Your new payment
Compare today's payment with the renewal payment on the same balance and remaining amortization, and see what the difference does to your monthly cash flow.
Alberta mortgage renewal
Renewal offer in hand?
Compare before you sign.
Renewal is usually the one point in your mortgage when you can move to another lender without a prepayment penalty. That makes it worth a proper comparison: payment, term, flexibility and what you expect to do in the next few years.
Check these three things before you renew.
Term and rate type
If you might sell, move or refinance within a few years, a long fixed term can be expensive to leave. Match the term and rate type to what you actually expect to happen.
Flexibility and costs
Look at prepayment privileges, how the penalty is calculated, portability, and any fees to switch. A slightly lower rate with tighter terms is not the same offer.
A renewal timeline.
- About four months before maturity
- Note your balance, rate, maturity date and remaining amortization. Many lenders will hold a rate for a set period before your term ends, so this is a good time to start comparing.
- At least 21 days before maturity
- A federally regulated lender, such as a bank, must send your renewal statement at least 21 days before the end of your term. Read it closely, including whether the lender plans to renew automatically.
- Before you sign
- Put each offer side by side on the same balance and amortization. If you do nothing, an automatic renewal may not give you the best rate or terms available.
Switching lenders at renewal.
Moving your mortgage at maturity does not trigger a prepayment penalty. Since November 2024, a straight switch, meaning the same balance and amortization, generally no longer has to requalify under the stress test. The new lender still reviews your application, and there can be legal, appraisal or discharge costs. Some lenders cover part of these on a switch, so ask before you compare rates.
Frequently asked questions
When should I start comparing renewal options?
About four months before your term ends. That leaves time to compare offers, hold a rate if your lender allows it and gather documents if you decide to switch.
Do I have to pass the stress test to switch lenders at renewal?
Generally not for a straight switch with the same balance and amortization. If you add money or extend the amortization, it is treated as a new mortgage and you need to qualify again.
Is the lowest rate always the best renewal offer?
Not always. Term length, prepayment privileges, penalty calculation and switching costs can matter more than a small rate difference, especially if your plans may change.
Sources: FCAC — Renewing your mortgage
Kyungman Kim · Reviewed · General information only. It is not mortgage advice or an approval, and lender rules and programs can change.
Bring your renewal offer.
We will compare it together.
Share your current mortgage and renewal statement, and we will look at the payment, term and flexibility side by side.
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