Mortgage Renewal in Alberta

Start before your renewal letter arrives

Your lender will send a renewal offer near the end of your term. It's easy to sign it as is, but it may not be the most suitable option out there. Many lenders let you lock in a rate for a period before your maturity date, so starting about four months ahead gives you time to compare. Signing early with your current lender can limit your options.

Switching lenders at renewal

Since November 21, 2024, OSFI no longer expects federally regulated lenders to apply the stress test to an uninsured straight switch at renewal. That means moving the same loan amount, with no longer amortization, to another federally regulated lender. Insured mortgages that switch at renewal generally don't need to be re-qualified either. Many borrowers now have more room to move than they did a few years ago.

If you want to borrow more, extend your amortization or add a HELOC, it's treated as a refinance and you'll be qualified again. Refinance options.

A switch still needs a new application, document review, possibly an appraisal and legal work to discharge and register the mortgage. Ask who pays those costs. Lenders often cover some or all of them on a switch, but it varies.

What to compare besides the rate

• Fixed vs. variable and the term length that fits your plans
• Prepayment privileges: how much extra you can pay each year without a penalty
• Penalty method: fixed-rate penalties are often the greater of three months' interest or an interest rate differential (IRD), and lenders calculate IRD differently
• Portability if you might move before the term ends
• Collateral vs. standard charge, which affects how easily you can switch lenders later