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Alberta Mortgage Rates December 2025: Bank of Canada Holds at 2.25%

December 10, 2025

Stable Alberta mortgage rates in 2026 make it a good time to buy a home, refinance, or plan ahead with confidence.
Canadian flag and wooden house model display.

By Josh Tagg, mortgage broker · Mortgages for Less with INDI Mortgage · Calgary, serving all of Alberta ·

The Bank of Canada has kept its main interest rate at 2.25 percent. For Albertans buying a home or refinancing a mortgage, this means borrowing costs are stable. Knowing mortgage rates are unlikely to rise suddenly helps you plan your next move with confidence.

The Canadian economy is stronger than expected. GDP grew 2.6% in the third quarter, and the unemployment rate fell to 6.5% in November. Inflation is steady around 2%, which means prices are stable.

Quick answer: On December 10, 2025, the Bank of Canada kept its policy rate at 2.25% and called that “about the right level.” The economy was stronger than expected: GDP grew 2.6% in the third quarter, unemployment fell to 6.5% in November and inflation was steady around 2%. For Albertans, that meant stable borrowing costs heading into 2026, which made it easier to plan a purchase or review a refinance.
2.25%
Bank of Canada policy rate, held Dec. 10, 2025
2.6%
GDP growth, third quarter
6.5%
Unemployment rate, November
~2%
Inflation

What does the Bank of Canada rate hold mean for Alberta homebuyers?

A woman in a navy sweater reviews a printed document at a kitchen table with a pen, calculator, orange mug and closed laptop, snow outside the window
A rate hold gives first-time buyers and families looking to refinance a steadier number to plan around.

Even though the economy is improving, some areas are still weak. Trade and certain jobs remain uncertain. The Bank of Canada says the current rate is “about the right level” to keep the economy stable and will act if growth or inflation changes.

For Albertans, this is important. First-time homebuyers and families looking to refinance can plan ahead knowing mortgage rates are not likely to jump soon. This creates a more predictable housing market for Calgary, Edmonton, and other areas in Alberta.

What is happening with home prices and refinancing in Alberta?

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Home prices in Canada had dropped only about 1.4% from their peak when the Bank held at 2.25%.

After several rate cuts earlier this year, rates are now at 2.25%. Home prices in Canada have only dropped slightly—about 1.4% since the peak.

With borrowing costs stable, it’s a good time to think about refinancing your mortgage to lower monthly payments or secure a better rate. First-time buyers can also act with more certainty, knowing rates are not likely to rise quickly.

What should Alberta homebuyers and homeowners expect in 2026?

The Bank of Canada expects moderate economic growth in 2026, with inflation staying near 2 percent. Upcoming events like the federal budget and trade talks with the U.S. could influence future rates, but for now, the Bank is cautious.

For Alberta homeowners and homebuyers, this period of stable rates is an opportunity. It’s a good time to review your mortgage, plan a home purchase, or consider refinancing to take advantage of the steady borrowing costs. Contact me to go over your personal circumstances and the options available to you.

How an Alberta mortgage broker helps when rates are steady

Stable rates give you time to plan. Here’s what a broker does with that time:

  • Review your current mortgage against what lenders are offering today.
  • Run the numbers on a refinance, including the cost of breaking your term, before you commit.
  • Set up a pre-approval with a rate hold so your purchase budget is settled before you shop.
  • Compare fixed and variable options across banks, monolines and alternative lenders.
  • Explain each Bank of Canada announcement and what it changes for your file.
  • Find a lender when your own bank has said no.

Planning a purchase or a refinance in Alberta?

Go over your own numbers and the options available to you at today’s rates.

Apply Online → Book a Discovery Call → Serving Calgary, Edmonton & all of Alberta · Mortgages for Less with INDI Mortgage

Questions about the December 2025 rate hold

What did the Bank of Canada announce on December 10, 2025?
It kept its main interest rate at 2.25 percent. The hold followed several rate cuts earlier in 2025.
Why did the Bank of Canada hold instead of cutting again?
The Canadian economy was stronger than expected. GDP grew 2.6% in the third quarter, the unemployment rate fell to 6.5% in November and inflation was steady around 2%. The Bank said the current rate was “about the right level” and that it would act if growth or inflation changed.
What did the rate hold mean for Alberta homebuyers?
First-time homebuyers and families looking to refinance could plan ahead knowing mortgage rates were not likely to jump soon. That made for a more predictable housing market in Calgary, Edmonton and other areas in Alberta.
Had home prices fallen much by December 2025?
Only slightly. Home prices in Canada had dropped about 1.4% since the peak.
Was it a good time to look at refinancing?
With borrowing costs stable, it was a good time to review a mortgage and think about refinancing to lower monthly payments or secure a better rate. Whether a refinance makes sense depends on your own numbers.
What could have moved rates in 2026?
The Bank of Canada expected moderate economic growth in 2026, with inflation staying near 2 percent. Events like the federal budget and trade talks with the U.S. could influence future rates, and the Bank was cautious.

This article was written in December 2025; interest rates, forecasts and market conditions have changed since then. It is general information for Alberta homebuyers and homeowners, not financial, mortgage, real estate or legal advice. Rates, products and qualification rules vary by lender and can change. Please speak with a licensed mortgage professional about your specific circumstances. Mortgages for Less with INDI Mortgage.

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