What Happens If I Miss My Mortgage Renewal Deadline in Alberta?
Short answer
If you do not sign a renewal offer by your maturity date, most lenders renew you automatically into a short-term product — often at a posted rate that is higher than discounted market rates. You are still obligated to pay, but you may be stuck with worse terms until you can renegotiate or switch.
The plain-English version
Your mortgage term has a fixed end date. Lenders typically send renewal paperwork 90–120 days before that date. If you miss the deadline or do not respond, the mortgage does not disappear — the lender rolls you into an automatic renewal, commonly a 6-month open term or a 1-year closed term at a non-negotiated rate.
During an open automatic renewal, you can usually pay off or switch without penalty, but you pay a higher rate in the meantime. On a closed automatic renewal, breaking out early may trigger a penalty. Either way, procrastination usually costs money.
Alberta-specific considerations
- Alberta homeowners who travel for work or own rental properties should watch maturity dates — renewal letters go to your mailing address on file.
- If you switched to a new lender near maturity but closing is delayed, coordinate with both lenders to avoid an unwanted automatic renewal.
- Collateral-charge mortgages may have different renewal processes — confirm your charge type so you know what automatic renewal means for your file.
Example scenario
Your maturity date is March 1 and you forget to respond. The lender auto-renews you into a 6-month open variable at prime plus 1.0% — roughly 6.95% when discounted variables are near 5.5%. On a $320,000 balance, that gap is about $230/month for six months, or roughly $1,400, before you negotiate or switch.
Common mistakes to avoid
- Assuming silence means your old rate continues — it usually does not.
- Waiting months into an automatic renewal before acting, paying a premium rate the whole time.
- Not reading the auto-renewal terms to see whether the product is open or closed.
- Missing maturity because you assumed your broker would handle it without confirmation.