Mortgage Renewals

When the term on your mortgage expires it is time to renew your mortgage.

At this time you will be able to renegotiate your interest rate based on current market conditions. The bank or financial institution you are currently with will likely offer you a renewal. DON’T TAKE THE FIRST OFFER! It is estimated that over 65% of Canadians simply re-sign their mortgage with the same lender at renewal time. The rate and terms offered are rarely questioned as most people choose to avoid the hassle of renegotiating. Lenders know this and therefore won’t offer the lowest rate or best terms available. A mortgage is typically the largest expense you will ever have and making this mistake will cost you thousands!

Remember that you do not have to renew with the same lender and should always consult with your mortgage broker prior to accepting an offer. In doing this you will ensure yourself the most competitive rate and terms at renewal time.

Early Renewals

It is also possible to renew your mortgage early. You may opt to renew early if the current interest rates are much lower than your existing interest rate. There can be drawbacks to renewing your mortgage early such as payout fees, but these fees are often far less than the money you will save at the new lower interest rate.

If you are not sure if it makes sense to renew early, contact us and we will be glad to run the numbers for you.

Get pre-approved for your renewal in advance

It is always wise to get pre-approved 4 months before your renewal date. This will allow you to hold a rate (see Rate Holds/Rate Locks) and ensure the most competitive rate and term leading up to your date of renewal. If you arranged your mortgage with us, we will be sure to contact you 4 months in advance and help you make the right decisions.