Renewal
Mortgage Renewal
Your renewal is your best opportunity to save. Most homeowners simply sign their lender's offer and leave thousands of dollars on the table. We shop 40+ lenders to make sure you don't.
Renewal at a Glance
Don't Just Sign the Renewal Letter
Lenders count on the fact that most borrowers will sign their renewal offer without shopping around. The rate on your renewal letter is almost never the best rate available. Signing without comparing is one of the most common and costly mistakes homeowners make. A simple rate comparison takes minutes and can save you thousands.
Why It Matters
Why You Should Shop Your Renewal
Better Rates Are Available
Your current lender's renewal offer is rarely their best rate. Lenders reserve their most competitive pricing for new business. Shopping around typically saves 0.20% to 0.50% or more.
Save Thousands Over Your Term
On a $500,000 mortgage, a 0.30% rate reduction saves approximately $4,500 over a five-year term. That is money that stays in your household instead of going to your lender.
Switch Lenders at No Cost
At renewal, you can transfer your mortgage to a new lender with no prepayment penalty. Many lenders also cover the legal and appraisal costs to switch, making it completely free.
Improve Your Terms
Renewal is the time to renegotiate prepayment privileges, portability options, penalty calculation methods, and other features that could save you significantly during the next term.
Your Timeline
Renewal Timeline
Start early, stay informed, and close with confidence. Here is how the process unfolds.
Start Shopping Early
Contact us at least 120 days before your maturity date. This gives us time to secure rate holds from multiple lenders while you still have full negotiating power.
Compare Offers
We present you with competitive options from our lender network. You compare rates, terms, and features side by side to identify the best fit for your next term.
Lock In Your Rate
Once you choose a lender, we lock in your rate with a rate hold (typically 90 to 120 days). If rates drop before closing, most lenders honour the lower rate automatically.
Seamless Transition
Your new mortgage takes effect on your maturity date. If switching lenders, the transfer is handled by a lawyer and the process is straightforward with no gap in coverage.
Know the Difference
Renewal vs. Refinance
They sound similar but serve different purposes. Understanding the distinction helps you choose the right path.
| Feature | Renewal / Transfer | Refinance |
|---|---|---|
| What it is | Renewing or transferring your existing mortgage at the same balance | Replacing your mortgage with a new, typically larger mortgage |
| Prepayment penalty | None if done at maturity; switch to new lender is penalty-free | Penalty applies if breaking your mortgage before maturity |
| Access equity | No, your mortgage balance stays the same | Yes, borrow up to 80% of your home's value |
| Costs | Often zero (new lender covers transfer costs) | Legal fees, appraisal, and potential penalty if mid-term |
| Qualification | Simpler, especially with your existing lender | Full requalification including stress test at qualifying rate |
Common Questions
Mortgage Renewal FAQ
If you do not respond to your lender's renewal offer, most lenders will automatically renew your mortgage into an open or convertible term at a posted rate, which is almost always significantly higher than what you could negotiate. You will not lose your home, but you will pay more than necessary. We recommend reaching out to us at least 120 days before maturity to explore your options.
No. At your maturity date, you are free to transfer your mortgage to any lender without a prepayment penalty. The new lender typically covers the legal and appraisal costs associated with the transfer, making the switch free for you. You simply need to qualify with the new lender and sign the commitment before your maturity date.
The best choice depends on your risk tolerance, financial situation, and the current rate environment. Fixed rates provide payment certainty and protection against rate increases. Variable rates have historically cost less over time but come with the risk of rising payments if the Bank of Canada raises its overnight rate. We walk you through the scenarios so you can choose confidently.
If you stay with your current lender, you can usually adjust payment frequency (monthly, biweekly, accelerated biweekly) without issue. Changing your amortization typically requires a full refinance. If you switch to a new lender, you may have more flexibility to adjust amortization as part of the transfer, depending on the lender's policies and your qualification.
You can begin exploring options as soon as 120 to 150 days before your maturity date. Many lenders offer rate holds of 90 to 120 days, which means we can lock in a competitive rate well in advance. Starting early also gives you leverage if your current lender comes back with a counter-offer, since you will have competing options to compare against.
No. Renewal letters almost never contain the lender's best available rate. They are a starting point, not a final offer. The rate on a renewal letter is typically 0.20% to 0.60% higher than what the same lender would offer a new borrower. By working with us, you access rates from 40+ lenders and your current lender will often match or beat the competition to keep your business.
Your Renewal Deserves a Second Opinion
Share your renewal date and current rate. We'll show you what 40+ lenders are offering so you can renew with confidence.