Your renewal is coming. Start earlier than you think.
Most people wait for the letter from their bank. By then the best options, like an early refinance or a rate hold, may already be gone. Here's the whole process, and where you are in it.
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The short answer
At renewal you can stay with your lender or switch to another one with no penalty. Reach out 4 to 6 months before your term ends so we can hold a rate. If anything in your life might change, take a quick look about 2 years out, because that's when an early refinance can start to make sense. Your bank's first renewal offer is usually not its best rate.
Where are you in the renewal process?
Enter when your term ends and we'll show you where you are.
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Step 1 · About 2 years out
Worth a quick look
Most people don't keep a 5 year mortgage for the full 5 years. Life changes: a bigger family, a renovation, a move, some debt that crept up. If any of that is on the horizon, it's worth knowing what breaking early would cost and when it starts to make sense. Nothing to do yet. Just no surprises.
Get a renewal reminder → -
Step 2 · 12 to 18 months out
Plan the next term
This is the sweet spot to plan. Sometimes an early refinance or a blend and extend beats waiting, especially if you're carrying high interest debt. Sometimes waiting wins. We run the numbers both ways.
What's changing for you? → -
Step 3 · 4 to 6 months out
Hold a rate
Most lenders will hold a rate for about 120 days, and some longer. If rates drop before your renewal, you get the lower rate. If they rise, you're protected.
How rate holds work → -
Step 4 · 90 to 120 days out
Strategy call
Now we pick the term, the product and the lender. Stay or switch, fixed or variable, and whether to add a line of credit while it's free to do.
Book your renewal call → -
Step 5 · Under 60 days
Don't sign yet
Your lender's renewal letter has probably arrived. It's easy to sign and move on, but their first offer usually isn't their best. Send it to us first. It takes a few minutes.
Send us your renewal letter →
Is anything changing before your renewal?
Answer any that apply. Each one changes what the right renewal looks like.
Are you planning renovations or big home improvements?
Could you sell or move in the next few years?
Has your income changed since you last renewed?
Are you carrying high interest debt?
Wondering if you should break your mortgage early?
What would a better rate save you?
Compare your current rate, or your bank's renewal offer, against another rate. See the difference in your monthly payment and in the interest you'd pay over the term.
For illustration only. Uses Canadian semi annual compounding and monthly payments. The rate to compare is an example as of September 26, 2026. Your actual rate depends on your situation and the lender.
The difference
At
per month
At
per month
Should you break early? A rough estimate
A lot of people break their mortgage 3 or 4 years into a 5 year term, often without knowing the penalty first. This gives you a ballpark in about a minute. It's an estimate only. Your lender's penalty quote is the real number, and we'll get it for you.
Example rates for calculations only: about 4.39% to switch the same balance and about 4.79% to refinance, as of September 26, 2026. Your actual rate depends on your down payment or equity, the property, your credit and the lender.
How we estimate the penalty
3 months interest: your balance × your rate × 3 ÷ 12.
Interest rate differential (IRD): your balance × (your rate minus a comparison rate) × years left in your term. We use 4.39% as the comparison rate. Fixed mortgages usually pay the higher of the two. Variable mortgages usually pay 3 months interest.
Every lender calculates IRD its own way. Many big banks use their posted rates and take away the discount you got, which can make the real penalty several times higher than this estimate. Prepayment privileges and your exact balance also change the number.
For illustration only. This is a rough estimate, not a penalty quote, rate offer or approval. Savings are simplified and ignore your balance paying down over time. To get an accurate number we need your mortgage statement and a payout quote from your lender, which we can get for you.
Your estimate
1. What it costs to break
2. What you'd save for the rest of your term
3. Bottom line
What your bank won't tell you at renewal
Your bank isn't doing anything wrong when it sends you a renewal letter. It's running a business, and its job is to make renewing easy enough that you sign and move on.
Easy isn't always right.
The letter won't tell you whether the rate is competitive. It won't show you what other lenders would offer this week. And it won't ask whether your life has changed enough that a different term, a line of credit or an early refinance would serve you better.
That's our job. Sometimes staying put is the right call, and if it is, I'll tell you. I'd rather you trust us for the next 20 years than win one renewal.
Tim Lacroix, Mortgage Broker
Get a renewal reminder
Tell us when your mortgage renews and we'll reach out well before then, with time to compare lenders and hold a rate. If you share your current rate, we can also flag it early if there's a chance to save.
- ✓ No cost and no obligation
- ✓ A real person from our team reaches out, not an automated sales pitch
- ✓ Reply "stop" any time
Words your lender uses, and what they mean
Term vs amortization
Your term is how long your current mortgage contract lasts, usually 1 to 5 years. Your amortization is the total time to pay the mortgage off, usually 25 or 30 years. At the end of each term you renew, and the amortization keeps counting down.
Fixed vs variable
A fixed rate stays the same for the whole term. A variable rate moves with prime, so your payment or the interest portion of it can go up or down. Neither is always better. It depends on your plans and how you'd handle a rate increase.
Rate hold
A rate hold locks today's rate for a set period, usually about 120 days, and some lenders longer. If rates drop before your renewal, you get the lower rate. If they rise, you're protected. It costs nothing to hold a rate.
Open vs closed
A closed mortgage has a penalty if you break it early. An open mortgage can be paid off any time with no penalty, but the rate is higher. Most people are better off closed unless they know they're selling or getting a large lump sum soon.
Prepayment privileges
Most mortgages let you pay extra each year without a penalty, often 10% to 20% of the original balance, as a lump sum or by increasing your payment. Using them can take years off your amortization.
Prepayment penalty
If you break a mortgage before the term ends, you pay a penalty. On a fixed rate it's usually the greater of 3 months interest or the interest rate differential (IRD). On a variable it's usually 3 months interest. Big banks often calculate IRD using posted rates, which can make it much larger. Your lender's number is the one that counts.
Blend and extend
Your lender may offer to blend your current rate with today's rate and extend your term, with no penalty. It can make sense, but it keeps you with the same lender and means you can't shop around. Worth checking before you agree.
Refinance vs renewal
Renewal keeps the same mortgage for a new term, with your lender or a new one. Refinancing changes the mortgage itself: the amount, the amortization or the product. It takes more paperwork but opens more options, like taking out equity.
HELOC
A home equity line of credit is a revolving line secured by your home. It can be up to 65% of your home's value, and your mortgage plus the line can total up to 80%. You only pay interest on what you use, and it's like a personal line of credit with a better rate.
Ask us anything
No commitment. Tell us where you're at, even a rough summary helps. If you have your renewal letter, mention it and we'll ask you to send it over.
Rather talk? Call or text (403) 648-1541.
Send your question
We'll get back to you within one business day.
What clients say about renewing with us
5.0 from 239 Google reviews
"The team at Lacroix Group was very helpful and knowledgeable from start to finish. They helped us renew our mortgage and find us a rate and bank we were comfortable with and made it stress free! Would definitely recommend Tim and his team for all your mortgage needs."
"Incredibly professional and knowledgeable. They kept us informed at all times. The team answered any questions we had, and ensured we were always up to speed on the process. They helped us switch banks for our mortgage, and the team made the entire thing feel easy. Would highly recommend to anyone looking for a mortgage broker."
"Had a super smooth transaction and experience with Colton, Tim and the entire Lacroix Mortgage Team! Helped me source the best rate and then took care of everything from start to finish. Would do business again!"
Mortgage renewal questions
When should I start thinking about my mortgage renewal?
Earlier than most people do. About 2 years out is a good time for a quick look if anything in your life might change, since that's when an early refinance can start to make sense. For the renewal itself, most lenders will hold a rate for about 120 days, so reach out 4 to 6 months before your term ends.
Do I have to renew with my current lender?
No. At the end of your term you can switch lenders with no penalty. It's one of the best times to shop around, and many lenders cover the legal and appraisal costs of a switch.
What happens if I just sign the renewal letter from my bank?
You can, and it's the easiest option. But the first renewal offer usually isn't the bank's best rate, and it won't show you what other lenders would offer. A quick review costs you nothing.
Do I need to pass the stress test again to switch lenders at renewal?
For a straight switch of the same balance and amortization, federally regulated lenders no longer require you to requalify under the stress test. If you add money or extend the amortization, you do. Lender policies vary, so we confirm it for your file.
Is it worth breaking my mortgage early to get a better rate?
Sometimes. It depends on your current rate, your penalty and how much time is left. Breaking just for a lower rate rarely wins on a fixed mortgage with an IRD penalty, because the penalty eats most of the savings. It more often makes sense on a variable rate, or when you're consolidating high interest debt at the same time.
Can a mortgage broker help with renewals, or just purchases?
Renewals are a big part of what we do. We compare 50+ lenders, hold your rate and help you decide whether to stay or switch. For most renewals and switches there's no cost to you, because the lender pays us.
More on renewals
Mortgage Renewal Guide for Alberta Homeowners
What to consider, how to negotiate, and whether to stay or switch lenders.
Read Article →Prepayment Privileges and Mortgage Penalties Explained
How 3 months interest and IRD penalties are calculated.
Read Article →Using Home Equity to Consolidate Debt
The pros and cons of rolling debt into your mortgage.
Read Article →Ready to talk through your renewal?
We're a Calgary team. If you'd rather call than click, Tim's number is (403) 648-1541.