December 8, 2025
As 2025 winds down, many Canadians—especially homeowners in Alberta—are stepping back to reassess their finances. With mortgage rates expected to level off in early 2026 and only modest rate relief ahead, planning early has never mattered more. Whether you’re buying, renewing, or refinancing next year, the moves you make now can dramatically improve your options and reduce your payments when the time comes.
Start by reviewing your amortization and outstanding balance. Many borrowers renewing in 2026 will face higher payments than their last term, even if rates ease slightly. By making a small lump-sum payment before year-end or increasing your payment by even $25–$50 bi-weekly, you can lower your effective amortization and reduce interest costs going into the new term. With Alberta households sitting on stronger home equity after years of steady price growth, this is a smart time to use equity as leverage—not as a debit card.
Next, tighten your financial profile. Lenders in 2026 will continue to focus heavily on credit history, debt ratios, and income stability. That means avoiding new loans, paying down revolving credit, and keeping banking activity clean and predictable. For homebuyers, getting documents organized early—T4s, paystubs, down payment proof, business income statements—will help secure stronger approvals and faster turnarounds in a competitive market.
Finally, get ahead of the renewal curve. Many lenders release renewal offers months before maturity, but those initial offers rarely reflect the best available terms. A broker can compare options, negotiate with competing lenders, and determine whether switching could save you thousands over the next three to five years. Going into 2026 with a proactive strategy—not a reactive one—is how borrowers protect their budgets and make the most of the year ahead.
Source: Absolute Mortgage Team