This applies to you if you:

  • Received a renewal offer from your bank
  • Want to know if you can get a better rate
  • Are 4–6 months from your renewal date
  • Have never negotiated a renewal before
  • Own a home in Calgary or Alberta

Why Your Bank's Renewal Offer Isn't Their Best Rate

Banks send renewal offers to every customer at or near their posted rates — not their best rates. They do this because most customers sign without question. The bank's renewal department is a retention operation, not a rate-optimization service for you.

The default behaviour that costs Canadians billions:

Renewal letter arrives. Customer signs and returns it within a week. Bank retains the mortgage at above-market rates. Customer pays $300–500/month more than necessary for the next 5 years.

Step 1 — Get a Competing Offer First

You cannot effectively negotiate without leverage. The most powerful leverage is a real competing offer from another lender. This is where a broker becomes your negotiation tool.

  • Contact a broker 4–6 months before your renewal date
  • Broker shops 50+ lenders and identifies the best available rate for your profile
  • You receive a real rate hold — not a quote, a hold
  • Now you have leverage: "I have a competing offer at X%"

Step 2 — Call Your Bank With the Competing Rate

Call your bank's mortgage retention department (different from branch staff — ask specifically for the retention team). State clearly that you have a competing offer and you'd like to see if they can match it.

What to say:

"I've received a renewal offer from you at [X]%. I've also received a competing offer at [Y]% from [lender type]. I'd prefer to stay with you if you can match the rate. Can you review my file and see what you can offer?"

Step 3 — Evaluate the Response

1Bank matches or comes closeGreat outcome
Accept if it's within 0.1–0.2% of the competing offer. Factor in any switching costs (legal fees typically covered by the new lender anyway). Sometimes staying is easier if the rate is competitive.
2Bank won't move significantlySwitch lenders
Take the competing offer. As of 2023, you don't need to re-qualify with the stress test when switching lenders at renewal. The new lender typically covers legal and transfer costs. See the switching lenders at renewal guide for the full process.

How Much Can You Actually Save?

Rate Difference$400K Mortgage$600K Mortgage
0.25%$80/month · $4,800/5yr$120/month · $7,200/5yr
0.50%$160/month · $9,600/5yr$240/month · $14,400/5yr
0.75%$240/month · $14,400/5yr$360/month · $21,600/5yr
1.00%$320/month · $19,200/5yr$480/month · $28,800/5yr

The Most Important Rule

Never sign a renewal offer the same day it arrives. Give yourself time to shop. The worst outcome is you sign at your bank's rate after confirming it's competitive. The best outcome is you save hundreds per month for 5 years.

For the complete renewal strategy — including timing windows, fixed vs variable, and the 2023 stress test rule change — see the main mortgage renewal Calgary guide.