Mortgage Blog
We Make Lending Easy
How to Get a Better Rate When Renewing Your Mortgage in Edmonton
June 21, 2025 | Posted by: Jeff Chin
Your mortgage renewal is more than just a signature, it's a powerful opportunity to negotiate a better rate, improve your financial position, and avoid paying more than you should.
If you're a homeowner in Edmonton, understanding the renewal process, and how to secure the best possible rate—can save you thousands over the life of your mortgage.
Here’s a step-by-step guide to help you take full control of your mortgage renewal.
What Is a Mortgage Renewal?
When your current mortgage term ends (typically 1 to 5 years in Canada), you don’t automatically pay off the full mortgage balance. Instead, you have the option to renew your mortgage with either your current lender or a new one for another term.
This is your window to:
-
Renegotiate the interest rate
-
Revisit your amortization period
-
Adjust your payment frequency
-
Explore alternative lenders or products
Most Canadians simply sign the renewal papers from their existing lender, but that can cost you more than you think.
Why Mortgage Renewal Time Matters More in Edmonton
The Edmonton housing market is competitive, and mortgage rates can vary significantly between lenders, especially when you're coming out of a fixed-rate term. With interest rates having fluctuated over the past few years, many homeowners may now find themselves renewing into higher rates than they first locked in.
That’s why doing your homework before your renewal is critical. Even a 0.25% difference in your rate could mean thousands of dollars saved over a 5-year term.
1. Start Shopping Early—At Least 120 Days Before Renewal
Lenders typically send renewal notices 30 days before your term ends, but by that point, it may be too late to switch without time pressure.
Instead, start researching or speaking to a broker 3–4 months in advance. Many lenders allow you to “lock in” a rate up to 120 days early, which protects you if rates go up.
2. Don’t Accept the First Offer from Your Current Lender
Lenders often send a “quick and easy” renewal form with a posted rate, and hope you won’t negotiate. But you don’t have to accept it.
Many Edmonton homeowners don't realize they have options, even with the same lender:
-
Ask for their best discounted rate
-
Leverage competitor quotes to negotiate lower
-
Get your broker to handle the negotiation for you
3. Compare Offers from Multiple Lenders
Use your mortgage renewal as an opportunity to shop around. Lenders are often more aggressive with rate offers for new clients than for renewals.
Comparing:
-
Fixed vs. variable rates
-
Credit unions vs. big banks
-
Alternative lenders (for self-employed or bruised credit)
A mortgage broker can help do this legwork, presenting you with the most competitive options from across the market.
4. Consider Your Financial Goals and Risk Tolerance
Before locking in a new term, ask yourself:
-
Do I plan to sell or move in the next 5 years?
-
Do I want stability (fixed rate) or flexibility (variable)?
-
Am I planning to renovate, refinance, or consolidate debt?
If you're considering debt consolidation, be sure to read:
Refinancing for Debt Consolidation in Edmonton: Is It Worth It?
Matching your mortgage strategy with your lifestyle plans can make a huge difference in future flexibility and cost.
5. Don’t Forget About Mortgage Portability, Penalties, and Prepayment Options
The interest rate isn’t the only factor. Review the terms for:
-
Portability (can you transfer it if you move?)
-
Prepayment allowances (can you make lump sum payments?)
-
Penalties (what happens if you break the mortgage early?)
Some low-rate offers come with strict conditions, so be sure to look at the fine print, or ask your broker to explain what matters.
6. Improve Your Credit Score Before Renewal
Your credit score influences your renewal offers, especially if you're looking to switch lenders. If your score has improved since your original mortgage, you may now qualify for better rates.
Steps to improve your score before renewal:
-
Pay down high-interest debts
-
Don’t apply for new credit in the months leading up
-
Make all payments on time
7. Use a Mortgage Broker to Save Time and Money
Navigating mortgage renewals in Edmonton can be tricky, especially if you’re unfamiliar with current rate trends, lender policies, or what to negotiate.
A local mortgage broker like Steven Boodoo can:
-
Shop multiple lenders on your behalf
-
Negotiate better rates than posted offers
-
Help you avoid renewal traps
-
Align your mortgage with your goals (not just your bank’s interests)
Final Thoughts: Don’t Leave Money on the Table
Mortgage renewal is a rare chance to reset your financial strategy, and the best time to get a better deal.
By being proactive, comparing offers, and working with a broker, you can avoid overpaying and instead save thousands over your next term.
Work with an Edmonton Mortgage Expert Today
Don’t renew blindly. Let Steven Boodoo, Edmonton mortgage specialist, guide you through your renewal options and find the best rate available for your unique situation.
Take control of your mortgage today:
Contact Steven Boodoo
Let’s make your mortgage work harder for you.
