Which banks in Calgary offer favorable mortgage terms?

The mortgage market in Calgary is characterized by high competition between traditional banks, credit unions, and alternative lenders. According to August 2025 data, the lowest interest rates are not always offered by the largest banks, but by specialized lending institutions and mortgage brokers.

Current rates for August 2025

  • Best rates: 3.99% for a 5-year fixed mortgage through specialized lending companies.
  • Large banks: from 4.34% to 4.69% for similar terms.

Most favorable lenders

Company Rate Features
True North Mortgage 2.99% Lowest rate on the market
Nesto 3.91% Flexible mortgage terms
Mortio Financial Corp 3.99% Popular choice among newcomers
The Police Credit Union 3.99% Preferential terms for employees

Major banks and their terms

TD Bank

  • 5-year fixed: 4.34%
  • 5-year variable: 4.69% (Prime - 0.26%)
  • Features:
  • Pre-approval with a 120-day rate lock.
  • Affordability calculators.
  • Flexible terms from 1 to 10 years.

RBC Royal Bank

  • 5-year fixed: 4.69%
  • 5-year variable: 4.55% (Prime - 0.40%)
  • Promotion: up to $5,700 in mortgage bonuses until August 31, 2025.
  • Features:
  • Programs for first-time buyers.
  • Refinancing options.
  • Extended payment options.

BMO Bank of Montreal

  • 5-year fixed insured: 4.51%
  • 5-year variable: 4.53% (Prime - 0.42%)
  • Features:
  • Programs for first-time buyers.
  • Flexible terms for self-employed individuals.
  • Partnership with mortgage brokers for additional discounts.

CIBC

  • 5-year fixed insured: 4.21% (lowest among major banks)
  • 5-year variable: 4.77%
  • Features:
  • Mortgage affordability calculator.
  • Terms from 1 to 10 years.
  • Fast application processing and quality service.

Scotiabank

  • 5-year fixed: 4.74%
  • 5-year variable: 4.35% (Prime - 0.60%)
  • Features:
  • Extended range of additional services.
  • Flexible lending terms.

Credit unions and regional banks

ATB Financial

  • Promotion: up to $6,000 cash on selected mortgages.
  • 5-year fixed: lowest among regional offers.
  • Features:
  • Pre-approval with a 120-day rate lock.
  • Up to 20% annual prepayments without penalties.
  • Specialization in mobile homes and large land parcels.
  • Life and disability insurance.
  • 0.10% discount for AUPE members on 3-, 4-, or 5-year mortgages.

Servus Credit Union

  • Competitive rates and personalized service.
  • Feature of 2025: launch of Servus Halal Mortgage.

Servus Halal Mortgage — key terms:

  • 25-year term with fixed payments.
  • “Cost + profit” structure instead of interest.
  • Minimum down payment of 20%.
  • Available to all Alberta residents.

Other credit unions, alternative lenders, and rate forecasts in Calgary

Other credit unions

Christian Credit Union offers a 5-year fixed rate of 4.44% and a variable rate at Prime. The credit union also has a profit-sharing program for members.

Calgary Police Credit Union offers a 5-year fixed rate of 4.8% and a variety of terms ranging from 1 year to 5 years. This credit union serves not only police officers but also the general public.

Alternative lenders

First National

First National is the largest alternative lender in Canada and offers competitive rates, especially for buyers with non-standard situations. The 5-year fixed rate is 4.84%, but the company specializes in variable rates tied to the loan-to-value (LTV) ratio.

First National advantages:

  • Specialization in investment properties (up to 80% LTV)
  • Excalibur program for clients with troubled credit history
  • Mortgages for self-employed individuals without traditional proof of income
  • Maximum $750,000 for rentals in Calgary, Toronto, and Vancouver

First National variable rates:

  • Insured mortgage: Prime - 0.40%
  • Up to 65% LTV: Prime - 0.20%
  • Conventional mortgage: Prime - 0.01%

With the current Prime rate at 4.95%, this translates to actual rates from 4.55% to 4.94%.

Online lenders

Nesto offers some of the best rates on the market — 3.91% for a 5-year fixed mortgage. It is a digital platform that specializes in simplifying the mortgage process through online tools.

Advantages of mortgage brokers

Mortgage brokers in Calgary have access to over 50 different lenders and can secure better terms than you would get by going directly to a bank. According to CMHC, 47% of all mortgages in Canada are arranged through brokers, demonstrating the growing popularity of this channel.

Key advantages of brokers:

  • Access to exclusive rates through wholesale agreements
  • Ability to compare over 175 lenders at once
  • Professional support throughout the process
  • Legal obligation to work in the client's best interests

Best rates through brokers in Calgary:

  • True North Mortgage: 2.99% (exceptionally low promotional rate)
  • Mortio Financial Corp: 3.99%
  • The Mortgage Advisors: 3.87%

Factors affecting rates

  • Credit score — a key factor. Clients with a score of 680+ get the best rates, while a score of 600–679 can increase the rate by 0.15–0.25%.

  • Down payment amount A down payment of 20% or more unlocks access to uninsured mortgages with better rates and avoids the CMHC premium.

  • Employment type Self-employed individuals are eligible for special programs at ATB Financial and First National, although these typically come with higher rates.

Special programs and offers

  • RBC — up to $5,700 in additional value until August 31, 2025 for qualifying mortgages.
  • ATB Financial — up to $6,000 cash on select mortgage products.
  • Many lenders are offering 120-day rate locks during pre-approval — especially important given interest rate volatility.

Rate forecast for 2025

According to forecasts by major banks, interest rates could fall by 75 basis points during 2025. Most experts expect a gradual decline in the Bank of Canada's key rate to 2.25%–2.75% by the end of the year.

This creates favorable conditions for home buyers, especially those considering variable rates or planning to refinance existing mortgages.

At the same time, fixed rates are more dependent on bond yields, which may remain volatile.

Conclusion

Choosing the best lender in Calgary depends on the individual needs, financial situation, and priorities of the buyer. To get the best terms, we recommend:

  • Compare offers from several lenders
  • Use the services of a qualified mortgage broker who has access to the widest range of products on the market.