By Josh Tagg, mortgage broker · Mortgages for Less with INDI Mortgage · Calgary, serving all of Alberta ·
Quick answer: If your mortgage renews in 2027, start shopping about 120 days before the renewal date, because that’s how far ahead many lenders will hold a rate. For a renewal on February 1, 2027, that window opened on October 4, 2026. For March 1, it opens November 1. Your bank only has to send its renewal offer 21 days before the term ends, and signing it without comparing can cost real money: on a $400,000 balance, half a point is about $9,400 of extra interest over five years.
Fixed rates rose about a full point this year while the Bank of Canada held its rate, so many Alberta homeowners who locked in a few years ago will see a different payment in 2027. The renewal is the one point in your term when you can move without a prepayment penalty. That’s worth a few weeks’ head start.
When should you start if you renew in 2027?
About 120 days before your renewal date. Many lenders hold a rate for up to 120 days, and some for longer, so starting then lets you lock today’s rate. With many lenders you can still take a lower rate if rates fall before you renew; ask whether yours allows it. Here’s when the window opens for renewals in 2027:
When to start shopping for a 2027 renewal
| Your renewal date | 120-day window opens | Latest a bank must send its offer (21 days before) |
|---|---|---|
| January 1, 2027 | September 3, 2026 (already open) | December 11, 2026 |
| February 1, 2027 | October 4, 2026 (already open) | January 11, 2027 |
| March 1, 2027 | November 1, 2026 | February 8, 2027 |
| April 1, 2027 | December 2, 2026 | March 11, 2027 |
| June 1, 2027 | February 1, 2027 | May 11, 2027 |
| September 1, 2027 | May 4, 2027 | August 11, 2027 |
Federally regulated lenders such as the banks must send your renewal statement at least 21 days before your term ends. If you don’t respond, the renewal may be automatic, and the statement will say if it is (FCAC). Twenty-one days is not enough time to compare properly, which is why FCAC tells borrowers not to wait for the letter.
What does signing the first offer cost?
Here’s a $400,000 balance with 20 years left, renewed for five years. The best uninsured 5-year fixed we tracked for a straight switch as of October 26, 2026 was 4.89% (ATB Platinum). The second column is an example of an offer half a point higher.
$400,000 balance, 20 years left, 5-year term
| Best switch rate | Offer half a point higher | |
|---|---|---|
| Rate | 4.89% | 5.39% |
| Monthly payment | $2,605 | $2,713 |
| Interest paid over the 5 years | $89,156 | $98,571 |
| Still owing at the end of the term | $332,868 | $335,768 |
Half a point costs $109 a month and about $9,400 more in interest, and you finish the term owing about $2,900 more. If your mortgage was insured when you bought, switch rates are lower again: ATB’s insured rate for purchases and straight switches was 4.64% on the same date.
This isn’t a claim that your bank will offer you more. Sometimes the renewal letter is competitive. The point is that you only find out by comparing, and a competing offer is also what gets your current lender to sharpen its rate.
Do you have to pass the stress test to switch lenders?
Usually not. OSFI doesn’t expect federally regulated lenders to apply the minimum qualifying rate when you move an uninsured mortgage to another federally regulated lender at renewal, as long as you don’t increase the loan amount or the amortization (OSFI). That’s a straight switch.
Two Alberta details matter here. ATB and the credit unions are provincially regulated, so OSFI’s rule doesn’t bind them, and each sets its own test for a switch. And if you add money to the mortgage, stretch the amortization or take equity out, it’s a refinance, not a switch, and you qualify again at the stress-test rate.
What does switching cost?
FCAC lists the usual costs: discharge, registration, transfer or assignment fees, an appraisal if the new lender wants one, and other administration fees. A new insurance premium applies only if you increase the loan or extend the amortization. You can ask the new lender to cover some or all of these, and many do (FCAC).
Watch for a collateral charge. If your mortgage is registered that way, moving it can mean extra legal costs, and any line of credit or loan secured by the same charge has to be paid off or moved too.
What should you do in the 120 days?
- Find your renewal date and your mortgage type. Your annual statement shows the maturity date, the balance, and whether it’s insured.
- Decide what you need from the next term. Same amount and amortization keeps it a straight switch. If you want to consolidate debt or lower the payment by stretching the amortization, that’s a refinance, and it needs planning earlier.
- Get a rate hold. Lock a rate once you’re inside the window, so a rise doesn’t catch you, and keep watching in case rates fall.
- Take the competing number to your lender. If they match it, staying is simplest. If not, switch.
- Sign before the deadline. Don’t let an automatic renewal decide for you.
For why fixed rates rose while the Bank of Canada held, see is government debt why your mortgage rate went up?
When doesn’t this apply?
If you have a variable rate, the payment or the amortization moves with prime during the term, so renewal is less of a single event, though the same shopping rules apply. If your income or credit has changed a lot, a switch may not be straightforward, and staying with your lender may be the better option this time. If you want to break your mortgage before the renewal date, prepayment penalties apply, so check the cost first. And if you have a private or B-lender mortgage, renewal works differently; talk to a broker well before the 120 days.
Frequently asked questions
How early can I renew my mortgage?
Many lenders will hold a rate for up to 120 days before your renewal date, and some longer. For a renewal on March 1, 2027, that window opens on November 1, 2026. Renewing earlier than that usually means breaking the mortgage, which can carry a prepayment penalty.
When does my bank have to send my renewal offer?
Federally regulated lenders, such as the banks, must send your renewal statement at least 21 days before the end of your term. If the lender plans to renew automatically, the statement will say so.
Do I have to requalify to switch lenders at renewal?
Usually not for a straight switch between federally regulated lenders. OSFI doesn’t expect them to apply the stress test when you move an uninsured mortgage at renewal without increasing the amount or the amortization. ATB and credit unions in Alberta set their own rules.
What does it cost to switch mortgage lenders at renewal?
Expect possible discharge, registration and appraisal fees. Many lenders will cover some or all of these to win the switch, so ask. A collateral charge can add legal costs.
What happens if I don’t respond to my renewal letter?
The renewal may be automatic, which can mean a rate and term you didn’t compare. Shop well before the letter arrives.
Renewing in 2027? Send me your renewal date and balance, and I’ll show you the best rate you can lock today.
This is commentary, not advice. Rates and figures as of October 26, 2026. Rates change daily. The 5.39% offer is an example, not a quote from any lender. All mortgages are subject to lender approval. Josh Tagg, Mortgages for Less, a team at Indi Mortgage.
