The COVID-19 pandemic has greatly affected people worldwide. Most countries have been taken by surprise. Many sectors of the community struggled to stay afloat.

The housing sector also had to face historic changes. Because the pandemic caused economies to crash, interest rates reached their all-time lows as well.  A lot of people invested in houses as they shifted to work-from-home setups. This made the housing demands soar.

As the pandemic comes to an end, the housing supply also depletes. It’s barely keeping up with the demands. Because of this, mortgage rates may also gradually increase as the economy starts to recover.

You might find yourself asking—is this the right time to invest in properties? Here are the current mortgage rates in Edmonton so you can decide for yourself.

Current Mortgage Rates in Edmonton (2022)

Open vs. Closed Rate

Open mortgages are those with flexible terms of payment. Borrowers can renegotiate their payment terms anytime without penalty. This is advisable for people who obtain large amounts of money from time to time.

Closed mortgages are those that strictly abide by the set payment terms. Paying off a mortgage early will cost you a penalty fee. However, more Canadians prefer closed mortgages as these generally have lower interest rates.

Learn more about the pros and cons of open and closed mortgages here.

Variable vs. Fixed Rate

Variable rates mean that your interest rates change depending on the market behavior. You may end up paying less if the market stays stable. Otherwise, a fixed rate would be safer. A variable rate mortgage is more advisable for people who don’t plan on staying in a house for a long time.

Fixed rates are typically 1.5% higher than variable-rate mortgages. The good thing about fixed rates is that even when market rates go higher, your fixed-rate mortgage stays the same. This is more advisable for people who plan to stay in their house for at least ten years.

Posted vs. Special Rate

Posted rates are the regular interest rates that lenders offer for a loan. Most lenders will only have posted rates in their loan offers.

Special rates, on the other hand, are discounted rates. These aren’t always available, though. Try to find special-rate mortgages as these can help you save some money.

Rate Comparison

To stay as constant as possible, we’ve collected the latest 5–year fixed closed mortgage posted rates of five banks in Edmonton—HSBC, ATB, TD, CIBC, and Scotiabank.

Note: These are posted rates from the links above, but the actual rates offered are currently much lower. Rates vary depending on a number of factors, so it’s best to contact your realtor or bank for accurate information.

These should give you an idea of the current mortgage rates in Edmonton in 2022 and help put things into perspective.

Bank	5-Year Fixed Closed Rate
HSBC	4.59%
ATB	4.44%
TD	4.59%
CIBC	4.79%
Scotiabank	4.79%

Edmonton Real Estate Forecast

In September 2021, Edmonton saw a 0.9% increase in new listings while the majority of Canada experienced a small decline. Across the country, sellers hold firm control over market prices. In Edmonton, the conditions are a little more balanced.

These actual statistics are both good indicators of the market conditions in Edmonton. But how much could the market change in 2022?

Because the demand for homes keeps increasing, the Realtors Association of Edmonton predicts a 13% drop in single-family home sales.

The above-mentioned little increase in supply cannot keep up with the growing house demands. As the law of supply and demand implies, this will cause market prices to increase.

In such cases, people might momentarily refrain from buying properties since the market conditions aren’t favorable for them.

However, because interest rates are still lower than usual, people are rushing to buy homes instead. Some houses get sold within a week, with multiple offers, and above asking their price.

The Edmonton housing market is looking strong in 2022. Still, we cannot be too sure. Conditions may change anytime and without warning. The best thing to do is to watch the market closely before making a move.

Generally, the key is speed. If you have a house to sell, aim to put it up for sale as soon as possible before the market demand starts declining. If you’re planning to buy a house, place a competitive offer as soon as possible to increase your chances of getting it.

What’s a Good Mortgage Rate?

There is no single format for determining what a good mortgage rate is. It varies for every borrower and situation.

One thing to take note of, though, is that when you apply for a mortgage, you have to have a good credit score. Interest rates would be higher for borrowers with a low credit score. Lenders will use this as a base to assess your riskiness as a borrower, so make sure your credit score is in good shape before applying for a mortgage.

Get in touch with a real estate agent that will guide you through this. They can assess your risk appetite and get you mortgage rates that would be ideal for your situation.

Check out these success stories of Amrit’s clients.

Edmonton Mortgage Rates—Are They Really on the Rise?

The straight answer is yes. As the Canadian economy gains a more stable footing in this pandemic, mortgage rates are slowly rising. The increases may not be drastic, but they are headed up this year for sure.

Don’t worry, though! You still have time to buy a house and apply for a mortgage. Try to do it as soon as possible so that you can secure the interest rates before they go further up.

If you already own a house and want to know how much does it worth in 2022 then check out this free home evaluation tool.

Here are the things to consider in looking for a good mortgage rate that would be favorable for you:

• Check forecasts to see if the market conditions are looking good in the next few years.
• Determine which conditions would be the best for you. Open or closed rates? Variable or fixed rates? Is there a lender offering special rates? What would be the payment terms?
• Get in touch with a real estate agent to assess your situation.
• Make sure your credit score is in good shape as you apply for a mortgage.