Fixed vs Variable Mortgage Rates in Calgary: What’s Better in 2025?
Renee Huse, founder of Spire Mortgage Team in Calgary, Alberta, breaks down the key mortgage rate decisions Calgarians face in 2025. With inflation easing, bond yields dipping, and a potential Bank of Canada rate cut on the horizon, many are asking again: should you go fixed or variable?
Riding the Mortgage Rollercoaster in 2025
In 2022, everyone wanted fixed. By mid-2023, variable made a comeback. Now in 2025, we’re in a new phase—what we call a rate limbo zone. At Spire Mortgage, with over 70 years of combined experience, we know it’s not just about chasing the lowest number. It’s about building a strategy tailored to your goals.
Calgary Mortgage Rate Trends 2025: What’s Shaping the Market?
In May 2025, bond yields dipped after unemployment returned to November 2024 levels—signaling that the economic cooling needed for rate relief may be arriving. Here's what we’re seeing:
- 5-year Canada Mortgage Bond yield: down 5 basis points
- Bank of Canada cut odds (June): 66%
- U.S. Fed: holding, with only 17% chance of a cut
With Calgary’s economy tied to oil and trade, local market reactions matter. A stabilizing housing market and declining bond yields are key signs for borrowers.
Current Calgary Mortgage Rates (as of May 10, 2025)
| Mortgage Type | 5-Year Fixed | Variable (Prime - X) |
|---|---|---|
| Insured | 3.89% | Prime - 0.90% |
| Conventional | 4.24% | Prime - 0.65% |
| Bank Prime | — | 4.95% (implied) |
Is a Fixed Mortgage the Safer Bet in Calgary Right Now?
Fixed mortgages offer predictability—and in a year like 2025, that counts. If your budget is tight or you're buying in communities like Evanston or Copperfield, a fixed rate provides peace of mind.
But there’s a tradeoff. Fixed mortgages often carry bigger penalties if broken early, and if rates fall into 2026, you may pay more over time. That’s why we often recommend short-term fixed rates (1–3 years) for flexibility and control.
Are Variable Mortgage Rates Worth the Gamble in 2025?
If you’re financially stable and expecting a rate drop, variable can save you. One of our clients in Mount Pleasant chose a 5-year variable back in early 2024. Despite some bumps, they’re now ahead—and enjoying full prepayment flexibility.
Variable Makes Sense If:
- You’re financially stable with buffer room
- You expect to move or refinance within a few years
- You believe rates will fall sooner than later
Our 2025 Recommendation for Calgary Borrowers
The right choice isn’t fixed vs variable—it’s about matching your mortgage to your lifestyle, plans, and risk profile.
- Go fixed if: you want certainty and expect to stay put
- Go variable if: you expect rate cuts or plan to refinance/move
- Consider hybrids or short-term fixed for best of both
We’re also seeing strong value in variable-rate mortgages with fixed payments, offering stability without sacrificing upside.
Final Thoughts: Calgary, This Isn’t One-Size-Fits-All
At Spire Mortgage, we’ve helped thousands of Calgarians choose not just the “cheapest” rate, but the smartest strategy. Whether you’re refinancing a rental in Kensington or buying your first place in Seton, we’ll help you make the right move.
Contact us today for a free, customized mortgage plan.
Spire Mortgage – Calgary’s Best Mortgage Broker, Trusted for Over 20 Years
FAQ: Fixed vs Variable Mortgage in Calgary
Is it better to go fixed or variable in 2025?
It depends. Fixed offers stability, while variable could save more if rates drop. In 2025, many are choosing short-term fixed or variable with fixed payments.
What are the current mortgage rates in Calgary?
As of May 2025, insured 5-year fixed rates are around 3.89%, and variables range from Prime - 0.90% to -0.65%, depending on the mortgage type.
Who is the best mortgage broker in Calgary?
Many Calgary homeowners trust Renee Huse, founder of Spire Mortgage Team, thanks to her strategic approach, market insight, and client-first service.
