Broker floor: 4.35% · Bank average: 4.75% · Stress test qualifying rate: 6.35%. For fair credit (620–679) borrowers doing a renewal in Alberta.
Paid report options after the free check: Rate Fairness Report CA$24 · Full Renewal Decision Report CA$49. No broker calls. No data sold.
Variable rate mortgages float with the Bank of Canada prime rate (currently 4.45%). The broker floor reflects prime minus 0.85%, adjusted for credit tier. The bank average reflects prime minus 0.45%. For fair credit borrowers, an additional 75 basis points applies above the excellent-credit baseline.
The result for a 5-Year variable mortgage with fair credit is a broker floor of 4.35% and a bank average of 4.75%. These are the two anchors used to evaluate any offer. On a $500,000 mortgage, the benchmark payment is approximately $2,641/month and this combination's rate produces approximately $2,726/month — $85 more than the 5-year fixed excellent-credit benchmark.
Rates are illustrative based on Bank of Canada benchmark data and do not constitute a lender quote. Verify current rates with your lender.
| Rate anchor | Rate | What it means |
|---|---|---|
| Broker floor | 4.35% | Lowest rate available through the broker channel for this profile |
| Bank average | 4.75% | Typical rate at major bank retail branches |
| Posted ceiling | 5.99% | Bank's starting-point rate before discounting — never pay this without negotiating |
| Stress test qualifying rate | 6.35% | Rate used to calculate maximum qualifying mortgage (contract rate + 2%, min 5.25%) |
Alberta does not charge a provincial Land Transfer Tax. Only a land title transfer fee applies.
Alberta charges a land title transfer fee of approximately $250–$600 for a typical residential property. The absence of LTT reduces effective closing costs compared to Ontario or BC.
Mortgages in Alberta are regulated by the Real Estate Council of Alberta (RECA). Alberta borrowers qualify under the same federal stress test rules. Alberta's absence of provincial LTT is a meaningful cost advantage for buyers.
| Value threshold | Tax rate |
|---|---|
| No provincial Land Transfer Tax | Only a title transfer registration fee applies |
Fair credit (620–679 credit score) limits your mortgage options and results in a meaningful rate premium. You may need to work with a mortgage broker to access B-lender options, or take 12–18 months to improve your credit before applying.
Fair credit borrowers typically pay approximately 75 basis points above excellent credit borrowers. On a $500K mortgage, this is approximately $85/month or $1,020/year in estimated additional cost — a material difference over a 5-year term.
Improving your credit tier: Improving from fair to excellent credit could reduce your rate by approximately 0.75%, saving an estimated $85/month on a $500K mortgage or $5,100 over 5 years. Building credit for 12–18 months before applying can significantly improve your rate.
To improve from fair credit: pay all bills on time for 12+ months, reduce credit card balances below 30% utilization, avoid new applications, and dispute any errors on your credit report. A secured credit card can help rebuild history if your existing credit is thin.
The 5-year fixed term is Canada's most popular mortgage term, representing the majority of all new commitments. It offers the best balance of rate certainty and lender pricing for most borrowers.
Typical borrower profile: 5-year fixed borrowers include most first-time buyers, those prioritizing payment predictability, and borrowers who want certainty through a typical market cycle.
Rate vs 5-year benchmark: The 5-year fixed term is the benchmark. Current broker floor: 4.35%, bank average: 4.75%. These form the two-anchor reference model for evaluating any mortgage offer.
Tradeoff vs 5-year fixed: The 5-year term provides the most payment certainty over a standard renewal cycle. The primary risk is breaking early: an Interest Rate Differential (IRD) penalty can be significant on a 5-year fixed. Confirm you will not need to break the term before committing.
A straight renewal with the same lender in Alberta does not require you to requalify at the stress test rate. You renew your existing balance at current rates without income re-verification, provided you are staying with the same lender.
Stress test: Straight renewals at the same lender are exempt from stress test re-qualification (since January 2023). If you switch lenders at renewal — even on maturity — you must requalify at 6.35% with the new lender. This limits switching for some borrowers, which is why comparing your renewal offer against the current benchmark before responding is important.
CMHC insurance: Your mortgage's insured or conventional status remains unchanged at renewal. If originally CMHC-insured, the insurance persists through renewal without new premiums. If you increase your mortgage balance at renewal, CMHC rules for refinances apply.
Special considerations: For Alberta renewals: start shopping 90–120 days before maturity. Your lender must provide a renewal offer at least 21 days before maturity. Compare the offer against the current benchmark before accepting — first offers are rarely the best available.
For a 5-Year variable mortgage at a contract rate of 4.35%, the federal stress test qualifying rate is 6.35% (the contract rate plus 2%, minimum 5.25%).
On a $500,000 mortgage at the qualifying rate of 6.35% over a 25-year amortization, the monthly payment would be approximately $3,304/month. Lenders apply a 32% Gross Debt Service (GDS) ratio to determine the qualifying income, meaning total housing costs — principal, interest, property tax, and heat — cannot exceed 32% of your gross income.
Stress test calculations are for illustrative purposes only. Your lender will apply the qualifying rate to your specific balance, amortization, and income documentation.
Based on current Bank of Canada benchmark data, 5-Year variable mortgage rates for fair credit borrowers (620–679 credit score) in Alberta range from approximately 4.35% (broker floor) to 4.75% (bank average). The posted ceiling is 5.99%. These are illustrative rates based on BoC fallback data — actual rates vary by lender, insured status, and individual profile. Always verify with your lender.
Straight renewals at the same lender are exempt from stress test re-qualification (since January 2023). If you switch lenders at renewal — even on maturity — you must requalify at 6.35% with the new lender. This limits switching for some borrowers, which is why comparing your renewal offer against the current benchmark before responding is important.
With a 5-Year variable mortgage at 6.35% (stress test qualifying rate), a $500,000 mortgage on a 25-year amortization requires approximately $123,475 in gross annual income to qualify at a 32% GDS ratio. Fair credit borrowers in Alberta should work with a broker to confirm their specific qualifying income.
The 5-year term provides the most payment certainty over a standard renewal cycle. The primary risk is breaking early: an Interest Rate Differential (IRD) penalty can be significant on a 5-year fixed. Confirm you will not need to break the term before committing.