November 24, 2025
After several years of price growth, many Canadian—and especially Alberta—homeowners now have more home equity than they realize. Even with higher interest rates than the ultra-low pandemic era, that extra equity can be a powerful tool at renewal time. Equity is simply the value of your home minus what you still owe on the mortgage. As values have recovered and payments have chipped away at principal, your loan-to-value ratio has improved, and lenders generally view lower loan-to-value files as lower risk.
Why does that matter for your next renewal? First, more equity can help you qualify for more competitive rates or products, especially if your income and credit have remained stable. A stronger equity position gives you more options to switch lenders if your current institution isn’t offering sharp renewal pricing. Second, you can use renewal as a chance to restructure your mortgage—shortening your amortization, increasing prepayment privileges, or choosing a term that better matches your plans for the next three to five years.
Some homeowners also consider tapping a portion of their equity to consolidate higher-interest debt into their mortgage. Done carefully, this can improve monthly cash flow and simplify payments. But it has to be handled with discipline: rolling consumer debt into your mortgage only pays off if you avoid re-running those balances back up. The goal is to use equity to strengthen your overall financial position—not to treat your home like an ATM.
As you approach renewal, start by getting an updated estimate of your home’s value and comparing it to your current mortgage balance. Then sit down with your mortgage broker to review your equity, income, and goals. In today’s environment—where rates may hold steady around neutral levels and price growth is expected to be modest—using your equity wisely can help you offset renewal payment shock, build wealth faster, and keep your mortgage working for you, not the other way around.
Source: Absolute Mortgage Team