The Alberta Mortgage Renewal Guide: How to Beat 'Rate Shock' and Lower Your Payments

February 11, 2026 | Posted by: Matt Broom-Hall

The Alberta Mortgage Renewal Guide: How to Beat 'Rate Shock' and Lower Your Payments

Let's talk about the elephant in the room.

If you locked in a mortgage back in 2020 or 2021 at 1.79% or 2.29%, and you're now staring down a renewal letter with a rate that starts with a '5' or '6,' you're probably feeling a bit queasy. That's what we call Rate Shock, and you're not alone.

But here's the good news: your renewal isn't a trap. It's actually an opportunity to restructure, refinance, and reset your financial foundation. And that's exactly what I want to walk you through today.

This guide is for Alberta homeowners in Calgary, Edmonton, Red Deer, and beyond who are approaching renewal and asking themselves: 'How do I keep my payments manageable when my rate just doubled?'

Spoiler alert: You have options. Let's break them down.

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Understanding Your Options: The Switch vs. The Refinance

When your mortgage term ends, you've got choices. And contrary to what your current lender might want you to believe, you don't have to just sign their renewal offer and call it a day.

There are two primary strategies we use to help clients navigate renewals in a higher-rate environment:

1. The Switch (or Transfer)
2. The Refinance (or Restructure)

Let's dig into both.

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The Switch (Transfer): Same Mortgage, Better Rate

What is it?

A mortgage switch, also called a transfer, is when you move your existing mortgage balance to a new lender at renewal to take advantage of a better interest rate. Your mortgage balance stays the same. Your amortization stays the same. You're just changing jerseys.

Why do it?

Because your current lender's renewal offer isn't always their best rate. In fact, it rarely is. Lenders count on inertia. They know most Canadians will just sign the renewal letter without shopping around. Don't be that person.

By working with a broker (like yours truly), you get access to 50+ lenders, which means we can shop your mortgage across the entire market and find you a better deal, often saving you thousands over the life of your mortgage.

The 'No-Fee' Switch

Here's where it gets even better.

If you're doing a straight switch, meaning your balance and amortization aren't changing, many lenders will cover the appraisal fee and legal costs. That's right: zero out-of-pocket cost to switch to a lower rate.

This is what we call a No-Fee Switch, and it's one of the most underutilized strategies in Canadian mortgage planning.

Even better? As of recent regulatory changes, you're exempt from the mortgage stress test when doing a straight switch with a federally regulated lender. That means it's easier than ever to move your mortgage if you're unhappy with your current lender's offer.

Bottom Line: If your lender sends you a renewal offer that's higher than what's available in the market, don't just accept it. Call me. We'll switch you to a better rate, at no cost to you.

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The Refinance (Restructure): Adjusting Your Mortgage to Fit Your Life

Now, what if a better rate still leaves your payments higher than you're comfortable with? That's where a refinance comes into play.

What is it?

A refinance allows you to restructure your mortgage, adjusting the amortization, accessing equity, or consolidating debt, to lower your monthly payment and improve your overall cash flow.

This is about more than just the rate. It's about Total Monthly Obligation, the big picture of what you're paying every month across all your debts.

Strategy #1: Extending Your Amortization

Let's say you've been paying down your mortgage for five years. Your amortization has dropped from 25 years to 20 years. At renewal, if you extend your amortization back to 25 or even 30 years, you spread those payments out over a longer period, which lowers your monthly payment.

Example:

• Mortgage balance: $400,000
• Rate: 5.5%
• 20-year amortization: $2,750/month
• 30-year amortization: $2,271/month

That's nearly $500 per month back in your pocket. Yes, you'll pay more interest over time: but if the alternative is struggling to make ends meet, this is a smart play.

Strategy #2: Debt Consolidation

If you're carrying high-interest debt: credit cards at 21%, car loans at 8%, lines of credit at 7%: you can roll that debt into your mortgage if you have at least 20% equity in your home.

Here's why this works:

Before:

• Mortgage payment: $2,200/month
• Credit card payment: $400/month
• Car loan: $550/month
• Total: $3,150/month

After Refinance:

• New mortgage payment (with debt rolled in): $2,600/month
• Savings: $550/month

You've just freed up over $500 per month in cash flow. That's money you can use to build an emergency fund, save for your kids' education, or just breathe a little easier.

Important: You need at least 20% equity in your home to refinance and consolidate debt. If you're below that threshold, we'll explore other options together.

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It's Not Just About The Rate: It's About Your Total Monthly Obligation

Here's the thing most people miss: the lowest rate doesn't always mean the lowest payment.

When we sit down together, I'm not just looking at your mortgage in isolation. I'm looking at your entire financial picture:

• Your mortgage payment
• Your property taxes
• Your car loans
• Your credit cards
• Your lines of credit
• Your student loans

This is your Total Monthly Obligation (TMO), and my job is to help you reduce it wherever possible.

Sometimes that means finding you the best rate. Sometimes it means restructuring your mortgage to lower the payment. And sometimes it means consolidating debt to free up cash flow so you can actually enjoy your life instead of just surviving payday to payday.

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The Timeline: When Should You Start?

Start 120 days before your renewal date.

This is your golden window. You can shop rates, negotiate with lenders, and switch without any penalties. Most lenders will even let you lock in a rate for up to 120 days, which gives you protection if rates rise while you're shopping.

Here's what the process looks like:

1. 4 months out: Reach out to me. We'll review your current mortgage, discuss your goals, and start shopping the market.
2. 3 months out: We'll gather offers from multiple lenders and present you with your best options: whether that's a switch or a refinance.
3. 2 months out: We'll lock in your rate and start the paperwork.
4. Renewal date: Your new mortgage kicks in seamlessly. No disruption. No stress.

Don't wait until you get that renewal letter in the mail 21 days before your term ends. By then, your options are limited. Start early. Stay proactive.

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The Hello Mortgage Advantage

When you work with Hello Mortgage, you're not just getting access to 50+ lenders. You're getting a partner who's in your corner, negotiating on your behalf, and making sure you get the best possible deal.

Here's what sets us apart:

• 120-Day Rate Guarantees: Lock in your rate early and protect yourself from market fluctuations.
• No Cost to You: Our services are free. Lenders pay us, not you.
• RateWatch+: We monitor the market on your behalf so you never miss an opportunity to improve your mortgage.
• Local Expertise: We know Alberta. We know Calgary, Edmonton, Red Deer, and everywhere in between. We understand the local market and what lenders are looking for.

And most importantly? We're here to educate, not pressure. My job is to give you the tools, the insights, and the options you need to make the best decision for your situation.

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Let's Beat Rate Shock Together

If your mortgage is renewing in the next 120 days: or even if you're just starting to think about it: let's talk.

We'll review your current mortgage, explore your options, and build a strategy that keeps your payments manageable and your financial future on track.

Book a call with me here or reach out anytime. I'm here to help.

Because at the end of the day, your renewal isn't something to fear. It's an opportunity to restructure, refinance, and take control of your financial future.

Let's get started.

Matt Broom-Hall
Owner, Hello Mortgage
Say Hello to Alberta's Trusted Mortgage Brokers

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