Mortgage Renewal in Lethbridge
Many Canadians miss out on better mortgage rates by automatically accepting the first renewal offer from their lender. In fact, nearly 60% of borrowers do this without looking at other options. This practice can lead to paying more in interest over time—sometimes thousands of dollars more—just by not shopping around.
When To Start Planning Your Renewal
Generally it is a good idea to start shopping for a new term between four and six months before your current mortgage term expires. Many lenders send out your renewal letter very close to the time that your term expires and this does not give you ample time to arrange for a mortgage term through a different lender. This means that you need to be tracking your own mortgage term timeframe and know when it is time to start shopping for a good mortgage renewal rate.
When To Start Planning Your Renewal
Generally it is a good idea to start shopping for a new term between four and six months before your current mortgage term expires. Many lenders send out your renewal letter very close to the time that your term expires and this does not give you ample time to arrange for a mortgage term through a different lender. This means that you need to be tracking your own mortgage term timeframe and know when it is time to start shopping for a good mortgage renewal rate.
Renew At The Best Rate Possible
Your mortgage is one of your biggest expenses. For this reason it is imperative to find the best interest rates and mortgage terms you possibly can. By shopping around at renewal time you can save substantial amounts of money over the life of your mortgage loan. Don’t be one of the 60% who just simply sign their renewal letter and send it back. Use the services of a licensed Lethbridge mortgage professional like Allison Kehler-Tolley to ensure the lenders compete for your business.
Mortgage Renewal FAQs
What is a mortgage renewal and how does it work in Lethbridge?
Your mortgage renewal is when your existing home loan term ends and you sign a new contract—often with updated rates or terms. In Lethbridge, you’ll receive a renewal offer from your lender about 90 days before maturity; you can accept as‑is, negotiate different terms, or switch lenders at that time.
When should I start my mortgage renewal process in Alberta?
It’s wise to begin shopping renewal options 3–4 months before your term ends. Starting early in Alberta gives you time to compare rate quotes, explore new lenders, and lock in the best deal before your current contract expires.
Can I renew my mortgage early with my lender in Lethbridge?
You can discuss renewal terms with your lender anytime, but the new mortgage won’t take effect until your current term finishes. If you lock in a new rate too far in advance, you may face a rate‑lock fee or miss out on later rate drops.
Should I renew to a fixed or variable rate at renewal time?
In Lethbridge’s market, a fixed rate locks in predictable payments and shields you from future increases, while a variable rate can start lower but may rise if benchmark rates climb. Your choice depends on your risk tolerance and market outlook.
Can I switch lenders at my mortgage renewal in Alberta?
Absolutely. At renewal, you’re free to move your mortgage to a new lender without penalty (since your term has ended). You’ll need a new approval, plus funds for legal and appraisal fees, but you may secure significantly better rates or features.
What documents do I need to renew my mortgage in Lethbridge?
You’ll typically need your renewal statement, government‑issued ID, proof of income (pay stubs or T4s), recent property tax receipts, and a current credit report. If your financial situation has changed, be prepared with updated statements or employment letters.
Can I change my amortization period when renewing my mortgage?
Yes. When you renew in Alberta, you can shorten your amortization to pay off the mortgage faster or extend it (up to 25 years) to lower monthly payments—subject to lender approval and affordability guidelines.
Will renewing my mortgage affect my credit score in Alberta?
A renewal with your existing lender generally has no impact because it’s not a new credit check. If you switch lenders, the hard inquiry may cause a small, temporary dip that typically recovers within a few months of on‑time payments.
How can a mortgage broker help with my mortgage renewal in Lethbridge?
A broker like Allison Kehler‑Tolley shops multiple Alberta lenders on your behalf, negotiates rate holds, compares renewal perks, and handles all paperwork—ensuring you lock in the ideal rate and terms for your Lethbridge home.