We saw something refreshing last week: a calm, predictable bond market. After the rollercoaster we’ve had in recent months, stability like this brings clarity—and that’s fantastic news for anyone navigating mortgages and housing right now.
But let’s look forward. We’ve compiled some insightful forecasts from Mortgage Professionals Canada (MPC) that provide a glimpse into where Alberta’s housing market is headed next.
Alberta’s Growth Forecast: The Numbers That Matter
Here’s what the future looks like in Alberta’s real estate market:
- 25,800 New Residents by 2027
Alberta’s population is set to grow by approximately 2.5% over the next two years. That puts us on track to reach nearly 5 million residents by 2027. With more people calling Alberta home, expect continued strong demand for quality housing—great news for homeowners and investors alike. - Average Home Price Rising to $506K in 2025
MPC predicts the average house price in Alberta will reach about $506,000 in 2025—a moderate yet positive increase of 2.7% compared to 2024. This steady rise indicates a robust and resilient market, making now a great time to strategize purchases. - Housing Starts Expected at 39,500 in 2025
While projected housing starts are down 17.2% from 2024, a forecast of 39,500 new homes still signals active growth. It reflects balanced market conditions, aligning development with realistic demand.
What does this mean for you and your clients? Confidence. Alberta’s market is poised for healthy, sustainable growth—a reassuring backdrop for strategic decisions.
Navigating Timing and Conditions: How to Close Smarter Deals
Currently, lenders typically respond quickly, with approvals often taking just 1–2 days and document completion within a couple of more days. Need a faster turnaround? Please let us know—we’ll work proactively to ensure your timelines are met.
| Mortgage Term | Down Payment | Interest Rate |
|---|---|---|
| 5-Year Fixed | 5-19% | 3.99% – 4.19% |
| 5-Year Fixed | 20-34% | 4.34% – 4.49% |
| 5-Year Fixed | 35%+ | 4.09% |
| 5-Year Variable | 20-34% | 4.45% – 4.65% |
| 5-Year Variable | 5-19% | 4.00% – 4.45% |
Why Every First-Time Homebuyer Should Consider an FHSA
Let’s talk about one of the most valuable financial tools available right now—the First Home Savings Account (FHSA).
Here’s the scoop:
- Tax Benefits: Deposits of up to $8,000/year (max $40,000 total) earn immediate tax deductions, similar to RRSP contributions.
- Growth Without Taxes: Investments within an FHSA grow tax-free—just like a TFSA—whether in mutual funds, GICs, or other eligible assets.
- Withdraw Tax-Free: When buyers purchase their first home, withdrawals are entirely tax-free.
Why It’s Powerful:
Imagine this scenario: a single buyer deposits the full annual amount ($8,000), potentially receiving around $4,000 back in tax deductions (depending on their tax bracket). A couple could deposit up to $16,000 annually, generating tax deductions of around $8,000 per year.
Moreover, even gifted funds from parents qualify. Clients can deposit gifted money, claim the tax deduction, and withdraw later for the down payment. It’s smart, strategic, and genuinely beneficial.
If you’re working with first-time buyers, the FHSA isn’t just recommended—it’s a must-consider tool for their financial planning.
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