Renewals
5 Edmonton Mortgage Renewal Mistakes to Avoid in 2026
Your renewal is coming. Here are the most common mistakes Edmonton homeowners make and how to avoid each one.
If your mortgage is renewing in 2026, you are not alone. A large wave of Canadian homeowners locked into five-year terms in 2021, and those terms are now maturing. The good news: renewal is your chance to reset and improve. The bad news: most people make at least one of these mistakes, costing thousands over their next term. Jason Scott at Jason Scott - TMG The Mortgage Group explains what to watch for.
Mistake 1: Signing the Bank's First Offer Without Shopping
Your lender sends a renewal letter 4 to 6 months before maturity. It includes a rate and a friendly instruction to sign and return. This is rarely their best offer. It is a starting point designed to capture homeowners who do not shop around.
The fix: Contact an independent broker (like Jason, who shops 20+ lenders) before you sign anything. Even a quick comparison takes 15 minutes and can reveal significantly better options. You have zero obligation to stay with your current lender at renewal.
Mistake 2: Looking Only at the Rate Number
A 0.1% lower rate might save $400 per year on a $400,000 mortgage. But a product with a restrictive penalty structure could cost $15,000 if you need to break early. Rate is important, but it is one factor among many.
The fix: Compare prepayment privileges, penalty calculation methods (IRD vs. three months' interest), portability, and payment flexibility alongside the rate. Jason presents all of these factors when comparing renewal options.
Mistake 3: Waiting Until the Last Minute
If you start shopping two weeks before maturity, your options narrow dramatically. Many lenders need time to process an application and coordinate the transfer. Some great rate offers may have expired.
The fix: Start your renewal conversation 4 to 6 months early. This gives you maximum choice, rate hold protection, and zero pressure. If you find something better, you lock it in. If not, you can always stay with your current lender.
Mistake 4: Ignoring Your Changed Circumstances
Your life may have changed since you took out your mortgage. Maybe your income increased, your family grew, you paid off a car loan, or you want to start prepaying aggressively. Your renewal is the ideal time to adjust your strategy, not just roll into the same terms.
The fix: Use renewal as a planning conversation. Could you shorten your amortization? Switch to accelerated biweekly payments? Move from fixed to variable (or vice versa)? Jason helps you reassess based on where you are today, not where you were five years ago.
Mistake 5: Assuming You Cannot Switch Lenders
Many homeowners believe switching lenders is complicated, expensive, or risky. In reality, switching at renewal is usually free of penalty, and the new lender typically covers transfer and legal costs. Your payments continue without interruption on the new schedule.
The fix: Treat your renewal as a fresh start. The only reason to stay with your current lender is if they genuinely offer the best combination of rate, terms, and service, not out of inertia or assumed hassle.
What to Do Right Now
If your renewal is within 6 months, call 780-721-4879 or apply online. Jason reviews your current mortgage, presents competitive alternatives, and helps you choose the option that saves the most money and best fits your next five years.
For comprehensive renewal education, read the 2026 renewals guide or visit the renewal service page. Questions? Check the FAQs.
Renewal Article FAQs
What if I already signed my renewal and regret it?
If you signed but your new term has not started yet, contact your lender immediately to ask about cancellation. Some lenders allow changes before the new term begins. If the new term has already started, you are in a new contract and breaking it would incur a penalty. For future renewals, start shopping earlier.
Is it too late to shop if my renewal is in two months?
Two months is tight but not impossible. Many lenders can process a transfer application within that timeframe, especially with a broker managing the loan. Contact Jason as soon as possible and he will advise whether shopping is still practical given your timeline.
How much can I realistically save by shopping my renewal?
Savings vary by balance and rate gap, but on a $400,000 mortgage, even a 0.25% improvement saves roughly $5,000 over a five-year term. Larger rate gaps or larger balances produce proportionally bigger savings. The comparison costs nothing and takes about 15 minutes of your time.
Ready for a clearer mortgage plan?
Call Jason. He will educate you, answer your questions, and make the next step easier.