Real Estate Blog

Over the past few years, homeowners across the Greater Edmonton Area have experienced a dramatically different lending environment than what existed during the low-interest-rate era of 2020 and 2021. Many homeowners secured mortgages at historically low rates, often below 2%, and are now facing a very different reality as renewal dates approach.

From the rising cost of groceries and utilities to increased borrowing costs, today's economic environment is affecting household budgets across Alberta. If your mortgage is set to renew within the next few years, it's important to understand how these changes may impact your monthly payments—and what steps you can take to prepare.

The good news? You don't have to navigate these changes alone.

Why Mortgage Renewals Are Getting More Expensive

When interest rates were at historic lows, many Edmonton homeowners took advantage of incredibly affordable borrowing costs. Since then, the Bank of Canada has raised rates significantly to combat inflation, resulting in higher mortgage rates across the country.

While rates have stabilized somewhat, most homeowners renewing today are still facing rates that are substantially higher than those they secured several years ago.

For example:

• A homeowner who obtained a five-year fixed mortgage at 1.99% may now be renewing closer to current market rates.

• Even a modest increase in interest rates can translate into hundreds of dollars more per month.

• Households that have become accustomed to lower payments may need to adjust their budgets accordingly.

For many families, mortgage renewal will be one of the most significant financial events they'll face over the next few years.

What This Means for Edmonton Homeowners

While rising rates have impacted homeowners across Canada, the Greater Edmonton Area remains in a relatively strong position compared to many larger markets.

Edmonton continues to offer:

• More affordable housing than many major Canadian cities

• Strong employment opportunities

• Population growth that supports housing demand

• A diverse economy with opportunities across multiple sectors

However, affordability doesn't eliminate the impact of higher borrowing costs.

Many homeowners are finding themselves asking:

• Should I lock into a fixed rate?

• Is a variable mortgage still worth considering?

• Should I increase my amortization period?

• Does it make sense to pay down additional principal before renewal?

• Is it time to right-size into a different home?

The answers vary depending on each homeowner's unique financial situation.

Start Planning Before Your Renewal Date

One of the biggest mistakes homeowners make is waiting until their mortgage renewal notice arrives.

The best time to begin planning is often 6 to 12 months before your renewal date.

Starting early allows you to:

• Understand your future payment options

• Review your household budget

• Explore refinancing opportunities

• Compare lender offerings

• Reduce financial stress and surprises

Being proactive can provide significantly more flexibility than making decisions at the last minute.

How Higher Payments Could Affect Your Real Estate Plans

For some homeowners, higher mortgage payments may impact future housing goals.

You may be considering:

Moving Up

Growing families may still be looking for additional space despite higher borrowing costs.

Downsizing

Empty nesters may choose to reduce monthly expenses and unlock equity.

Investing

Some homeowners are exploring rental properties to diversify their financial plans.

Staying Put

Many families simply want to understand how to make their current home and mortgage work efficiently for the years ahead.

Regardless of your goals, understanding your mortgage renewal options can help you make informed decisions.

Edmonton's Housing Market Remains Resilient

Despite economic uncertainty, the Edmonton market continues to attract buyers due to its affordability and quality of life.

Communities throughout South Edmonton, Southwest Edmonton, Windermere, Summerside, Chappelle, Heritage Valley, Beaumont, Sherwood Park, St. Albert, and surrounding areas continue to see strong demand from families looking to establish roots in the region.

As Alberta's population continues to grow, the Greater Edmonton Area remains one of the most attractive housing markets in Canada.

You Don't Have to Figure It Out Alone

Mortgage renewals can feel overwhelming, especially when combined with rising living costs and changing economic conditions.

At Rachel Fung & Associates, we work with homeowners throughout Edmonton and the surrounding communities every day. We understand that every situation is unique, and we're always happy to provide guidance, connect you with trusted mortgage professionals, and help you understand how your mortgage renewal may affect your future real estate plans.

Whether you're renewing this year, next year, or simply want to start preparing, we're here to help.

Sometimes a simple conversation can provide clarity and confidence as you navigate your next steps.

Let's Talk

If your mortgage renewal is approaching and you're wondering what it could mean for your finances, home value, or future plans, reach out to Rachel Fung & Associates.

We're always happy to answer questions, provide a professional opinion, and help you make informed decisions for your family's future.

Rachel Fung & Associates
Helping Edmonton and area homeowners navigate every stage of homeownership.

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