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*Insured loans. Other conditions apply. Rate in effect as of today.

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Current Mortgage Rates in Medicine Hat

As of Tuesday, June 25, 2024, current interest rates in Medicine Hat are for a 5-year fixed mortgage and for a 3-year fixed mortgage. Shop around for mortgage rates to find the best offer.

High interest rates continue to make it hard to qualify for a mortgage. In addition, an influx of residents due to interprovincial migration makes it even more challenging for Medicine Hat residents to afford a home. While it’s almost impossible to predict when rates will come down meaningfully, experts forecast that we should expect a gradual reduction over the next few years. 

Home prices remain high, with CREA reporting that the national average home price decreased 2.4% year-over-year to $733,300 in May 2024. Alberta’s average price increased 9.30% year-over-year to $513,600. As for Alberta’s cities, the average selling price of a home in Calgary increased 9.8% year-over-year to $587,100. In Edmonton, the average home price increased 6.1% year-over-year to $392,700. 

What are today’s mortgage rates in Medicine Hat?

The average 5-year fixed mortgage rate from big banks in Medicine Hat is 5.37%*, while nesto’s lowest 5-year fixed mortgage rate in Medicine Hat is .

The average 5-year variable mortgage rate from big banks in Medicine Hat is 6.61%*, while nesto’s lowest 5-year variable mortgage rate in Medicine Hat is

The average 3-year fixed mortgage rate from big banks in Medicine Hat is 5.94%*, while nesto’s lowest 3-year fixed mortgage rate in Medicine Hat is

The average 3-year variable mortgage rate from big banks in Medicine Hat is 7.40%*, while nesto’s lowest 3-year variable mortgage rate in Medicine Hat is .

Note: The average rate is calculated based on the posted rates of the 6 biggest lenders in Canada that together make up over 70% of the retail mortgage market in the country. These 6 biggest lenders are the chartered banks: Toronto-Dominion Canada Trust (TD), Royal Bank of Canada (RBC), Bank of Montréal (BMO), Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CIBC) and National Bank of Canada (NBC).

What are the lowest mortgage rates in Medicine Hat today?

The average 5-year fixed insurable mortgage rate in Medicine Hat is currently 5.37%, while nesto’s lowest 5-year fixed mortgage rate is

The average 5-year variable insurable mortgage rate in Medicine Hat is currently 6.61%, while nesto’s lowest 5-year variable mortgage rate is

The average 3-year fixed insurable mortgage rate in Medicine Hat is currently 5.94%, while nesto’s lowest 3-year fixed mortgage rate is

The average 3-year variable insurable mortgage rate in Medicine Hat is currently 7.40%, while nesto’s lowest 3-year variable mortgage rate is

The average 2-year fixed insurable mortgage rate in Medicine Hat is currently 6.76%, while nesto’s lowest 2-year mortgage rate is

The average 4-year fixed insurable mortgage rate in Medicine Hat is currently 5.75%, while nesto’s lowest 4-year mortgage rate is .

The average 7-year fixed insurable mortgage rate in Medicine Hat is currently 6.43%, while nesto’s lowest 7-year mortgage rate is .

The average 10-year fixed insurable mortgage rate in Medicine Hat is currently 7.14%, while nesto’s lowest 10-year mortgage rate is .

Note: The average rate is calculated based on the posted rates of the 6 biggest lenders in Canada that together make up over 70% of the retail mortgage market in the country. These 6 biggest lenders are the chartered banks: Toronto-Dominion Canada Trust (TD), Royal Bank of Canada (RBC), Bank of Montréal (BMO), Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CIBC) and National Bank of Canada (NBC).

What is today’s prime rate in Medicine Hat?

The Bank of Canada prime rate in Medicine Hat is currently . This rate affects all lenders’ discounts on variable and adjustable mortgages.

What are the average 5-year mortgage rates in Medicine Hat?

The average 5-year fixed mortgage rate from big banks in Medicine Hat is currently 5.37%*, while nesto’s lowest 5-year fixed mortgage rate in Medicine Hat is .

The average 5-year variable mortgage rate from big banks in Medicine Hat is currently 6.61%, while nesto’s lowest 5-year variable mortgage rate in Medicine Hat is .

Note: The average rate is calculated based on the posted rates of the 6 biggest lenders in Canada that together make up over 70% of the retail mortgage market in the country. These 6 biggest lenders are the chartered banks: Toronto-Dominion Canada Trust (TD), Royal Bank of Canada (RBC), Bank of Montréal (BMO), Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CIBC) and National Bank of Canada (NBC).

While it’s difficult to predict where mortgage rates will trend, the consensus among experts suggests that we could see rates remain higher for longer. Forecasts suggest we won’t see interest rates return to the neutral rate range of 2 to 3% until the end of 2025.

Bank of Canada Rate Announcement

The latest Bank of Canada (BoC) announcement on June 5th was a policy interest rate decrease to . The decision to decrease rates came as the BoC cited that continued evidence of inflation easing led to the decision that monetary policy no longer needed to be restrictive.

While inflation has eased, the growth in shelter costs, particularly rent and mortgage interest costs, is currently the largest contributor to inflation remaining elevated. The Governing Council continues to monitor core inflation numbers when assessing policy rate decisions to ensure there is sustained downward momentum in inflation.

The next announcement will be on July 24th. Using nesto’s proprietary overnight index swap and forward rate calculation data, bond markets are currently pricing in a small probability of further rate cuts. However, without further reductions to core inflation, the Bank may decide to leave the key rate unchanged.

Real Estate Market Update

The Canadian Real Estate Association (CREA) released its home sales data for May on June 17th. The data showed that home sales declined 0.6% between April and May, remaining slightly below the average of the last 10 years. May’s home sales activity reported new listings increased 0.5% month-over-month with a sales-to-new-listings ratio of 55%. Slower sales and more new listings are increasing the number of homes available for sale across the majority of the Canadian housing market.

This month of slower sales may likely be the last as the Bank of Canada’s rate cut on June 5th may increase real estate activity going forward. It’s anticipated that the rate cut may bring some pent-up demand back into the market, with buyers having more housing options to choose from than at any point in almost 5 years. Prices have stagnated across most markets except for Calgary, Edmonton, and Saskatoon, where prices have steadily climbed since last year.

CPI Inflation Update

Statistics Canada’s latest inflation data, released on June 25th, showed the Consumer Price Index (CPI) rose 2.9% year-over-year in May, up from 2.7% in April. This month, price growth in cellular services, travel tours, rent, and air transportation accelerated inflation.

Shelter prices continued to be a more significant driver of inflation in May, up 6.4%, remaining the same as in April. Rent prices in Ontario increased 8.4% year-over-year in May, which is up from an increase of 6.1% in April. This contributed to faster growth for the national rent index, which increased 8.9% in May. Higher interest rates and population growth are cited as the factors that continue to put upward price pressures on the rent index in Canada.

Inflation is expected to remain around 3% throughout the first half of 2024, with the Bank of Canada predicting it will return to the 2% target in 2025. 

Mortgage Statistics for Alberta

Home prices in Alberta are still well below the national average. However, cities like Calgary and Edmonton are witnessing an influx of interprovincial migration. This is causing an imbalance between available homes and the number of people relocating to the province. It’s expected that this will increase home prices and price many first-time buyers out of the market. Here are some mortgage statistics for the housing market in the province:

  • Average home value (as of May 2024): $502,625 (CREA)
  • Canadian homeownership rate (as of 2021): 66.5% (StatsCan)
  • Number of home sales (as of May 2024): 9,283 (AREA)
  • Number of new listings (as of May 2024): 12,921 (AREA)

Mortgage Options in Medicine Hat

Medicine Hat conventional mortgage: Conventional or uninsured mortgages require a 20% or more downpayment. Conventional mortgages have no maximum purchase price with an uninsured mortgage, allowing you to purchase homes valued at more than $1 million. The equity from your downpayment is enough to protect the lender, so mortgage default insurance is not required.

Medicine Hat high-ratio mortgage: High-ratio or insured mortgages allow you to purchase a home with less than a 20% downpayment. High-ratio mortgages are limited to a purchase price of less than $1 million. You will be required to purchase mortgage default insurance to reduce the risk to the lender if you default on mortgage payments. 

Medicine Hat fixed-rate mortgage: Fixed-rate mortgages lock in your interest rate over the term. This provides a set principal and interest payment throughout the term, making the mortgage payments stable and predictable. Should you break the mortgage term early, penalties are calculated based on the higher of 3 months’ interest or the interest rate differential (IRD).

Medicine Hat variable-rate mortgage: Variable-rate mortgages have fluctuating interest rates that change based on the Bank of Canada policy rate. Adjustable-rate mortgages (ARM) are variable mortgages that have payments that immediately adjust with changes to your lenders’ prime rate. The principal remains fixed while the interest increases or decreases in the same direction as prime rates. Variable-rate mortgages (VRM) are variable mortgages with fixed mortgage payments despite changes in your lenders’ prime rate. The principal and interest payments will adjust, with more going to interest and less to principal if the prime rate increases and more going to principal and less to interest if the prime rate decreases. 

What Affects My Mortgage Rate in Medicine Hat

Mortgage rates are priced based on the risks associated with the mortgage, the property used as collateral, and the borrower. The specific mortgage rate you are offered will be based on various personal factors like your credit score, income, capital, downpayment, the purpose of the loan and your loan-to-value (LTV) ratio. Some of the most important determining factors affecting your mortgage rate include:

  • Downpayment – Your downpayment will determine your LTV ratio and whether you will be required to purchase mortgage default insurance. Insured and insurable mortgages have better rates as there is lower risk to the lender. These rates apply to properties valued at less than $1 million with amortizations up to 25 years. 
  • Amortization Period – With prime lending, the amortization period cannot exceed 30 years on uninsured mortgages (downpayments of 20% or more). Uninsured mortgages typically have higher interest rates to account for the added risk to the lender. On mortgages with less than a 20% downpayment, the maximum allowable amortization is 25 years. 
  • Property Usage – Your primary residence, known as owner-occupied, generally has lower interest rates. Investment properties you intend to rent out will typically have higher interest rates. Purchasing a primary residence with a second separate legally registered suite is considered an owner-occupied rental and will have access to the same rates as a primary residence. 
  • Mortgage Type – The type of mortgage will affect your mortgage rate. Open mortgages have higher rates due to their flexibility. Refinances have higher rates than renewals and new mortgages. 
  • Your Credit Score – The type of lender that approves you for a mortgage will be determined based on your credit score. If you have good to excellent credit, you can typically use prime lending and benefit from the best rates. If you have poor credit, you may need to look at alternative lending solutions with higher rates to offset the lender’s risks. 

First-Time Home Buyer Programs in Alberta

Alberta has a few first-time buyer programs designed to help offset some of the home purchase costs. Some programs are limited to a specific region in Alberta, while others are available across Canada.

  • Edmonton First Place Program – This program develops vacant school buildings into townhomes sold at market price and includes a 5-year deferral on the land portion of the mortgage. To apply, you must be a first-time homebuyer in Alberta, be a full-time occupant of the home for the first 5 years, have a combined household income of less than $130,000 and have $25,000 or less in net worth (excluding downpayment, RRSPs, and primary vehicle). 
  • Attainable Homes Calgary – This non-profit, owned by the City of Calgary, helps residents with downpayment assistance to purchase a home. To apply, your combined household income must be less than $131,424, you qualify for a mortgage and have at least $2,000 to contribute toward the downpayment, live in the home as your primary residence, and your assets are less than 20% of the homes purchase price to a maximum of $50,000 (excluding your primary vehicle, RESP, RRSP, and pension). 
  • First-Time Homebuyers Tax Credit (HBTC) – This federal government program allows first-time buyers to claim up to $10,000 for a maximum $1,500 tax credit to help offset closing costs. 

Land Transfer Tax in Alberta

Alberta does not have a land transfer tax. Instead, you’ll pay a Land Titles Transfer Fee on the property value and mortgage amount. The fees are calculated as follows:

  • $50 plus $2 for each $5,000 or portion of property value

And

  • $50 plus $1.50 for each $5,000 or portion of the mortgage principal.

Alberta does not offer a rebate on the provincial Land Titles Transfer Fees.

Proposed changes in Budget 2024 would amend the Land Titles Act to alter these fees, raising them to $5 per $5,000 of value for both fee types. 

How to Find the Best Mortgage Rate in Medicine Hat

  • Step 1: Understand your credit score:  Check your credit score regularly before looking for a mortgage lender or applying for a mortgage. This will help you immediately identify and report errors that could negatively affect your score. If necessary, improve your credit score to help with your mortgage approval.
  • Step 2: Determine your borrowing capacity: To find the right mortgage solution, you must know the amount you can afford based on your income and downpayment. 
  • Step 3: Know your mortgage needs: Analyze different mortgage solutions’ features, risks, and costs. Careful research and comparisons of the available solutions can help you choose a mortgage that best meets your immediate and long-term financial needs.
  • Step 4: Find a suitable mortgage strategy: Your strategy shouldn’t just be based on the lowest rate available. Get expert guidance to choose the best strategy for your homeownership goals. 
  • Step 5: Compare rates and terms: Not all mortgages are created equal. Choosing a lender like nesto can help you compare rates and terms for multiple lending solutions, ensuring you find the best fit. 
  • Step 6: Get prequalified for a mortgage: Begin your journey towards homeownership by taking advantage of nesto’s prequalification process for a mortgage. By analyzing your downpayment and financial stability, nesto will provide you with a comprehensive prequalification outlining the maximum mortgage amount you qualify for. This information is crucial as it helps you set realistic expectations and narrow your home search within your budget.