Mortgage Renewal Guide: How to Save Thousands at Renewal Time

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