One of the biggest misconceptions entering 2026 is that buyers should wait for significantly lower interest rates. In reality, the Edmonton real estate market has already adjusted to the current rate environment—and that adjustment is a good thing.
As of early 2026, five-year fixed mortgage rates in Canada are hovering between approximately 3.8% and 4.5%. While higher than pandemic-era lows, these rates are historically moderate and, more importantly, stable. The Bank of Canada has signaled a pause rather than aggressive cuts, citing persistent core inflation tied to shelter and wages.
For buyers, stability matters more than speculation. Predictable borrowing costs allow households to budget accurately, stress-test responsibly, and make long-term decisions without fear of sudden payment shocks. This has filtered out speculative demand and left behind qualified, intentional buyers.
In Edmonton, this environment supports a functioning market. Buyers are no longer racing against rate hikes, and sellers are no longer pricing based on fear of missing a peak. Instead, transactions are grounded in affordability and income fundamentals.
Waiting for rates to return to 2% is unlikely—and risky. Even if rates dip slightly later in the cycle, price competition often increases at the same time, eroding any monthly payment savings.
For homeowners renewing mortgages in 2026, planning is essential. Budgeting for rates to remain near current levels throughout the term is prudent, rather than assuming future relief.
Ultimately, Edmonton’s affordability advantage means that stable rates support demand rather than suppress it. In many cases, certainty creates more opportunity than cheaper money ever did.
Read the next article in our 9-part series here.
Connect with Ryan and the Real Living team for a personalized consultation. Our data-driven approach can provide clarity on your buy, hold or sell strategy for 2026 and beyond.