The short version: start 120 days before maturity, get a written competing offer (a broker produces one free in about a day), and make your bank beat it. Since November 21, 2024 a straight switch at renewal needs no stress test, there's no penalty at maturity, and net switching costs in Alberta are typically under $400 — against five-figure savings on a typical balance.
Why renewals are where banks make their margin
A large majority of Canadian borrowers renew with their existing lender — and many sign the first offer without negotiating. Banks price for that inertia: first renewal letters commonly quote at or near posted rates, well above what the same bank offers new customers the same day. In July 2026, the gap between a typical renewal-letter rate and the best market 5-year fixed is often 0.5–1.0%.
The 2024 rule change that freed renewers
Note the fine print: borrow more money or extend your amortization and it becomes a refinance — the stress test then applies. See our refinance guide if that's your plan.
The 120-day renewal timeline
- Day −120: start shopping. Rate holds run 90–120 days, so you can lock today's rate as a floor and still take a lower one later. Check your current lender's maturity date, balance and remaining amortization on your last statement.
- Day −120 to −90: get a written competing offer. A broker does this in about a day, across 30+ lenders, free. Collect: rate, term, prepayment privileges, penalty formula.
- Day −90 to −30: call your bank with the competing offer in hand (script below). They either beat it — you win — or you start the switch paperwork, which the new lender and your broker largely handle.
- Day −30 to −21: banks must send renewal notices at least 21 days before maturity; most arrive around now, quoting high. You'll already have leverage.
- Maturity day: the better deal takes effect. No penalty, no gap in coverage, house unchanged — only the payee (and payment) changes.
The script that works
Two details do the work: written offer (proves you're real) and a deadline (renewal dates are naturally firm). Retention teams have pricing discretion that branch staff don't — ask to be transferred if needed.
What switching actually costs in Alberta
| Item | Typical cost | Who pays |
|---|---|---|
| Prepayment penalty | $0 at maturity | — |
| Discharge / assignment fee (old lender) | $300–$400 | You (sometimes covered) |
| Appraisal | $350–$500 | Usually the new lender on switches |
| Transfer / legal | $0–$300 | Frequently covered on standard switches |
| Land title mortgage registration | $50 + $5/$5,000 of loan | Applies if registration changes; often handled in transfer program |
Net out-of-pocket on a standard Alberta switch is commonly under $400 — a rounding error against the savings on most balances.
We'll match you free with a licensed Alberta broker who shops 30+ lenders against your bank. Even if you stay, you'll stay at a better rate.
Renewal decisions beyond the rate
- Term length: 5-year fixed is the default, but with the Bank of Canada holding at 2.25% through 2026, shorter terms and variables deserve a look. Model both in the payment calculator.
- Penalty formula: big-bank fixed rates carry posted-rate IRD penalties that can reach five figures if you break early; monoline lenders usually calculate far gentler penalties. If a move, sale or refinance is possible within the term, this matters more than 0.05% of rate.
- Prepayment privileges: look for 15–20% annual lump-sum room and payment-increase options — that's how a 25-year mortgage quietly becomes a 19-year one.
- Shortening amortization: if payments feel easy, renewing into a shorter amortization locks in discipline at no cost.
Renewal FAQs
My renewal is in 3 weeks. Is it too late to shop?
No — brokers turn around competing offers in about a day, and switches can complete in 2–3 weeks. Worst case, sign a short 1-year or open term with your bank and do the full shop without pressure.
Will shopping my renewal hurt my credit?
A broker uses one credit pull across their whole lender panel, and credit bureaus treat multiple mortgage inquiries in a short window as one search. The effect is minimal — and getting matched with a broker through us involves no credit check at all.
What if my finances got worse since I bought?
Your existing lender must renew you (at some rate) as long as payments are current — that's your safety net. And since straight switches no longer require the stress test, moving lenders is easier than it was even if your income changed. A broker can quietly check your options with no obligation.
Fixed or variable at renewal in 2026?
With prime at 4.45% and 5-year fixed rates near 4%, the gap is narrow. Variables win if the Bank of Canada cuts again; fixed wins on certainty. Your break-even and risk tolerance decide — a licensed broker can model both paths for your exact balance.
Can I make a lump-sum payment at renewal?
Yes — renewal is the one time you can pay down any amount penalty-free before the new term starts. Even a few thousand dollars off the principal at renewal compounds into real savings over the remaining amortization.