7 Mistakes Alberta Homeowners Make at Mortgage Renewal (And How to Fix Them)

January 23, 2026 | Posted by: Matt Broom-Hall

7 Mistakes Alberta Homeowners Make at Mortgage Renewal (And How to Fix Them)

Your mortgage renewal letter just landed in your mailbox. Maybe you glanced at it, maybe you tossed it on the kitchen counter with the rest of the 'I'll deal with it later' pile. Either way, here's the thing: that letter could cost you thousands of dollars if you don't handle it right.

For Alberta homeowners, mortgage renewal isn't just paperwork, it's a pivotal financial moment. And yet, so many of us treat it like a chore instead of the opportunity it really is. Whether you're in Edmonton, Calgary, or anywhere in between, the mortgage interest rate Alberta homeowners lock in at renewal can make or break their budget for the next several years.

Let's fix that. I'm taking you behind the scenes on the most common mortgage renewal mistakes I see Alberta homeowners make, and more importantly, how to avoid them.

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Mistake #1: Automatically Signing Your Lender's Renewal Offer

Here's a not-so-secret secret: when your lender sends you that renewal offer, they're banking on one thing, your inertia.

That pre-filled form with a rate already selected? It's rarely their best offer. Lenders know that most people will sign on the dotted line without shopping around. They're counting on it, actually.

Even a difference of 0.25% in your mortgage interest rate can translate to thousands of dollars over your term. That's real money, money that could go toward renovations, your kids' education, or simply breathing easier each month.

The Fix: Treat that renewal offer as a starting point, not the finish line. Shop around. Compare rates from other lenders. And here's where working with a mortgage broker becomes your secret weapon, at Hello Mortgage, we have access to over 50 lenders, which means we can find you options your current lender simply can't (or won't) offer.

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Mistake #2: Waiting Until the Last Minute

This one's a classic, and it's costing Alberta homeowners big time.

Life gets busy. I get it. But waiting until a week before your mortgage matures to start thinking about renewal? That's like showing up to a negotiation with your hands tied behind your back.

If you miss your maturity date entirely, your lender may auto-renew you into a short-term product with a significantly higher rate and restrictive terms. Not exactly the fresh start you were hoping for.

The Fix: Start your mortgage renewal process 90 to 120 days before your term ends. This gives you time to compare options, negotiate, and make a decision that actually works for your situation, not just whatever's fastest.

Better yet, let someone else keep track of those dates for you. Our RateWatch+ service at Hello Mortgage monitors your renewal timeline proactively, so you're never caught off guard. We reach out to you before renewal season even starts, giving you the upper hand from day one.

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Mistake #3: Ignoring Changes in Your Financial Situation

Here's a question: Is your life exactly the same as it was five years ago when you signed your last mortgage?

Probably not.

Maybe you've changed jobs. Maybe you're planning a renovation. Maybe retirement is on the horizon. Or maybe things have tightened up financially and you need more flexibility in your payments.

Too many homeowners carry over the same payment structure at renewal without asking whether it still makes sense for their life today.

The Fix: Use renewal as a check-in with yourself. Review your budget, your goals, and your timeline. A mortgage broker can help you restructure your terms to align with where you're headed, not just where you've been.

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Mistake #4: Focusing Only on the Interest Rate

Okay, I know what you're thinking: 'But Matt, you just told me a 0.25% difference matters!'

It does. But here's the twist: the lowest rate doesn't always mean the best deal.

Some ultra-low-rate mortgages come loaded with restrictive terms. We're talking prepayment penalties that'll sting if you sell early, portability restrictions if you need to move, and payment flexibility caps that limit your ability to pay down your mortgage faster.

The Fix: Look at the whole picture. Prepayment options, portability, term length, penalty structures: these all matter. A slightly higher rate with better flexibility could save you more in the long run than a rock-bottom rate with strings attached.

This is exactly why working with a broker matters. We don't just chase the lowest number: we find the mortgage that fits your life.

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Mistake #5: Not Stress-Testing Your Payments

Mortgage interest rates in Alberta have been on a roller coaster lately. If your current rate was locked in a few years ago, there's a good chance your renewal rate will be different: possibly higher.

Are you prepared for that?

Too many homeowners get blindsided by payment increases at renewal because they never ran the numbers beforehand.

The Fix: Before you sign anything, calculate what your payments would look like under different rate scenarios. Can your budget handle a 1% increase? What about 2%? Knowing your limits ahead of time helps you negotiate smarter and avoid financial stress down the road.

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Mistake #6: Defaulting to the Same Term and Amortization

Renewal isn't just a formality: it's a fresh opportunity.

And yet, so many Alberta homeowners default to the same 5-year fixed term and same amortization without even considering whether something else might work better.

Maybe a shorter term makes sense now that rates are shifting. Maybe extending your amortization temporarily could free up cash flow for other priorities. Or maybe it's time to accelerate your payoff timeline.

The Fix: Don't treat renewal as a routine checkbox. Have a real conversation about your options. What are your plans for the next 3, 5, or even 10 years? Your mortgage terms should reflect those plans.

At Hello Mortgage, we walk through all of this with you: because your mortgage should work for you, not the other way around.

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Mistake #7: Overlooking Additional Costs and Fees

Here's one that catches people off guard: switching lenders at renewal isn't always free.

There can be legal fees, appraisal costs, and discharge fees involved: especially if you're breaking your current agreement or switching to a new lender with different requirements.

Does that mean you should never switch? Absolutely not. But you need to factor those costs into your decision so you're comparing apples to apples.

The Fix: Ask about all the costs upfront: from your current lender and any new lenders you're considering. A good broker will lay this out clearly so there are no surprises.

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The Bottom Line: Your Renewal Is an Opportunity

Mortgage renewal in Alberta doesn't have to be stressful. It doesn't have to be confusing. And it definitely doesn't have to cost you more than it should.

The key is being proactive, staying informed, and working with someone who's genuinely in your corner.

That's where we come in.

At Hello Mortgage, we've built our entire process around making renewals easier for Alberta homeowners. With access to 50+ lenders, our RateWatch+ service to keep you ahead of the game, and a team that actually cares about your financial success: we're here to make sure your next mortgage term sets you up for the future you want.

Ready to get started? Let's chat and make your mortgage renewal work harder for you.

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