Resources and insights

Mortgage Renewal Hub

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Your one-stop shop for mortgage renewal information

Your one-stop shop for mortgage resources and insights

Your mortgage has a big impact on your financial wellbeing. Renewal is an important opportunity. This page will help you analyze your options and pick the best renewal for you.

Renewal timeline
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Get lowest rate
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Mortgage concepts
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5 questions
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Insights

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Your mortgage renewal timeline

Steps to renew

Research and rates

Gather information and consider your options. Remember that renewed mortgages get preferred rates at ATB, lower than our posted rates. Review the core concepts of mortgage renewal.

If you’re thinking about refinancing, selling your home, or taking out equity with a HELOC, and then connect with an ATB mortgage renewal advisor for guidance.

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Review your documents

Carefully go over the renewal documents, which will arrive in the mail roughly 60 days before your renewal date. (If they don’t show up or they go missing, connect with your ATB Mortgage Renewal Advisor.)

Choose term, type and details

Determine the mortgage term* and type* that will work best for you. Consider lump sum payments*, early repayment*, and changing your payment schedule*. Use our mortgage calculator to get an idea of what your new term might be.

* See definitions of these mortgage concepts
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Complete your renewal

Fill out your renewal preferences and submit.

Past term deadline

If you do not confirm your renewal instructions before the term is up, your mortgage will convert into a 6 month open term at the current posted rate. If this happens, you will lose your held rate and your mortgage payments may potentially increase significantly. 

Get the lowest rate possible

We understand that rates are an important part of your mortgage renewal.

Variable rates fluctuate with ATB’s prime rate, which moves in response to the Bank of Canada’s prime lending rate. Some variable mortgages will let you switch to a fixed rate for a fee. Fixed rates are set for the term of a mortgage. ATB offers competitive rates based on the option that's best for you. Keep in mind that existing mortgage clients get preferred rates, which are lower than the posted ones.


RATE PROMISE

 

All renewing ATB mortgage customers qualify for preferred mortgage rates

Before you make any decisions based on those rates, you should know that all renewing ATB mortgage customers qualify for preferred mortgage rates. That means you’ll get a rate lower than what’s listed above when you renew with ATB.


RATE PROMISE

 

All renewing ATB mortgage customers qualify for preferred mortgage rates

Before you make any decisions based on those rates, you should know that all renewing ATB mortgage customers qualify for preferred mortgage rates. That means you’ll get a rate lower than what’s listed above when you renew with ATB.

Our mortgage payment calculator can give you a sense of how different renewal choices will change your payments and your mortgage overall.

Be advised the calculator, like our posted rates, does not reflect your preferred rate. It’s best used for general planning.

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What if rates drop?

If the interest rate for the term you choose decreases on the date your new term begins, we’ll automatically apply the lower rate for that term on your renewal date. That's our rate promise to returning mortgage clients.

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How are rates calculated?

Rates are driven by the Bank of Canada’s policy rate and bond yields. Variable-rate mortgages react quickly to changes in the policy rate. Fixed-rate mortgage rates change based on bond yields.

While every mortgage provider in Canada sets its own prime rate, based on the Bank of Canada rate, these rates are largely the same.

No one knows exactly what the Bank of Canada prime rate will do in the future. ATB adjusts our rates independently from the Bank of Canada, so you do not need to wait for a rate change to renew.

Fixed-rate mortgages guarantee a fixed interest rate for the length of your mortgage term. The interest rate of a variable mortgage will change along with the mortgage provider’s prime mortgage rate. Payment amounts will remain the same for the mortgage term for both kinds of mortgage, but the portions of each payment that goes towards interest or principal will change in a variable mortgage if your mortgage provider’s prime rate changes. Some variable-rate mortgages allow you to switch to a fixed rate at no penalty in the middle of the term.

Core mortgage concepts

Term

The length of time of a mortgage contract. The most common term is five years, but they can be as short as six months and as long as seven years.

Amortization

How long it will take to pay off a mortgage—the original loan amount, plus interest. In Canada, if your down payment is less than 20% of the home’s price, the maximum amortization period is 30 years for first-time homebuyers purchasing newly built homes and 25 years in all other cases.

Open and closed

In a closed mortgage, the terms and conditions are set. Any prepayments are set within those terms (and usually limited to 10-20% of the mortgage amount). Breaking these terms and conditions (usually by making a larger prepayment or paying out your mortgage in full) results in extra fees. Refinance options like a HELOC or second mortgage are also available on a closed term.


In an open mortgage, you can make extra payments without penalty, including paying off the entire mortgage. You can also refinance or renegotiate at any time.


Since open mortgages come with greater flexibility, they usually have higher interest rates than closed mortgages.

Fixed and variable

A fixed-rate mortgage guarantees a fixed interest rate for the term of the mortgage.


A variable mortgage’s interest rate varies according to the mortgage provider’s prime rate (which in turn moves in accordance with the Bank of Canada’s prime rate).


Payment amounts are steady for both kinds of mortgage, but with a variable mortgage the portion of each payment that goes to the interest or the principal of the loan will vary as interest rates change.


Some variable-rate mortgages allow you to change to a fixed rate in the middle of the term with no penalty.

Payment schedule

How often you make payments on your mortgage. Your options are monthly, semi-monthly, bi-weekly (every two weeks), or weekly.

Prepayment privilege and prepayment penalty

Prepayment privilege is the amount of money you can pay toward your mortgage without prepayment penalties. You can do this by increasing the size of your regular payments, making lump-sum payments, or both.

A prepayment penalty is a fee your mortgage provider charges you if you break your mortgage contract by paying more than allowed by the terms of your mortgage, including paying your entire mortgage before the end of your term when you sell your home.

Portability, blending and extending

A portable mortgage is one that can “follow” you to a new home if you move during your mortgage term without paying a penalty. This is effectively a transfer of the existing rate, balance and maturity date. You cannot port a mortgage to a home with a value lower than the current remaining balance on your mortgage. All ATB mortgages are portable, though if you think you’ll need to port your mortgage we don’t suggest a variable mortgage since they cannot be “blended and extended,” as described below.


Blending and extending allows you to blend your current mortgage rate with a new rate and extend the term of your mortgage. This can be a good option if you buy a new home or want to renew your mortgage early.

Skip payments

Some mortgages allow you to skip up to two months of mortgage payments every year. This can be useful if your income fluctuates, but it can create significant extra payments at the end of a mortgage term.

Loan protection

Insurance that protects you and your loved ones from financial risk should you encounter a major life event during the term of your mortgage. We recommend all mortgage holders have some level of life, disability and critical illness protection.

Renewal

Renewal is re-negotiating an existing mortgage, with or without changes, to a new term.

Refinance

Refinancing your mortgage means replacing your existing mortgage with a new one, possibly with more funds or different terms. A full credit application is also required, which can take time and add costs. While you can refinance anytime you should consider there may be extra costs like prepayment penalties, closing fees, appraisal charges, application fees, and legal expenses.

Five must-ask questions for your mortgage renewal

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Do you plan to sell or move within the next five years?

Answer below to see advice

Yes

Explore shorter-term renewal options and consider a portable mortgage* to minimize penalties if you sell or move sooner than you expect.

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No

You should consider longer-term mortgages with lower rates. You can also explore options like increasing your amortization* to lower your payments.

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Is your priority to pay off your mortgage as quickly as possible?

Answer below to see advice

Yes

You should consider increasing the size of your payments, their frequency (like an accelerated bi-weekly interval), making lump-sum payments and to reduce your principal faster.

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No

Focus on securing the lowest possible interest rate and extending your amortization* to free up cash flow for other financial goals.

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Do you actively monitor interest rate changes?

Answer below to see advice

Yes

A variable rate mortgage* might be a good option for you, as you can potentially benefit from rate drops.

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No

A fixed-rate mortgage* offers stability and predictability, as your rate will remain the same for the term, regardless of market fluctuations.

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Do you have any high-interest debt you'd like to consolidate with your mortgage?

If so, you should explore your refinancing options to consolidate your high-interest debt to your mortgage balance. This can simplify your payments and save you money on interest. Your ATB mortgage advisor can help you with this. The sooner you reach out to them the better.

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Are you planning any major renovations or home improvements in the near future?

If so, consider increasing your mortgage amount through refinancing, a second mortgage or a HELOC to cover the renovation costs. Reach out to your ATB mortgage advisor for help finding the best choice for you. You can also learn more about refinancing.

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Bonus question: are you eligible for the ATB Rate First Mortgage?

If this is your primary residence and you’re after the lowest rate possible, you could renew into an ATB Rate First Mortgage. Reach out to your ATB mortgage advisor if you need help thinking through your options.

Renewal insights

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Good Advice
What happens at the end of your mortgage term?
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Mortgage payment calculator
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Good Advice
Understanding the basics of mortgage interest
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How one client renewed

Our mortgage is now under $400k, we’ve enhanced our home with a new back deck, a dryer, and lots of painting. But with these achievements also comes the impending task of mortgage renewal—a process made all the more daunting by the volatile interest rates over the past year.
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Alyssa Davies
Personal finance expert

Personal finance expert Alyssa Davies renewed her mortgage in the summer of 2024. Check out the six-step process she followed and read her story for full details on her approach.

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