Your mortgage renewal is more than just a signature on a dotted line—it’s an opportunity to reassess, renegotiate, and maybe even save thousands of dollars. Yet, many homeowners in Canada miss this chance by simply accepting their lender’s first offer. Let’s dive into three key aspects of mortgage renewal that could put you in a stronger financial position.
1. Can I Negotiate a Better Rate When Renewing My Mortgage?
Yes, you absolutely can—and you should! Many lenders don’t offer their best rates upfront during the renewal process. Why? Because they’re banking on convenience. Most people stick with their current lender because it feels easier.
Here’s the truth: A little negotiation can go a long way. Your lender wants to keep your business, and they know you have options. Use that to your advantage.
💡 How to Negotiate Like a Pro:
Start early: Begin the renewal process 3-4 months before your term ends to give yourself time to compare rates and negotiate.
Do your homework: Research current market rates or work with a mortgage broker to find the most competitive options.
Leverage your loyalty: If you’ve been a good customer, remind your lender of that—loyalty can often lead to rate discounts or waived fees.
👩💼 From my experience: I’ve helped countless clients negotiate rates that saved them thousands over the life of their mortgage. The key is knowing what’s fair and not being afraid to ask!
2. What Happens If I Don’t Renew My Mortgage Before the Term Ends?
Life gets busy, but letting your mortgage renewal date slip by can be costly. If you don’t take action, your lender may automatically place you in an open mortgage. While this might seem convenient, open mortgages often come with much higher interest rates, costing you significantly more each month or it could lock you in for a period of time.
📅 Avoid the Renewal Rush:Set a reminder at least 120 days before your renewal date. Most lenders allow you to lock in a rate up to four months in advance, giving you time to explore your options without the pressure of a looming deadline.
👩💼 From my desk: I’ve seen clients breathe a sigh of relief when they realize they can avoid higher rates just by being proactive. Let’s set that reminder together!
3. Should I Switch Lenders When Renewing My Mortgage?
Renewal time is the perfect opportunity to ask yourself: Am I still getting the best deal with my current lender? Switching lenders might seem like a hassle, but the potential savings could make it well worth your while.
When deciding whether to switch, here are a few things to consider:
1️⃣ Interest Rates: Can another lender offer a lower rate that saves you money over the life of your mortgage?
2️⃣ Switching Costs: While many lenders cover transfer fees, make sure to factor in potential costs like appraisal or legal fees.
3️⃣ Better Terms: Could another lender offer terms that better align with your financial goals, like flexible prepayment options?
👩💼 Why work with me? I handle all the details—comparing lenders, assessing costs, and making the switch as smooth as possible. Whether you stick with your current lender or switch, I’ll make sure it’s the best decision for you.
The Bottom Line
Your mortgage renewal is a golden opportunity to save money and ensure your mortgage fits your current needs. Whether it’s negotiating a better rate, avoiding costly mistakes, or exploring new lenders, the key is to start early and stay informed.
👉 Ready to explore your options?
Let’s make your renewal stress-free and tailored to your goals.
Fill out my contact form or book a free consultation today!
📞 Call/Text: 613-969-7655
📧 Email: cheryl.hartwick@mortgageedge.ca
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