Mortgage renewals for Red Deer homeowners
Your lender's renewal letter is an opening offer. Let's see what else is out there.
Photo: Red Deer River, Red Deer, AB by Kevin M. Klerks (kevinmklerks), CC BY 2.0 (darkened, cropped) · Credits
When to start
Lenders typically send a renewal offer a few weeks to a few months before maturity. Federally regulated lenders must send it at least 21 days ahead (FCAC). Plan to start comparing about 120 days before your date, because many lenders will hold a rate for roughly that long on a switch.
Switching is easier than it used to be
As of Nov. 21, 2024, OSFI dropped its expectation that federally regulated lenders re-apply the stress test on an uninsured straight switch, meaning the same balance and no longer amortization moving to a new lender (OSFI). For Red Deer owners whose income dipped during a slow patch in the oil patch or in construction, that rule change can open doors that were closed a couple of years ago.
What to compare besides the rate
- How the prepayment penalty is calculated if you sell or refinance early
- Annual lump-sum and payment-increase privileges
- Whether the mortgage is portable to your next home
- Whether the charge is registered for the loan amount or as a collateral charge, which affects future switching
- Legal and discharge costs, and whether the new lender covers them
Using renewal to change things
Renewal is the one moment you can usually make changes without a penalty: shorten or extend the amortization, add a line of credit, move from variable to fixed, or fold in debt. Adding money turns it into a refinance, which means full qualification, but it may still be worth it. We'll price both paths.
Questions people ask
Does switching lenders at renewal cost money?
Discharge, appraisal and legal costs can come up, though plenty of lenders absorb part or all of them when the switch is like-for-like. We'll confirm the net cost before you decide.
What if I just sign my lender's renewal?
That's always an option, and sometimes it's the right one. Checking first takes little time and gives you a benchmark.
Can I renew early?
Some lenders allow an early renewal without penalty in the last few months of a term; others charge a penalty or blend rates. It depends on your mortgage contract.
Let's map out your next move
Twenty minutes on the phone usually answers more than an evening of online calculators. There's no cost to talk and no obligation to proceed.
Shorter question? Grab a 30-minute slot (opens in a new tab), email johnantle@gopineapple.com or use the contact form.
Photo: Red Deer River, Red Deer, AB by Kevin M. Klerks (kevinmklerks), CC BY 2.0 (darkened, cropped) · Credits