Alterna Mortgage review

Rates on offer

We read the Alterna Savings rates page on October 14, 2026. Rates change often, and some of Alterna’s tables carry older effective dates, so confirm current pricing with Alterna before you apply. Alterna groups its closed rates by down payment. Smart Start rates are for insured buyers with under 20% down on an owner-occupied home under $1.5M, with a 25-year amortization; they also apply to insured switches but not to renewals. Signature rates are for borrowers with 20% or more down. Every rate is shown with an APR.

Alterna doesn’t publish 7-year or 10-year rates, although it mentions terms up to 10 years, and it shows no insured 1-, 2- or 4-year rates. Closed fixed rates:

• Smart Start: 4.59% for 3 years, 4.69% for 5 years (effective October 1, 2026)
• Signature: 5.69% for 1 year, 5.39% for 2 years, 4.94% for 3 years, 5.04% for 4 and 5 years (effective October 1, 2026)
• Posted: 6.55% for 1 year, 6.25% for 2 years, 5.74% for 3 years, 6.44% for 4 years, 6.04% for 5 years (effective March 25, 2026)
• 6-month term: 6.79% at both the Signature and posted rate

Variable rates and prime

Alterna Prime was 4.45% when we checked. The Smart Start 5-year variable was 3.70% (APR 3.74%), and Signature variables were 4.15% for 5 years and 4.25% for 3 years. By our calculation those are prime minus 0.75%, 0.30% and 0.20%; Alterna doesn’t state the spreads. The Signature variable table shows an effective date of October 31, 2025, and Alterna publishes no posted variable rate. You can convert a variable to fixed without a penalty if the new term is equal or longer.

Prepayment privileges

Alterna’s prepayment guide says that each calendar year you can make lump sums of up to 20% of the original principal and raise payments up to double, with the two combined capped at 20% of the original principal. The website lists a 20% lump sum and payment increases of up to 100%, and the guide is undated, so ask which limits apply to your mortgage. Open terms are available too: 6-month and 1-year open fixed rates were 8.25% and 8.50% for Signature borrowers, and 8.50% and 8.75% posted, with a May 28, 2025 effective date.

Penalties and portability

These terms come from an undated Alterna PDF guide, so confirm them before you sign. Breaking a fixed mortgage costs the greater of 3 months’ interest or an interest rate differential, which Alterna calculates against the posted rate for a similar term minus your discount, plus any unamortized incentives. Breaking a variable costs 3 months’ interest. If you move, you can port your existing rate and term to the new property. Alterna also offers blend and extend, and lets a buyer assume your mortgage. Cash back must be repaid pro-rata if you break a cash back mortgage.

Features and how to apply

Alterna Savings is a credit union. New mortgages come with a 120-day rate guarantee, shortened to 30 days on renewals. Alterna offers incentives of up to $1,000 toward switching or legal fees, plus cash back mortgages, though it doesn’t publish the cash back amounts or rates. Amortization can reach 30 years, except on Smart Start rates, which require 25 years. Payments can be accelerated weekly, biweekly or semi-monthly. The pages we read focus on rates and features, so ask Alterna about membership and its application steps.