Your Renewal Letter Arrived. Here's Why You Shouldn't Just Sign It.

A few months before your mortgage term ends, your lender sends a renewal offer. It's easy to sign and send back. That convenience is exactly what it's designed for, and it's why renewal is the single most overlooked money-saving moment in home ownership.

Why the first offer is rarely the best offer

Your lender knows most borrowers don't shop around at renewal. The initial offer is often at or near posted rates, with room to negotiate that most people never use. Meanwhile, other lenders actively want your business and will price accordingly.

The 120-day window

Most lenders will hold a rate for up to 120 days. That means the ideal time to start reviewing your options is about four months before your maturity date. The renewal reminder tool will put that date in your calendar. Starting early gives you:

• A locked rate as protection if rates rise
• Time to gather documents without a deadline looming
• Leverage when you go back to your current lender

What a "switch" actually involves

A straight switch moves your mortgage to a new lender at maturity without changing the balance or remaining amortization. It has become much simpler in recent years:

• The new lender often covers the legal, appraisal, and transfer costs
• Many switches don't require re-qualifying under the stress test when the amount and amortization stay the same, though rules vary and change
• Your day-to-day banking doesn't have to move

If you want to change the amount, such as taking equity out, that becomes a refinance rather than a switch and follows different rules.

Questions to ask before you renew

1. What rate is my current lender offering, and is it their best? Ask directly. It often improves when you say you're comparing.
2. Has my situation changed? A new job, a raise, paid-off debts, or improved credit can qualify you for better products.
3. Do I want a different term or type? Renewal is the one time you can change from fixed to variable, or from a five-year term to a shorter one, without penalty.
4. Should I adjust my amortization or payments? Increasing payments or shortening amortization at renewal can cut years off your mortgage.
5. Do I need to access equity? If yes, a refinance at renewal avoids penalties since your term is ending anyway.

What happens if you do nothing

Some lenders automatically renew you into a term you didn't choose, occasionally at an unfavourable rate or even into an open mortgage with a much higher rate. Read the fine print on the renewal notice and make an active decision.

The bottom line

Renewal takes a little effort and can save a meaningful amount over the next term. Send over your renewal letter as soon as it arrives and we'll compare it against the market. If your current lender really is the best option, you'll know that with confidence rather than by default.

This article is general information, not personalized advice. Lender policies and qualifying rules change. Reviewed September 2026.