When your mortgage term is coming to an end, you’ll likely receive a letter from your lender with a renewal offer. Many Edmonton homeowners simply sign and send it back without a second thought — and that can be a costly mistake.
Mortgage renewals in Edmonton are a golden opportunity to reassess your financial goals, secure better rates, and potentially save thousands over the life of your mortgage. But only if you know what to avoid.
Here are 7 common mistakes Edmonton homeowners make during mortgage renewals — and how working with an experienced Edmonton mortgage broker can help you avoid them.
1. Automatically Accepting Your Lender’s First Offer
Many lenders rely on the fact that homeowners will accept their first renewal offer without shopping around. These offers often come with rates that aren’t the most competitive.
Why it matters in Edmonton:
The Bank of Canada rate changes and Alberta’s competitive lending market mean better deals are often available. Mortgage brokers can compare rates across multiple lenders — not just your current one — to find the best fit.
2. Waiting Until the Last Minute Can be Costly in Edmonton
Your renewal window typically starts 120 days before your mortgage term ends. Waiting too long limits your negotiating power and could lock you into unfavourable terms.
In Alberta, including Edmonton, you can start the renewal process early without penalties once you’re inside that 120-day period. That’s the best time to shop around and secure an offer that works for you.
3. Focusing Only on the Interest Rate
While interest rates are important, they’re not the only factor. Prepayment privileges, payment frequency options, and portability clauses can all impact your long-term flexibility.
Example: If you’re planning to upgrade to a new home in Edmonton in the next few years, portability could save you thousands in penalties when you move your mortgage to the new property.
4. Not Considering Your Changing Financial Goals
Your financial situation may have changed since your last mortgage term — you may have more income, less debt, or plans for major expenses.
Mortgage renewal time is your chance to adjust your term length, change payment schedules, or switch to a product that better aligns with your current goals. Edmonton mortgage brokers specialize in tailoring solutions based on your life stage and future plans.
5. Ignoring the Impact of Credit Score Changes
Your credit score can significantly influence the rate and terms you’re offered. If your score has improved since you last signed your mortgage, you could qualify for much better deals.
Tip: In Edmonton, mortgage brokers can do a soft credit check to pre-qualify you across multiple lenders, helping you avoid multiple hard inquiries that could lower your score.
6. Overlooking Penalties When Switching Lenders
Switching lenders can be smart, but you need to know the costs. Depending on your current mortgage, you may face discharge fees or payout penalties.
In Alberta, these fees vary by lender, but a broker can help you calculate whether the savings from a better rate will outweigh the costs of switching. Often, the right refinancing strategy can minimize or eliminate these fees.
7. Not Using an Edmonton Mortgage Broker for your Mortgage Renewal
The most expensive mistake is going through renewal alone. Edmonton mortgage brokers have access to dozens of lenders, exclusive rates, and strategies to save you money — all at no cost to you (they’re paid by the lender).
They can also advise you on:
- Fixed vs. variable rate strategies for Edmonton’s housing market
- How to refinance during renewal for debt consolidation or renovations
- Structuring your mortgage to prepare for future interest rate changes
Your mortgage renewal is more than just paperwork — it’s a financial opportunity.
If your term is ending soon, don’t settle for your lender’s first offer. Our Edmonton mortgage brokers can help you compare rates, customize terms, and ensure your mortgage works harder for you.
Contact us today to review your upcoming mortgage renewal — before you sign anything.