Alterna - Renew your Mortgage

Multiple options for your changing needs.

Is your mortgage up for renewal? Want to access your home equity or lower your payments? We have the right solution to support your current and future needs.

There's no better time to take another look at your mortgage options than when you're approaching your term maturity date.

One of our mortgage specialists can help you determine the best renewal option for your particular circumstances. You can choose an open or closed, fixed rate or variable rate term ranging from 6 months to 10 years. If you would like to speak to a Mortgage Retention Specialist, send us an email at questions@alterna.ca and someone from our team will contact you.

Extend your amortization period

Your amortization period is the number of years you will need to pay off your mortgage. A longer amortization period will result in a lower regular mortgage payment . However, you will pay more interest over the life of the mortgage, and it will take longer to pay your mortgage off.

Refinance your mortgage

Refinancing is when you pay out your existing mortgage to obtain a new, larger mortgage by accessing the available equity in your property. Refinancing can help consolidate debt into a single, more affordable payment with a lower interest rate. Refinancing typically means increased interest expense as a result of a higher mortgage balance and often an amortization period being reset to 25 or 30 years.

Payment
Deferral

This option provides short-term relief when your finances are strained. Eligible customers can defer their mortgage payments for up to 4 months per term. When payments resume, there will be no change in payment amount (in most cases).

IMPORTANT: A payment deferral is not payment forgiveness and will increase the interest cost associated with the mortgage over its lifetime.

If you would like to speak to a Mortgage Retention Specialist, send us an email at questions@alterna.ca and someone from our team will contact you.

How can I make changes to my mortgage payments?

Our team of professionals is here to help with advice and solutions tailored to your specific financial needs. If you would like to speak to a Mortgage Retention Specialist, send us an email at questions@alterna.ca and someone from our team will contact you to discuss your options.

Additional resources

Managing your money in challenging times: Managing your money in challenging times - Canada.ca

Getting help from a credit counsellor: Getting help from a credit counsellor - Canada.ca

Financial Goal Calculator – designed to help you manage your debt and savings goals: Financial Goal Calculator - Canada.ca (fcac-acfc.gc.ca)

You've got questions.

We've got answers.

How are high interest rates impacting mortgage holders?

In 2023, the Bank of Canada rapidly increased interest rates to combat rising inflation, bringing the benchmark interest rate to the highest level in years. These elevated rates will impact many mortgage holders.

Variable rate mortgage holders

With Alterna, your regularly scheduled mortgage payment amount does not change with a variable rate mortgage, even if interest rates increase or decrease.

There are other impacts when interest rates change.

As the variable rate increases, more of your mortgage payment goes towards interest, and less goes towards paying down your mortgage principal. There may come a point at which the regular mortgage payments no longer cover the interest, and none of the payment is allocated to the principal. As a result, any unpaid interest will be added to your mortgage balance at renewal.
Your amortization period may increase, which means it will take longer to pay off your mortgage than initially planned.
When it comes time to renew your mortgage, your mortgage payments may increase to bring your mortgage back in line with the contractual amortization schedule.

Fixed-rate mortgage holders

The impact of rising interest rates might not affect holders of fixed-rate mortgages until it's time to renew. Nevertheless, when your mortgage comes up for renewal, the terms will be renegotiated according to present-day rates. Should these rates significantly exceed your current rate, it could substantially increase your mortgage payments.

Continue reading to discover strategies for mitigating the risk of a substantial payment increase.

How can I reduce the potential for a significant increase in my mortgage payments at renewal?

When interest rates increase during a mortgage term, you could experience a noticeable increase in your mortgage payment when you renew your mortgage. During the term, there are several ways you can manage that risk.

Increase your Payment Frequency - Consider converting to a Weekly or Bi-Weekly accelerated payment frequency. Making payments on an accelerated basis will result in you making the equivalent of an extra monthly payment per year.
Apply a Lump Sum Payment or Increase your Mortgage Payment. All closed term mortgages allow an annual prepayment of up to 20% of the original principal, either through (A) one or more prepayments and/or (B) by increasing payments to an amount not more than two times the original amount.
If you plan to pay more than 20% of the original principal in any one year there may be an additional change. You can use this calculator to find out what your estimated prepayment charge will be today. Mortgage Prepayment Calculator
Increase your payments by a manageable amount now to help offset a big jump later.
Move to a fixed-rate mortgage if you hold a variable-rate mortgage.

Other ways to manage the impact of higher interest rates on your mortgage.

Creating a plan now can help you prepare for potential changes to your mortgage interest rate when you renew your mortgage.

Review and adjust your budget. Look at your budget to identify ways to trim spending and increase your savings. Extra savings could help you manage increases in your mortgage payments. Watch our Money Saving Strategies (Webinar) for tips on saving.

Don't have a budget? Here are some tools to help.

5 Steps to Create a Personal Budget

Budget Planner

Review your non-registered and registered savings accounts to determine if they could help with a prepayment or cover a higher mortgage payment. Please remember there may be tax implications when withdrawing from a registered savings account.
Manage your debt: Speak to one of our financial professionals for options on managing all your debt obligations. Contact us through the live CHAT feature on our website, or by calling our Contact Centre at 1.866.560.0120.

These tools can help you minimize the impact of higher interest rates when you renew your mortgage, especially if a higher mortgage payment may cause financial difficulties.

Frequently Asked Questions

How are high interest rates impacting mortgage holders?

How can I reduce the potential for a significant increase in my mortgage payments at renewal?

Other ways to manage the impact of higher interest rates on your mortgage.

We are here for you.