Every few years, your mortgage comes up for renewal. Your bank sends you a letter with a new rate and a deadline to sign. Most Canadians sign it. Most of them have no idea how much money they just left on the table.
I’m not saying your bank is being dishonest. But I am saying they’re not working for you — they’re working for their shareholders. And there’s a very significant difference.
Here’s what the renewal letter doesn’t tell you.
They’re counting on your inertia
Banks know that the vast majority of clients renew automatically. Switching lenders at renewal time requires effort — paperwork, a new application, potentially legal fees. Banks are betting that you won’t bother. And often, they’re right.
This is why renewal offers from your existing lender are frequently not their most competitive rate. They’re offering you a rate that reflects your likelihood of staying — not a rate designed to win your business in a competitive market.
You have more power than you think
Renewal time is actually when you have the most leverage in your entire mortgage relationship. Your existing lender wants to keep you. New lenders want to win you. That competition is valuable — but only if you use it.
Start the renewal process 120 days before your term ends. Most lenders will honour a rate hold that far out, which means if rates rise before your renewal date, you’re protected. If rates fall, you renegotiate.
Switching lenders is easier than you think
Many homeowners don’t switch at renewal because they assume it’s complicated. In most cases, it’s not. A straight switch at renewal — same mortgage amount, same amortization, new lender — typically involves minimal paperwork and no legal fees. I handle the process for my clients, and most of them are surprised by how straightforward it is.
What a broker does at renewal time — and why it matters
When your renewal comes up, I shop your mortgage across every lender I work with. I negotiate on your behalf. I find you the best combination of rate, terms, and features for your current financial situation — not the situation you were in when you originally signed.
Life changes between mortgage terms. Maybe your income has grown. Maybe you’ve accumulated equity. Maybe your goals have shifted — you want to pay down faster, access equity, or consolidate debt. Renewal time is the perfect moment to reassess all of that, and a broker ensures you’re not leaving any of it on the table.
The Bottom Line
When that renewal letter arrives, don’t sign it right away. Call me first. A 20-minute conversation costs you nothing — and could save you thousands over your next term.
