from now.
Another reason that mortgage rates may be higher in the future is competition. Currently with so much competition between mortgage lenders to compete for business with a record number of home transactions going on, it has led to lower mortgage rates and better mortgage offerings for buyers. If the housing market starts to cool down, we may see some of that competition from lenders pull back, leading to higher mortgage rates.
Shopping around and finding the best mortgage rate on the market is very important when getting a mortgage. Even by finding a mortgage rate that is 10 basis points lower than the rate you are looking at getting or are pre-approved for, it can mean thousands of dollars in savings in interest throughout your mortgage term.
For example: You need to take out a $400,000 mortgage to purchase a home in Calgary. The interest rate that you got pre-approved for was 2.5% over a 5 year mortgage term. After your purchase offer was successful, you started searching for mortgage rates again, and were able to find a rate that has the same term, but is 10 basis points lower, at 2.4%. By searching again after buying a home, you would have saved $1951 over your 5 year term in interest charges.
By shopping around to find a better rate even if you're already pre-approved, it means that you don't just reduce your interest charges, but also will have more money to pay off your mortgage faster. This means that it is always important to research lenders, meet with them in person, and try and negotiate to get the best mortgage rate. Even if you do not have the time to do this, working with a mortgage broker can ensure that you are looking through all the mortgage options to find the best one.
2.5% | 2.4% | 2.25% | |
---|---|---|---|
$200,000 | $23,953 | $22,978 | $21,517 |
$300,000 | $35,930 | $34,467 | $32,275 |
$400,000 | $47,906 | $45,955 | $43,034 |
$500,000 | $59,883 | $57,444 | $53,792 |
Although getting home insurance coverage for your home in Calgary is not required by law, mortgage lenders will require you to insure the property they give you a mortgage on. This is so that if something were to happen to the home, you would have coverage and the home could be repaired or rebuilt. Without this coverage, if something were to happen to your home and you still had a mortgage, you may be more likely to default rather than continue to make payments. Besides just protecting you from damage to your home in Calgary, home insurance can also protect your valuables, give you liability coverage for incidents on your property, and can even offer identity theft protection.
Even if you are mortgage free and therefore do not require insurance, it is still a good idea to get home insurance. This would leave you protected if anything were to happen to your home, while giving you the peace of mind that comes with this. Especially with the Calgary region being prone to flooding over recent years, making sure that you have home insurance and are covered in your policy for flooding and sewer back-ups can help protect your home from the cost of damage.
Although you will not be able to get a mortgage in Calgary for a home while you are building it, you are able to get a construction loan to build it, then get a mortgage on the finished property. Depending on the plot of land you pick in the Calgary area, you may not be able to get a mortgage loan for the land, meaning you may have to turn to a private mortgage lender or pay for most or all of the land purchase in cash. Considering that the cost of building a home and purchasing a land lot can really add up in cost, being able to finance the cost of building a home in Calgary is important for many people. The average home building cost in Calgary per square foot of home is around $150 for a normal home plan, while a custom Calgary home can run you over $400 per square foot. Buying land and building a home on it is less common in the urban Calgary area, however may be a good option for those wanting a new home in the Rocky View, Foothills, Wheatland, and Mountain View regions around the Calgary city centre, where land will be more affordable.
The reasons for the rise in price seen across all categories of housing in 2021 is because of:
Should the economy have a strong recovery and high-paying jobs start to come back to the energy sector and to other major industries, home prices and demand could continue to rise.
Over the last 20 years, the average home price in Calgary has gone from ~$190,000 in 2001, to $510,908 currently, which is up 268%. This also means the average mortgage amount has also increased, likely in tandem with home prices at ~ 268% or more. Compared to other major cities across Canada such as Toronto, Ottawa, Vancouver, and Montreal, this is the lowest increase in average home price over the last 20 years:
City | Average Home Price Increase (2001-2021) |
---|---|
Calgary | ↑268% |
Toronto | ↑462% |
Ottawa | ↑381% |
Vancouver | ↑398% |
Montreal | ↑320% |
Although Calgary’s housing market is fairly affordable when compared to other cities such as Vancouver’s housing market and Toronto’s housing market, some parts of Calgary have much higher prices than others. West Calgary and Central Calgary have higher prices when compared to the East and North ends of the city, where home prices are much more affordable.
Region | Benchmark Home Price |
---|---|
West Calgary | $564,900 |
North-West Calgary | $514,000 |
Central Calgary | $503,100 |
South-East Calgary | $456,200 |
South Calgary | $440,600 |
North Calgary | $409,200 |
North-East Calgary | $364,400 |
East Calgary | $323,800 |
According to the most recent CMHC housing market assessment for the city of Calgary, the housing market is not overheating. Although the number of sales compared to new listings is at close to its 10 year high, this is normal and it means that the housing market in Calgary has shifted from a buyers market over the last 5 years, to a more balanced market. Home prices have gone up at a less drastic rate than in other major cities across Canada, and continue to see a low risk of being overvalued. A point of concern for the Calgary housing market is the amount of excess inventory that is currently on the rental market, especially for apartments. Overall, this can be seen as a good sign for prospective first time home buyers and people that are renting, with high vacancy rates making it easier to find a place to rent in the short term. As well, if home prices in Calgary do continue to rise, it's likely some of these vacant rental homes will add inventory to the number of homes for sale, making it easier for home buyers to purchase a home. Overall, the CMHC sees a moderate degree of vulnerability for Calgary’s housing market, with the only category seeing high vulnerability being the number of excess rental units.
With Calgary being the 4th largest city in Canada, there are many types of lenders to choose from that offer mortgages. The big 6 banks, which includes: RBC, TD Bank, Scotiabank, BMO, CIBC, and National Bank, all have branches and offices in Calgary where you can meet with a mortgage representative. As well, online banks such as Simplii Financial, Equitable Bank, Tangerine Bank, and MotusBank offer mortgage loans in Calgary over the internet. Other regional options in Calgary include Canadian Western Bank, ATB Financial, and CMLS Financial. Finally, a Calgary mortgage broker will offer you the ability to see mortgage offerings from countless mortgage lenders, which allows you to easily shop around for the best rate. Calgary has over 200 mortgage brokers located within the city.
Yes, getting a mortgage from a credit union in Calgary can be a common way to get the funding you need to buy a home in Calgary. A credit union is a financial institution that is owned by its customers and the people that bank with it. Credit unions tend to be more local, and Calgary credit unions will only offer mortgages within Calgary or within the province of Alberta. Getting a mortgage with a credit union may be easier than a traditional bank because credit unions do not require you to pass a mortgage stress test to purchase a home, allowing you to have more flexibility when determining your mortgage affordability. Since credit unions are owned by their customers and their goal is not only to earn a profit, they may offer mortgage rates that are lower than other traditional lenders do in Calgary. There are multiple different credit unions operating within the city, including the following credit unions which have branch locations in Calgary:
Calgary is seen as a very affordable city to live in, making it easier to save up for a down payment on a home while covering your basic living expenses. The average monthly cost of living in Calgary for a family of 3 with a young child is $4,240 per month. This breaks down to:
With Calgary’s median after-tax household income being $7,100 per month, This means the average household would have $2,860 per month left after basic living expenses. If all of this money leftover went towards a down payment, it would take ~3 years to save up for a 20% down payment on the average Calgary home price of $510,908.
With Calgary’s median after-tax household income being $7,100 per month, This means the average household would have $2,860 per month left after basic living expenses. If all of this money leftover went towards a down payment, it would take ~3 years to save up for a 20% down payment on the average Calgary home price of $510,908.
Single Person | Couple | Couple with 1 Child | Couple with 2 Children | |
---|---|---|---|---|
Housing (Rent & Utilities) | $1229 | $1669 | $1642 | $2546 |
Food | $377 | $754 | $1131 | $1508 |
Transportation (Car) | $365 | $365 | $365 | $365 |
Pre-school | $0 | $0 | $1075 | $2150 |
Total Living Costs | $1971 | $2788 | $4213 | $6569 |
Calgary is the largest city in Alberta and the fourth largest city in Canada. Calgary's population has seen steady growth over the past 10 years, rising by 24.4% from 2010 to 2020. Calgary’s population outlook forecasts the number of people in the city to grow from 1,306,000 people in 2020 to 1,409,000 people by 2026. As the population in Calgary continues to grow, the demand for housing will only continue to grow as well.
Calgary's largest industry is the energy sector, and the city has many large employers within this industry, such as: Suncor Energy, Shell Canada, Canadian Natural Resources, TC Energy, and Imperial Oil. As the price of oil has struggled in recent years, companies in the sector have had to let staff go, bringing up unemployment and hurting Calgary’s overall economy. Other large employers in the city include: Telus, Shaw Communications, Alberta Health Services, WestJet, and Dow Chemicals. As many of these large employers continue to grow, and if the energy sector and the price of oil have a strong rebound, the demand for homes in Calgary should benefit.
Calgary and the surrounding area saw its population grow in 2020, aided by the help of migration to the city. Although the number of new people who moved to Calgary fell from 2019 because of the COVID-19 pandemic, there still were 19,899 net new people who moved to the city. This breaks down to 15,792 people migrating internationally to Calgary, 1931 people migrating within other provinces in Canada to Calgary, and 2176 people migrating to Calgary from within the province of Alberta. The main reasons for Calgary attracting migration to the city is its relatively affordable living costs and housing prices, the high household incomes that Calgarians have compared to the rest of the country, and Calgary’s growing diversity. As Calgary continues to attract more people throughout Canada, Alberta, and worldwide as the pandemic starts to subside, Calgary’s economy and housing market should benefit.
International Migration | Inter-Provincial Migration | Migration Within Alberta | Total Migration to Calgary, 2020 |
---|---|---|---|
15,792 People | 1931 People | 2176 People | 19,899 People |
The City of Calgary has a high vacancy rate of 6.5%, which is much higher than the Canadian national average for large metropolitan areas of 3.4%. The vacancy rate is especially high in the downtown area of Calgary, where it is 8.8%. With Calgary's regional population continuing to grow, this rising vacancy rate displays how the city has been able to more than keep up with the demand for building new homes. This is a positive sign for home buyers, as it shows that low inventory levels of homes will be fixed over the long term as new construction enters the market, helping buyers not to worry about current limited home buying options. With such a high vacancy rate, it also may be a good time to rent, meaning that comparing the benefits of renting and buying with WOWA’s rent vs buy calculator can help you make a more informed decision on which is the best option for your situation.
As home prices in the city fell from 2018 to 2020, property tax rates in Calgary rose, from 0.6357% in 2018 to 0.6654% in 2019, and now to 0.7522% in 2020. However, the property tax rate in the city is still the lowest in Alberta among major population centres, shown in the table below:
City or Town | 2020 Property Tax Rate | Change from 2019 |
---|---|---|
Calgary | 0.7522% | ↑13% |
Edmonton | 0.9326% | ↑2.7% |
Red Deer | 0.9808% | ↑1.2% |
Lethbridge | 1.1397% | ↑0.9% |
St. Albert | 1.1040% | ↑3.3% |
Property taxes are very important to consider when determining how large of a mortgage you are comfortable taking out. The higher your property tax expense is, the more you will pay towards overall housing expenses. This means that with a lower tax rate, you will be paying less in housing expenses which will allow you more room in your budget to afford a larger mortgage. Similar to across Canada, property taxes in Calgary are typically paid monthly through your lender, who then pays the city on your behalf. You can also pay your property taxes directly to the city, such as through Calgary’s Tax Instalment Payment Plan (TIPP), or as one annual payment in June.
Yes, your mortgage lender in Calgary will allow you to pay your property tax amount through them monthly along with your mortgage payments. Most lenders will actually require you to pay your property taxes through them monthly, as a way to prevent you from missing payments and paying late. This is usually most common for first time home buyers and people who have a lower down payment amount or income levels, so that the lender does not face the risk of having the city of Calgary place a lien on the property which they are using as collateral for your mortgage.
Pros | Cons |
---|---|
Helps you to budget better with monthly payments towards your property tax | You will earn no interest on the money that you pay in advance through your monthly mortgages, while your lender waits to pay your property taxes for you. |
Protects you from missing the deadline date and owing interest on your property tax amount. | Your lender will likely have you pay more monthly than your bill will be, so that you won't be short on the amount. This means you will be advancing more money than you need to, which will go towards your next property tax bill. |
Lender | Number of Locations | Mortgage Inquiry Phone # |
---|---|---|
ATB | ATB Financial has 24 branches in Calgary. | General Inquiries:1-800-332-8383 |
BMO | BMO has 30 branches in Calgary. | General Inquiries- 1-844-837-9228 |
Canada Life | Canada Life has no branches in Calgary. | No Direct Number |
Canadian Western | Canadian Western Bank has 4 branches in Calgary. | No Direct Number |
CIBC | CIBC has 38 branches in Calgary. | 1-866-525-8622 |
Citadel Mortgages | Citadel Mortgages has 1 branch in Calgary. | |
CMLS | CMLS Financial has 1 branch in Calgary. | 1-888-995-2657 |
connectFirst | connectFirst Credit Union has 3 branches in Calgary. | No Direct Number |
Desjardins | Desjardins has no branches in Calgary. | 1-844-626-2476 |
Dominion Lending | N/A | |
Equitable | Equitable Bank is a digital bank and has no branches in Calgary. | 1-888-334-3313 |
First National | First National has no branches in Calgary. | No Direct Number |
HSBC | HSBC Bank has 9 branches in Calgary. | General Inquiries: 1-888-310-4722 |
ICICI | ICICI Bank has 1 branch in Calgary. | No Direct Number |
Investors Group | Investors Group has 2 branches in Calgary. | No Direct Number |
Laurentian | Laurentian Bank has no branches in Calgary. | 1-866-522-4655 |
Manulife | Manulife Bank has no branches in Calgary. | 1-877-765-2265 |
MCAP | MCAP has no branches in Calgary. | 1-800-265-2624 |
Meridian | Meridian Credit Union has no branches in Calgary. | 1-866-592-2226 |
Mortgage Alliance | N/A | |
motusbank | MotusBank is a digital bank and has no branches in Calgary. | 1-833-696-6887 |
National Bank | National Bank has 2 branches in Calgary. | 1-855-755-9533(Option 4) |
QuestMortgage | N/A | |
RateHub/Canwise | N/A | |
RBC | RBC has 39 branches in Calgary. | 1-800-769-2511 |
SBI Canada Bank | SBI Bank Canada has one branch in Calgary | (416) 951-1831 |
Scotiabank | Scotiabank has 43 branches in Calgary. | 1-877-303-8879 |
Servus Credit Union | Servus Credit Union has 11 branches in Calgary. | General Inquiries:1-877-378-8728 |
Simplii Financial | Simplii Financial is a digital bank and has no branches in Calgary. | 1-888-866-0866 |
Tangerine | Tangerine Bank has no branches in Calgary. | 1-888-826-4374 |
TD | TD Bank has over 45 branches in Calgary. | 1-800-722-3098 |
True North Mortgage | True North Mortgage has 3 branches in Calgary | +1-866-341-3415 |
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