5 Questions to Ask Your Alberta Mortgage Broker

Moving to Alberta or buying a home here can feel both exciting and a bit daunting. I’m with Merge Mortgage Group and I’ve helped clients from BC, Ontario and newcomers settle into Alberta’s booming markets. Over the years I’ve found that asking five key questions up front gives you confidence, uncovers hidden costs and helps you make the most of what Alberta has to offer.

Alberta offers a low cost of living, steady home-price growth, low taxes and vibrant secondary markets in cities like Red Deer, Lethbridge and Grande Prairie. Whether you’re relocating for a job in Calgary’s energy sector, building your first home in Edmonton or investing in a rental in Medicine Hat, here’s what you need to know before you commit.

1. Which Mortgage Type Works Best for Your Alberta Plans?

Every mortgage falls into fixed, variable or a hybrid structure. A fixed-rate mortgage keeps your interest and payments the same throughout your term, which makes budgeting simple if you plan to stay long-term in Calgary or Edmonton. A variable-rate mortgage often starts lower but can rise or fall with changes to the Bank of Canada’s key rate. That option might suit you if you’re comfortable with some fluctuation and expect to sell or refinance within a few years. A hybrid mortgage blends both approaches, letting you split your loan between fixed and variable portions and balance stability with potential savings.

Think about how long you intend to live in your Alberta home and how comfortable you are with possible rate changes before you decide.

2. What’s the Full Cost, Posted Rate versus APR?

Lenders often advertise attractive discounted rates but that’s not the complete picture. The posted rate is their undiscounted list rate and it’s what penalties are calculated against if you break your mortgage early. Your discounted rate is what you actually pay each month. The annual percentage rate or APR factors in most upfront fees—like application and administration charges—so you know the true cost over the full term.

When you compare APRs across at least three lenders or brokers, you’ll see which mortgage really costs you the least in the long run. That clarity helps whether you’re buying in Alberta’s hot secondary markets or refinancing an existing mortgage.

3. What Fees and Penalties Should You Budget For?

Beyond your interest rate there are a variety of fees that can add hundreds or even thousands of dollars to your closing costs. You may encounter:

• Application fees for processing your file

• Appraisal and legal fees for property valuation and title searches

• Property transfer taxes if you’re moving to another province

• Discharge fees when you pay off or transfer your mortgage

If you decide to break your term early or pay more than your allowed prepayment limit, your lender will charge a penalty based on the posted rate. Ask for a full fee schedule in writing so you can budget accurately and avoid surprises later on.

4. How Much Can You Really Afford? Stress Test and Debt Ratios

Canada’s mandatory stress test makes sure you could handle higher rates in the future. Lenders also evaluate two key ratios:

• Gross Debt Service (GDS) ratio, which compares your housing costs—mortgage payments, property taxes, heating—to your income

• Total Debt Service (TDS) ratio, which compares all your debts—housing, credit cards, car loans—to your income

By plugging your income, down payment and existing debts into these measures I can tell you both the maximum mortgage you qualify for and a comfortable payment level that won’t stretch your budget. That way you won’t find yourself cutting back on Alberta’s outdoors adventures or family outings if rates rise or unexpected costs pop up.

5. What Prepayment Options and Limits Apply?

If extra cash comes your way—a relocation bonus, inheritance or savings windfall—you’ll want to use it to pay down your mortgage faster. Many lenders allow an annual lump-sum payment of ten to twenty percent of your original mortgage amount and let you increase your regular payments by up to twenty-five percent. Exceed those limits and you may face a penalty calculated using the posted rate.

I help my clients map out five- and ten-year prepayment strategies so they can see exactly how extra contributions accelerate equity growth, reduce interest costs and let them own their Alberta home sooner.

Putting It All Together

Asking these five questions when you meet your Alberta mortgage broker or lender gives you transparency on rates, fees and flexibility. That means no surprises and no guessing if you’re getting the best deal in Calgary, Edmonton or any of Alberta’s emerging markets.

If you’re ready to explore mortgage options for building a home in Sherwood Park, investing in a rental in Red Deer, or refinancing your existing mortgage in Lethbridge, let’s chat. Call us at 587.370.4311 or email jarrod@mergemortgage.ca. I’ll walk you through current rates and tailor a mortgage solution that fits your goals and keeps your Alberta lifestyle on track.