Switching Mortgage Lenders in Calgary & Edmonton
- Tina Kha
- Oct 9
- 3 min read
Why Consider Switching?
When your mortgage comes up for renewal, you’re not obligated to stay with your current lender. Many homeowners in Calgary, Edmonton, Red Deer, Leduc, Airdrie, Sherwood Park, and St. Albert explore switching lenders to take advantage of better rates, flexible terms, or improved customer service.
Switching lenders at renewal can open doors to:
Your financial situation reviewed: Life changes happen, always good to review everything before signing.
Lower interest rates: Often times bank renewal rates may not be favorable
More flexible terms: Options like accelerated payments or lump-sum privileges can shorten your mortgage term and save thousands in interest.
Better customer experience: If your current lender’s service or renewal offer hasn’t met expectations, switching may be worthwhile.
For a breakdown of when and how to prepare for renewal, see our related article: When to Renew Your Mortgage in Alberta.
Potential Savings vs Costs
The Upside: Savings and New Options
Switching lenders can result in substantial long-term savings, especially if you secure a lower rate or better payment flexibility. This can make a significant impact whether you’re a first-time home buyer or looking to refinance your mortgage to consolidate debt or access equity.
If you’re an investment or rental property owner, changing lenders may also allow you to access more favorable terms to grow your portfolio. Learn more about rental property financing options here.
The Downside: Potential Costs and Hassle
Switching lenders can involve some costs, depending on your mortgage type and renewal timing:
Appraisal fees: Although not common, appraisals may be required.
Legal or administrative fees: Although small, these can add up.
Credit checks and paperwork: A new lender will review your income and credit, just as with your original application.
However, in many cases, the new lender may offer to cover some of these costs to earn your business.
Factors Specific to Calgary and Edmonton
Alberta’s real estate market can fluctuate significantly between regions. Understanding how your local market performs can help you decide whether switching lenders makes sense.
Calgary and Area (Airdrie, Okotoks, Cochrane)
Calgary’s housing market tends to be more competitive, with lenders offering aggressive rates to capture growing demand. If your mortgage is renewing, now might be an excellent time to shop around for a better rate, especially if your property has appreciated.
Edmonton and Area (Sherwood Park, St. Albert, Leduc)
In Edmonton, steady home prices and slower appreciation rates can make stability more appealing. However, switching lenders may still help reduce your long-term costs if your renewal offer doesn’t reflect current market conditions.
Considering Long-Term Goals
If you’re planning to:
Refinance to fund renovations or investment opportunities, explore your refinancing options.
Downsize or buy your next home, a new lender could offer more flexible portability terms.
Stay in your home long-term, locking in a competitive rate with a new lender may provide peace of mind.
Homeowners nearing retirement in Alberta’s major cities may also explore reverse mortgage options to access equity without monthly payments.
Is Staying Put Ever the Better Option?
Yes, if your current lender offers a competitive rate and terms that fit your goals, it can save you the hassle of requalifying. Loyalty discounts, faster processing, and minimal paperwork are benefits of staying with your existing lender.
That said, you should still compare offers. Even a 0.25% lower rate from a new lender can save you thousands over your term.
Final Thoughts: Make an Informed Decision
Switching lenders at renewal is an opportunity to reassess your mortgage strategy and align it with your financial goals. Whether you’re in Calgary, Edmonton, Red Deer, Leduc, Sherwood Park, Airdrie, or St. Albert, it’s smart to review all available renewal options before committing.
For a detailed guide on renewal timelines, see: When to Renew Your Mortgage in Alberta.
Ready to Explore Your Renewal Options?
Get personalized advice on your mortgage renewal, refinancing, or investment property financing. Contact Tina Kha, an experienced Alberta mortgage broker, to find the best solution for your next renewal.
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