For many Canadians, mortgage renewal is treated like an afterthought — just signing the renewal letter your lender sends.
That’s a costly mistake.

With over $150M in mortgages funded, I’ve seen homeowners save thousands (sometimes tens of thousands) simply by treating renewal like a fresh mortgage shopping opportunity.

1. What is a Mortgage Renewal?

A mortgage renewal happens when your mortgage term ends and you still have a balance remaining. You need to agree to a new term — either with your current lender or a new one.

It’s your chance to:

• Renegotiate your rate

• Change your amortization period

• Adjust payment frequency

• Switch between fixed and variable

2. Why Renewal Time is Your Chance to Save Big

Unlike refinancing mid-term, there are no prepayment penalties at renewal — meaning you can switch lenders freely to get the best rate and terms.

If you simply sign your lender’s offer without shopping around, you could:

• Lock in a higher rate than necessary

• Miss better features elsewhere

• Lose negotiating leverage

3. Renewal Process in Canada (Step-by-Step)

Step 1 — 120 Days Before Renewal:

• Start reviewing your mortgage needs and goals

• Contact your mortgage advisor to compare rates and lenders

Step 2 — Gather Key Details:

• Remaining mortgage balance

• Current interest rate and payment

• Amortization left

• Credit score

Step 3 — Shop Around:

• Compare offers from banks, credit unions, monoline lenders

• Consider fixed vs. variable options based on rate trends

Step 4 — Negotiate:

• Even if you want to stay with your current lender, show them competitor offers

• Ask for rate matches or additional perks

Step 5 — Lock It In:

• Choose your lender and sign the new agreement before your renewal date

4. Factors to Consider at Renewal

• Interest Rate: Fixed vs. variable, short-term vs. long-term

• Amortization Period: Shortening can save interest; lengthening can lower payments

• Prepayment Privileges: How much extra you can pay each year

• Portability: Ability to transfer your mortgage to a new home

• Payment Frequency: Weekly, biweekly, monthly

5. Negotiating Your Mortgage Renewal

Do:

• Get written quotes from at least 3 lenders

• Ask your current lender for their best offer before mentioning other rates

• Factor in features, not just the rate

Don’t:

• Assume loyalty gets rewarded (it often doesn’t)

• Wait until the last week before renewal to start negotiating

• Ignore your credit score — it still matters when switching lenders

6. Renewal Mistakes That Cost Homeowners Thousands

1. Accepting the First Offer — Most lenders start with a “posted” rate that’s higher than necessary.

2. Not Checking the Market — Rates and terms can change daily.

3. Extending Amortization Without Reason — Can add years of extra interest costs.

4. Overlooking Prepayment Privileges — Missing the chance to pay extra and reduce interest.

7. Renewal Strategies for 2025

• Watch Rate Trends: If rates are expected to drop, consider a shorter term or variable rate.

• Consider Lump-Sum Payments: Reduces your principal before renewing, which can lower your total interest.

• Match Your Mortgage to Your Plans: If you plan to move soon, choose a portable mortgage or shorter term.

8. Renewal in Ontario — Special Considerations

• Ontario has some of the highest home prices in Canada — making rate differences more impactful over time.

• Lenders here are competitive, so switching at renewal can often yield better terms.

9. Mortgage Renewal Checklist

✅ 120 days before renewal: Contact mortgage advisor
✅ Compare at least 3 lender offers
✅ Decide on fixed or variable based on your risk tolerance and rate outlook
✅ Review amortization and payment frequency
✅ Lock in the best offer and sign before renewal date

Final Word: Treat Renewal Like a Fresh Start

In 2025, your mortgage renewal isn’t just paperwork — it’s a money-saving opportunity. Shopping around, negotiating, and making the right changes can save you thousands over your next term.

Renewal coming up?
I’ll shop the market for you, negotiate with lenders, and find the perfect match for your financial goals.

📞 Book a Call