This applies to you if you:

  • Are approaching your mortgage renewal date
  • Received a renewal offer that doesn't feel competitive
  • Have never switched lenders before and want to understand the process
  • Want to know if the 2023 stress test rule change applies to you
  • Own a home in Calgary or Alberta

The 2023 Rule Change That Changed Everything

Prior to 2023, switching lenders at renewal required passing the stress test (qualifying at your new rate + 2%). This kept millions of Canadian homeowners effectively trapped with their existing lender — switching was complicated and many couldn't re-qualify.

What changed in 2023:

You no longer need to pass the stress test when switching lenders at renewal, provided your mortgage amount and amortization period stay the same. The last real friction point banks relied on to retain customers is gone.

Three Things That Are Free When You Switch

  • No break penalty — your term ended, nothing to break
  • No stress test — 2023 rule change removed this requirement
  • No legal fees — new lender typically covers transfer costs

The Switching Process — Step by Step

1Start 4 months before renewal
Most lenders allow early renewal 120 days out. This is your window to shop without pressure. A broker starts comparing rates immediately.
2Broker shops 50+ lenders
You get a rate hold — not just a quote. Locked in for up to 120 days. If rates rise before your renewal date, you keep the lower rate.
3Application submitted to new lender
No stress test re-qualification. Standard documents: ID, recent mortgage statement, property tax bill. Process takes 1–2 weeks.
4Legal transfer handled
New lender's lawyer (or your lawyer if preferred) handles the transfer. Costs covered by the new lender in most cases.
5Renewal date — seamless switch
Your old mortgage discharges. New mortgage activates. Same home, same amortization, better rate.

What Happens If You Do Nothing

If you don't take action before your renewal date, your mortgage auto-renews at your bank's posted renewal rate. This is almost never their best rate. Banks count on inertia — and it works on most customers.

The cost of auto-renewing:

On a $500K mortgage, auto-renewing at a rate 0.5% above the market costs approximately $160/month more — $9,600 over a 5-year term. That's the price of inaction.

Can Your Bank Match the Competing Rate?

Sometimes. Present the competing offer to your bank's retention department. They may match or come close. If they do — and the rate is genuinely competitive — staying can be simpler. If they won't move, the switch is genuinely free and straightforward.

For the full renewal strategy — including negotiation tactics and fixed vs variable decisions — see the main mortgage renewal Calgary guide.