Posted On Jan 06, 2026
Mortgage Renewal Shock? 7 Smart Moves Before Your Alberta Rate Jumps in 2026
We get it. You're probably feeling a bit queasy thinking about your mortgage renewal coming up in 2026. Maybe you've heard whispers about rate increases, or you're starting to do the math on what your payments might look like. If you're like most Albertans we talk to, the thought of renewal shock is keeping you up at night.
Here's the thing – you're not imagining it. The numbers are real, and they're pretty sobering. Fixed-rate borrowers renewing in 2026 are looking at payment increases of around 26%, while even variable-rate folks might see bumps of about 4%. But before you start stress-eating your way through a bag of Tim Hortons donuts, we've got some good news: there are smart moves you can make right now to soften the blow.
We've helped hundreds of Alberta families navigate renewal challenges, and we've learned that the families who fare best are the ones who start planning early. So let's dive into seven moves that could save you serious money and stress when 2026 rolls around.
1. Start Shopping Around NOW (Yes, Really)
This might sound obvious, but you'd be surprised how many people just auto-renew with their current lender. It's like staying with your high school boyfriend because it's comfortable – sometimes you need to see what else is out there.
Lenders in Alberta are actively competing for customers right now, which means you have leverage. We're seeing 5-year fixed rates ranging from 4.21% to 4.66% across different lenders, and that spread can mean thousands of dollars over the life of your mortgage.
The best part? You don't have to wait until your renewal date to start this process. You can begin shopping around up to 120 days before your renewal. Think of it as mortgage window shopping – except the savings are very real.
2. Consider Making the Switch to Variable
We know, we know. Variable rates feel scary after the rollercoaster we've all been on. But here's something interesting: current variable rates in Alberta are sitting around 3.5%, which is notably lower than what you'll find for fixed rates.
If you're the type who can sleep at night knowing your rate might fluctuate, this could be a smart play. The key is understanding your own risk tolerance and having a buffer in your budget. We often tell clients to ask themselves: "If my payment went up by $200 a month, would I be okay?" If the answer is yes, variable might be worth considering.
3. Lock In Early If You Find Something Good
Here's a strategy that many Albertans don't know about: you can often secure a rate hold before your renewal date. If you find a rate that makes you feel good about your financial future, you might be able to lock it in early.
Fixed rates are expected to stay above 4% throughout 2026, so if you find something in that range that works for your budget, grabbing it early could protect you from further increases. It's like buying concert tickets early – you might pay a bit more than waiting for last-minute deals, but you also won't risk missing out entirely.
4. Run the Numbers on Your Debt Service Ratio
This sounds fancy, but it's really just checking whether you can afford your new payments without eating ramen noodles for dinner every night. Your debt service ratio is the percentage of your income that goes to debt payments.
The research suggests that for borrowers facing payment increases, this ratio could jump from about 15% to 18% by the end of 2026. While 18% isn't dangerous territory, it's worth calculating where you'll land to avoid any surprises. We always recommend keeping this ratio as low as possible – your future self will thank you.
5. Explore Your Refinancing Options
Sometimes the best defense is a good offense. If your current mortgage situation isn't working for your 2026 goals, refinancing before your renewal might make sense. This is especially true if you have significant equity in your Alberta home.
Refinancing can help you consolidate debt, access equity for renovations, or simply restructure your mortgage to better fit your current life situation. Yes, there might be some penalties involved, but sometimes the long-term savings outweigh the short-term costs. We've seen families save hundreds of dollars monthly by making this move strategically.
6. Consider Your Amortization Period
This is where you can get creative with managing your payments. If your current amortization period is shorter, extending it could help offset some of the payment increase from higher rates. Conversely, if you can afford it, shortening your amortization can save you thousands in interest over time.
It's like choosing between a sports car payment and a sensible sedan payment – both get you where you're going, but the monthly impact on your budget is very different. We work with clients to find the sweet spot that balances affordability with long-term financial goals.
7. Build Your Renewal Strategy Team
This might be the most important move of all: don't go it alone. A good mortgage broker (hint, hint) can shop multiple lenders simultaneously, negotiate on your behalf, and help you understand options you didn't know existed.
We've seen too many Alberta homeowners leave money on the table because they didn't know what questions to ask or what options were available. Having someone in your corner who understands the Alberta market and has relationships with multiple lenders can make the difference between a renewal that hurts and one that actually works for you.
The Bottom Line
Look, we're not going to sugarcoat it – 2026 renewals are going to be challenging for many Alberta homeowners. About 60% of people renewing are expected to see payment increases, and some of those increases will be significant.
But here's what we've learned from helping families through tough renewal periods: the ones who start planning early, explore all their options, and work with experienced professionals tend to come out ahead. They might not avoid the rate increases entirely, but they minimize the impact and often end up in a better overall mortgage situation.
The key is taking action now rather than hoping things will magically improve. Rates might come down eventually, but your renewal date isn't going to wait for the perfect market conditions.
Ready to Make Your Move?
We know this stuff can feel overwhelming – trust us, we've had plenty of clients sit across from us looking exactly how you might be feeling right now. But we also know that with the right strategy and early action, you can navigate 2026 renewal challenges successfully.
If you're ready to start building your renewal strategy, we'd love to chat with you. We'll review your current situation, explore your options, and help you create a plan that makes sense for your family and your budget. No pressure, no sales pitch – just honest advice from people who genuinely want to see you succeed.
Book a call with us today and let's turn your renewal anxiety into a solid action plan. Because the best time to prepare for renewal shock? Right now, while you still have time to make smart moves.
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