Your mortgage questions, answered

Many Albertans share your concerns about upcoming mortgage renewals, especially with today's interest rates. Depending on your remaining amortization and when you first qualified for your mortgage, several options are available to help you manage your payments:

• Understanding your qualification: If you obtained your mortgage in 2018 or later, you likely underwent a stress test. This means you qualified at a higher rate and payment (for example, 5.25%), which initially built in a buffer for rate increases. Learn more about the mortgage stress test.
• Extend your amortization: For second or subsequent renewals, you may have the option to extend your amortization period. While this can lower your monthly payments, it also means paying more interest over the long term.
• Access your home equity: If you've built significant equity in your home, exploring options to access it could provide financial flexibility.
• Blend and extend your mortgage: This option allows you to combine your current mortgage rate with a new rate and extend your term, resulting in a new, fixed payment.

To better understand how different scenarios might affect your new payments, our mortgage payment calculator for homeowners can help. It allows you to see how changes to payments, interest rates, or terms impact your total cost, repayment speed, and cash flow.

We encourage you to reach out and have a conversation today with a mortgage expert. We're here to help you assess your financial situation and explore all available options to find the best solution for you.

If you're selling your current home and buying a new one, you have a few options available:

1. Port your mortgage: This option allows you to transfer your existing mortgage terms to the new property. However, there are specific conditions that apply to this feature.
2. Obtain a new mortgage: This option is when you pay off your existing mortgage with the sale of your property and obtain a new mortgage on the new property. This option comes with various implications such as prepayment charges and down payment requirements.

It's always best to speak with a mortgage expert to determine which option is the right choice for your situation. Learn more about your next home options and connect with an expert.

When you renew a mrotgage, you pay interest on the outstanding principal balance at the time of renewal, not on the initial mortgage amount.

Here's a breakdown of how it works:

• Initial mortgage: When you first take out your mortgage, interest is calculated on the full original principal amount.
• During the mortgage term: As you make payments, a portion of each payment goes towards reducing the principal balance, and a portion goes towards interest.
• At renewal: When your mortgage term ends and you choose to renew, the "new" loan's interest calculations are based on the principal amount that you still owe.

Any interest that accumulated and was not paid off during the previous term would typically have been added to the principal balance, so you would also be paying interest on that.

It’s easier than you may think. Just get in touch with us to start the process. Our team of experts can connect virtually or in person, ensuring your mortgage transfer goes smoothly every step of the way.

Renewing your mortgage happens when your current mortgage agreement (also called “term”) ends, you enter into a new agreement with the same lender to keep your existing mortgage.

Refinancing your mortgage means replacing your existing mortgage with a new one, with more funds and possibly different terms. A full credit application is required, which can take time and add costs. While you can refinance anytime you should consider there may be extra costs like prepayment penalties and/or appraisal charges.

Learn more about renewing or refinancing.

Yes, you can typically get a mortgage for a modular home. Here at ATB, we have a history of providing mortgages to Albertans for modular home purchases.

When exploring a mortgage for a modular home, several key factors are considered:

• Property status: Do you currently own the land where the modular home will be placed, and is it free and clear of any existing mortgages?
• Age of the modular home: The age of the modular home can influence lending criteria.
• Foundation: Will the modular home be placed on an approved, permanent foundation? This is often a crucial requirement for mortgage approval.

It's best to connect with a mortgage expert to discuss your specific situation. They can assess your individual needs and help tailor the right mortgage solution for your purchase.

When buying a home in Canada, you’re required to have a minimum down payment of the following:

• Properties up to $500,000 require a minimum of a 5% down payment
• Properties over $500,000 and under $1,499,999 require 5% down payment on the first $500,000 and a 10% down payment on the portion over $500,000
• Properties $1,500,000 or more require a 20% down payment as they don’t qualify for mortgage default insurance

If you are putting less than 20% down, you will require mortgage default insurance.

For a conventional mortgage, a down payment of 20% or more of the home's purchase price is required. Mortgage default insurance is not typically required for conventional mortgages.

This depends on a number of factors including your income, expenses and debts, as well as your down payment. Our Mortgage Affordability Calculator makes it easy to get an estimate of the maximum home price you may qualify for, so you can start your home buying journey

Our online mortgage pre-approval provides a more accurate picture of your purchasing power. Online pre-approval can be done in two business days. You can also connect directly with a mortgage expert to get pre-approved.

In Canada, if you buy a home with a down payment of less than 20%, you are required to get mortgage default insurance. ATB works with three mortgage insurers who set insurance premiums: CMHC, Sagen and Canada Guaranty. To find out more about insurance premiums and their programs, visit their websites directly.

Mortgage default insurance lets you get a mortgage for up to 95% of the purchase price of a home. It can also help you get a lower interest rate on your mortgage.