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The Hidden Costs of Auto-Renewing Your Mortgage in Edmonton
July 30, 2025 | Posted by: Jeff Chin
Many Edmonton homeowners unknowingly pay more than they should by simply signing their mortgage renewal without asking questions. While auto-renewing may seem convenient, it often comes with hidden costs that could impact your finances for years to come.
What Does Auto-Renewing a Mortgage Mean?
Auto-renewal is when your mortgage lender sends you a renewal offer, and you accept it without negotiating or exploring other options. This offer usually comes a few months before your current term ends.
While this might seem like the easiest route, it is rarely the most cost-effective.
Why Auto-Renewal Can Cost You More
1. Higher Interest Rates
Lenders often offer non-competitive rates on auto-renewals because they expect many homeowners will not shop around. This means you could be paying a higher interest rate than what other lenders or mortgage brokers can offer.
2. Limited Mortgage Options
Auto-renewals often come with fewer features or less flexible terms. By not comparing offers, you may miss out on better prepayment privileges, portability options, or rate guarantees that could benefit your long-term plans.
3. Missed Opportunity for Refinancing
Renewal time is the perfect chance to re-evaluate your financial goals. Whether you want to consolidate debt or tap into home equity, auto-renewing without advice means missing out on potential savings or better solutions.
For example, many Edmonton retirees considering ways to access their home equity have looked into reverse mortgages. If you're curious about that option, check out this article:
Is a Reverse Mortgage Taxable in Canada? What Edmonton Retirees Need to Know
How to Avoid Overpaying at Renewal Time
Start Early
Begin reviewing your mortgage 4 to 6 months before your term ends. This gives you time to explore your options and negotiate better rates.
Work With a Local Mortgage Broker
A mortgage broker like Steven Boodoo works with multiple lenders across Alberta and can help you compare rates, terms, and special offers. This gives you more control and better chances of securing a deal that suits your needs.
Review Your Financial Goals
Have your circumstances changed? Do you want to pay off your mortgage faster? Renewing blindly could lock you into another term that does not align with your financial goals.
Edmonton Homeowners: Don’t Settle for the First Offer
If your mortgage is coming up for renewal, take the time to speak with someone who can guide you through your options. Auto-renewing may seem easier now, but it could cost you thousands in the long run.
Talk to Steven Boodoo Before You Renew
Before you accept your lender’s first offer, connect with Edmonton mortgage expert Steven Boodoo. Steven can help you compare rates, negotiate better terms, and avoid the hidden costs that come with auto-renewal.
Start exploring your renewal options today.
Contact Steven Boodoo now → Click here