Mortgage Renewal & Strategy

Many homeowners choose to renew with their existing mortgage lender because they believe the offer from their current lender is the best available deal, or they find it time-consuming and difficult to shop around for a better mortgage. Let us help you get the best for your mortgage renewal.

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Understanding Mortgage Renewal

Mortgage renewal occurs when the term of your current mortgage expires, and your lender offers you a new rate and term to continue your financing. While it might feel like just a paperwork task, it is, in fact, one of the few moments in the life of your mortgage when you have genuine leverage to change course. At this point, you can renegotiate with your existing lender or switch to someone new.

When Does Renewal Happen

Typically, mortgages in Canada are structured with terms of 1-, 3-, or 5-year fixed or variable rates, so renewal occurs every one to five years, depending on your contract. Your lender will send a renewal notice well in advance, often 90 to 120 days before the term expires. Starting early gives you time to compare offers, check your credit, and consider whether your current mortgage still suits your needs.

Why Renewal Time Is a Big Opportunity

Renewal is one of the rare moments when you can negotiate the terms of your mortgage without the typical penalties associated with early repayment or restructuring. If you stay with your lender, you may be able to secure a lower rate or better features simply because they want to keep you as a client. If you switch lenders, you may access new products, different features, and potentially significant savings.

Comparing Your Optionsheader decoration

At your next mortgage renewal, you will face a choice: remain with your current lender under new terms, or move your mortgage to a new lender.

At The Mortgage Advisors, we will look at both approaches side by side: obtain quotes from multiple lenders, review any penalties or costs involved in moving or restructuring your mortgage, and compare both rates and features.

Stay or Switch: What’s Best for You?

When deciding whether to switch or stay with the current lender, the best choice often depends on your priorities, such as whether you value convenience or long-term savings and flexibility more.

Staying

  • Pros: minimal paperwork, no need to re-qualify (in many cases), familiar lender.
  • Cons: may miss out on better rates in the market; may settle for less favourable features.

Switching

  • Pros: opportunity to reduce interest rate, improve flexibility, shorten amortization, or change payment structure.
  • Cons: may involve legal or administrative costs; may require an appraisal; may take longer to qualify with a new lender.

Rate Isn’t Everything

While securing a competitive mortgage renewal rate in Ontario is essential, focusing only on the number can be misleading. Features like prepayment rights, portability, flexibility to change amortization or term, and the mortgage’s structural features all affect long-term cost and risk.

Renewal Strategies to Save Moreheader decoration

Renewal is an opportunity to realign your financing with your current goals and market conditions.

Consider Your Financial Goals

Your situation may have changed since you signed the original mortgage: you may have paid down a substantial principal, increased your income, or adjusted your financial goals. Renewal time is an opportunity to refinance or access home equity, consolidate higher-interest debt (like credit cards or HELOCs) into your mortgage, or shorten your amortization to save interest.

Fixed or Variable? Reassessing Your Comfort Level

Fixed-rate mortgages offer predictability: your interest rate and payments remain constant for the term, which can be very appealing in an uncertain market. Variable-rate mortgages usually start at a lower rate and may decrease if interest rates drop, but they also carry the risk of a rate increase.

If you are considering a mortgage renewal in Canada, be sure to review the current market conditions and ask your mortgage broker how they may affect variable or fixed rates in the coming years.

Common Renewal Mistakes to Avoid

  • Signing the renewal offer without shopping around: default renewal offers often come with fewer favourable features or higher rates.
  • Ignoring the term length and amortization: renewing a 5-year term when you really want shorter flexibility can lock you in.
  • Overlooking portability and flexibility: if you plan to move or sell your home, a non-portable mortgage may cost more when you relocate.
  • Focusing solely on the rate: a lower rate with restrictive terms can cost you more in missed opportunities or penalties.

 

Getting Ready for Renewal

Documents You’ll Need

  • Your latest mortgage statement (balance, term end date)
  • Proof of income (recent pay stub or T4, or income verification for self-employed)
  • Recent property tax bill and homeowner’s insurance certificate
  • Any other debt information, if you plan to refinance or consolidate

Timing and Preparation Tips

  • Start the renewal process four to six months before your current term expires.
  • Make sure your credit score is healthy and your income is stable – any major credit changes (new debt, missed payments, job change) can reduce your bargaining power.
  • Choose the right mortgage broker early. Working with an experienced broker gives you access to multiple lenders and ensures you understand every option available.

 

Why Work With The Mortgage Advisors

Mortgage brokers like The Mortgage Advisors act as your advocate in the market, with access to dozens of lenders and renewal offers that may not be directly visible to you. Choosing the right renewal option is a big decision to make, and having a trusted broker by your side keeps things efficient and transparent.

What We Do for You

  • Assess the market. We know what’s going on in the marketplace. With over 30 different lenders, we can help you find the best interest rate and options for your renewal. A lower rate with flexible pre-payment options can save you thousands over the life of your mortgage.
  • Manage all documentation. We will collect your statements, tax information, and property details and send them to lenders on your behalf. We will also track the progress of your application and keep you informed every step of the way.
  • Explain the math. You’ll find a number of mortgage options to choose from. Reviewing the numbers with your Mortgage Broker can help you choose one that best suits your needs. A low rate is just one part of the mortgage to consider; fixed or variable, prepayment options, transferable, and portability are all very important features to understand the risks of each mortgage.
  • Provide a cost breakdown. There could be a few fees and costs associated with this process if you choose to transfer to a new lender or restructure your mortgage: legal and administrative costs for transferring the mortgage, appraisal, and mortgage discharge fee. However, many lenders will pick up and absorb these costs to earn your business with No Fee Transfers.

How Working With Us Saves Time and Stress

With a good track record of paying your mortgage, banks and lenders want your business and will compete for it. By working with a broker, you benefit from multiple competing offers instead of one. With a variety of rates, terms, and a selection of innovative mortgage products, you could potentially save thousands by shopping around.

Connect with us today, and we’ll walk you through each step, explain every option, and do the legwork so you are confident in your decision. If you’ve decided that moving to a new lender or adjusting your mortgage will save you money, gather your documents and let us handle the process.

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Before you sign that renewal…wait!

Talk to a Mortgage Advisor – you have more options than you may think.

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