Alberta Mortgage Rates August 2026: The Bank Is Still on Hold, but Fixed Rates Are Climbing
The Bank of Canada’s policy rate has not moved since October 30, 2025. Six consecutive decisions, most recently on July 15, have all been holds (Bank of Canada, 2026). At this point the policy rate is the least interesting number in the mortgage market.
The number that matters moved sharply this month. The 5-year Government of Canada bond yield climbed from 3.17% on August 4 to 3.34% on August 10, its highest level since the spring, and has held near that level since (Bank of Canada, 2026). Fixed mortgage rates are priced off that yield. The cheap window that opened in June, when the same yield touched 2.99%, has closed.
If you are renewing this year or buying this fall, that shift matters more to your payment than anything the Bank does on September 2.
Key Takeaways
– The Bank of Canada held at 2.25% on July 15, the sixth consecutive hold. Prime stays 4.45%.
– The 5-year GoC yield hit 3.34% on August 10 and sits at 3.30%, roughly 31 basis points above June’s low of 2.99%.
– Fixed mortgage rates follow bond yields, not the policy rate. Pricing has drifted up since late July.
– Edmonton’s average sale price fell to $475,079 in July, down 1.8% from June, while sales dropped 11.0% year over year (REALTORS Association of Edmonton, 2026).
– Next Bank of Canada decision: September 2, 2026.
The Policy Rate Is Not the Story Anymore
Seven months into 2026, the Bank of Canada has changed nothing. The overnight rate sits at 2.25% and prime sits at 4.45%, exactly where they were in January.
| What it affects | Where it stands |
|---|---|
| Policy rate | 2.25% (unchanged since October 30, 2025) |
| Prime rate | 4.45% |
| Variable-rate payments | Unchanged for seven months |
| Next decision | September 2, 2026 |
For anyone in a variable-rate mortgage, this has been a quiet year. Your payment has not moved and will not move until the Bank acts.
For anyone shopping a fixed rate, it has been anything but quiet, because fixed pricing has been moving the entire time without a single policy change behind it.
What Actually Happened to Fixed Rates This Month
Here is the 5-year Government of Canada yield over the past two weeks:
| Date | 5-year GoC yield |
|---|---|
| July 28 | 3.16% |
| July 31 | 3.27% |
| August 4 | 3.17% |
| August 6 | 3.22% |
| August 7 | 3.26% |
| August 10 | 3.34% |
| August 11 | 3.32% |
| August 12 | 3.30% |
Source: Bank of Canada, 2026.
Put that beside where the year has been. In June the same yield traded as low as 2.99%. Today it is roughly 31 basis points higher. Lenders price five-year fixed mortgages off this yield plus a spread, so a move of that size works its way into mortgage pricing within days to weeks.
At the end of July, best available five-year fixed pricing in Alberta was near 3.94%. Yields have risen since, so current pricing has drifted above that. Rates change daily and depend on your down payment, amortization, property type, and credit profile, so for a live number on your actual scenario see current Alberta mortgage rates or call 780-974-1270.
The practical takeaway: if you need a mortgage in the next four months, get a rate hold now. Holds are free, run 90 to 120 days, and are asymmetric in your favour. If yields keep climbing you keep today’s rate. If they fall you re-shop and take the better one. We explain the mechanics in rate holds explained.
Why Are Fixed Rates Rising When the Bank Is on Hold?
This is the question I get most often, and the answer is genuinely useful once it clicks.
The Bank of Canada sets the overnight rate. That drives prime, which drives variable mortgage rates. When the Bank holds, your variable payment holds.
Fixed rates come from a different place entirely. Lenders fund five-year fixed mortgages by borrowing in the bond market, so the cost of a five-year mortgage tracks the five-year Government of Canada yield. That yield is set by bond traders reacting to inflation data, economic growth, government borrowing, and global rates. It moves every single day, whether or not the Bank of Canada meets.
That is why you can have a year like this one: policy rate flat as a board for seven months, fixed rates moving several times.
Watching only the Bank of Canada announcements means you find out about fixed-rate changes after they have already happened.
Edmonton in July: The Spring Market Is Over
July marked a clear turn, and the REALTORS Association of Edmonton said so directly.
| Metric | July 2026 | Change |
|---|---|---|
| Average residential price | $475,079 | −1.8% from June, +2.6% YoY |
| Sales | 2,535 | −7.6% from June, −11.0% YoY |
| New listings | 4,258 | −1.0% from June, +0.6% YoY |
| Inventory | — | +0.9% from June, +17.9% YoY |
| MLS HPI benchmark | $429,100 | −0.3% from June, 0.0% YoY |
| Detached average | $585,726 | −1.3% from June, +1.2% YoY |
Source: REALTORS Association of Edmonton, August 5, 2026.
The Board Chair’s read was that decreased sales despite ample inventory, softening prices, and longer days on market are strong indicators that demand is subsiding, and that activity is unlikely to reach the same volume again this year.
The benchmark price is the number to watch. At 0.0% year over year, the MLS Home Price Index says a typical Edmonton home is worth exactly what it was worth a year ago. The average price is still up 2.6%, but that is the sales mix talking, not appreciation.
What this means on the ground: buyers have more leverage in August than they had in May, and considerably more than they had a year ago. Homes are sitting longer, sellers are more willing to negotiate, and you can put reasonable conditions in an offer without losing the property. That is a genuinely better buying environment. The catch is that the financing side is moving against you at the same time, which is why locking a rate while you shop matters more this month than it did in June.
If You Are Renewing This Year, Read This Part
August is when renewal season gets serious, because anyone with a maturity date between now and December should already be shopping.
Rising fixed rates make this urgent in a way it was not two months ago. If your term is ending and you wait until your maturity date to act, you take whatever pricing exists on that day. If you start now, you can hold a rate at today’s level and protect yourself against further increases.
Three things worth knowing:
- You can hold a renewal rate 120 days out. That covers every maturity date through early December.
- You do not have to renew with your current lender, and at maturity there is no prepayment penalty for moving.
- Your lender’s mailed offer is a starting point, not a market rate. The gap between it and what a broker can source is frequently 30 to 50 basis points.
We have laid out the full process, including what to do if your renewal rate is materially higher than your expiring one, in our complete guide to mortgage renewal in Alberta.
Fixed or Variable in August 2026?
Fixed is more expensive than it was in June and may get more expensive still if yields keep climbing. That argues for locking sooner rather than waiting for a better entry point that the bond market is not currently offering.
Variable sits at prime minus a discount, and prime has not moved in seven months. The bet is that the Bank cuts on September 2 or later in the year. Nothing in six consecutive holds suggests that is imminent, so you may carry the uncertainty for a long time without being paid for it.
For most buyers and renewers this month I lean fixed, and the reason is timing rather than ideology. When the underlying yield is rising, the option to lock is worth more than the option to wait. Our guide on when to lock your mortgage rate walks through the decision, and fixed versus variable covers the full comparison.
Frequently Asked Questions
What is the Bank of Canada rate in August 2026?
2.25%. It has been unchanged since October 30, 2025, through six consecutive decisions, the most recent on July 15, 2026.
When is the next Bank of Canada announcement?
September 2, 2026. The next Monetary Policy Report follows on October 28, 2026.
What is the prime rate in Canada right now?
4.45%, unchanged. Variable mortgage rates are quoted as prime minus a discount.
Why are fixed mortgage rates going up if the Bank of Canada is on hold?
Fixed rates track the 5-year Government of Canada bond yield, not the policy rate. That yield rose from 3.17% on August 4 to 3.34% on August 10, and fixed mortgage pricing follows it.
Are Edmonton house prices falling?
The average sale price fell 1.8% from June to July, and the MLS benchmark is flat year over year at 0.0%. Prices are not falling sharply, but appreciation has stopped.
Should I lock a rate now or wait?
If you need a mortgage within 120 days, lock. A rate hold costs nothing, protects you if yields keep rising, and you can still take a lower rate if they fall.
Get Your Rate Held Before September
If you are buying this fall or renewing before year-end, the useful action this month is holding a rate while pricing is still where it is. It costs nothing and it removes the risk that the bond market keeps moving against you.
Call 780-974-1270 or get in touch and we will price your scenario today.
About the author: Daniel De Sousa is co-owner of Metro Mortgage Group and an Edmonton mortgage broker specializing in first-time buyers, pre-approvals, and rate commentary across Alberta. Metro Mortgage Group has served Edmonton, Calgary, and greater Alberta since 2011 with 229 five-star Google reviews.
