If your mortgage is coming up for renewal, you have a decision to make. Most homeowners simply sign and return the renewal letter their lender sends. That is a mistake.
Why You Should Never Auto-Renew
When your current mortgage term ends, your lender sends a renewal offer — usually 30-120 days before matyours date. This offer is almost never their best rate. It is a starting point, not a final offer.
By shopping around at renewal time, you can:
- Get a lower interest rate (often 0.25% - 0.75% lower)
- Switch to better terms (prepayment privileges, penalty structure)
- Change your amortization or payment frequency
- Switch lenders entirely with minimal cost (often zero)
Your Renewal Checklist
4-6 Months Before Renewal
- [ ] Check your renewal date. It is on your mortgage statement or commitment letter.
- [ ] Review your current mortgage details. What is your rate, term, balance, and amortization remaining?
- [ ] Assess your financial situation. Has your income changed? New debts? Plans to move?
- [ ] Contact a mortgage broker. We can start shopping rates months before your renewal date.
2-4 Months Before Renewal
- [ ] Compare offers. Your current lender's renewal offer vs. what other lenders are offering.
- [ ] Evaluate your options. Stay with your current lender at a better rate, or switch?
- [ ] Consider your term length. Fixed vs. variable? 3-year vs. 5-year? This depends on market conditions and your plans.
- [ ] Get pre-approved with a new lender if switching (rate hold protects you).
1-2 Months Before Renewal
- [ ] Make your decision. Stay or switch?
- [ ] If staying: Negotiate the best rate with your current lender using competing offers.
- [ ] If switching: Complete the application with the new lender. They handle the transfer.
- [ ] Confirm no penalty. Switching at renewal is typically penalty-free.
At Renewal
- [ ] Read the fine print. Prepayment limits, penalty calculations, portability.
- [ ] Confirm the rate. Make sure it matches what was promised.
- [ ] Sign and return. Either the renewal with your current lender or the commitment with the new one.
Can I Switch Lenders at Renewal?
Yes — and it often costs you nothing. At renewal, your mortgage term has ended, so there is no prepayment penalty. The new lender typically covers transfer and legal costs through a "switch" program.
Switching takes about 2-3 weeks and requires:
- A new mortgage application (we handle this)
- An appraisal (sometimes waived for switches)
- A lawyer to register the new mortgage
What Rate Should I Expect in 2026?
Rates change regularly, so we do not publish specific numbers that may be outdated by the time you read this. What we can tell you:
- Variable rates are influenced by the Bank of Canada overnight rate.
- Fixed rates are influenced by government bond yields.
- Your specific rate depends on your credit, income, property type, and loan-to-value ratio.
The best way to know your rate is to get a personalized quote.
The Cost of Not Shopping Around
On a $400,000 mortgage with 20 years remaining:
| Rate Scenario | Monthly Payment | 5-Year Interest Cost | |---|---|---| | Lender's initial renewal offer | $2,607 | $95,420 | | Negotiated / broker rate (0.5% lower) | $2,498 | $86,870 | | Your savings | $109/month | $8,550 |
That is $8,550 saved over one 5-year term, with about 30 minutes of effort.
Start Early
The earlier you start, the more options you have. Most lenders will hold a rate for 90-120 days, so starting 4-6 months early gives you maximum flexibility.
Have mortgage questions?
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