The Hidden Factors That Could Affect Your Mortgage Rate in Alberta

When people think about mortgage rates, they often focus on the Bank of Canada announcements or the headline rates from big banks. While those are important, there are several less obvious factors that can influence the rate you’re offered—especially here in Alberta. At Steven Murdoch Mortgages, we believe the more you know, the better decisions you can make.

Here are some of the hidden factors that might be shaping your mortgage rate:

1. Your Credit Score and History

A higher credit score generally means lower perceived risk for lenders—and that can translate into better rates. Even small changes to your score can impact the offers you receive, so staying on top of payments and avoiding new debt before applying is key.

2. The Size of Your Down Payment

In Alberta, putting 20% or more down can help you avoid mortgage default insurance, which not only lowers your monthly payment but may also give you access to more competitive rates.

3. Property Type and Location

The type of home you’re buying—condo, detached, rural acreage—can influence the rate you’re offered. Properties in certain areas, or homes that may be harder to resell, sometimes carry higher lending risk, which can affect your rate.

4. Loan-to-Value (LTV) Ratio

Your LTV ratio is the amount you’re borrowing compared to the home’s value. Lower ratios generally mean better rates, because lenders see you as having more equity and less risk.

5. Your Employment Situation

In Alberta’s diverse economy, lenders look closely at job stability. Self-employed applicants, seasonal workers, or those in industries with fluctuating income may face different rate considerations compared to salaried employees.

6. The Lender’s Own Market Position

Not all lenders price their mortgages the same way. Some may offer aggressive rates to gain market share in Alberta, while others might adjust based on their current lending portfolio or funding costs.

7. Local Economic Trends

Alberta’s housing demand, oil and gas market performance, and population growth all subtly influence lender decisions and interest rate competitiveness.

Why This Matters
Your mortgage rate isn’t set by just one or two factors—it’s a combination of personal, property, and market conditions. At Steve Murdoch Mortgages, we work to uncover all the elements affecting your rate and help position you for the best possible outcome.

Whether you’re buying, refinancing, or renewing, our Edmonton-based team will shop the market, negotiate on your behalf, and guide you through the hidden factors so there are no surprises—just smart mortgage solutions.