Mortgage Renewal in Alberta:
2025 Complete Guide
Everything you need to know about renewing your mortgage — timeline, documents, rate shopping, and how to save thousands by not auto-signing.
- Start shopping 120 days before maturity — not 30 days
- Switching lenders at renewal costs nothing (no discharge penalty)
- Typical savings: $3,000–$8,000 over a 5-year term on $400K
- Deane shops 50+ lenders to find your best rate
What Is Mortgage Renewal?
A mortgage renewal occurs when your current mortgage term ends — typically after 1, 3, or 5 years — and you need to either renegotiate the terms with your current lender or move to a new one. Renewal is not the same as paying off your mortgage; your amortization (the total repayment period, usually 20–25 years) continues; only the term resets.
Renewal is one of the most financially significant decisions a homeowner makes, yet it's often treated as a five-minute formality. The lender sends a letter, you sign and return it, done. The problem: that signed letter almost always leaves money on the table. Banks offer posted rates — not their best rates — and rely on most customers not shopping around.
The 120-day window before your maturity date is your opportunity. You can legally shop your mortgage to any lender in Canada, compare offers, and make a fully informed decision. A mortgage broker like Deane does this simultaneously across 50+ lenders — at no cost to you.
Your Renewal Timeline: 120 Days Before Maturity
Don't wait until the final month. Each stage has specific actions that maximize your outcome.
120 Days Before Maturity
Start HereThis is when your renewal shopping window opens. Most lenders will begin conversations at this point, and you can lock in a rate while keeping the option to take a better one if rates drop.
- Request your current lender's renewal offer in writing
- Note your current rate, balance, and remaining amortization
- Contact Deane to begin shopping 50+ lenders simultaneously
- Assess whether renewal or refinancing better fits your needs
90 Days Before Maturity
Rate ShoppingBy now you should have multiple rate quotes to compare. The competition between lenders works in your favour — having a broker offer in hand gives you leverage even with your current lender.
- Compare your lender's offer against broker-sourced alternatives
- Calculate total cost of each option (rate, fees, terms)
- Decide: stay with current lender or switch?
- If switching, begin gathering documentation
60 Days Before Maturity
Decision TimeThis is the ideal window to make your final decision and submit your application. Enough time to process paperwork without the pressure of a deadline.
- Submit formal renewal or switch application
- Provide required documentation to new lender if switching
- Review and sign commitment letter
- Confirm maturity date and transition timeline with broker
30-Day Sprint
Final StepsFinalize all paperwork and confirm the transition. If switching lenders, your broker coordinates the payoff of your current mortgage and funding from the new lender seamlessly.
- Confirm all documentation received and approved
- Review final mortgage documents carefully
- Sign and return all documents before deadline
- Confirm closing date and funding instructions
Documents You'll Need
Gathering these documents early speeds up your application and prevents last-minute delays. If you're staying with your current lender, you may need fewer — but if you're switching, have these ready.
- Recent pay stubs (last 2–3) or T4 slips
- Two years of Notice of Assessment (NOA) from CRA
- Proof of employment letter (if applicable)
- Property tax bill (current year)
- Recent utility bills (confirm ownership)
- Current mortgage statement (balance, rate, maturity date)
- Bank statements (last 90 days)
- Photo ID (driver's license or passport)
Will My Rate Change?
Almost certainly yes. Your new renewal rate is based on current market conditions — not your old rate. Whether that's better or worse depends on:
Bank of Canada Policy Rate
The primary driver of variable rates and heavily influences fixed rates.
Bond Market Yields
5-year Government of Canada bond yields drive 5-year fixed mortgage rates.
Your Credit Score
A higher score since your last mortgage means better rates available to you.
Loan-to-Value Ratio
More equity = lower lender risk = better rates. Your LTV improves with each payment.
Lender Competition
More lenders bidding on your business = better terms. This is what a broker does for you.
Your Three Renewal Options
Understanding your options is the first step. Here's how each path compares.
Stay with Current Lender
Lowest FrictionPros
- Fastest process — sign and done
- No new application required
- No stress test for insured mortgages
Cons
- Your bank's first offer is almost never their best
- No competition — you're at their mercy
- Could pay 0.2–0.5% more than market
Switch to New Lender
Best ValuePros
- Access to 50+ lenders via broker
- Competitive rates — lenders bid for your business
- Typical savings: $3,000–$8,000 over 5-year term
- No discharge penalty at renewal
Cons
- Requires new application and documentation
- Legal transfer takes 2–4 weeks
- Slight admin effort
B Lender / Private Mortgage
Credit ChallengedPros
- Accessible when A-lenders decline
- Faster approval (sometimes 10 days)
- Flexible income documentation
- Path to rebuild credit, return to A-lender
Cons
- Rates higher (+1–3% above prime)
- Higher fees typically apply
- Best used as a bridge, not permanent
See How Much You Could Save
Enter your current balance and rate to get an instant savings estimate.
5 Common Renewal Mistakes
These are the most expensive habits in Canadian homeownership.
Auto-Signing the First Offer
Your current lender's initial renewal offer is almost never their best rate. Banks rely on inertia — 70% of Canadians auto-renew without shopping. A single phone call to a broker can save thousands.
Waiting Until the Last Month
Leaving renewal to the final 30 days means less negotiating time and more stress. Start 120 days out to maximize your options.
Ignoring Discharge Penalties (If Refinancing)
If you're breaking your mortgage mid-term rather than at renewal, understand the penalty first. Interest rate differential (IRD) penalties can exceed $10,000.
Only Comparing Rates (Not Total Cost)
A lower rate with high fees or restrictive prepayment privileges can cost more overall. Compare the full cost of each option.
Not Shopping if Credit Has Changed
If your credit has improved since your last mortgage, you may qualify for significantly better rates. Always get a fresh market assessment at renewal.
Sarah T. — Calgary Homeowner
Sarah was 90 days from her renewal on a $350,000 mortgage. Her bank offered her a 5.49% fixed rate. She had auto-renewed twice before without shopping.
Working with Deane, Sarah switched to a monoline lender at 4.89% on a 5-year fixed. The switch took 3 weeks and cost nothing. Her payment dropped by $120/month — $7,200 over her 5-year term.
Frequently Asked Questions
Schedule Your Free Consultation with Deane
Deane will review your renewal situation and shop 50+ lenders on your behalf — free.
Get Your Renewal Rate Options
Tell Deane about your renewal. He'll come back with a full rate comparison within 24 hours.
Ready to Find Your Best Renewal Rate?
Free service. Access to 50+ lenders. Deane handles everything — you just pick the best offer.
Related Guides & Tools
Renewal Timeline: Plan 120 Days Ahead
Month-by-month checklist
How to Compare Renewal Rates
Shopping strategy from 50+ lenders
Self-Employed Renewal Tips
Documentation guide
Should You Take the Switch Offer?
Cashback, rate discounts analyzed
Refinance vs Renewal Guide
Which saves you more?
Renewal Savings Calculator
See your potential savings instantly