Every year, thousands of Canadians simply sign their lender’s renewal offer without reviewing alternatives.
Unfortunately, this can cost you, as a homeowner thousands of dollars.
Your mortgage renewal is one of the best opportunities to improve your financial position.
What Is a Mortgage Renewal?
When your mortgage term expires, the remaining balance must be renewed into a new term.
This is often every:
- 1 year
- 3 years
- 5 years
Many lenders send renewal offers several months before maturity.
Why You Shouldn’t Automatically Sign
The first offer is rarely the best offer.
Your current lender knows:
- You’re busy
- Renewal seems easy
- Many clients won’t shop around
This creates an opportunity for borrowers to save money by comparing options.
Questions to Ask Before Renewing
Has Your Financial Situation Changed?
You may now qualify for:
- Better products
- Better rates
- Different lenders
Do You Need Flexibility?
Consider:
- Upcoming moves
- Renovations
- Retirement
- Investment purchases
Have Your Goals Changed?
The mortgage that made sense five years ago may not be the best option today.
Renewal Options
Stay With Your Existing Lender
Simple and convenient.
Switch Lenders
Many lenders cover transfer costs.
Potential benefits include:
- Better rates
- Improved features
- Greater flexibility
Fixed or Variable?
Renewal is an ideal time to reassess:
- Risk tolerance
- Budget certainty
- Long-term plans
Increase Payments at Renewal
Many homeowners use renewal as an opportunity to accelerate mortgage repayment.
Even modest increases can save thousands in interest.
Common Renewal Mistakes
1) Accepting the First Offer
2) Focusing Only on Rate
3) Ignoring Penalties
4) Missing Better Features
5) Waiting Until the Last Minute
How Early Should You Start?
Ideally:
4–6 months before maturity.
This provides time to:
- Compare lenders
- Review options
- Negotiate rates
How can I help you?
I review:
- Current mortgage structure
- Rates
- Features
- Future plans
to help clients determine whether staying or switching makes the most sense.
Mortgage Renewal Review
If your mortgage matures within the next 12 months, let’s review your options.
A quick conversation today could save thousands over your next term. Contact me
Sincerely
Janet Hong, AMP, CCRMC
Mortgage Broker – Enrich Mortgage Group
NL: 26-08-JH342-1
AB: 671095
📲 Text 709-763-1844/587-487-5010
📧 mortgages@janethong.ca
🔗 www.janethong.ca
