What Is a Mortgage Renewal in Alberta?
Short answer
Mortgage renewal is when your current mortgage term ends and you sign a new rate and term for the remaining balance. Your amortization keeps counting down unless you change it. In Alberta, renewal is a good time to compare your lender’s offer with other options before you sign.
The plain-English version
A Canadian mortgage has two timelines: the term (often 1–5 years) and the amortization (often 25–30 years). When the term ends, you renew — you do not re-borrow the full original amount unless you add new money. Your payment is recalculated based on your remaining balance, the new rate, and the amortization you choose.
Renewal is not the same as refinancing. Refinancing means replacing the mortgage with a new one, often to change the amount borrowed or access equity. At renewal, many borrowers simply stay with the same lender, but you can also switch lenders if you qualify and the numbers make sense.
Alberta-specific considerations
- Alberta uses the same federal mortgage rules as the rest of Canada — renewal timing and stress-test rules depend on whether your mortgage is insured and whether you switch lenders.
- Property values in Calgary, Edmonton, and rural Alberta affect your loan-to-value if you switch lenders or want to change your mortgage amount.
- No provincial land transfer tax applies when you renew with the same property, but switching lenders may involve legal and appraisal costs.
Example scenario
You bought in Edmonton with a $400,000 mortgage on a 5-year fixed term at 4.79%. After five years your balance is about $345,000. Your lender sends a renewal offer at 5.49% for another 5-year term. Your payment changes from roughly $2,280/month to about $2,120/month on a 20-year remaining amortization — but the rate is higher than your old one, so the drop comes mostly from a smaller balance.
Common mistakes to avoid
- Confusing renewal with refinancing and not realizing you can change lenders without borrowing more.
- Assuming your payment will drop at renewal just because rates changed — a higher renewal rate on a shorter remaining amortization can still mean a higher payment.
- Ignoring the renewal letter until the last week and losing time to shop.
- Signing without checking whether your mortgage is registered as a standard charge or a collateral charge.