I’m an Alberta mortgage broker, and I hear this almost every week from homebuyers and homeowners:

“We’re just going to wait until interest rates come down.”

It seems smart—lower rate, lower mortgage payment. But in Alberta, waiting for rates to drop can sometimes cost you more. I see this with buyers in Edmonton, Calgary, and surrounding areas every year.

What happens when rates drop

When rates fall, more buyers enter the market. Competition rises, and home prices often increase. That means a lower rate might come with a higher home price.

Imagine a $500,000 home today. The monthly payment fits your budget. You wait, hoping rates drop. A few months later, rates fall by 0.5%, but similar homes now sell for $525,000. Your monthly payment may stay the same or even increase, and you face more competition. In some cases, the total cost is higher.

Timing the market is risky

Trying to perfectly time rates is very difficult. Planning works better. Understand what you can afford, your long-term goals, and your options if the market changes.

Real estate slows in late fall and winter, giving buyers more room to negotiate. Spring and early summer bring more activity and competition. Rate drops often coincide with this seasonal increase, making spring expensive even if rates fall.

When waiting makes sense

Waiting can be smart if you need to improve credit, save for a down payment, or your income is changing. In these situations you’re not waiting for a certain rate, you’re actively waiting for your existing circumstances to improve. The key is having a clear plan.

What I recommend

Rather than waiting for the perfect rate, get informed now. Get pre-approved, understand payments at today’s rates, and build flexibility into your mortgage. If rates drop later, there are options to adjust or refinance. If prices rise, you’re already in the market.

Interest rates will drop eventually, but higher prices and competition may come with them. For many Alberta buyers, the real cost of waiting is not the rate but the added price and lost opportunities.

Even if you’re not buying now, having a mortgage plan puts you in a stronger position when the market shifts. I can help you understand your options so you can make confident decisions at your own pace. Reach out to me today!