January 6, 2025
For Canadians in Alberta in 2025, securing mortgage approval requires a proactive approach, given the evolving economic landscape and unique regional factors. Alberta’s economy, traditionally tied to energy production, is diversifying with increased investment in technology and renewable energy. However, fluctuations in oil prices and global economic trends still influence employment and income stability, factors lenders scrutinize closely. Here are strategies to improve your chances of getting a mortgage approval in Alberta this year.
Strengthen Your Credit Profile
Your credit score is one of the first things lenders consider. In 2025, many Albertan lenders are looking for scores above 680 for standard mortgage approvals, though some programs accommodate lower scores with higher down payments. To enhance your credit profile:
Save for a Larger Down Payment
Offering a larger down payment—more than the minimum 5% for homes under $1 million—can reduce your loan-to-value ratio and signal financial stability to lenders. Programs like the First-Time Home Buyer Incentive (FTHBI) can provide additional support, but be aware of its repayment terms.
Demonstrate Stable Income
Employment stability is critical for mortgage approval. In Alberta’s 2025 job market, provide clear documentation, such as:
Manage Your Debt-to-Income Ratio (DTI)
Keep your gross debt service (GDS) ratio under 35% and your total debt service (TDS) ratio under 42%. Paying down existing loans and avoiding new debt before applying can significantly improve your chances.
Work with a Mortgage Broker
Partnering with a local mortgage broker familiar with Alberta's market can provide invaluable guidance. Brokers often have access to niche lenders catering to specific industries or unconventional income sources.
Source: Absolute Mortgage Team