The Right Time to Renew Your Mortgage in Alberta

Tina Kha
Oct 4
3 min read

Updated: Oct 6

Renewing your mortgage might seem straightforward, but timing can make a big difference. Whether you’re renewing for a better rate or looking to adjust your term, understanding the right timeline can save you money and stress. Here’s what Alberta homeowners should know about when to renew a mortgage and how to prepare for it.

When Can You Start Renewal Negotiations?

Most lenders allow you to start discussing your renewal 120 to 180 days before your current term ends. This is the ideal window to review your current rate, shop around, and see what other lenders are offering.

Homeowners meeting with a mortgage broker and shaking hands during a renewal discussion in a bright living room. — Start renewal talks early for better rates.

Example:

If your mortgage term ends in June, you can begin exploring options as early as January or February. Starting early gives you the flexibility to lock in a new rate before potential increases.

If you’re unsure where to start, speaking with a mortgage broker can help. Brokers have access to multiple lenders and can negotiate better terms on your behalf. You can learn more about how this works in Tina Kha’s expert mortgage guidance.

Benefits of Early Renewal

Renewing early can help you secure a lower interest rate, avoid last-minute stress, and make financial adjustments before your term ends.

1. Protect Yourself From Rising Rates

Interest rates can change quickly. By renewing early, you can lock in today’s rate even if the market rises later.

2. Adjust Your Mortgage to Fit New Goals

Life changes. Maybe you’re planning to refinance your home to access equity for renovations or debt consolidation. In that case, it’s worth reviewing your options ahead of time. Learn more about how refinancing works here.

3. Improve Your Long-Term Financial Planning

Renewing early gives you time to align your mortgage strategy with your bigger goals, such as investing in a rental property or preparing for retirement. Explore investment and rental mortgage solutions to see what might fit your next move.

Risks of Waiting

Leaving your renewal until the last minute can limit your options and cost you more.

1. Higher Interest Rates

If you wait too long, you might miss out on lower rates available months earlier. Your lender may offer a default renewal at a higher rate, assuming you’ll accept it without comparison.

2. Missed Financial Opportunities

Without proper planning, you could overlook opportunities to refinance, switch lenders, or even explore a reverse mortgage to support retirement goals. See if a reverse mortgage could benefit you or your family.

3. Limited Time to Negotiate

Waiting until your renewal notice arrives gives you less leverage to negotiate. Lenders know you’re under time pressure, which can affect how flexible they are with rates and terms.

When to Talk to a Mortgage Professional

If you’re within six months of your renewal date, now is the perfect time to get started. A broker can help you:

Decide if switching lenders or refinancing makes sense
Review other solutions like debt consolidation or rental property financing
Compare mortgage options across multiple lenders

If you’re a newer homeowner and want to understand how renewals affect your long-term mortgage plan, explore first-time buyer mortgage options.