Mortgage renewal is your opportunity to reassess your mortgage terms and potentially save thousands of dollars. Most Canadian mortgages have terms of 1-5 years, after which you need to renew. Don't just accept your lender's first offer - you have negotiating power!
Key Facts About Mortgage Renewal
Average Savings
Shoppers can save $3,000-$15,000 over 5 years by comparing rates
Best Time to Shop
Start shopping 4-6 months before your renewal date
Renewal Rate
85% of Canadians stay with their current lender without shopping
Mortgage Renewal Timeline
Review your current mortgage terms and start research
Check your renewal date, current rate, and remaining balance.
Shop around and compare rates from multiple lenders
Get quotes from at least 3-4 different lenders and mortgage brokers.
Receive renewal offer from current lender
Your lender will send a renewal offer. Don't accept it immediately.
Negotiate with your current lender
Use competing offers to negotiate better terms with your current lender.
Make your final decision and complete paperwork
Choose the best option and ensure all documents are signed in time.
Negotiation Strategies
Get Multiple Quotes
Obtain rate quotes from at least 3-4 lenders to use as leverage
Review All Terms
Don't just focus on rate - consider prepayment privileges, portability, and fees
Time Your Negotiation
Start negotiations 3-4 months before renewal for best results
Be Prepared to Switch
Show you're serious by being willing to move to another lender
What You Can Negotiate
Beyond Just the Interest Rate
Interest Rate & Terms
- • Interest rate discount
- • Fixed vs variable rate options
- • Term length (1-10 years)
- • Convertibility options
Features & Privileges
- • Prepayment privileges (10%-25%)
- • Payment frequency options
- • Portability features
- • Skip-a-payment options
Common Renewal Mistakes to Avoid
Don't Make These Mistakes
Automatically accepting your lender's first renewal offer
Only shopping for rates at the last minute
Focusing solely on interest rate and ignoring other terms
Not considering the total cost including legal fees for switching
Forgetting to review your payment frequency and amortization
When to Switch Lenders
Consider Switching If:
- • Rate difference is 0.25% or more
- • Better prepayment privileges offered
- • More flexible terms available
- • Poor customer service from current lender
- • Need additional features (HELOC, etc.)
Factor in Switching Costs:
- • Legal fees: $300-$800
- • Appraisal fees: $300-$500
- • Title insurance: $200-$400
- • Administration fees: $100-$300
- • Time and paperwork involved
Sample Negotiation Script
What to Say to Your Lender
Ready to Shop for Your Renewal?
Compare rates from multiple lenders and get the leverage you need to negotiate the best deal.
Compare Renewal Rates