Do you know how many Canadian homeowners quietly accept their bank's renewal offer without doing any research? Too many.
Signing your bank’s first offer (or even the second one) is the easiest way to pay more. They're hoping you'll sign for an easy conversion that makes them more money ("Well, that was easy!" they’ll say.)
Not only might you be paying a higher rate, but your mortgage features may not offer you the flexibility you need, which could allow your bank to make additional cash later from higher fees and penalties if you need a change.
You have options at renewal, including switching lenders for a better deal. So, making noise — ideally with an expert mortgage broker as your megaphone — could help you save thousands over your next term.
When will you get your first renewal offer?
Your mortgage renewal period can technically start up to 6 months before the maturity date (although it’s typically about 4 months). An offer may already be sitting in your online bank account, or your bank rep may inform you by email or mail.
By law, lenders must provide your offer at least 21 days before your term ends. However, your process comfortably needs at least a month if you want to switch lenders or refinance at renewal, so that you don’t end up lapsing into a temporary term at a much higher rate.
Stay or switch, it pays to get loud
Your renewal is the best time to assess your situation and financial goals to determine if switching lenders can help you save.
Many Canadians don’t realize that making a change at renewal is penalty-free. You can adjust your rate type, extend your amortization, or even get cash from home equity without breaking your mortgage and paying a hefty penalty.
Your renewal decision: Quietly stay or boldly switch?
Switching lenders can feel overwhelming, especially if you get queasy at the thought of moving banks.
However, if your best renewal option involves switching, think of it as covering your ears for a one-time noise. After that, you’ll spend the rest of your term happily saving money.
For those who don’t want to make the leap, there are some benefits of staying with your lender at renewal:
- Renew easily with little paperwork and no requalification
- Possible to negotiate a better rate or features to stay (some lenders won’t go lower on rates unless you have proof of another offer)
- Familiarity with your lender's platform and service
- Convenience, if your mortgage and other products are in one place
- Despite paying a higher rate, you may save on other bank services
Here are some benefits of switching to another lender:
- More budget room with a better mortgage rate
- Getting flexible mortgage options that support your financial goals
- Moving your mortgage doesn’t impact your other financial products
- You may get better service
- Peace of mind that you have your best deal
- Many switches can now forego the federal stress test
- The transfer process happens behind the scenes — you won’t need to contact or tell your old lender that your mortgage is moving
- Using an expert mortgage broker can save time and stress
Does it cost money to change lenders?
A mortgage transfer process usually involves additional fees, though some lenders may cover certain ones to make it more enticing to switch:
- Fees may include discharge, mortgage registration, transfer and/or assignment fees
- If needed, an appraisal fee to confirm the value of your property
- Other admin or legal fees may apply depending on your situation (e.g. removing or adding a guarantor)
A professional mortgage broker can help outline whether the savings of a switch outweigh the costs.
A switch doesn’t have to be a headache
Yes, switching involves some effort — requalifying with a new lender, providing docs, transferring your mortgage title, and ensuring the transfer process is completed before your maturity date.
But with an expert broker’s help, it can be surprisingly painless.
A mortgage broker exists to negotiate with multiple lenders on your behalf. They regularly handle mortgage transfers, managing the process from start to finish — and often have access to rate discounts you won’t find on your own or mortgage restrictions you may not spot.
A good broker prioritizes your mortgage needs over lender relationships and beats their big bass drum to secure your best renewal solution.
If your mortgage could talk, it would say ‘shop!’
As of late 2024, nearly 4 million Canadian mortgages are set to renew by the end of 2026, and most haven’t felt the impact of rising rates yet.
So, when your renewal date approaches, don’t stay mum. Whether you decide to stay or switch, make sure to speak up on your terms and not just cave to your lender’s terms.
If you’re looking for a trusted, expert broker to amplify your mortgage savings — look no further than the friendly professionals at True North Mortgage. With over 15,000 5-star reviews, they’ll turn up the volume to find your best renewal solution that saves you money, time, and stress.
An expert True North broker can help you get loud now, so your budget doesn’t scream later. Enjoy a simple mortgage process, in your preferred language. Contact Canada's No. 1 Mortgage Broker today.