Mortgage renewal questions, answered

Your renewal is a chance to review the whole mortgage, not only the rate on the letter from your current lender. Here are plain-language answers we often share with homeowners in Edmonton and nearby communities.

Do I have to renew my mortgage with my current lender in Edmonton or Alberta?

No. You do not have to accept your current lender’s renewal offer, and you do not have to stay with the same lender. At the end of your term you can renew with them, move to another lender, or pay the balance in full if you are able to.

If you switch lenders for roughly the same loan amount, the new lender still needs to approve your application and may use different criteria. Switching can involve discharge, registration or transfer fees, an appraisal if required, and other administration costs. Ask whether a new lender will cover some or all of those costs. We’ll help you compare your lender’s offer with other options so you understand what you are signing.

When should I start my mortgage renewal conversation?

Start well before your maturity date. The Financial Consumer Agency of Canada recommends shopping around a few months before the end of your term, rather than waiting for the renewal letter.

We usually recommend getting prepared and pre-approved about four months before renewal. That gives us time to review options, hold a rate when that makes sense, and compare alternatives before the deadline. If you arranged your mortgage with us, we will aim to contact you about four months in advance.

Federally regulated lenders, such as banks, must provide a renewal statement at least 21 days before the end of your term. That is a minimum notice rule, not the moment you should begin.

When does an early renewal make sense, and what about penalties?

An early renewal can be worth reviewing when rates or your plans have changed enough that locking in a new term before maturity may help. Some lenders offer a blend-and-extend early renewal, which blends your current rate with a new rate for a new term. That option typically does not include a prepayment penalty, though administrative fees may still apply. Your lender must explain how the blended rate is calculated.

Leaving a closed mortgage early to switch lenders or renegotiate outside those options usually involves a prepayment penalty. Penalties vary by lender and by your contract. There is no single dollar amount or formula that fits every mortgage.

What besides the interest rate should I compare at renewal?

The rate matters, but it is only one part of the decision. Compare term length, payment amount and frequency, remaining amortization, prepayment privileges, penalty structure, portability if you might move, fees or incentives and their conditions, and whether you may refinance or want to repay faster. Stretching amortization can lower the payment while increasing total interest. We’ll compare your lender’s offer with other available options and look at the whole mortgage together.

Do you only help Edmonton homeowners renew, or do you work throughout Alberta?

We help homeowners renew in Edmonton and nearby communities, including Spruce Grove, Stony Plain, St. Albert, Sherwood Park, Fort Saskatchewan, Leduc, Beaumont, Devon, Camrose, Ardrossan, Tofield, Calmar and Morinville. We also work with clients throughout Alberta. We can work with you by phone and video, so location in the province does not have to stop the conversation.

Can I switch lenders at renewal?

Yes. Renewing with a different lender is common when another option better fits your rate, terms or plans. The new lender must still approve you. Ask about setup, discharge, registration, transfer, appraisal and administration costs, and whether any will be covered.

If you already have mortgage default insurance, tell the new lender and ask your current lender for the insurance certificate number so you are not paying a premium twice when it is not required. Increasing the loan amount or extending amortization can trigger a new insurance premium. If your mortgage uses a collateral charge, switching can involve extra steps and fees.

What happens if I wait until my maturity date or miss the window?

If you take no action, some lenders may automatically renew your mortgage on the terms in the renewal statement. That can mean missing a better rate or conditions available if you had compared options earlier. Waiting until the last weeks also leaves less time for documents, lender conditions or a switch. Starting about four months ahead keeps the process calmer.

What documents might I need for a mortgage renewal or a switch?

Requirements depend on whether you are renewing with your current lender or applying with a new one, and on your income and credit situation. A same-lender renewal may need less paperwork than a switch. Use our Mortgage Documentation Guide as a starting point for common items such as employment letters, pay stubs, tax documents and bank-statement examples. We’ll tell you which documents apply to your renewal.

View our Mortgage Documentation Guide

How is a move or a refinance different from a straight renewal?

A straight renewal usually keeps the remaining balance with a new term and rate, with your current lender or another lender, without intentionally increasing what you owe. A refinance typically changes the loan amount or other key conditions—for example to access equity or consolidate debt—and needs its own approval. A move involves selling and/or buying, which may mean porting, breaking the current contract, or arranging a new purchase mortgage. We’ll help you sort which path you are on before you compare offers.

Why talk with POLARIS and Jim Sicotte about renewal?

Jim Sicotte is an Alberta Licensed Mortgage Broker with POLARIS Mortgage Planners at Indi Mortgage. He has been helping people with their mortgages since 2013. Our approach at renewal is the same as at purchase: explain the options in plain language, compare more than the rate, and decide together.

Ready to review your renewal?

If your renewal is coming up in the next few months, or you are wondering whether an early renewal makes sense, contact our team. We’ll review where you stand, answer your questions and help you compare options before you sign.

Call us: (587) 410-1114

Email: yourteam@polarismortgageplanners.ca

Contact our team

General information only, not a mortgage approval or legal, tax or financial advice. Renewal rules, fees and lender policies vary. Penalties and switching costs depend on your contract and lender. We’ll confirm current details for your situation.